Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

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Property and Equipment, Net
 12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

5. PROPERTY AND EQUIPMENT, NET

 

Property and equipment consist of the following:

 

    For Year Ended  
    December 31, 2016     December 31, 2015     September 30, 2015  
Machinery and equipment   $ 1,596,068     $ 1,180,344     $ 496,543  
Vehicles and trailers     1,925,181       1,475,237       1,009,004  
Network Services Platform     433,912       -       -  
Computer equipment and software     325,271       186,763       114,642  
      4,280,432       2,842,344       1,620,189  
Less: accumulated depreciation     (813,913 )     (297,847 )     (201,149 )
    $ 3,466,519     $ 2,544,497     $ 1,419,040  

 

The Company has begun the development of a new network infrastructure services platform, which upon completion, intends market and implement to customers, in the production of revenue. As of December 31, 2016, the capitalized cost of this new system is $433,912, and is not being depreciated as it is still work in progress.

 

The Company leases various equipment under capital leases. Assets held under capital leases are included in property and equipment as follows:

 

    For Year Ended  
    December 31,
2016 		    December 31,
2015 		    September 30,
2015 		 
Machinery & equipment   $ 1,412,709     $ 1,030,733     $ 352,157  
Less: accumulated depreciation     (231,406 )     (44,424 )     (11,108 )
    $ 1,181,303     $ 986,309     $ 341,049  

 

Depreciation expense for the years ended December 31, 2016, transitional three months ended December 31, 2016, and year ended September 30, 2015 was $516,066, $96,698, and $108,324, respectively.