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3. Property, Plant and Equipment | 12 Months Ended
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Dec. 31, 2017
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment | Property, plant and equipment consist of the following:
|  | December 31, 2017 |  |  | December 31, 2016 |
Land |  | $ | 2,747 |  |  | $ | 2,713 |
Plant and buildings |  |  | 82,652 |  |  |  | 81,755 |
Furniture and fixtures |  |  | 1,003 |  |  |  | 572 |
Machinery and equipment |  |  | 3,972 |  |  |  | 4,308 |
Construction in progress |  |  | 941 |  |  |  | 88 |
GAFI property, plant & equipment |  |  | 15,408 |  |  |  | - |
Total gross property, plant & equipment |  |  | 106,723 |  |  |  | 89,436 |
Less accumulated depreciation |  |  | (27,886 | ) |  |  | (23,066 | )
Total net property, plant & equipment |  | $ | 78,837 |  |  | $ | 66,370 |
Depreciation on the components of the property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as follows:
|  | Years |
Plant and buildings |  |  | 20 - 30 |
Machinery and equipment |  |  | 5 - 7 |
Furniture and fixtures |  |  | 3 - 5 |
The Company recorded depreciation expense of approximately $4.6 million and $4.7 million for the years ended December 31, 2017 and 2016. The Company evaluates the recoverability of long-lived assets with finite lives in accordance with ASC Subtopic 360-10-35 Property Plant and Equipment –Subsequent Measurements, which requires recognition of impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, based on estimated undiscounted cash flows, the impairment loss would be measured as the difference between the carrying amount of the assets and its estimated fair value. We used estimates in coming up with forecasts, we used significant assumptions with regard to the cost of inputs mainly palm stearin, and outputs mainly biodiesel. In addition, a qualified third-party independent appraiser validated the fair value of assets exceeded the carrying amount of the Keyes plant and Kakinada plant confirming the results of the internal impairment evaluation that no impairment was warranted on the plant assets. The third-party independent appraiser used the plant condition and operational ability of the plants as significant assumptions while considering other commodity and market driven conditions. These assumptions were commodity market driven but we also considered the Government regulations, import and export tariffs, availability of alternate low-cost inputs, and potential customer agreements. All assumptions were evaluated based on conditions which the Company believes will become available to increase production at profitable margins in the future. However, the changes in conditions such as government regulations and market conditions affect the operations of the plants and could trigger an impairment in the future. For Keyes plant, the fair value of asset group exceeded the carrying value by 110 percent. For Kakinada plant, the fair value of asset group exceeded the carrying value by 134 percent.

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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