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Note 4 - Leases

3 Months Ended

Mar. 31, 2023

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, 2023, cash paid for amounts included for the measurement of finance lease liabilities was $98,945, and the Company recorded finance lease expenses in other income (expenses) of $109,165.

During the three months ended March 31, 2023, cash paid for amounts included for the measurement of operating lease liabilities was $188,555, and the Company recorded operating lease expense of $188,555.

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

	March 31, 2023			December 31, 2022
Operating leases:
Operating lease right-of-use assets	$	3,190,273		$	3,271,997

Operating lease liabilities – current	$	579,552		$	561,182
Operating lease liabilities – long-term		2,610,721			2,710,815
Total operating lease liabilities	$	3,190,273		$	3,271,997

Finance leases:
Property and equipment, at cost	$	3,947,597		$	3,877,955
Accumulated depreciation		(631,838	)		(544,653	)
Property and equipment, net	$	3,315,759		$	3,333,302

Finance lease liabilities – current	$	410,060		$	399,198
Finance lease liabilities – long-term		2,322,913			2,384,011
Total finance lease liabilities	$	2,732,973		$	2,783,209

Weighted average remaining lease term:
Operating leases		9.6			9.6
Finance leases		5.1			5.4

Weighted average discount rate:
Operating leases		6.1	%		6.2	%
Finance leases		2.2	%		2.2	%

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

	Operating Lease			Finance lease
2023 (remaining 9 months)	$	568,313		$	420,124
2024		615,177			537,720
2025		320,664			534,241
2026		310,065			498,391
2027		310,065			498,391
Thereafter		2,092,942			741,592
Total payment under lease agreements		4,217,226			3,230,460
Less imputed interest		(1,026,953	)		(497,487	)
Total lease liability	$	3,190,273		$	2,732,973