v3.26.1
PROPERTY, PLANT, AND EQUIPMENT
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property, Plant, and Equipment [Text Block]

NOTE 6 – PROPERTY, PLANT, AND EQUIPMENT

 

   (in thousands, except useful life)  
   Useful Life
(years)		  As of
June 30,
2026
(Unaudited)
($)		   As of
December 31,
2025
(Audited)
($)		 
Buildings and facilities  25   1,527    1,525 
Plant and machinery  5-20   1,932    1,932 
Computer equipment  3   101    96 
Office equipment  3-5   155    145 
Furniture and fixtures  5   56    56 
Vehicles  5   57    57 
Total gross value      3,828    3,811 
Less: Accumulated depreciation      (1,759)   (1,670)
Total property, plant, and equipment, net      2,069    2,141 

The depreciation expense in the three months ended June 30, 2026, and 2025 amounted to approximately $41 thousand and $127 thousand, respectively. The depreciation expense in the six months ended June 30, 2026, and 2025 amounted to approximately $83 thousand and $263 thousand, respectively. The net decrease in Total property, plant, and equipment is primarily due to depreciation and foreign exchange fluctuation. For more information, please refer to Note 16, “Segment Information” for the non-current assets other than financial instruments held in the country of domicile and foreign countries.

 

Disposition of Assets

 

On September 29, 2025, HH Processors LLC (formerly “Holi Hemp LLC”), a wholly owned subsidiary of the Company, entered into a Sale of Assets and Manufacturing Agreement (the “Favorable Contract”) with Wellness Essentials Northwest LLC (the “Buyer”) to sell certain equipment, inventory, and related operating assets of its Vancouver, Washington facility. Under the Sale Agreement, the Buyer assumed certain employees and leased obligations. The Company retains (i) preferential supply rights for specific formulations produced by the Buyer and (ii) a contingent right to receive 10 percent of net proceeds if the Buyer sells the business within five years, which is recorded as a “Favorable Contract” in intangible assets. Please refer to Note 5, “Intangible Assets”. The aggregate fair value of consideration received for the assets sold was approximately $2.7 million.