XML 56 R14.htm IDEA: XBRL DOCUMENT

Note 6 - Leases

12 Months Ended

Dec. 31, 2023

Lessee, Operating and Finance Leases [Text Block]

NOTE 6 - 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. The lease agreements expire on November 30, 2034, August 31, 2024, and August 31, 2028, respectively.

During the year ended December 31, 2023, cash paid for amounts included for the measurement of operating lease liabilities was $754,490, and the Company recorded operating lease expenses of $725,337 in operating expenses.

During the year ended December 31, 2023, cash paid for amounts included for the measurement of finance lease liabilities was $441,696, and the Company recorded finance lease expenses of $159,766 in other income (expenses).

Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 was as follows:

	December 31, 2023			December 31, 2022
Operating leases:
Operating lease right-of-use assets	$	4,055,837		$	3,271,997

Operating lease liabilities – current	$	531,355		$	561,182
Operating lease liabilities – long-term		3,527,082			2,710,815
Total operating lease liabilities	$	4,058,437		$	3,271,997

Finance leases:
Property and equipment, at cost	$	5,443,287		$	3,877,955
Accumulated depreciation		(877,578	)		(544,653	)
Property and equipment, net	$	4,565,709		$	3,333,302

Finance lease liabilities – current	$	590,550		$	399,198
Finance lease liabilities – long-term		2,879,932			2,384,011
Total finance lease liabilities	$	3,470,482		$	2,783,209

Weighted average remaining lease term:
Operating leases		8.3			9.6
Finance leases		4.3			5.4

Weighted average discount rate:
Operating leases		6.7	%		6.2	%
Finance leases		6.0	%		2.8	%

Maturities of lease liabilities at December 31, 2023 were as follows:

	Operating lease			Finance lease
2024	$	785,707		$	804,044
2025		702,899			800,510
2026		692,137			764,105
2027		692,137			1,320,097
2028		566,381			356,983
Thereafter		1,810,499			130,196
Total payment under lease agreements		5,249,760			4,175,935
Less imputed interest		(1,191,323	)		(705,453	)
Total lease liability	$	4,058,437		$	3,470,482