Property and Equipment, Net

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 10 PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following as of March 31, 2022 and December 31, 2021:

(Amounts in thousands)	March 31, 2022			December 31, 2021
Shop machinery and equipment	$	12,063		$	11,912
Computers and electronics		1,475			1,436
Office furniture and fixtures		730			744
Leasehold improvements		543			543
Building		-			4,801
Land		-			1,330
Building improvements		-			755
Total property and equipment		14,811			21,521
Less: accumulated depreciation		(12,288	)		(12,033	)
Total property and equipment, net	$	2,523		$	9,488

On January 31, 2022, the Company sold its Tucson, Arizona office building (the “Tucson Building”) for $15.8 million of cash. The Tucson Building had a carrying value of $6.7 million, including the $4.8 million cost basis of the building, the $1.3 million cost basis of the land, and the $0.8 million related to building improvements, partially offset by $0.2 million of accumulated depreciation. The Company recognized an $8.4 million gain on sale of assets, which is net of $0.7 million of related transaction costs. See Note 11 – Leases for additional information about the subsequent leaseback of the office building.

The Company recognized $505,000 and $362,000 of depreciation expense for the three months ended March 31, 2022 and 2021, respectively.