ADMA Biologics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2021

5.	PROPERTY AND EQUIPMENT

Property and equipment and related accumulated depreciation are summarized as follows:

	September 30, 2021			December 31, 2020
Manufacturing and laboratory equipment	$	15,803,495		$	14,468,874
Office equipment and computer software		4,082,010			3,253,528
Furniture and fixtures		2,952,378			2,039,398
Construction in process		5,332,751			3,336,557
Leasehold improvements		9,116,854			5,272,490
Land		4,339,441			4,339,441
Buildings and building improvements		18,962,987			17,746,744
		60,589,916			50,457,032
Less: Accumulated depreciation		(12,196,193	)		(8,863,942	)
Total property and equipment, net	$	48,393,723		$	41,593,090

Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the asset’s estimated useful life. Land is not depreciated. The buildings were assigned a useful life of 30 years. Property and equipment other than land and buildings have useful lives ranging from three to 10 years. Leasehold improvements are amortized over the lesser of the lease term or their estimated useful lives.

The Company recorded depreciation expense on property and equipment for the three and nine months ended September 30, 2021 of $1.2 million and $3.4 million, respectively. Depreciation expense for the three and nine months ended September 30, 2020 was $0.9 million and $2.2 million, respectively.