Property and Equipment, Net

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and December 31, 2022:

	June 30,			December 31,
(Amounts in thousands)	2023			2022
Shop machinery and equipment	$	672		$	672
Computers and electronics		766			766
Office furniture and fixtures		68			68
Leasehold improvements		41			41
Total property and equipment		1,547			1,547
Less: accumulated depreciation		(1,243	)		(1,170	)
Total property and equipment, net	$	304		$	377

For the six months ended June 30, 2023 and 2022, the Company had $0.0 million and $0.2 million, respectively, in investments 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 19 – 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 $0.0 million and $0.1 million, respectively, of depreciation expense for the three and six months ended June 30, 2023, compared to $0.1 million and $0.6 million, respectively, for the three and six months ended June 30, 2022.