Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property and Equipment, Net [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 11 PROPERTY AND EQUIPMENT, NET

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

	December 31,
(Amounts in thousands)	2022			2021
Shop machinery and equipment	$	672		$	10,103
Computers and electronics		766			1,436
Office furniture and fixtures		68			744
Leasehold improvements		41			543
Building		-			4,801
Land		-			1,330
Building improvements		-			755
Total property and equipment		1,547			19,712
Less: accumulated depreciation		(1,170	)		(10,960	)
Total property and equipment, net	$	377		$	8,752

For the years ended December 31, 2022 and 2021, the Company invested $0.2 million and $3.1 million, respectively, in capital expenditures.

On January 31, 2022, the Company sold its Tucson, Arizona office building (the “Tucson Building”) for $15.8 million in 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 year ended December 31, 2022, the Company derecognized the property and equipment associated with the following transactions (see Note 13 – Leases and Note 21 – Other Business Developments for additional information):

a) Abandonment of Tucson Building lease – gross assets of $0.6 million with a net book value of $0.1 million on February 1, 2022;

b) Sale of DragonWave-X Canada, Inc. assets – gross assets of $8.5 million with a net book value of $0.0 million on May 23, 2022; and

c) Transfer of Innovation Digital, LLC assets – gross assets of $0.1 million with a net book value of $0.1 million on June 23, 2022.

The Company recognized $0.9 million and $1.2 million of depreciation expense for the years ended December 31, 2022 and 2021, respectively.