Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

3.	PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

	March 31, 2017			December 31, 2016
Computer hardware and software	$	96,131		$	96,131
Office furniture and equipment		265,162			259,138
Leasehold improvements		188,219			188,219
Property and equipment, gross		549,512			543,488
Less: accumulated depreciation		(139,726	)		(108,237	)
Property and equipment, net	$	409,786		$	435,251

Depreciation expense was $31,489 and $17,825 for the three months ended March 31, 2017 and 2016, 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 4 for details of this capital lease commitment.