FIXED ASSETS, NET

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Fixed assets consist of the following (in thousands):


	Useful Life (in years)	June 30, 2022		December 31, 2021
Equipment	10	$	75,176	$	2,060
Furniture and fixtures	7	43		40
Leasehold improvements	15	338		113
Office equipment	5	1,167		918
Vehicles	5	575		373
Building	20	2,034		—
Land improvements	20	273
Construction in progress		30,101		10,307
Land		7,015		—
Total fixed assets		116,722		13,811
Less accumulated depreciation		(4,475)		(2,045)
Net fixed assets		$	112,247	$	11,766

The increase in fixed assets is due to the fixed assets acquired by the acquisition of the Mobile Refinery on April 1, 2022. Depreciation expense was $2.4 million and $0.1 million for the three months ended June 30, 2022 and 2021, respectively, for the continued operations. Depreciation expense was $2.5 million and $0.2 million for the six months ended June 30, 2022 and 2021, respectively for the continued operations.

Asset Retirement Obligations:

The Company has asset retirement obligations with respect to certain of its refinery assets due to various legal obligations to clean and/or dispose of various component parts of each refinery at the time they are retired. However, these component parts can be used for extended and indeterminate periods of time as long as they are properly maintained and/or upgraded. It is the Company’s practice and current intent to maintain its refinery assets and continue making improvements to those assets based on technological advances. As a result, the Company believes that its refinery assets have indeterminate lives for purposes of estimating asset retirement obligations because dates, or ranges of dates, upon which the Company would retire refinery assets cannot reasonably be estimated. When a date or range of dates can reasonably be estimated for the retirement of any component part of a refinery, the Company estimates the cost of performing the retirement activities and records a liability for the fair value of that cost using established present value techniques.