Annual report [Section 13 and 15(d), not S-K Item 405]

Property and Equipment

v3.25.1
Property and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following:
Useful
 Life (years)		 December 31, 2024 December 31, 2023
Leasehold improvements 5 $ 833,920  $ 796,136 
Property & equipment
3-5 years
 7,528,597  5,906,859 
Technology hardware equipment
3-5 years
 1,966,841  1,907,770 
Total 10,329,358  8,610,765 
Less accumulated depreciation (3,958,780) (2,035,034)
Construction in progress 10,744,668  9,329,114 
Total property and equipment, net $ 17,115,246  $ 15,904,845 
During the year ended December 31, 2024 the Company performed a discounted cash flow test to compare the carrying value of its assets with estimated future revenues and concluded that none of its assets were impaired. For the year ended December 31, 2023, impairments of $25,354,791 were reported on the consolidated statements of operations relating to property and equipment, primarily arising from impairment of the Aquanaut Mark 2 vehicles, Hydronaut vessels, Drix, Olympic arms and some leasehold improvements.
During the year ended December 31, 2023, the Company conducted a thorough review of its assets and identified items that no longer aligned with its strategic objectives. The Company reclassified $2,940,254 worth of property and equipment, including Hydronaut vessels, the Drix unmanned surface vessel, and other miscellaneous equipment, as Assets Held For Sale ("AHFS"). At December 31, 2024, property and equipment totaling $750 remains as AHFS with the decrease driven primarily by the sale of Hydronaut vessels 1, 2 and 3. Hydronaut vessels 2 and 3 were sold in January 2024, for $1,533,610, which included cash of $375,000, combined with the offset of open payable invoices. Hydronaut Vessel 1 was sold in November 2024 for $240,337. The Drix unmanned surface vessel was transferred back to property and equipment as it became revenue generating in the third quarter of 2024.
The increase in Construction in progress for the year ended December 31, 2024 was mainly driven by a transfer of $1,376,885 from Work in progress.
The Company reported a net loss on disposal of property and equipment of $19,202 and $82,604 for the years ended December 31, 2024 and 2023, respectively, which is reported on the consolidated statements of operations in other (income) expense.