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Note 4 - Leases

3 Months Ended

Mar. 31, 2022

Lessee, Operating and Finance Leases [Text Block]

NOTE 4 - LEASES

The Company leases certain vehicles, real property, production equipment and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of our operating leases are non-cancelable operating leases for production and office space in Hobro, Aarhus and Copenhagen, Denmark as well as in Taicang, China.

During the three months ended March 31, 2022, cash paid for amounts included for the measurement of finance lease liabilities was $91,807, and the Company recorded finance lease expenses in other income (expenses) of $71,952.

During the three months ended March 31, 2022, cash paid for amounts included for the measurement of operating lease liabilities was $285,599, and the Company recorded operating lease expense of $341,076.

Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 was as follows:

	March 31, 2022			December 31, 2021
Operating leases:
Operating lease right-of-use assets	$	6,613,073		$	6,925,807

Operating lease liabilities – current	$	871,682		$	846,544
Operating lease liabilities – long-term		5,872,927			6,154,064
Total operating lease liabilities	$	6,744,609		$	7,000,608

Finance leases:
Property and equipment, at cost	$	3,265,647		$	3,334,830
Accumulated depreciation		(381,095	)		(336,337	)
Property and equipment, net	$	2,884,553		$	2,998,494

Finance lease liabilities – current	$	367,171		$	373,824
Finance lease liabilities – long-term		2,355,721			2,499,591
Total finance lease liabilities	$	2,722,891		$	2,873,415

Weighted average remaining lease term:
Operating leases		8.7			8.9
Finance leases		5.6			5.9

Weighted average discount rate:
Operating leases		6.5	%		6,5	%
Finance leases		2.8	%		2.8	%

Maturities of lease liabilities at March 31, 2022 were as follows:

	Operating Lease			Finance lease
2022 (remaining 9 months)	$	922,725		$	329,688
2023		1,220,130			435,549
2024		1,072,809			436,488
2025		789,504			432,931
2026		814,186			396,284
Thereafter		3,782,380			955,968
Total payment under lease agreements		8,601,733			2,986,908
Less imputed interest		(1,857,124	)		(264,017	)
Total lease liability	$	6,744,609		$	2,722,891