Annual report pursuant to Section 13 and 15(d)

Property and equipment, net

Property and equipment, net

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

4. Property and equipment, net

Property and equipment, net, consisted of the following as of December 31:

	Useful Life
Asset Class	(Years)	2015			2014
Demonstration equipment	5	$	297,347		$	196,671
Shop equipment	5		58,638			18,750
Lab equipment	5		51,508			-
Computer equipment	3		71,519			11,089
Leasehold improvements	5-7		1,086,351			15,848
Office equipment	5		9,238			4,581
Building under construction	25		5,681,435			-
Equipment under construction	10		595,210			-
Land	-		1,047,503			-
			8,898,749			246,939
Less: accumulated depreciation			(90,362	)		(1,298	)
		$	8,808,387		$	245,641

Depreciation expense was $89,064 and $1,298 for the year ended December 31, 2015 and for the period from inception (June 20, 2014) through December 31, 2014, respectively. Building under construction is the 136,750 square foot lead acid battery recycling plant being built in McCarran, NV. Equipment under construction is AquaRefining modules manufactured by the Company to be used in the McCarran, NV recycling plant.

Certain costs necessary to make the recycling facility ready for its intended use have been capitalized, including interest expense on notes payable. Capitalized interest totaled $98,333 and $0 for the year ended December 31, 2015 and period ended December 31, 2014.