PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

NOTE 5 – PROPERTY AND EQUIPMENT, NET

Property and Equipment consist of the following:

Asset Class	December 31, 2022			December 31, 2021
Machinery & Equipment	$	664,606		$	258,533
Leasehold Improvements	$	379,499		$	152,985
Trade Show Booths	$	10,000		$	23,488
Vehicles	$	75,047		$	22,309
Computer Equipment	$	7,312			7,312
Furniture & Fixtures	$	92,934		$	46,533
Sub-total:	$	1,229,398		$	511,180
Less: accumulated depreciation	$	(209,143	)	$	(77,967	)
	$	1,020,255		$	433,213

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

Asset Class	Estimated Useful Life
Machinery & Equipment	60 months
Leasehold Improvements	60 months
Trade Show Booth	36 months
Vehicles	60 months
Computer Equipment	60 months
Furniture & Fixtures	60 months

Leasehold Improvements are depreciated over the shorter of the length of the lease or the estimated useful life. After allocating the annual depreciation of machinery and equipment of $68,411 as overhead to finished goods, depreciation expense of $75,471 was recognized during the year ended December 31, 2022. In comparison, during the year ended December 31, 2021 and during the 2020 Stub Year, $19,562 and $0, respectively, of depreciation related to machinery and equipment was allocated as overhead to finished goods. After allocating the annual depreciation of machinery and equipment as overhead to finished goods, during the year ended December 31, 2021 and during the 2020 Stub Year 2020, depreciation expense of $65,651 and $14,995 was recognized, respectively. In addition, in the Consolidated Statements of Operations, depreciation expense is consolidated with amortization expense.