As of September 30, 2019, the Company determined that the carrying amount of the assets located at one of its proppant distribution centers would not be recoverable as efforts to lease or sell the assets have not been successful due to its location. These assets are located on leased land. The land lease was renegotiated during the third quarter of 2019 to reduce our monthly cost, as well as to revise the lease term to end in December 2020. The Company does not expect to exercise the Company renewal options. At the expiration of the lease term in December 2020, any remaining assets would become the property of the lessor. These distribution center assets were previously considered a general corporate asset that was evaluated for impairment in aggregate with other long-lived assets because it was built to distribute various products manufactured from multiple asset groups and was not built to service any one single asset group. When the Company made the decision to abandon the facility, we then evaluated these distribution center assets separately as opposed to aggregated with other long-lived assets. When the Company built this distribution center several years ago, it was originally intended to primarily distribute ceramic proppant in the Permian Basin. Since then, the market for ceramic proppant in that region deteriorated with the majority of operators instead using inexpensive sand proppants. Given that the Company was no longer able to utilize this distribution center for ceramic proppant, the Company leased the facility in 2017 to a third party who used it for transloading sand in the region. During 2019, the market in the Permian Basin further shifted to very inexpensive in-basin sand that does not require the use of a distribution center, as the sand is trucked directly to the wellsite from the mine. Further, during the third quarter of 2019, the lease with the third party expired and was not renewed. Given these developments and the expectation for them to continue indefinitely, there is no business need for these distribution center assets in the region. As we do not expect to renew the lease and efforts to locate a buyer have not been successful, the Company concluded to abandon the long-lived assets and has recorded an impairment of $8,101, within other operating expenses on the statement of operations. The Company wrote the assets down to a salvage value of $0 given that no interested buyers were identified while marketing the assets at scrap values. In addition to this lease, certain other right of use operating lease assets were abandoned during the third quarter of 2019, and as a result we recorded an impairment to the right of use assets totaling $3,886. See Note 6.

Due to worsening market conditions and outlook and the loss of a key customer during the fourth quarter of 2019, the Company identified indicators of impairment for all of our long-lived asset groups. The Company compared forecasted undiscounted cash flows to the net book value for each asset group and completed fair value assessments for all asset groups where the net book value exceeded the forecasted undiscounted cash flows. Our forecasted undiscounted cash flow analysis for our McInytre, Georgia manufacturing facility, which was previously impaired in a prior year, and certain general corporate assets exceeded the book value of those assets, and as such no further analysis was required. However, the Company recognized an impairment charge totaling $169,872 primarily related to (1) our Toomsboro, Georgia manufacturing plant, (2) our technology assets, including our Eufaula, Alabama and New Iberia, Louisiana manufacturing plants, (3) our sand assets, including our Marshfield, Wisconsin facility and (4) various general corporate assets primarily related to distribution centers we no longer intend to utilize in our business. The Company engaged the services of a third party consulting firm to assist with the determination of the fair value of the related assets that were determined to be impaired. The fair value of those impaired assets at December 31, 2019 was estimated at approximately $34,421 based on Level 3 inputs, primarily using a cost and market approach. For real property, we used the market (sales comparison) and/or the cost approaches to value each location on a value in exchange premise. In using the market approach for our Toomsboro facility, we determined that the value of comparable property ranged from approximately $14.21 to $21.79 per square foot, and the concluded value of the property at the Toomsboro facility was approximately $18.00 per square foot. In using the market approach for our technology asset group (including the New Iberia and Eufaula facilities), we determined that the value of comparable property ranged from approximately $6.37 to $12.67 per square foot with a concluded value of approximately $10.00 per square foot for the New Iberia facility, and a range from approximately $11.25 to $19.55 per square foot with a concluded value of approximately $15.00 per square foot for the Eufaula facility. In using the market approach for our Marshfield facilities, we determined that the value of comparable properties ranged from approximately $11.40 to $18.75 per square foot, and the concluded value of the properties at the Marshfield facility was approximately $15.00 per square foot. Excess land at Marshfield was valued at $0.10 per square foot of land area. For the distribution centers, we relied primarily on the market approach to value the land and the cost approach to estimate the contributory value of the improvements. The land values ranged from a low of $0.20 per square foot to $5.00 per square foot of land area, depending on location. The contributory value of improvements ranged from approximately $21.00 to $56.00 per square foot of improved building area, depending on the improvements and location. For machinery and equipment, we considered all approaches to value. As the underlying assets were not supported by cashflows from operating activities, we applied downward adjustments to account for liquidation and / or floor values to sell the assets on an as-is where-is basis. This resulted in valuing the machinery and equipment at salvage values as noted by market participants and published sources, ranging from zero to seven percent of replacement cost depending on the underlying asset type and status. When valuing assets on an in exchange basis, certain assets such as software, computer equipment, lab equipment or abandoned CIP would have very little to no value, and were based upon a zero percent salvage value. Major equipment at the idled locations was noted at a three and a half percent (3.5%) salvage value and active equipment was based upon a seven percent (7.0%) salvage value.

In addition, during the fourth quarter of 2019, as a result of the change in the outlook of our business and the idling of our Marshfield sand facility which utilized a significant portion of our fleet of railcars, we have an excess number of railcars that we no longer expect to utilize in our business, and historical and current efforts to locate sublessees have not been successful. In addition, we previously utilized a leased distribution center in our sand business, and as a result of the idling of our sand business, we no longer expect to utilize this leased distribution center, and efforts to locate a sublessee have not been successful. We expect the majority of our future sales will require customer pick-up at our manufacturing facilities, which eliminates the need for a large number of railcars and distribution centers. These assets were previously treated as general corporate assets that were evaluated for impairment in aggregate with other long-lived assets because they were designed to transport and distribute various products manufactured from multiple asset groups and were not designed to service any one single asset group. When the Company made the decision to abandon the assets, we then evaluated these railcar and distribution center right of use assets separately as opposed to aggregated with other long-lived assets. As a result, the Company recorded an impairment of the abandoned railcar operating lease right of use assets, as well as the distribution center operating lease right of use asset. The Company estimated a salvage value of $0 associated with these lease assets given its inability to find interested sublessees, the excess supply of similar railcars in the market, and the shift to in-basin sand described above. In addition, the Company made the decision that it will vacate certain leased office space during 2020, and as a result have recorded an additional impairment to operating lease right of use assets. This lease asset was for the Company’s corporate headquarters; as such, it was previously treated as a general corporate asset that was evaluated for impairment in aggregate with other long-lived assets. When the Company made the decision to abandon the leased office space, we then evaluated the operating lease right of use asset separately as opposed to aggregated with other long-lived assets. The Company estimated a salvage value of $0 associated with this office lease space based on its inability to find interested sublessees and the excess of vacant commercial office space in the area where the lease is held. The total amount of right of use asset impairments recorded during the fourth quarter of 2019 was approximately $35,194. See Note 6.

In addition, the Company identified indicators of impairment relating to our PicOnyx investment, and as a result recorded an impairment of $4,130 during the fourth quarter of 2019. See Note 3.

If there are changes to our material assumptions, it is possible that we may have to recognize additional impairments in the future. However, we believe that the material assumptions used in our impairment analysis were reasonable and were based on available information and forecasts at the time. We continue to monitor whether or not events or circumstances would indicate that the carrying value of any of our long-lived assets might not be recoverable.

The Company assesses goodwill for possible impairment annually or sooner if circumstances indicate possible impairment may have occurred. The Company evaluated goodwill for impairment during the fourth quarter of 2019. The Company has been marketing for sale all or a portion of the Company to various parties. As a result of this marketing effort and various indications of interest, the Company estimated that the fair value of StrataGen, Inc. was less than the carrying value of identifiable assets, and as a result a $3,500 impairment was recorded to goodwill.

	For the years ended December 31,
	2019		2018
Domestic long-lived assets impairment - Q4 2019	$	169,872	$	—
Domestic long-lived assets impairment - Q3 2019		8,101		—
Investment in PicOnyx impairment		4,130		—
Operating lease right of use assets impairments - Q4 2019		35,194		—
Operating lease right of use assets impairments - Q3 2019		3,886		—
Goodwill impairment		3,500		—
Loss (gain) on disposal of assets		213		(1,089	)
Other		—		757
Total	$	224,896	$	(332	)