Property and Equipment, Net |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant, and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment, Net | Note 7 – Property and Equipment, Net
Property and equipment as of June 30, 2026 and December 31, 2025 consisted of the following:
For the three and six months ended June 30, 2026, depreciation of property and equipment was $200,815 and $360,851, respectively. For the three and six months ended June 30, 2025, depreciation of property and equipment was $153,205 and $305,560, respectively.
The Company leases a manufacturing facility located in Pisco, Peru, which is accounted for as a finance lease (see Note 11). The lease includes a purchase option that allows the Company to acquire the facility at the end of the lease term. During 2024, the landlord of this facility entered bankruptcy proceedings, which remain ongoing. To protect its long-term strategic interests, the Company purchased the first mortgage position on the facility and continues to hold its contractual purchase option under the lease. Management currently intends to acquire ownership of the facility either (i) through the landlord’s bankruptcy settlement process, or (ii) by exercising the purchase option at the end of the lease term, although there can be no assurance that the Company will be successful in this regard.
The Company accounts for the facility as a leased asset. The first mortgage position is included on the balance sheet in other assets of $1,267,000 as of June 30, 2026 and December 31, 2025. The Company capitalizes leasehold improvements related to the buildout of the facility, which expanded the Company’s production capacity.
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