Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

6. Property and Equipment

Major classes of property and equipment at December 31, 2023 and 2022 are as follows:

	2023			2022
Equipment		2,784,098			2,344,946
Manufacturing equipment		3,260,679			-
Furniture		146,049			143,449
Product molds		524,476			122,675
Computers		84,070			78,885
Leasehold improvements		861,332			675,751
Building		6,079,410			6,079,410
Land		2,239,405			2,239,405
Automobile		168,497			168,497
Deposits		-			605,000
Less accumulated depreciation		(1,664,580	)		(557,346	)
	$	14,483,436		$	11,900,672

During the years ended December 31, 2023 and 2022, the Company recognized depreciation expense of $1,107,292 and $484,073, respectively.

During the year ended December 31, 2022, the Company completed the purchase of a manufacturing facility and land for $6,079,410 and $2,239,405, respectively. The Company has and continues to produce soft tonneau covers in Meizhou, China and Foshan, China, and it began producing hard tonneau covers in its West Seneca manufacturing facility in 2023. The Company believes that by doing so it (i) has better control over design and manufacturing quality of its products, (ii) mitigates supply chain risk, (iii) decreases shipping costs, (iv) cuts overall manufacturing costs, and (v), by on-shoring production, participates in creating positive social externalities including employment in its largest market: the United States.