Note 5. Property and equipment

Property and equipment consisted of the following as of June 30, 2018 and 2017:

(*) Useful lives vary from 3-10 years, as well as leasehold improvements which are amortized on a straight-line basis over the term of the lease or the estimated useful lives, whichever is shorter.

The Company recorded depreciation expense of $1,247,518 and $102,876 for the years ended June 30, 2018 and 2017, respectively.

As of June 30, 2018, fixed assets with a net book value totaling $435,680 were not placed in service and therefore not depreciated during the period.

As of June 30, 2018, fixed assets with a net book value totaling $333,250 were reclassified to Assets held for sale on the consolidated balance sheets. The Company recorded an impairment charge of $349,571 on fixed assets held for sale during the year ended June 30, 2018. 

As of June 30, 2017, research and development fixed assets totaling $1,062,496 were not placed in service and therefore not depreciated during the period.