Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

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Property, Plant and Equipment
 3 Months Ended
Mar. 31, 2015
Property, Plant And Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
2. PROPERTY, PLANT AND EQUIPMENT

 

As of March 31, 2015 and December 31, 2014, our property, plant and equipment, net, consisted of the following:

 

             
    March 31, 2015     December 31, 2014  
Land     300,000       300,000  
Buildings     3,800,000       3,800,000  
Leasehold Improvements     19,225       19,225  
Construction in progress     17,310       23,104  
Software     27,721       27,721  
Equipment     702,225       670,183  
Vehicles and prototypes     164,959       164,959  
      5,031,440       5,005,192  
Less accumulated depreciation     (1,056,663 )     (962,833 )
      3,974,777       4,042,359  

  

On March 13, 2013 the Company acquired the operating assets of Workhorse Custom Chassis, LLC, an unrelated company located in Union City, Indiana.  The following summarizes the consideration paid, and the components of the purchase price and the related allocation of assets acquired and liabilities assumed.

 

Consideration        
 Cash at closing   $ 2,750,000  
 Secured debenture     2,250,000  
    $ 5,000,000  
Assets acquired        
 Inventory   $ 400,000  
 Equipment     500,000  
 Land     300,000  
 Buildings     3,800,000  
    $ 5,000,000  
         

 

Valuation methods used for the identifiable assets acquired in the acquisition make use of fair value measurements based on unobservable inputs and reliance on management’s assumptions that similar market participants would use in pricing the assets.  As such, the fair value measurements represent a Level 3 input.