Note 4 - Property and Equipment

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 4 – PROPERTY AND EQUIPMENT

The Company’s property and equipment consist of the following:

	As of December 31, 2023			As of December 31, 2022
Computers, software, and office equipment	$	480,882		$	463,292
Leasehold improvements		506,162			535,527
Laboratory equipment		3,670,097			3,559,362
Manufacturing tooling		133,285			121,120
Demo equipment		31,554			31,554
Total		4,821,980			4,710,855
Less: Accumulated depreciation		(3,588,070	)		(2,877,600	)
Total Property and Equipment, Net	$	1,233,910		$	1,833,255

In the second quarter of 2023, the Company identified a change in future projected cash flows related to its Birmingham asset group. The Company prepared an undiscounted cash flow for its Birmingham asset group as of June 30, 2023, as required under ASC 360 and determined the carrying amount of the asset group exceeded its estimated undiscounted future cash flows. The Company determined the fair value of the Birmingham asset group using replacement cost and market approaches based on the in-exchange value. The Company recognized an impairment loss of $162,905 of its property and equipment in the Birmingham operating segment during the second quarter of 2023.

In the fourth quarter of 2022, the Company identified a change in its future projected cash flows related to certain of its asset groups. The Company prepared an undiscounted cash flow for the asset groups as of December 31, 2022, as required under ASC 360 and determined the carrying amounts exceeded the estimated undiscounted future cash flows for those asset groups. The Company determined the fair value of the asset groups and recognized an impairment loss of $185,469 of its property and equipment in the Birmingham and Corporate asset groups during the fourth quarter of 2022. The Company also concluded that the finite-lived intangible assets of its former zPREDICTA asset group, which is now reported within the Pittsburgh operating segment, were fully impaired as of December 31, 2022, and recognized an impairment loss on those finite-lived intangible assets during the fourth quarter of 2022. See Note 5 –Intangible Assets.

Depreciation expense was $711,890 and $898,369 in 2023 and 2022, respectively.