Note 4 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

4. Property and Equipment, Net 

Property and equipment, net was comprised of the following:

	December 31, 2023							December 31, 2022
	Gross Carrying Amount		Accumulated Depreciation			Net Carrying Amount		Gross Carrying Amount		Accumulated Depreciation			Net Carrying Amount
Factory equipment	$	—	$	—		$	—	$	66,276	$	(43,051	)	$	23,225
Furniture and office equipment		184,241		(85,093	)		99,148		318,795		(211,529	)		107,266
Leasehold improvements		46,276		(22,829	)		23,447		34,946		(15,148	)		19,798
	$	230,517	$	(107,922	)	$	122,595	$	420,017	$	(269,728	)	$	150,289

For the years ended December 31, 2023 and 2022, depreciation expense was $99,289 and $669,611, respectively.

Assets Classified as Held-for-Sale

In the first quarter of 2022, the Company entered into a vacant land real estate sale agreement for the sale of excess unused lots in Sisters, Oregon for a sales price of $1,572,512. The Company sold the land in the second quarter of 2022 resulting in a gain of $573,818 included in general and administrative expenses.

In the second quarter of 2022, the Company entered into a purchase order agreement for the sale of the intermittent motion form production line for a sales price of $100,000. The book value exceeded the fair market value and, as such, the Company recorded an impairment charge of $100,426 in the second quarter of 2022. The Company sold these assets in the third quarter of 2022 for $103,240, recording a gain of $3,240 included in general and administrative expenses.

In the fourth quarter of 2022, the Company entered into purchase agreements for the sale of the production equipment for a sales price of $800,000 which was received in full in 2023. The book value exceeded the fair market value and, as such, the Company recorded impairment charges of $3,105,435, included in general and administrative expenses.