4. BALANCE SHEET COMPONENTS

	December 31, 2015			December 31, 20 14
INVENTORY
On hand:
Finished goods held for sale	$	30,487,764		$	31,257,820
Raw materials and work in process		1,284,567			1,118,506
Inventory in transit		1,812,208			499,166
TOTAL	$	33,584,539		$	32,875,492

PROPERTY AND EQUIPMENT
Building	$	9,232,066		$	9,232,066
Land		1,451,132			1,451,132
Leasehold improvements		1,192,761			775,803
Equipment and machinery		5,086,770			4,978,426
Furniture and fixtures		6,889,642			5,589,989
Vehicles		139,837			172,527
		23,992,208			22,199,943
Less: accumulated depreciation		(8,297,155	)		(7,037,665	)
TOTAL	$	15,695,053		$	15,162,278

PREPAID EXPENSES
Prepaid insurance	$	230,990		$	214,129
Prepaid interest		3,876			-
Prepaid postage		97,801			114,681
Prepaid advertising		384,019			335,764
Prepaid rent		81,797			84,794
Prepaid supplies/equipment		199,466			147,215
Prepaid licenses/dues		117,007			129,781
Prepaid IT services		316,761			210,032
Prepaid other		83,170			112,256
TOTAL	$	1,514,887		$	1,348,652

OTHER CURRENT ASSETS
Accounts receivable – employees	$	30,336		$	78,210
Accounts receivable – other		15,921			15,144
Payments for merchandise not received		23,940			64,404
TOTAL	$	70,197		$	157,758

OTHER ASSETS
Security deposits - utilities, locations, etc.	$	77,684		$	77,979
Leather art collection		252,000			252,000
TOTAL	$	329,684		$	329,979

ACCRUED EXPENSES AND OTHER LIABILITIES
Accrued bonuses	$	2,631,971		$	2,820,774
Accrued payroll		255,058			407,945
Deferred revenue		902,236			934,868
Sales and payroll taxes payable		383,657			490,749
Inventory in transit		1,542,352			447,612
Other		330,278			292,566
TOTAL	$	6,045,552		$	5,394,514

Depreciation expense was $1,520,385, $1,391,422, and $1,152,307 for the years ended December 31, 2015, 2014, and 2013, respectively.

Loss from abandonment and/or disposal of obsolete equipment, which is included in operating expenses, is as follows, by segment: