NOTE 12

ACCRUED CLOSURE COSTS AND ARO

Accrued closure costs represent our estimated environmental liability to clean up our fixed-based regulated facilities as required by our permits, in the event of closure. Changes to reported closure liabilities (current and long-term) for the years ended December 31, 2023, and 2022, were as follows:

SCHEDULE OF CHANGE IN ASSET RETIREMENT OBLIGATION 

In 2022, the Company recorded a total of approximately $1,339,000 in additional estimated closure liabilities of which approximately $465,000 (within long-term) was recorded in connection with the footprint expansion at one of our facilities and an update to a processing enclosure area at another facility. The remaining additional closure liabilities was recorded for our EWOC facility for decommissioning activities due to changes in estimated closure costs.

As of December 31, 2023, and December 31, 2022, the current portion of the closure liabilities totaled approximately $79,000 and $682,000, respectively, which reflect closure liabilities for our EWOC facility. The spending made in each of the years 2023 and 2022 was primarily for our EWOC facility.

The reported closure asset or ARO, is reported as a component of “Net Property and equipment” in the Consolidated Balance Sheets as of December 31, 2023, and 2022 with the following activity for the years ended December 31, 2023, and 2022:

SCHEDULE OF ASSET RETIREMENT OBLIGATIONS 

The addition to ARO in 2022 reflects closure obligations as discussed above.