Property, Plant and Equipment

2. PROPERTY, PLANT AND EQUIPMENT

As of September 30, 2014 and December 31, 2013, our property, plant and equipment, net, consisted of the following:

	September 30, 2014			December 31, 2013
Land		300,000			300,000
Buildings		3,800,000			3,800,000
Leasehold Improvements		19,225			19,225
Software		27,721			27,721
Equipment		670,183			670,183
Vehicles and prototypes		164,959			164,959
		4,982,088			4,982,088
Less accumulated depreciation		(869,403	)		(574,827	)
		4,112,685			4,407,261

On March 13, 2013 the Company acquired the operating assets of Workhorse Custom Chassis, LLC, an unrelated company located in Union City, Indiana. The following summarizes the consideration paid, and the components of the purchase price and the related allocation of assets acquired and liabilities assumed.

Consideration
Cash at closing	$	2,750,000
Secured debenture		2,250,000
	$	5,000,000
Assets acquired
Inventory	$	400,000
Equipment		500,000
Land		300,000
Buildings		3,800,000
	$	5,000,000

Valuation methods used for the identifiable assets acquired in the acquisition make use of fair value measurements based on unobservable inputs and reliance on management’s assumptions that similar market participants would use in pricing the assets. As such, the fair value measurements represent a Level 3 input.

- 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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