Property And Equipment
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Dec. 31, 2011
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Property And Equipment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 5 - Property And Equipment |
Property and equipment at December 31, 2011 and 2010 are as follows:
As part of the reverse merger, the Company acquired office equipment with a fair value of $5,706. The Company uses the straight-line method of depreciation over 3 to 10 years. During the year ended December 31, 2011, the Company installed equipment with a total cost of $1,499,080 at the site of its first commercial customer in Centralia, Washington. This equipment is subject to a bargain purchase option on January 1st, 2015 and the Company also bears the cost of asset retirement at the end of the commercial contract should the customer not exercise the purchase option. The Company believes that if required to retire, the scrap value of the equipment would offset the cost of removal. During the years ended December 31, 2011 and 2010, depreciation expense charged to operations was $16,743 and $45, respectively. |