Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.24.3
Property and Equipment
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following:
Useful
 Life (years)		 September 30,
2024		 December 31,
2023
Leasehold improvements 5 $ 833,920  $ 796,136 
Property & equipment
3-5 years
 7,381,529  5,906,859 
Technology hardware equipment
3-5 years
 2,006,179  1,907,770 
Total 10,221,628  8,610,765 
Less accumulated depreciation (3,393,644) (2,035,034)
Construction in progress 9,330,541  9,329,114 
Total property and equipment, net $ 16,158,525  $ 15,904,845 
During the year ended December 31, 2023, the Company conducted a thorough review of its assets and decided to divest items that no longer aligned with its strategic objectives. This strategic shift aimed to enhance cash flow within the Company. Consequently, through an update of its business model, the Company identified and reclassified $2,940,254 worth of property and equipment, including Hydronaut vessels, the Drix unmanned surface vessel, and other miscellaneous equipment, as AHFS. At September 30, 2024 property and equipment totaling $277,180 remains as AHFS with the decrease driven primarily by the sale of Hydronaut vessels 2 and 3 on January 22, 2024, for $1,533,609, which included cash of $375,000, combined with the offset of open payable invoices, and the reclassification of the Drix unmanned surface vessel back to property and equipment as it became revenue generating in the third quarter of 2024. The Company is actively pursuing the sale of the remaining assets earmarked for sale and anticipates that the majority will be sold by the end of the fourth quarter of 2024.