Fixed Assets

9 Months Ended

Sep. 30, 2022

Fixed Assets

Fixed Assets

Note 5 – Fixed Assets

Fixed Assets consisted of the following:

	September 30,		December 31,
	2022		2021
Tooling and Manufacturing Equipment	$	11,639,721	$	6,612,811
Leaseholds		826,329		797,059
Computers and Purchased Software		1,054,127		980,561
Furniture and Equipment		2,673,787		2,661,346
		16,193,964		11,051,777
Less: Accumulated Depreciation		(6,669,786)		(5,861,339)
Fixed Assets, Net	$	9,524,178	$	5,190,438

On April 27, 2022, the Company signed a purchase order for new manufacturing equipment upgrades to further our waveguide production capabilities. The purchase order totaled $2,162,481 and the Company made a down payment of $1,050,748 at that time and this deposit has been included in construction-in-progress in Tooling and Manufacturing Equipment until the assets are placed into service. The Company expects to take delivery of this new waveguide equipment by the end of 2022.

On May 12, 2022, the Company signed a series of agreements with Atomistic SAS, which provided for an exclusive license by the Company of key mLED technology and for the custom design of a backplane chip (the “Atomistic Agreements”), for cash commitments totaling $30 million along with equity issuance commitments to be made by the Company relating exclusively to the achievement of performance milestones by Atomistic (See Note 10 – Capital Stock for further details). $15 million of these cash commitments are for the design of the backplane chip, all of which is custom to the Company.

During the three months ended September 30, 2022, the Company made an additional progress payment of $1,500,000 towards this custom chip tooling asset, in addition to the $4,029,120 progress payments made to-date. These payments, totaling $5,529,120 are included in construction-in-progress in Tooling and Manufacturing Equipment until the asset is placed into service in the next 18 to 21 months. The remaining $9,470,880 commitment towards this custom backplane is expected to be paid over the same period as referenced above.