Note 5 – Property and Equipment

At September 30, 2024 and December 31, 2023, property and equipment consisted of the following:

Depreciation expense for the nine months ended September 30, 2024 and 2023 amounted to $72,738 and $127,171, respectively.

On July 3, 2024, the Company completed a purchase agreement (the “Purchase Agreement”) with a third-party purchaser (the “Buyer”) to sell the Company’s warehouse. The net book value of the sales of the property consisted of the following: 

The purchase price for the property was $7,460,250. The Company received proceeds of $7,145,808, of which $1,481,208 was paid directly to settle certain outstanding debt and accrued interest and other amounts owed. In addition, the Company incurred $314,442 of closing costs resulting in a gain of $3,181,706 from the sale of the property. On July 8, 2024, the Company entered into a twelve-month Standard Industrial/Commercial Single-Tenant Lease with a third party for an approximately 14,004 square foot office and warehouse space. The lease commenced on July 4, 2024 and will end on July 31, 2025. The monthly rent is $16,804.