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Property and Equipment

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 8. Property and Equipment

The following table sets forth the components of the Company’s property and equipment at December 31, 2024 and 2023:

Schedule of property and equipment, net
		December 31, 2024												December 31, 2023
		Gross Carrying Amount				Accumulated Depreciation				Net Book Value				Gross Carrying Amount				Accumulated Depreciation				Net Book Value
Office furniture		$	-			$	-			$	-			$	14,998			$	(7,823	)		$	7,175
Vehicles and trailers			30,485,730				(1,856,461	)			28,629,269				36,432				(33,396	)			3,036
Equipment			339,610				(33,069	)			306,541				12,420				(4,590	)			7,830
Land			732,000				-				732,000				17,000				-				17,000
Building			1,630,000				(164,426	)			1,465,574
Crude & NGL terminal and related equipment			930,460				(566,835	)			363,625				930,460				(430,670	)			499,790
Crude Oil Transfer Stations			6,570,080				(899,133	)			5,670,947				-				-				-
Pipeline and related facilities			42,244,680				(771,544	)			41,473,136				-				-				-
Finance lease- Right of use assets			12,593,359				(4,367,820	)			8,225,539				3,579,544				(1,484,324	)			2,095,220

Construction in process:
Wash Plant Facilities			5,997,566				-				5,997,566				3,344,968				-				3,344,968
Cavitation device			-				-				-				72,201				-				72,201
Remediation Processing Unit 1			-				-				-				4,464,513				-				4,464,513
Remediation Processing Unit 2			-				-				-				8,187,425				-				8,187,425
Remediation Processing Unit System A			2,892,343				-				2,892,343				2,795,391				-				2,795,391
Remediation Processing Unit System B			2,892,343				-				2,892,343				2,795,391				-				2,795,391
WCCC Tank Expansion			1,390,488				-				1,390,488				9,377				-				9,377
Total fixed assets		$	108,698,654			$	(8,659,288	)		$	100,039,371			$	26,260,120			$	(1,960,803	)		$	24,299,317

For the years ended December 31, 2024 and 2023, depreciation expense was $3,427,055 and $148,603. Equipment that is currently being manufactured is considered construction in process and is not depreciated until the equipment is placed into service. Equipment that is temporarily not in service is not depreciated until placed into service.

During 2023, the Company entered into an agreement to move our Vernal RPC to Kuwait to commence scaled up remediation services, as the Vernal plant was not producing product toward its off-take agreement, which further delayed our anticipated operations. Furthermore, in the fourth quarter of 2023, Enshaat Al Sayer (Enshaat) (the original contractor chosen for the remediation of certain cleanup for the Kuwait Environmental Remediation Project (KERP) notified us that it terminated its subcontract with DIC, which effectively terminated DIC’s contract with the Company. For the year ended December 31, 2024, the Company continues to negotiate the terms for an agreement directly with Kuwait Oil Company for the remediation services on the KERP. The Company evaluated these events and determined that the inability to obtain an agreement with Enshaat or Kuwait Oil Company in 2024 was a trigger event requiring analysis for impairment. We analyzed the events and assessed an impairment loss of the assets related to our Kuwait RPCs of $7,047,179 for the year ended December 31, 2024. Additionally, the Company assessed the impact of the impairment loss, including the impact on our ancillary agreements. Ancillary to our prospective Kuwait RPC operations, the Company had an exclusive license agreement for the development and use of a nanosponge technology and has assessed an impairment loss of the nanosponge license of $1,530,496 for the year ended December 31, 2024.