v3.26.1
Property Plant and Equipment
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property Plant and Equipment

Note 3. Property Plant and Equipment

 

Property and equipment, net consist of the following:

  

   June 30,   December, 31 
   2026   2025 
Land  $357,000   $357,000 
Building   1,834,000    1,834,000 
Manufacturing equipment   3,074,000    2,335,000 
Customer equipment   1,426,000    1,426,000 
Construction in progress   4,908,000    5,139,000 
Property and equipment, gross   11,599,000    11,091,000 
Less: accumulated depreciation   (2,941,000)   (2,794,000)
Property and equipment, net of depreciation  $8,658,000   $8,297,000 

 

Depreciation expense related to these assets was approximately $75,000 and $54,000 for the three months ended June 30, 2026 and 2025, respectively, and $147,000 and $107,000 for the six months ended June 30, 2026 and 2025, respectively. Depreciation expense in cost of revenue was $62,000 and $9,000 for the three months ended June 30, 2026 and 2025, respectively, and $117,000 and $16,000 for the six months ended June 30, 2026 and 2025, respectively.

 

Assets subject to financing leases consist of the following:

 

   June 30,   December, 31 
   2026   2025 
Manufacturing equipment  $560,000   $106,000 
Customer equipment   33,000    33,000 
Construction in progress   560,000    704,000 
 Property and equipment, gross   1,153,000    843,000 
Less: accumulated depreciation   (28,000)   (15,000)
Property and equipment, net of depreciation  $1,125,000   $828,000 

 

Depreciation expense related to leased assets amounted to $8,000 and $2,000 for the three-month periods ending June 30, 2026 and 2025, respectively. Depreciation expense related to leased assets amounted to $13,000 and $4,000 for the six-month periods ending June 30, 2026 and 2025, respectively.