Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

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PROPERTY AND EQUIPMENT
6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:  

    Estimated life   As of
June 30, 2020
    As of
December 31,
2019
 
        (Unaudited)        
Greenhouse   10 years   $ 34,465     $ 34,465  
Fencing and storage   5 years     44,543       44,543  
Irrigation   5 years     387,975       387,975  
Office and computer equipment   3 years     40,834       40,834  
Farming Equipment   5 years     11,500       11,500  
Leasehold improvement   5 years     21,886       21,886  
Total         541,203       541,203  
Less: Accumulated depreciation         (117,557 )     (63,770 )
Less: Impairment expense         (17,871 )     -  
        $ 405,775     $ 477,433  

 

Depreciation expense amounted to $53,787 and $11,851 for the six months ended June 30, 2020 and 2019, respectively and $27,060 and $11,851 for the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020, the Company recorded impairment expense of $17,871 which was equivalent to the remaining net book value of leasehold improvement related to a commercial lease with Skybar Holding, LLC. During the second quarter of fiscal 2020, the Company has determined that the commercial lease is unenforceable and should not have been accounted for under ASC 842 (see Note 14).