Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

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Property and Equipment
 6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Property and Equipment

4. PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

 

    June 30, 2017     December 31, 2016  
             
Computer hardware and software   $ 114,938     $ 96,131  
Office furniture and equipment     281,391       259,138  
Leasehold improvements     191,244       188,219  
Construction in progress     3,624       —  
Property and equipment, gross     591,197       543,488  
Less: accumulated depreciation     (172,689 )     (108,237 )
Property and equipment, net   $ 418,508     $ 435,251  

 

Depreciation expense was $32,963 and $19,945 for the three months ended June 30, 2017 and 2016, respectively and $64,452 and $37,230 for the six months ended June 30, 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 5 for details of this capital lease commitment.