Annual report pursuant to Section 13 and 15(d)

Property and Equipment

Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

4.	PROPERTY AND EQUIPMENT

Property and Equipment consists of the following:

	December 31,
	2016			2015
Computer hardware and software	$	96,131		$	40,202
Office furniture and equipment		259,138			35,209
Leasehold improvements		188,219			19,310
Construction in progress		—			83,765
Property and equipment, gross		543,488			178,486
Less: accumulated depreciation		(108,237	)		(54,348	)
Property and equipment, net	$	435,251		$	124,138

Depreciation expense was approximately $88,000 and $44,000 for the years ended December 31, 2016 and 2015, respectively. At December 31, 2015, construction in progress consisted of purchased property and equipment not placed in service until the Company’s relocation into 6,326 square feet of office space in January 2016 (See Note 5). In connection with this relocation, the Company wrote off approximately $34,482 of fully depreciated property and equipment.

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.