Property and Equipment

3 Months Ended

Mar. 31, 2014

Major classes of property and equipment consisted of the following for each of the periods presented below:

	MARCH 31,			DECEMBER 31,
	2014			2013
	(Unaudited)
Land and building	$	677,054		$	677,054
Computer hardware and software		2,071,356			2,052,280
Furniture and fixtures		218,939			218,939
Leasehold improvements		368,596			368,596
Automobile		2,400			2,400
Gross property and equipment		3,338,345			3,319,269
Less: accumulated depreciation and amortization		(1,872,287	)		(1,773,318	)

Property and equipment, net	$	1,466,058		$	1,545,951

There were no changes in the estimated useful life used to depreciate property and equipment for each of the three month periods ended March 31, 2014 or 2013. For each of the three month periods ended March 31, 2014 and 2013, property and equipment depreciation expense recorded was approximately $99,000 and $88,800, respectively. For each of the three month periods ended March 31, 2014 and 2013, there were no material sales or disposals of owned property and equipment.

Included in property and equipment are certain equipment purchases acquired under capital lease arrangements. For each of the three month periods ended March 31, 2014 and 2013, the Company did not enter into any capital lease arrangements. See Note 7 for additional information about historical capital lease obligations. Total capitalized cost of equipment under capital leases at March 31, 2014 and December 31, 2013 was approximately $477,500. For the three month periods ended March 31, 2014 and 2013 depreciation expense for leased equipment was approximately $14,700 and $14,700, respectively. Accumulated depreciation for leased equipment at March 31, 2014 and December 31, 2013 was approximately $423,600 and $408,900, respectively. For the three month periods ended March 31, 2014, there were no disposals of leased equipment. Total net book value of assets under capital leases at March 31, 2014 and December 31, 2013 was approximately $53,900 and $68,600, respectively.

- 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.

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