Property and Equipment

9 Months Ended

Sep. 30, 2024

Property and equipment:

Property and Equipment

Note 7 – Property and Equipment

Property and equipment at consist of the following at September 30, 2024 and December 31, 2023:

	September 30,			December 31,
	2024			2023
Machinery	$	7,712,953		$	4,714,626
Leasehold improvements		1,454,767			1,409,767
Software		70,000			70,000
Website		71,589			71,589
Office equipment		121,674			21,440
Construction in progress		2,848,191			1,522,465
		12,279,174			7,809,887
Less: Accumulated depreciation and amortization		(1,550,550	)		(967,602	)
Total property and equipment, net	$	10,728,624		$	6,842,285

Construction in progress consists of costs incurred to build out our manufacturing facilities in Texas, along with the construction of our freeze driers. These costs will be capitalized as Leasehold Improvements and Machinery, respectively, upon completion.

For the three months ended September 30, 2024 and 2023, respectively, depreciation of property and equipment was $216,164 and $150,676, of which and $207,580 and $141,415 was allocated to cost of goods sold, resulting in net depreciation expense of $8,583 and $9,261 included in operating expense. For the nine months ended September 30, 2024 and September 30, 2023, respectively, depreciation of property and equipment was $582,948 and $306,092, of which $559,888 and $211,454 was allocated to cost of goods sold, resulting in net depreciation expense of $23,060 and $94,638 included in operating expense.