Note 6 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

6. Property, plant and equipment

		*Land and*												*Leasehold*				*Construction*
		*Improvements*				*Buildings*				*Equipment*				*Improvements*				*in Progress*				*Total*
Gross carrying amount

At December 31, 2023			6,691,107				17,639,365				13,843,385				64,551,017				5,583,614				108,308,488
Additions			-				1,140,477				3,455,096				8,350,496				8,412,972				21,359,041
Transfers			-				26,786				1,157,443				7,392,523				(8,576,752	)			-
Asset Impairments			(625,146	)			(1,718,076	)			(1,321,587	)			(14,940,679	)			(2,398,087	)			(21,003,575	)
Disposals			-				-				(93,206	)			-				(62,960	)			(156,166	)
At December 31, 2024			6,065,961				17,088,552				17,041,131				65,353,357				2,958,787				108,507,788
Additions			-				11,263				814,212				1,968,642				3,732,581				6,526,698
Transfers			-				-				455,941				2,921,724				(3,377,665	)			-
Reclassified to Assets Held for Sale							(3,000,000	)															(3,000,000	)
Asset Impairments			(2,466,944	)			(9,314,402	)			(3,343,753	)			(11,092,756	)			-				(26,217,855	)
Disposals			(3,311,050	)							(149,104	)			(212,440	)			(400,000	)			(4,072,594	)
At December 31, 2025		$	287,967			$	4,785,413			$	14,818,427			$	58,938,527			$	2,913,703			$	81,744,037

Depreciation

At December 31, 2023			262,259				914,436				8,803,434				30,776,662				-				40,756,791
Additions			22,184				782,287				2,583,428				10,026,791				-				13,414,690
Asset Impairments			(255,971	)			(374,751	)			(1,118,722	)			(7,369,068	)			-				(9,118,512	)
Transfers & disposals			-				-				(56,604	)			-				-				(56,604	)
At December 31, 2024			28,472				1,321,972				10,211,536				33,434,385				-				44,996,365
Additions			15,306				686,630				2,375,684				8,321,634				-				11,399,254
Asset Impairments			(24,074	)			(1,098,407	)			(2,516,046	)			(4,998,803	)			-				(8,637,330	)
Transfers & disposals			-				-				(104,915	)			(31,015	)			-				(135,930	)
At December 31, 2025		$	19,704			$	910,195			$	9,966,259			$	36,726,201			$	-			$	47,622,359

Carrying amount

At December 31, 2024		$	6,037,489			$	15,766,580			$	6,829,595			$	31,918,972			$	2,958,787			$	63,511,423
At December 31, 2025		$	268,263			$	3,875,218			$	4,852,168			$	22,212,326			$	2,913,703			$	34,121,678

For the year ended December 31, 2025 depreciation expense was $11,399,254 (2024 - $13,414,690) of which $4,351,016 (2024 - $4,553,769) was included in cost of goods sold.

During the year ended December 31, 2025 the Company transferred $3,377,665 (2024 - $8,576,752) of costs from Construction in Progress to Leasehold Improvements, Buildings, Equipment and Land Improvements upon completion of the related projects.

During the year ended December 31, 2025 the Company disposed of various property and equipment for proceeds of $9,101,339 (2024 - $21,000) resulting in a net loss of $2,423,653 (2024 - net loss of $78,563).

During the year ended December 31, 2025 the Company recorded a full impairment charge of $6,609,590 associated with property, plant and equipment, for its Las Vegas, Nevada cultivation facility as the fair value of these assets based on management's expected future cash flows equal $0.

During the year ended December 31, 2025 the Company recorded an impairment charge of $10,970,935 associated with property, plant and equipment, for its Coalinga, California cultivation facility as the fair value of these assets based on management's expected future cash flows equaled $3,000,000. These assets were reclassified as held for sale and subsequently sold for $2,734,319 resulting in a loss on sale of assets of $265,681.

During the year ended December 31, 2024 the Company recorded a full impairment charge of $7,752,871 associated with property, plant and equipment, for its Orange County, California dispensary as the fair value of these assets based on management's expected future cash flows equal $0.

During the year ended December 31, 2024 the Company recorded a full impairment charge of $1,739,105 associated with property, plant and equipment related to its cultivation facility in Beatty Nevada. Due the expected closure of this facility, management's expected future cash flows equal $0.

During the year ended December 31, 2024 the Company recorded an impairment charge of $2,393,087 associated with property, plant and equipment related to building materials for its cultivation facility in Summerfield, Florida. Due the abandonment of this project, the fair value of these building materials is $400,000 based on management's estimation of future cash flows.