Note 8 - Leases

3 Months Ended

Mar. 31, 2026

Lessee, Operating and Finance Leases [Text Block]

NOTE 8– 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 three months ended March 31, 2026, cash paid for amounts included for the measurement of finance lease liabilities was $126,768 and the Company recorded finance lease expenses in other income (expenses) of $29,657.

During the three months ended March 31, 2026, cash paid for amounts included for the measurement of operating lease liabilities was $248,767 and the Company recorded operating lease expense of $249,384.

Supplemental balance sheet information related to leases as of March 31, 2026 and December 31, 2025 was as follows:

	*March 31,*			*December 31,*
	*2026*			*2025*
Operating leases:
Operating lease right-of-use assets	$	4,369,053		$	4,643,680

Operating lease liabilities – current	$	711,295		$	714,446
Operating lease liabilities – long-term	$	3,657,758			3,929,234
Total operating lease liabilities	$	4,369,053		$	4,643,680

Finance leases:
Property and equipment, at cost	$	4,487,105		$	4,590,723
Accumulated depreciation		(1,756,803	)		(1,703,252	)
Property and equipment, net	$	2,730,302		$	2,887,471

Finance lease liabilities – current	$	504,799		$	517,759
Finance lease liabilities – long-term		1,260,692			1,415,908
Total finance lease liabilities	$	1,765,491		$	1,933,667

Weighted average remaining lease term:
Operating leases		4.9			6.0
Finance leases		2.3			2.5

Weighted average discount rate:
Operating leases		6.6	%		6.7	%
Finance leases		5.3	%		5.3	%

Maturities of lease liabilities at March 31, 2026 were as follows:

	*Operating*			*Finance*
	*Leases*			*Leases*
2026	$	733,928		$	452,306
2027		980,729			1,147,506
2028		830,319			122,303
2029		526,183			172,711
2030		524,039			27,222
Thereafter		1,845,313			16,885
Total payment under lease agreements		5,440,511			1,938,933
Less imputed interest		(1,071,458	)		(173,442	)
Total lease liabilities	$	4,369,053		$	1,765,491