Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.19.1
Property and Equipment
 12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment

NOTE 9 – PROPERTY AND EQUIPMENT

 

At December 31, 2018 and 2017, property and equipment consisted of the following:

 

    2018     2017  
Land   $ 3,392,710     $ 3,392,710  
Buildings and building improvements     13,566,144       3,918,359  
Tenant improvements     5,348,882       2,260,512  
Furniture and fixtures     114,160       95,815  
Machinery and equipment     1,632,351       506,464  
Construction in progress     12,205,447       17,279,949  
      36,259,694       27,453,809  
Less: accumulated depreciation     (2,159,830 )     (1,498,878 )
Property and equipment, net   $ 34,099,864     $ 25,954,931  

 

During the years ended December 31, 2018 and 2017, additions to property and equipment were approximately $8.9 million and $21.0 million, respectively.

 

The 2017 additions were primarily comprised of (i) the purchase of properties in Hagerstown, MD, and Middleborough, MA, (ii) the purchase of land and property in New Bedford, MA, (iii) the start of construction at these three locations, and (iv) continuing improvements at the Lewes, DE, Anna, IL, and Harrisburg, IL locations. The 2018 additions consisted primarily of the continued buildout of both locations in MA and the location in MD.

 

The 2017 construction in progress balance of approximately $17.3 million consisted of the following:

 

  · $11.2 million – Hagerstown, MD building, machinery, improvements, and fixtures;
  · $5.0 million – New Bedford, MA building and improvements; and
  · $1.1 million – Middleborough, MA building

 

During 2018, the $11.2 million of Hagerstown, MD construction in progress was placed into service, and the 2018 construction in progress balance of approximately $12.2 million was primarily comprised of:

 

  · $9.8 million – New Bedford, MA building, improvements and machinery; and
  · $2.4 million – Middleborough, MA building, improvements and fixtures.

 

Depreciation expense for the years ended December 31, 2018 and 2017 was approximately $658,000 and $363,000, respectively.