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Note 4 - Leases

6 Months Ended

Jun. 30, 2023

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 leases for production and office space in Hobro, Aarhus, and Copenhagen, Denmark.

During the six months ended June 30, 2023, cash paid for amounts included for the measurement of finance lease liabilities was $268,001, and the Company recorded finance lease expenses in other income (expenses) of $221,751.

During the six months ended June 30, 2023, cash paid for amounts included for the measurement of operating lease liabilities was $378,055, and the Company recorded operating lease expense of $378,055.

Other information related to leases as of June 30, 2023 and December 31, 2022 was as follows:

	June 30, 2023			December 31, 2022
Operating leases:
Operating lease right-of-use assets	$	3,046,933		$	3,271,997

Operating lease liabilities – current	$	589,127		$	561,182
Operating lease liabilities – long-term		2,457,806			2,710,815
Total operating lease liabilities	$	3,046,933		$	3,271,997

Finance leases:
Property and equipment, at cost	$	3,944,889		$	3,877,955
Accumulated depreciation		(708,755	)		(544,653	)
Property and equipment, net	$	3,236,134		$	3,333,302

Finance lease liabilities – current	$	413,505		$	399,198
Finance lease liabilities – long-term		2,216,535			2,384,011
Total finance lease liabilities	$	2,630,040		$	2,783,209

Weighted average remaining lease term:
Operating leases		9.6			9.6
Finance leases		4.9			5.4

Weighted average discount rate:
Operating leases		6.1	%		6.2	%
Finance leases		2.2	%		2.2	%

Maturities of lease liabilities at June 30, 2023 were as follows:

	Operating Lease			Finance lease
2023 (remaining 6 months)	$	378,615		$	274,966
2024		614,755			550,849
2025		320,444			547,372
2026		309,853			511,546
2027		309,853			511,546
Thereafter		2,091,506			747,493
Total payment under lease agreements		4,025,026			3,143,772
Less imputed interest		(978,093	)		(513,732	)
Total lease liability	$	3,046,933		$	2,630,040