Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Property and Equipment

v2.4.0.6
Note 5 - Property and Equipment
 3 Months Ended
Mar. 31, 2013
Notes  
Note 5 - Property and Equipment

Note 5 – Property and Equipment

 

Property and equipment are as follows:

 

 

March 31,

December 31,

 

2013

2012

 

 

 

Land

$4,772,038

$4,539,314

Plantation development costs

10,186,142

9,229,638

Plantation equipment

1,585,113

1,546,971

Office equipment

302,544

108,598

 

 

 

Total cost

16,845,837

15,424,521

Less accumulated depreciation

(950,752)

(865,518)

 

 

 

Property and equipment, net

$15,895,085

$14,559,002

 

Commencing in June 2008, Asideros I purchased certain equipment for purposes of rapidly clearing the land, preparing the land for planting, and actually planting the Jatropha trees.  The Company has capitalized farming equipment and costs related to the development of land for farm use in accordance with generally accepted accounting principles for accounting by agricultural producers and agricultural cooperatives.  Plantation equipment is depreciated using the straight-line method over estimated useful lives of 5 to 15 years.  Depreciation expense has been capitalized as part of plantation development costs through the date that the plantation becomes commercially productive.  The initial plantations were deemed to be commercially productive on October 1, 2009, at which date the Company commenced the depreciation of plantation development costs over estimated useful lives of 10 to 35 years, depending on the nature of the development.  Developments and other improvements with indefinite lives are capitalized and not depreciated.  Other developments that have a limited life and intermediate-life plants that have growth and production cycles of more than one year are being depreciated over their useful lives once they are placed in service.  The land, plantation development costs, and plantation equipment are located in Mexico and in Belize.  The company has recorded depreciation expense in the three month periods ended March 31, 2013 and 2012 of $57,501 and $68,743, respectively.