Property and Equipment, Net

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

8. Property and Equipment, net and Land Classified as Held-for-Sale

Property and Equipment, net

Property and equipment, net is comprised of the following as of:

	June 30, 2022			December 31, 2021
Factory equipment	$	4,216,861		$	3,278,035
Land		—			947,394
Furniture and office equipment		716,721			592,316
Leasehold improvements		1,183,555			993,581
Construction in progress		5,993			148,984
		6,123,130			5,960,310
Accumulated depreciation		(1,747,141	)		(1,447,375	)
Property and equipment, net	$	4,375,989		$	4,512,935

Depreciation expense was $186,319 and $329,138 for the three and six months ended June 30, 2022, respectively. Depreciation expense was $170,928 and $302,261 for the three and six months ended June 30, 2021, respectively.

Fixed Assets Classified as Held-for-Sale

The Company entered into a purchase order agreement for the sale of the intermittent motion form (“IMF”) production line for a sales price of $100,000. The book value exceeded the fair market value and, as such, the Company recorded an impairment charge of $100,426 for the three and six months ended June 30, 2022.

Land Classified as Held-for-Sale

On March 25, 2022, the Company entered into a vacant land real estate sale agreement for the sale of excess unused lots in Sisters, Oregon for a sales price of $1,572,512. During the three months ended June 30, 2022, the Company sold the land resulting in a gain of $573,818.