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Balance Sheet Components
6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
Note 4 - Balance Sheet Components

Accounts receivable, net consisted of the following:

(In thousands)June 30, 2024December 31, 2023
Accounts receivable$52,944 $49,643 
Less: allowance for expected credit losses(2,077)(2,119)
Accounts receivable, net$50,867 $47,524 

Movement of allowance for expected credit losses was as follows:

Six Months Ended June 30,
(In thousands)20242023
Beginning balance$2,119 $1,442 
(Decrease) increase in provision for expected credit losses(40)56 
Bad debt write-offs(2)(24)
Ending balance$2,077 $1,474 

Prepaid expenses and other current assets consisted of the following:

(In thousands)June 30, 2024December 31, 2023
Prepaid expenses$2,093 $4,591 
Advances to suppliers6,112 3,340 
Other current assets791 2,214 
Prepaid expenses and other current assets$8,996 $10,145 

Property and equipment, net consisted of the following:

(In thousands)June 30, 2024December 31, 2023
Automobiles(1)
$47,312 $37,256 
Buildings63,045 63,045 
Building improvements22,278 22,014 
Furniture and fixtures419 474 
Land49,929 49,929 
Machinery and equipment11,970 11,532 
Construction in progress5,172 1,391 
Subtotal200,125 185,641 
Less: accumulated depreciation(56,587)(52,505)
Property and equipment, net$143,538 $133,136 
_________________
(1)    The cost and accumulated depreciation of property and equipment related to finance leases was $31.0 million and $12.3 million at June 30, 2024 and $22.2 million and $10.3 million at December 31, 2023, which primarily relates to Automobiles. During the six months ended June 30, 2024, the Company entered into finance leases for automobiles which mature in 4 to 6 years and have a weighted average discount rate of 6.6%. The total future minimum lease payments under finance leases as of June 30, 2024 is $30.1 million. As of June 30, 2024, the Company had additional leases that had not yet commenced which totaled $16.9 million in future minimum lease payments.

Depreciation expense was $2.5 million and $2.4 million for the three months ended June 30, 2024 and 2023, respectively. Depreciation expense was $5.1 million and $5.0 million for the six months ended June 30, 2024 and 2023, respectively. During the three months ended June 30, 2023, the Company impaired machinery and recognized impairment expense of $1.2 million in distribution, selling and administrative expense in the condensed consolidated statements of operations and comprehensive income.
Long-term investments consisted of the following:

(In thousands)Ownership as of June 30,
2024
June 30, 2024December 31, 2023
Asahi Food, Inc. ("Asahi")49%$590 $588 
Pt. Tamron Akuatik Produk Industri ("Tamron")12%1,800 1,800 
Total long-term investments$2,390 $2,388 

The investment in Tamron is accounted for using the measurement alternative under Accounting Standards Codification (“ASC”) Topic 321 Investments—Equity Securities, which is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments, if any. The investment in Asahi is accounted for under the equity method due to the fact that the Company has significant influence but does not exercise control over this investee. The Company determined there was no impairment as of June 30, 2024 for these investments.

Accrued expenses and other liabilities consisted of the following:

(In thousands)June 30, 2024December 31, 2023
Accrued compensation$5,617 $7,941 
Accrued professional fees663 1,353 
Accrued interest and fees1,056 1,276 
Self-insurance liability2,439 1,723 
Other5,779 4,994 
Total accrued expenses and other liabilities$15,554 $17,287