Property and Equipment

6 Months Ended

Jun. 30, 2022

Property and equipment:

Property and Equipment

Note 7 – Property and Equipment

Property and equipment at June 30, 2022 and December 31, 2021, consists of the following:

	June 30,			December 31,
	2022			2021
Office equipment	$	13,872		$	13,872
Machinery		1,599,264			1,478,022
Software		70,000			70,000
Website		71,589			71,589
Leasehold improvements		1,261,012			1,257,869
Construction in progress		1,884,719			–
		4,900,456			2,891,352
Less: Accumulated depreciation and amortization		(358,751	)		(210,096	)
Total property and equipment, net	$	4,541,705		$	2,681,256

Construction in progress consists of costs incurred to build our second and third freeze driers, and to build out our offices within our facility in Irving Texas. These costs will be capitalized as Machinery and Leasehold Improvements, respectively, upon completion.

The Company recognized depreciation of $148,655 and $65,052 for the six months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022, $15,736 of the depreciation expense was allocated to inventory overhead, resulting in $132,919 of depreciation expense.