Note 7. Property and Equipment.

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets. The annual depreciation rates are as follows:

Computers and electronic equipment 33%

For the period ended September 30, 2016, total property and equipment was $41,301, total accumulated depreciation is $12,175 and total depreciation expense for the nine-month period ended September 30, 2016 is $5,574. For the year ended December 31, 2015 total property and equipment was $16,968, total accumulated depreciation is $2,523 and total depreciation expense for the year is $2,449.

Following is a summary of Property and Equipment, net for the period ended September 30, 2016 and the year ended December 31, 2015.