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]  
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.