Property and Equipment, Net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

NOTE 4 - PROPERTY AND EQUIPMENT, NET

As of September 30, 2024 and December 31, 2023, property and equipment, net consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Leasehold improvements	$	158	$	—
Vehicles and trailers	129		129
Computers and software	3,474		2,864
Furniture and fixtures	1,767		1,666
Machinery and equipment	4,238		2,772
Construction in progress	11,374		13,795
Property and equipment, gross	21,140		21,226
Less: accumulated depreciation and amortization	(3,970)		(2,877)
Property and equipment, net	$	17,170	$	18,349

Total depreciation expense related to property and equipment for the three and nine months ended September 30, 2024 was $0.5 million and $1.3 million, respectively, and $0.3 million and $0.9 million, respectively, for the three and nine months ended September 30, 2023.

Construction in progress includes constructions costs associated with the fabrication of a commercial communications satellite. During the third quarter of 2024, management determined that certain assets under development by a third party subcontractor were not in compliance according to the specifications under contract. Management concluded that carrying cost of these assets was not recoverable and recorded an impairment charge of approximately $5.0 million, including capitalized interest of $0.5 million, in our condensed consolidated statements of operations for the three and nine months ended September 30, 2024.

As of September 30, 2024, the remaining construction costs included in construction in progress associated with the commercial communications satellites was approximately $11.1 million. The Company capitalized interest in connection with construction in progress of $279 thousand and $658 thousand, respectively, for the three and nine months ended September 30, 2023 and recognized no capitalized interest for the three and nine months ended September 30, 2024.