Annual report pursuant to Section 13 and 15(d)

Property and Equipment

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Property and Equipment
 12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 5 – Property and Equipment

 

Property and equipment at December 31, 2017 and 2016 consisted of the following:

 

    December 31, 2017     December 31, 2016  
             
Medical equipment   $ 696,195     $ 696,195  
Building     1,359,472       -  
Equipment     476,548       437,029  
Equipment under capital leases     4,686,736       4,497,025  
Furniture     222,824       222,824  
Leasehold improvements     1,303,131       1,303,131  
Vehicles     196,534       196,534  
Computer equipment     226,441       203,442  
Software     631,033       631,033  
      9,798,914       8,187,213  
Less accumulated depreciation     (7,103,474 )     (5,388,164 )
Property and equipment, net   $ 2,695,440     $ 2,799,049  

 

On January 13, 2017, the Company completed an asset purchase agreement to acquire certain assets related to the Big South Fork Medical Center, based in Oneida, Tennessee (the “Hospital Assets”). Big South Fork Medical Center is classified as a Critical Access Hospital (rural). The Company acquired the Hospital Assets out of bankruptcy for a purchase price of $1.0 million, and the purchase price has been recorded as property and equipment. The Company opened the hospital on August 8, 2017.

 

Depreciation expense on property and equipment was $1.7 million and $2.4 million for the years ended December 31, 2017 and 2016, respectively. During the year ended December 31, 2016, the Company determined that some of the equipment within the Clinical Laboratory Services business segment was impaired and the Company recorded an impairment charge of $1.0 million.