NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS 5. PROPERTY AND EQUIPMENT Equipment not available Manufacturing Office Computer Leasehold for use Equipment Equipment Equipment Improvements Total Cost $ $ $ $ $ $ December 31, 2010 176,431 2,698,422 76,280 250,364 120,364 3,321,861 additions 31,319 86,540 1,001 7,029 – 125,889 December 31, 2011 207,750 2,784,962 77,281 257,393 120,364 3,447,750 additions 20,921 138,306 2,753 37,509 – 199,489 transfer to manufacturing equipment (204,301) 204,301 – – – – December 31, 2012 24,370 3,127,569 80,034 294,902 120,364 3,647,239 Accumulated depreciation December 31, 2010 – 1,282,477 58,522 180,067 111,743 1,632,809 depreciation – 263,031 3,586 21,706 5,959 294,282 December 31, 2011 – 1,545,508 62,108 201,773 117,702 1,927,091 depreciation – 255,451 3,426 24,264 2,662 285,803 December 31, 2012 – 1,800,959 65,534 226,037 120,364 2,212,894 Carrying value December 31, 2012 24,370 1,326,610 14,500 68,865 – 1,434,345 December 31, 2011 207,750 1,239,454 15,173 55,620 2,662 1,520,659 General and Cost of goods sold Inventory administration Total $ $ $ $ Year ended December 31, 2012 204,222 42,989 38,592 285,803 Year ended December 31, 2011 227,150 34,958 32,174 294,282 Depreciation expense allocation for the following years: 6. LONG-TERM DEBT December 31 December 31 2012 2011 $ $ Loan payable secured by a general security agreement, due January, 2018. 926,535 1,081,000 Less current portion 168,637 154,465 757,898 926,535 Interest expense is presented under finance costs for the following periods: Year Ended December 31, 2012 54,148 Year Ended December 31, 2011 59,842 During the year ended December 31, 2012, the loan was renewed to January 1, 2018 at an interest rate of 3.710% (2011 – 5.49%) with monthly payments of $16,674 (2011 – $17,384) starting February 1, 2013. CEAPRO Annual Report 2012 41