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Note 7 - Leases

9 Months Ended

Sep. 30, 2025

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 and Copenhagen, Denmark.

During the nine months ended September 30, 2025, cash paid for amounts included for the measurement of finance lease liabilities was $384,700, and the Company recorded finance lease expenses in other income (expenses) of $96,990.

During the nine months ended September 30, 2025, cash paid for amounts included for the measurement of operating lease liabilities was $666,817, and the Company recorded operating lease expense of $666,817.

Supplemental balance sheet information related to leases as of September 30, 2025 and December 31, 2024 was as follows:

	*September 30,*			*December 31,*
	*2025*			*2024*
Operating leases:
Operating lease right-of-use assets	$	4,543,004		$	4,450,822

Operating lease liabilities – current	$	633,385		$	544,197
Operating lease liabilities – long-term	$	3,909,619			3,906,625
Total operating lease liabilities	$	4,543,004		$	4,450,822

Finance leases:
Property and equipment, at cost	$	4,586,897		$	4,082,864
Accumulated depreciation		(1,607,559	)		(1,157,025	)
Property and equipment, net	$	2,979,338		$	2,925,839

Finance lease liabilities – current	$	513,746		$	458,347
Finance lease liabilities – long-term		1,546,110			1,600,931
Total finance lease liabilities	$	2,059,856		$	2,059,278

Weighted average remaining lease term:
Operating leases		7.5			8.1
Finance leases		2.7			3.1

Weighted average discount rate:
Operating leases		6.8	%		6.8	%
Finance leases		5.3	%		5.5	%

Maturities of lease liabilities at September 30, 2025 were as follows:

	*Operating*			*Finance*
	*Leases*			*Leases*
2025	$	229,976		$	155,833
2026		919,908			615,982
2027		919,908			1,172,522
2028		786,503			124,915
2029		519,695			176,451
Thereafter		2,391,185			45,056
Total payment under lease agreements		5,767,175			2,290,759
Less imputed interest		(1,224,171	)		(230,903	)
Total lease liabilities	$	4,543,004		$	2,059,856