Property, Equipment and Leasehold Improvements

12 Months Ended

Aug. 31, 2020

Property, Equipment and Leasehold Improvements

Property, Equipment and Leasehold Improvements

Note 3. Property, Equipment and Leasehold Improvements

Property, equipment and leasehold improvements are summarized as follows:

	August 31,
	2020		2019
Held for use:
Machinery and equipment	$	9,950,000	$	8,739,000
Furniture and fixtures		2,517,000		1,112,000
Vehicles		155,000		155,000
Leasehold improvements		6,540,000		2,514,000
Land		—		—
Building		—		—
Construction in progress		79,000		820,000
Total held for use		19,241,000		13,340,000
Less: accumulated depreciation and amortization		(10,393,000)		(9,623,000)
Total property, equipment, and leasehold improvements held for use, net		8,848,000		3,717,000
Held for sale:
Land		—		1,716,000
Building		—		5,489,000
Total held for sale		—		7,205,000
Less: accumulated depreciation and amortization		—		(350,000)
Total property, equipment, and leasehold improvements held for sale, net		—		6,855,000
Total property, equipment, and leasehold improvements, net	$	8,848,000	$	10,572,000

On May 19, 2017, the Company purchased its prior corporate headquarters located at 1500 N. Lakeview Loop in Anaheim, California (the “Lakeview Property”) from the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), which is the grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder. The total purchase price of the Lakeview Property was $7,200,000, which was the market price at the time of purchase supported by an independent appraiser.

In September 2019, Bisco entered into a Purchase Agreement to sell the Lakeview Property to a third party for a cash sale price of $7,075,000, which closed escrow on November 19, 2019. Upon the closing of escrow, Bisco used the proceeds from the sale to repay all of the outstanding principal and accrued interest on the loan agreement with the Bank in the original principal amount of $5,400,000 that was used to purchase the Lakeview Property (the "Lakeview Loan"). See Note 4.

In September 2019, Bisco entered into Commercial Lease Agreement with the Trust (the "Hunter Lease"), pursuant to which Bisco leased from the Trust approximately 80,000 square feet of office and warehouse space located at 5065 East Hunter Avenue in Anaheim, California (the "Hunter Property"). During fiscal 2019, the Company started construction of leasehold improvements on the Hunter Property to house its new corporate headquarters, which was financed by the Construction Loan from the Bank.  See Note 4.  As of August 31, 2020, only minor leasehold improvements awaiting city permits for completion were in construction in progress.  In March 2020, the Company completed the move of its corporate headquarters to the Hunter Property.

For the years ended August 31, 2020 and 2019, depreciation and amortization expense was $1,224,000 and $1,047,000, respectively.