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Note 4 - Leases

12 Months Ended

Dec. 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 operating leases for production and office space in Hobro (two facilities) and Copenhagen, Denmark. The lease agreements expire on April 30, 2034, November 30, 2034, and August 31, 2028, respectively (for the two facilities in Hobro and the office space in Copenhagen, in that order)

During the year ended December 31, 2024, cash paid for amounts included for the measurement of operating lease liabilities was $853,566, and the Company recorded operating lease expenses of $851,110 in operating expenses.

During the year ended December 31, 2024, cash paid for amounts included for the measurement of finance lease liabilities was $1,378,297, and the Company recorded finance lease expenses of $154,598 in other expenses.

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

	*December 31,*			*December 31,*
	*2024*			*2023*
Operating leases:
Operating lease right-of-use assets	$	4,450,822		$	4,055,837

Operating lease liabilities – current	$	544,197		$	531,355
Operating lease liabilities – long-term		3,906,625			3,527,082
Total operating lease liabilities	$	4,450,822		$	4,058,437

Finance leases:
Property and equipment, at cost	$	4,082,864		$	5,443,287
Accumulated depreciation		(1,157,025	)		(877,578	)
Property and equipment, net	$	2,925,839		$	4,565,709

Finance lease liabilities – current	$	458,347		$	590,550
Finance lease liabilities – long-term		1,600,931			2,879,932
Total finance lease liabilities	$	2,059,278		$	3,470,482

Weighted average remaining lease term:
Operating leases		8.1			8.3
Finance leases		3.1			4.3

Weighted average discount rate:
Operating leases		6.8	%		6.7	%
Finance leases		5.5	%		6.0	%

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

	*Operating*			*Finance*
	*Leases*			*Leases*
2025	$	828,986		$	562,072
2026		818,823			544,452
2027		818,823			506,462
2028		700,078			613,474
2029		462,587			76,893
Thereafter		2,128,429			57,288
Total payment under lease agreements		5,757,726			2,360,641
Less imputed interest		(1,306,904	)		(301,363	)
Total lease liabilities	$	4,450,822		$	2,059,278