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Note 6 - Property, Plant and Equipment, Net
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

6. PROPERTY, PLANT AND EQUIPMENT, NET

 

Property, plant and equipment, net consisted of the following:

 

         
  

As of

  

As of

 
  

December 31, 2025

  

December 31, 2024

 

Laboratory and manufacturing equipment(1)

 $17,255,585  $21,234,259 

Buildings and improvements

  20,902,758   20,889,395 

Office furniture and equipment

  702,838   1,056,145 

Construction in progress(1)

  534,270   2,693,904 

Land

  516,867   516,867 

Property, plant and equipment, gross

  39,912,318   46,390,570 

Accumulated depreciation

  (18,837,624)  (21,041,551)

Property, plant and equipment, net(2)

 $21,074,694  $25,349,019 

 

(1) We recognized $2,667,100 in non-cash impairment charges during the year ended December 31, 2025, related to the write down of machinery that we determined had no related future undiscounted cash flows other than the current estimated proceeds from its sale. This determination was made after further delays in FDA regulatory approval of the Company's Re-Tain® product in development. As a result, we decided to focus on First Defense® and pause further investment in Re-Tain® manufacturing, leading to the Company no longer having a use for the machinery. This impairment charge is included in other expense, net, in the accompanying statement of operations for the year ended December 31, 2025. No similar impairment was recognized during the year ended December 31, 2024. 

(2) As of December 31, 2025, property, plant and equipment, net includes approximately $12,300,000 of idle assets, which primarily related to one of our manufacturing facilities that was previously utilized for Re-Tain® that we now plan to refit for use in producing First Defense® products.  We are monitoring these assets for impairment. No impairment was recognized on these assets during the years ended  December 31, 2025 or 2024.

 

As of December 31, 2025 and 2024, construction in progress consisted principally of payments toward the First Defense® production capacity expansion project. Construction in progress also included $2,316,951 of equipment needed to bring the formulation and aseptic filling for Re-Tain® in-house as of December 31, 2024, which has been written down to its fair value of $200,000 as of December 31, 2025.

 

The gross amounts associated with property, plant and equipment disposals were $3,076,911 and $130,365 as of  December 31, 2025 and 2024, respectively, resulting in loss on disposal of property, plant and equipment of $106,350 and $15,391 during the years ended December 31, 2025 and 2024.

 

Depreciation expense was $2,710,497 and $2,668,077 during the years ended December 31, 2025 and 2024, respectively.