Note 7 - Leases

6 Months Ended

Jun. 30, 2026

Lessee, Operating and Finance Leases [Text Block]

NOTE 7– 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 six months ended June 30, 2026, cash paid for amounts included for the measurement of finance lease liabilities was $254,067 and the Company recorded finance lease expenses in other income (expenses) of $58,091.

During the six months ended June 30, 2026, cash paid for amounts included for the measurement of operating lease liabilities was $495,963 and the Company recorded operating lease expense of $497,193.

Supplemental balance sheet information related to leases as of June 30, 2026 and December 31, 2025 was as follows:

	*June 30,*			*December 31,*
	*2026*			*2025*
Operating leases:
Operating lease right-of-use assets	$	4,157,532		$	4,643,680

Operating lease liabilities – current	$	717,820		$	714,446
Operating lease liabilities – long-term	$	3,439,712			3,929,234
Total operating lease liabilities	$	4,157,532		$	4,643,680

Finance leases:
Property and equipment, at cost	$	4,445,721		$	4,590,723
Accumulated depreciation		(1,831,747	)		(1,703,252	)
Property and equipment, net	$	2,613,974		$	2,887,471

Finance lease liabilities – current	$	496,797		$	517,759
Finance lease liabilities – long-term		1,127,729			1,415,908
Total finance lease liabilities	$	1,624,526		$	1,933,667

Weighted average remaining lease term:
Operating leases		4.7			6.0
Finance leases		2.0			2.5

Weighted average discount rate:
Operating leases		6.6	%		6.7	%
Finance leases		5.2	%		5.3	%

Maturities of lease liabilities at June 30, 2026 were as follows:

	*Operating*			*Finance*
	*Leases*			*Leases*
2026		485,037			299,499
2027		971,684			1,138,405
2028		822,661			121,500
2029		521,330			171,425
2030		519,206			27,064
Thereafter		1,828,294			16,737
Total payment under lease agreements		5,148,212			1,774,630
Less imputed interest		(990,680	)		(150,104	)
Total lease liabilities	$	4,157,532		$	1,624,526