Property, Equipment and Leasehold Improvements

12 Months Ended

Aug. 31, 2021

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,
	2021		2020
Machinery and equipment	$	10,482,000	$	9,950,000
Furniture and fixtures		2,645,000		2,517,000
Vehicles		137,000		155,000
Leasehold improvements		6,743,000		6,540,000
Construction in progress		104,000		79,000
Total		20,111,000		19,241,000
Less: accumulated depreciation and amortization		(11,842,000)		(10,393,000)
Total property, equipment, and leasehold improvements, net		8,269,000		8,848,000

In September 2019, Bisco entered into Commercial Lease Agreement (the “Hunter Lease”) with the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), 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, 2021, 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, 2021 and 2020, depreciation and amortization expense was $1,525,000 and $1,224,000, respectively.