PROPERTY, PLANT, AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

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


In Thousands, except useful life	Useful Life (Years)	As of June 30, 2023		As of December 31, 2022
Property, plant, and equipment, net:
Buildings	10 - 20	$	900	$	900
Leasehold improvements	shorter of lease term or - 15	3,654		364
Office furniture and equipment	5 - 10	12,394		7,803
Office furniture and equipment under capital lease	4 - 20	373		414
Computer equipment and software	3 - 5	2,709		912
Assets in progress	N/A	1,801		—
Total property, plant, and equipment		21,831		10,393
Less accumulated depreciation and amortization		(6,842)		(5,877)
Total		$	14,989	$	4,516

Depreciation and amortization expense is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
In Thousands	2023		2022		2023		2022
Depreciation and amortization expense	$	571	$	365	$	983	$	722

Asset Retirement Obligation

Certain lease agreements require the Company to return designated areas of leased space to its original condition upon termination of the lease agreement. At the inception of such leases, the Company records an ARO and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. To determine the fair value of the ARO, the Company estimates the cost for a third-party to perform the restoration work. In subsequent periods, for each ARO, the Company records operating expense to accrete the ARO liability to full value and depreciation expense against the ARO, over the term of the associated lease agreement. The Company used a credit-adjusted risk free rate of 5.64 percent to discount the future obligation, and an inflation rate of 5 percent to determine the future value of the original estimate of restoration costs. The ARO is expected to be resolved in July 2025.

The following table presents the changes in the ARO during the six months ended June 30, 2023.


In Thousands	Asset Retirement Obligations
Balance as of December 31, 2022	$	—
Acquired from merger with Cibus Global, LLC	264
Obligations incurred	—
Accretion expense	1
Balance as of June 30, 2023	$	265