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Note 7 - Leases

6 Months Ended

Jun. 30, 2024

Lessee, Operating and Finance Leases [Text Block]

NOTE 7 – 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, 2024, cash paid for amounts included for the measurement of finance lease liabilities was $1,186,746, and the Company recorded finance lease expenses in other income (expenses) of $91,937.

During the six months ended June 30, 2024, cash paid for amounts included for the measurement of operating lease liabilities was $400,432, and the Company recorded operating lease expense of $398,544.

Supplemental balance sheet information related to leases as of June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024			December 31, 2023
Operating leases:
Operating lease right-of-use assets	$	3,657,512		$	4,055,837

Operating lease liabilities – current	$	476,298		$	531,355
Operating lease liabilities – long-term		3,181,843			3,527,082
Total operating lease liabilities	$	3,658,141		$	4,058,437

Finance leases:
Property and equipment, at cost	$	3,967,874		$	5,443,287
Accumulated depreciation		(1,016,026	)		(877,578	)
Property and equipment, net	$	2,951,848		$	4,565,709

Finance lease liabilities – current	$	446,425		$	590,550
Finance lease liabilities – long-term		1,809,424			2,879,932
Total finance lease liabilities	$	2,255,849		$	3,470,482

Weighted average remaining lease term:
Operating leases		7.8			8.3
Finance leases		3.6			4.3

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

Maturities of lease liabilities at June 30, 2024 were as follows:

	Operating Leases			Finance Leases
2024 (remaining 6 months)	$	361,787		$	291,681
2025		680,530			579,039
2026		670,110			543,792
2027		670,110			1,051,729
2028		548,356			74,670
Thereafter		1,752,882			125,869
Total payment under lease agreements		4,683,775			2,666,780
Less imputed interest		(1,025,634	)		(410,931	)
Total lease liabilities	$	3,658,141		$	2,255,849