Annual report pursuant to Section 13 and 15(d)

Property and Equipment

Property and Equipment
12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
Property and Equipment



Property and Equipment consisted of the following:


    December 31,  
    2017     2016  
Computer hardware and software   $ 136,522     $ 96,131  
Office furniture and equipment     287,048       259,138  
Leasehold improvements     191,244       188,219  
Construction in progress     1,181,730        
Property and equipment, gross     1,796,544       543,488  
Less: accumulated depreciation     (363,889 )     (108,237 )
Property and equipment, net   $ 1,432,655     $ 435,251  


Depreciation expense was approximately $256,000, $88,000 and $44,000 for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, construction in progress consisted of purchased property and equipment not placed in service until the Company’s relocation into 32,733 square feet of office space in February 2018 (See Note 5).


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.