5. Fixed Assets

12 Months Ended

Dec. 31, 2012

Property and equipment consisted of the following at December 31, 2012 and 2011:

	December 31, 2012			December 31, 2011
Microwave towers	$	1,949,019		$	1,949,019
Computer equipment		226,265			226,265
Furniture & equipment		114,549			117,166
Software		35,858			35,858
Tenant improvements		186,949			186,949
Subtotal		2,512,640			2,515,257
Accumulated depreciation		(1,001,818	)		(863,304	)
Fixed assets, net	$	1,510,822		$	1,651,953

Depreciation expense for the years ended December 31, 2012 and 2011 was $141,576 and $155,627, respectively.

The Company in 2006 acquired 40 towers in exchange for 25% interest of Telava Wireless. The Company has an arrangement with the seller, now a related entity, whereby the Company will always have the right to 40 tower assets at any given time and as such has the ability to exchange tower assets with the related entity if a tower is sold or if the tower is not deemed suitable. During the year ended December 31, 2011, the Company successfully sold a tower for $172,000 with net proceeds of $160,000. The tower sold had a net book value of $40,273 resulting in a gain on sale of asset of $119,726. Due to the arrangement, the seller, now a related entity, was required to replace the tower asset during the year, see Note 12 for further discussion. The value of the replaced tower was deemed as a contribution from the related entity and as such the tower was transferred at a Zero cost basis. Net proceeds of $160,000 served as collateral for the line of credit.

The Company’s assets are served as collaterals for the line of credit.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

Unilava Corp 10-K/A