PROPERTY AND EQUIPMENT NET

9 Months Ended

Sep. 30, 2026

PROPERTY AND EQUIPMENT NET

PROPERTY AND EQUIPMENT, NET

NOTE 5 – PROPERTY AND EQUIPMENT, NET

Property and Equipment (Fixed Assets) consist of the following:

Asset Class		September 30, 2026				December 31, 2025
Building		$	-			$	805,545
Land			-				430,754
Machinery & Equipment, net of accumulated impairment on hemp-specific fixed assets of $99,948 in 2026 and $0 in 2025			1,444,338				1,566,661
Furniture & Fixtures			132,196				138,184
Computer Equipment			26,884				21,510
Building & Leasehold Improvements			220,425				640,499
Vehicles			95,401				64,309
Trade Show Booths, net of accumulated impairment on hemp-specific fixed assets of $108,101 in 2026 and $0 in 2025			48,481				214,457
Sub-total:		$	1,967,725			$	3,881,920

Less: Accumulated Depreciation			(1,369,708	)			(1,608,543	)
		$	598,017			$	2,273,377

The useful lives of the Company’s property and equipment by asset class are as follows:

Asset Class		Estimated Useful Life
Building		39 years
Land		Indefinite
Machinery & Equipment		60 months
Building Improvements		60 months
Leasehold Improvements		The shorter of the length of the lease or 60 months
Trade Show Booths		36 months
Vehicles		60 months
Computer Equipment		60 months
Furniture & Fixtures		60 months

Hemp-Specific Impairment Charges

The Company recognized impairment charges of $143,421 and $64,628 against its hemp-specific fixed assets during the first and second quarters of 2026, respectively, bringing the cumulative impairment recognized on hemp-specific fixed assets to $208,049 as of June 30, 2026. No impairment charge on hemp-specific fixed assets was recognized during the three months ended September 30, 2026. Reference is hereby made to the disclosures in the following sections, which are hereby incorporated by reference thereto:

NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Fixed Assets

NOTE 3 – RISKS AND UNCERTAINTIES

Going Concern

In the Consolidated Statements of Operations, depreciation expense is consolidated with amortization expense. Depreciation expense related to machinery and equipment and depreciation expense related to the 5511 Building totaling $58,916 and $203,946 for the three and nine months ended September 30, 2026, was allocated as overhead to finished goods as of September 30, 2026. After this allocation, depreciation expense of $22,299 and $132,236 was recognized during the three and nine months ended September 30, 2026.

Comparatively, depreciation expense related to machinery and equipment and depreciation expense related to the 5511 Building, totaling $75,311 for the three months ended September 30, 2025, and $229,259 for the nine months ended September 30, 2025, were allocated as overhead to finished goods as of September 30, 2025. After this allocation, depreciation expense of $62,161 and $186,938, respectively, was recognized during the three and nine months ended September 30, 2025.