Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.21.2
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net

Note 4. Property, Plant and Equipment

Property, plant and equipment, net, consisted of the following:

 

 

Estimated

 

 

 

 

 

 

 

 

Useful Life

 

June 30,

 

 

December 31,

 

(in thousands)

 

(Years)

 

2021

 

 

2020

 

Land and improvements

 

20

 

$

92

 

 

$

92

 

Leasehold improvements

 

Shorter of useful
life or lease term

 

 

21,021

 

 

 

20,932

 

Buildings

 

15-40

 

 

2,089

 

 

 

2,089

 

Machinery and equipment

 

5-20

 

 

82,489

 

 

 

64,164

 

Motor vehicles

 

7-10

 

 

874

 

 

 

693

 

Furniture and fixtures

 

7-10

 

 

229

 

 

 

221

 

Office equipment

 

3-10

 

 

2,110

 

 

 

2,089

 

Construction in progress

 

N/A

 

 

74,771

 

 

 

36,146

 

 

 

 

 

 

183,675

 

 

 

126,426

 

Accumulated depreciation and amortization

 

 

 

 

(23,692

)

 

 

(19,631

)

Property, plant and equipment, net

 

 

 

$

159,983

 

 

$

106,795

 

 

We reported depreciation and amortization expense (which included amortization of patents) as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

 

$

1,951

 

 

$

753

 

 

$

3,790

 

 

$

1,436

 

Selling, general and administrative

 

 

177

 

 

 

31

 

 

 

273

 

 

 

60

 

Research and development

 

 

83

 

 

 

155

 

 

 

248

 

 

 

313

 

Total depreciation and amortization expense

 

$

2,211

 

 

$

939

 

 

$

4,311

 

 

$

1,809

 

 

Construction in progress consists primarily of the conversion and build-out of our new facility in Winchester, Kentucky. Property, plant and equipment includes capitalized interest of $5.3 million and $5.1 million as of June 30, 2021 and December 31, 2020, respectively. For the three and six months ended June 30, 2021 and 2020, interest costs of $0.1 million and $0.3 million and $1.1 million and $1.8 million, respectively, were capitalized to property, plant and equipment. At December 31, 2020, prepaid expenses and other current assets included $0.8 million of equipment classified as held for sale. We sold this equipment in April 2021 at a loss of approximately $33 thousand.