Annual report pursuant to Section 13 and 15(d)

Property and Equipment

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Property and Equipment
 12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Property and Equipment

NOTE 6 – PROPERTY AND EQUIPMENT

 

On October 13, 2015, the Company through its wholly owned subsidiary, Orbital Satcom Corp, purchased from World Surveillance Group, Inc., and its wholly owned subsidiary, Global Telesat Corp the “Globalstar” license and equipment, which it had previously leased. On December 10, 2014, the Company, entered into a License Agreement with World Surveillance Group, Inc., and its wholly owned subsidiary, Global Telesat Corp, by which the Company had an irrevocable non-exclusive license to use certain equipment, consisting of Appliques for a term of ten years. Appliques are demodulator and RF interfaces located at various ground stations for gateways. The Company issued 2,222,222 common shares, valued at $1 per share based on the quoted trading price on date of issuance, or $2,222,222. The company reflected the license as an asset on its balance sheet with a ten-year amortization, the term of the license. On October 13, 2015, the Company acquired the license for additional consideration of $125,000 in cash. The Company valued the asset at $2,160,016, which is the unamortized balance of the Appliques License, $2,043,010 plus the consideration of $125,000.

 

Property and equipment consisted of the following:

 

    December 31, 2016     December 31, 2015  
Office furniture and fixtures   $ 90,728     $ 95,434  
Computer equipment     29,066       24,766  
Appliques     2,160,096       2,160,096  
Website development     100,436       92,399  
                 
Less accumulated depreciation     (401,989 )     (154,002 )
                 
Total   $ 1,978,338     $ 2,218,693  

 

Depreciation expense was $266,803 and $154,002 for the years ended December 31, 2016 and 2015, respectively.