Quarterly report pursuant to Section 13 or 15(d)

Property and equipment, net

Property and equipment, net

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

4.	Property and equipment, net

Property and equipment, net, consisted of the following (in thousands):

	Useful Life		March 31,			December 31,
Asset Class	(Years)		2017			2016

Operational equipment		3-10	$	15,742		$	15,132
Lab equipment		5		551			547
Computer equipment		3		156			140
Office furniture and equipment		5		300			298
Leasehold improvements		5-7		1,408			1,408
Land		-		1,048			1,047
Building		39		23,447			21,962
Asset Retirement Cost		20		670			-
Equipment under construction		10		1,742			1,635
				45,064			42,169
Less: accumulated depreciation				(1,442	)		(777	)

			$	43,622		$	41,392

Depreciation expense was $665,000 and $78,000 for the three months ended March 31, 2017 and March 31, 2016, respectively. The building is a 136,750 square foot lead acid battery recycling plant being built in McCarran, Nevada. Equipment under construction is primarily 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 $152,000 for the three months ended March 31, 2016. Capitalization of interest ceased upon completion of the building in early November 2016.