Note 6 - Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

6.  PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expensed as incurred. Property, plant and equipment are as follows:

	June 30,		December 31,
	2024		2023
Land	$	1,521,700	$	231,034
Buildings and improvements		10,334,297		3,760,203
Machinery & equipment		26,568,903		24,851,703
Total property, plant & equipment		38,424,900		28,842,940
Less: accumulated depreciation		15,334,516		14,156,750
Property plant & equipment, net	$	23,090,384	$	14,686,190

During the second quarter of 2024, the Company issued 741 Class A Common Shares, valued at $30,011, to Air Power Dynamics, LLC in an arms-length exchange for an aerospace tooling machine. During the second quarter of 2023, the Company issued 7,317 Class A Common Shares, valued at $150,000, to Air Power Dynamics, LLC in an arms-length exchange for a different aerospace tooling machine. Air Power Dynamics, LLC is controlled by Ambassador Edward Crawford, who is the chairman of the Company's board. 

During the first quarter of 2024, the Company acquired Heany Industries, which included property, plant and equipment valued at $2.2 million. During the second quarter of 2024, the Company exercised a purchase option for the building and land that CAD Enterprises operates out of for $6.9 million, which was financed as described in the bank debt footnote (Note 8).

Depreciation expense was $624,750 and $774,162 for the three months ended June 30, 2024 and 2023, respectively and $1,304,708 and $1,370,484 for the six months ended June 30, 2024 and 2023, respectively.