Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment
6 Months Ended
Jun. 30, 2016
Property, Plant and Equipment [Abstract]  
Property and Equipment



Property and equipment consisted of the following:


    June 30, 2016     December 31, 2015  
Computer hardware and software   $ 54,760     $ 40,202  
Office furniture and equipment     151,405       35,209  
Leasehold improvements     142,812       19,310  
Construction in progress           83,765  
Property and equipment, gross     348,977       178,486  
Less: accumulated depreciation     (57,803 )     (54,348 )
Property and equipment, net   $ 291,174     $ 124,138  


Depreciation expense was $19,945 and $6,121 for the three months ended June 30, 2016 and 2015, respectively and $37,230 and $11,541 for the six months ended June 30, 2016 and 2015, respectively.


On December 30, 2015, the Company entered into a lease agreement for a copier machine. The cost of the machine was approximately $12,000 and is included in office furniture and equipment category in the table above. The lease payments commenced when the machine was placed in service in January 2016. The machine is being amortized over the life of the lease, which is for a three-year term and includes a bargain purchase option at the end of the term. See Note 5 for details of this capital lease commitment.


At December 31, 2015, construction in progress consisted of purchased property and equipment not placed in service until the Company’s occupation of its new office space in January 2016 (See Note 5).