Property and Equipment

12 Months Ended

Dec. 31, 2022

Property and equipment:

Property and Equipment

Note 7 – Property and Equipment

Property and equipment at December 31, 2022 and 2021, consisted of the following:

	December 31,			December 31,
	2022			2021
Office equipment	$	13,872		$	13,872
Machinery		1,643,010			1,478,022
Software		70,000			70,000
Website		71,589			71,589
Leasehold improvements		1,257,108			1,257,869
Construction in progress		2,487,673			–
		5,543,252			2,891,352
Less: Accumulated depreciation and amortization		(508,257	)		(210,096	)
Total property and equipment, net	$	5,034,995		$	2,681,256

Construction in progress consists of costs incurred to build out our manufacturing facility in Irving Texas, along with the construction of our freeze driers. These costs will be capitalized as Leasehold Improvements and Machinery, respectively, upon completion.

On July 1, 2022, the Company disposed of certain leasehold improvements that were damaged. The Company received proceeds on the disposal of $62,308 pursuant to a settlement with the manufacturer, resulting in a gain on the disposal of property and equipment of $36,392, which represented the proceeds received, less the net book value at the time of disposal.

On December 31, 2021, the Company disposed of packaging equipment no longer in service. No proceeds were received on the disposal of the equipment, resulting in a loss on disposal of fixed assets of $8,036, which represented the net book value at the time of disposal.

Depreciation of property and equipment was $299,553, including $25,500 capitalized as inventory overhead and expensed to cost of goods sold, and $208,448 for the years ended December 31, 2022 and 2021, respectively.