Property and Equipment, net

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Note 6: Property and Equipment, net

	(in thousands)
	September 30, 2021			December 31, 2020
Land, buildings and improvements	$	10,530		$	10,547
Furniture, fixtures, and equipment		2,434			5,136
Total property and equipment		12,964			15,683
Less: accumulated depreciation		(6,970	)		(9,210	)
Property and equipment, net	$	5,994		$	6,473

Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, ranging from three to thirty-nine years.

On March 16, 2018, the Company sold land and a building for $4,080,000 and concurrently entered into an agreement to lease the property back for ten years. The lease payments were initially $408,000 per year for two years through March 31, 2020, and will escalate in subsequent years On May 13, 2021, the Company completed its re-purchase of the land and building for $4,732,637 inclusive of closing costs, pursuant to its repurchase option in the property lease. (See Note 13: Financing Obligation Arising from Sale Leaseback Transaction for more details on the sale leaseback of the property and equipment).

In April 2021, the Company sold some of the assets located at its facility at 783 Jersey Ave., New Brunswick, N.J. The assets sold consist of equipment and machinery that the Company determined to be obsolete and no longer needed for current and future manufacturing. The assets were sold for an aggregate of $245,000, which resulted in a gain on the sale of assets of $216,000.