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Note 4 - Leases

3 Months Ended

Mar. 31, 2024

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 three months ended March 31, 2024, cash paid for amounts included for the measurement of finance lease liabilities was $1,088,658, and the Company recorded finance lease expenses in other income (expenses) of $56,428.

During the three months ended March 31, 2024, cash paid for amounts included for the measurement of operating lease liabilities was $203,886, and the Company recorded operating lease expense of $202,929.

Supplemental balance sheet information related to leases as of March 31, 2024 and December 31, 2023 was as follows:

	March 31, 2024			December 31, 2023
Operating leases:
Operating lease right-of-use assets	$	3,832,318		$	4,055,837

Operating lease liabilities – current	$	500,613		$	531,355
Operating lease liabilities – long-term		3,333,295			3,527,082
Total operating lease liabilities	$	3,833,908		$	4,058,437

Finance leases:
Property and equipment, at cost	$	4,008,672		$	5,443,287
Accumulated depreciation		(942,430	)		(877,578	)
Property and equipment, net	$	3,066,242		$	4,565,709

Finance lease liabilities – current	$	445,726		$	590,550
Finance lease liabilities – long-term		1,943,609			2,879,932
Total finance lease liabilities	$	2,389,335		$	3,470,482

Weighted average remaining lease term:
Operating leases		8.1			8.3
Finance leases		3.9			4.3

Weighted average discount rate:
Operating leases		6.7	%		6.7	%
Finance leases		5.5	%		6.0	%

Maturities of lease liabilities at March 31, 2024 were as follows:

	Operating Lease			Finance Lease
2024 (remaining 9 months)	$	567,016		$	441,565
2025		687,527			584,993
2026		677,000			549,384
2027		677,000			1,062,543
2028		553,994			75,437
Thereafter		1,770,905			127,162
Total payment under lease agreements		4,933,442			2,841,084
Less imputed interest		(1,099,534	)		(451,749	)
Total lease liability	$	3,833,908		$	2,389,335