| PROPERTY, PLANT AND EQUIPMENT, NET |
NOTE
6 – PROPERTY, PLANT AND EQUIPMENT, NET
Property,
plant and equipment, net consist of the following:
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT
| | |
March
31,
2026 | | |
December
31,
2025 | |
| At
cost: | |
| | | |
| | |
| Mineral
rights | |
$ | 2,787,202 | | |
$ | 2,743,826 | |
| Leasehold
improvements | |
| 13,806,026 | | |
| 13,053,292 | |
| Plant
and machinery | |
| 126,813,783 | | |
| 125,170,996 | |
| Furniture,
fixtures and office equipment | |
| 846,215 | | |
| 833,046 | |
| Motor
vehicles | |
| 30,071 | | |
| 29,603 | |
| Construction
in process | |
| 16,801 | | |
| — | |
| Total | |
| 144,300,098 | | |
| 141,830,763 | |
| Less:
Accumulated depreciation and amortization | |
| (83,904,706 | ) | |
| (79,598,798 | ) |
| Less:
Impairment | |
| (292,416 | ) | |
| (287,865 | ) |
| Net
book value | |
$ | 60,102,976 | | |
$ | 61,944,100 | |
The
rollforward of property, plant and equipment, net was as follows:
SCHEDULE OF ROLLFORWARD OF PROPERTY, PLANT AND EQUIPMENT
| | |
December
31, 2025 | | |
Remodel
of Brine Well(a) | | |
Remodel of Chlorine Gas Shed and
finished liquid
pond(b) | | |
Depreciation
(c) | | |
Foreign
currency translation | | |
March
31, 2026 | |
| At
cost: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Mineral
rights | |
$ | 2,743,826 | | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | 43,376 | | |
$ | 2,787,202 | |
| Leasehold
improvements | |
| 13,053,292 | | |
| — | | |
| 544,075 | | |
| — | | |
| 208,659 | | |
| 13,806,026 | |
| Plant
and machinery | |
| 125,170,996 | | |
| (334,596 | ) | |
| — | | |
| — | | |
| 1,977,383 | | |
| 126,813,783 | |
| Furniture,
fixtures and office equipment | |
| 833,046 | | |
| — | | |
| — | | |
| — | | |
| 13,169 | | |
| 846,215 | |
| Motor
vehicles | |
| 29,603 | | |
| — | | |
| — | | |
| — | | |
| 468 | | |
| 30,071 | |
| Construction
in progress | |
| — | | |
| 16,730 | | |
| — | | |
| — | | |
| 71 | | |
| 16,801 | |
| Total | |
| 141,830,763 | | |
| (317,866 | ) | |
| 544,075 | | |
| — | | |
| 2,243,126 | | |
| 144,300,098 | |
| Less:
Accumulated depreciation and amortization | |
| (79,598,798 | ) | |
| 317,866 | | |
| 4,221 | | |
| (3,356,786 | ) | |
| (1,271,209 | ) | |
| (83,904,706 | ) |
| Less:
Impairment | |
| (287,865 | ) | |
| — | | |
| — | | |
| — | | |
| (4,551 | ) | |
| (292,416 | ) |
| Net
book value | |
$ | 61,944,100 | | |
$ | — | | |
$ | 548,296 | | |
$ | (3,356,786 | ) | |
$ | 967,366 | | |
$ | 60,102,976 | |
| (a) | The
Company was undergoing renovation and upgrading work on the brine well, which remained incomplete
as of March 31, 2026. Accordingly, the brine well’s original cost and related accumulated
depreciation were reclassified to construction in progress pending completion of the renovation
and upgrade work. |
| | | |
| (b) | In
the first quarter of 2026, the Company completed the renovation and upgrade project for the chlorine gas shed and finished liquid pond, at a total cost of
$548,296. |
| | | |
| (c) | During
the three-month period ended March 31, 2026, depreciation and amortization expense totaled $3,356,786,
which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general &
administrative expenses. |
During
the three-month period ended March 31, 2025, depreciation and amortization expense totaled $3,226,127,
which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general &
administrative expenses.
See
Note 24- Restatement, for discussion regarding the impact of the Restatement.
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