Quarterly report pursuant to Section 13 or 15(d)

Property and equipment, net

Property and equipment, net

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

3. Property and equipment, net

Property and equipment, net, consisted of the following for the dates indicated:

	Useful Life		March 31,			December 31,
Asset Class	(Years)		2016			2015

Demonstration equipment		5	$	297,347		$	297,347
Shop equipment		5		170,329			58,638
Lab equipment		5		172,097			51,508
Computer equipment		3		93,999			71,519
Leasehold improvements		5-7		1,380,309			1,086,351
Office equipment		5		87,442			9,238
Building under construction		25		9,924,415			5,681,435
Equipment under construction		10		2,014,814			595,210
Land		-		1,047,503			1,047,503
				15,188,255			8,898,749
Less: accumulated depreciation				(168,124	)		(90,362	)

			$	15,020,131		$	8,808,387

Depreciation expense was $77,762 and $3,846 for the three months ended March 31, 2016 and March 31, 2015, respectively. Building under construction is the 136,750 square foot lead acid battery recycling plant being built in McCarran, Nevada. Equipment under construction is AquaRefining modules manufactured by the Company to be used in the McCarran, Nevada 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 $151,667 and $0 for the three months ended March 31, 2016 and March 31, 2015.