Property, Plant, and Equipment, net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property, plant, and equipment, net consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Land and building	$	—	$	2,823
Machinery and equipment	3,373		12,420
Software	—		3,403
Leasehold improvements	—		3,306
Construction in progress	150		2,652
Total Property, plant, and equipment	3,523		24,604
Less: Accumulated depreciation and amortization	—		(6,035)
Property, plant and equipment, net	$	3,523	$	18,569

Depreciation and amortization expense totaled $0.9 million and $2.8 million for the three and nine months ended September 30, 2024, respectively. Depreciation and amortization expense totaled $1.0 million and $3.2 million for the three and nine months ended September 30, 2023, respectively. The Company recognized impairment charges related to its property, plant and equipment as more fully discussed below.

The Company recognized impairment charges of $11.1 million and $12.5 million during the three and nine months ended September 30, 2024, respectively, primarily related to property, plant and equipment impairment in the US. The Company recognized impairment charges of $1.8 million during the three and nine months ended September 30, 2023, respectively, related to restructuring in Hyzon Europe (see Note 4. Restructuring and Related Charges).

Impairment of Long-lived Assets

The sustained decline in the Company’s stock price and market capitalization during the third quarter of 2024, along with continued substantial doubt about the Company’s ability to continue as a going concern (as more fully discussed in Note 1. Nature of Business and Basis of Presentation) resulted in the determination that a triggering event had occurred during the third quarter of 2024 and that a recoverability test for long-lived assets was appropriate.The required step one recoverability test resulted in estimation uncertainty regarding the ability to achieve future enterprise level positive undiscounted cash flows. As such, the Company prepared a step two impairment test for its long-lived assets. The Company used market approach models to estimate the fair value of individual long-lived assets, comparing the fair values to the net book values, and calculating the impairment charge. The net book value of long-lived assets exceeded their respective fair values as of September 30, 2024 and therefore the Company recognized impairment charges related to its property, plant and equipment of $11.1 million during the three months ended September 30, 2024.