Quarterly report pursuant to Section 13 or 15(d)

Property And Equipment, Net

Property And Equipment, Net

6 Months Ended

Jun. 30, 2018

Property and equipment at June 30, 2018 and December 31, 2017 are as follows:

	June 30,			December 31,
	2018			2017

Equipment & Installation	$	1,965,659		$	1,965,659
Trucking equipment		1,010,961			1,010,961
Computer equipment and software		117,212			117,212
Office equipment		27,155			27,155
Total equipment		3,120,987			3,120,987

Less: accumulated depreciation		(2,295,799	)		(2,067,786	)
Construction in process		1,807,707			1,675,792
Property and equipment, net	$	2,632,895		$	2,728,993

The Company uses the straight-line method of depreciation over 2 to 5 years. Depreciation expense for the six months ended June 30, 2018 and 2017 was $227,968 and $366,817, respectively. Depreciation expense for the quarters ended June 30, 2018 and 2017 was $63,690 and $187,375, respectively. For the six months ended June 30, 2018 and 2017, depreciation expense recorded as cost of sales were $211,371 and $349,447, respectively. For the six months ended June 30, 2018 and 2017, depreciation expense recorded as sales, general and administrative expenses were $16,643 and $17,370, respectively.