Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

9 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

4.	PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

	September 30, 2016			December 31, 2015

Computer hardware and software	$	69,213		$	40,202
Office furniture and equipment		171,099			35,209
Leasehold improvements		145,632			19,310
Construction in progress		37,751			83,765
Property and equipment, gross		423,695			178,486
Less: accumulated depreciation		(78,267	)		(54,348	)
Property and equipment, net	$	345,428		$	124,138

Depreciation expense was $20,464 and $14,701 for the three months ended September 30, 2016 and 2015, respectively and $57,695 and $26,242 for the nine months ended September 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 that was not placed in service until January 2016 upon the Company’s relocation into 6,326 square feet of office space. At September 30, 2016, construction in progress consisted of purchased property and equipment that will not be placed in service until the Company begins occupation of an additional 4,088 square feet of office space in November 2016. (See Note 5).