7. Long-lived Assets, net

September 30, 2024

December 31, 2023

Cost

Accumulated
depreciation

Net book value

Net book value

Land

1,561,606

5,628,345

Property under construction

3,634,204

Composting buildings

2,246,194

941,188

1,305,006

1,435,124

Gore cover system

1,043,063

709,552

333,511

420,245

Driveway and paving

343,361

193,428

149,933

174,058

Signage

6,123

5,810

313

1,256

Automotive equipment

163,094

29,131

5,363,441

2,013,072

3,350,369

11,322,363

Depreciation for the three and nine-month periods ended September 30, 2024, is disclosed in cost of sales in the amount of $69,957 (C$95,457) and $226,694 (C$308,385) (2023-$87,528; C$117,344 and $301,467; C$405,633) respectively and in office and administration in the amount of $303 (C$413) and $910 (C$1,240) (2023-$307; C$413 and $921; C$1,240) respectively, in the interim condensed consolidated statements of operations and comprehensive loss.

Long-lived Assets-held for sale

On July 28, 2024, the Company's real estate broker listed the Company's two properties located in Hamilton, Ontario, Canada, (the "Hamilton Facility") for sale. On the recommendation of the real estate broker, there was no selling price noted.

In accordance with ASC 205-20, a disposal of a component or a group of components should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when a component of or group of components meets the initial criteria for classification of held for sale to be classified as held for sale. Per the initial criteria for classification of held for sale, a component or a group of components, or a business or nonprofit activity (the entity to be sold), should be classified as held for sale in the period in which all of the following criteria are met:

Management, having the authority to approve the action, commits to a plan to sell the long-lived assets to be sold.
The long-lived assets to be sold are available for immediate sale in their present condition subject only to terms that are usual and customary for sales of such long-lived assets to be sold.
An active program to locate a buyer or buyers and other actions required to complete the plan to sell the long-lived assets to be sold have been initiated.
The sale of the long-lived assets to be sold is probable (the future event or events are likely to occur), and transfer of the long-lived assets to be sold is expected to qualify for recognition as a completed sale, within one year, unless events or circumstances beyond an entity's control extend the period required to complete the sale as discussed below.
The long-lived assets to be sold are being actively marketed for sale at a price that is reasonable in relation to its current fair value.
Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.