Property and Equipment, Net

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 11 PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following as of June 30, 2022 and December 31, 2021:

(Amounts in thousands)	June 30, 2022			December 31, 2021
Shop machinery and equipment	$	2,081		$	10,103
Computers and electronics		992			1,436
Office furniture and fixtures		317			744
Leasehold improvements		301			543
Building		-			4,801
Land		-			1,330
Building improvements		-			755
Total property and equipment		3,691			19,712
Less: accumulated depreciation		(2,307	)		(10,960	)
Total property and equipment, net	$	1,384		$	8,752

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 13 – Leases for additional information about the subsequent leaseback of the office building.

During the three months ended June 30, 2022, the Company derecognized the property and equipment in connection with the following transactions (see Note 20 – Other Business Developments for additional information):

a) Sale of DragonWave-X Canada, Inc. assets – gross assets of $8.5 million with a net book value of $0.0 million;

b) Idling of InduraPower – gross assets of $0.6 million with a net book value of $0.1 million; and

c) Transfer of Innovation Digital, LLC assets – gross assets of $0.1 million with a net book value of $0.1 million.

The Company recognized $0.5 million and $0.6 million of depreciation expense for the three and six months ended June 30, 2022, respectively, compared to $0.3 million and $0.5 million of depreciation expense for the three and six months ended June 30, 2021, respectively.