PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

11. PROPERTY, PLANT AND EQUIPMENT, NET

	Office and computer equipment			Factory equipment			Leasehold improvements			Total
Cost
At December 31, 2021		28,646			71,484			47,567			147,697
Additions		738			775			341			1,854
Disposals		(1,347	)		(2,983	)		(6,688	)		(11,018	)
Exchange differences		(581	)		(3,167	)		(1,457	)		(5,205	)
At December 31, 2022		27,456			66,109			39,763			133,328
Additions		790			320			132			1,242
Disposals		(127	)		(375	)		(2,186	)		(2,688	)
Transferred to assets held for sale		-			(13,260	)		-			(13,260	)
Exchange differences		6			870			619			1,495
At December 31, 2023		28,125			53,664			38,328			120,117
Accumulated depreciation and impairment
At December 31, 2021		19,981			39,271			36,748			96,000
Depreciation expense		2,355			4,425			3,680			10,460
Disposals		(1,272	)		(2,831	)		(6,688	)		(10,791	)
Exchange differences		(540	)		(2,044	)		(1,279	)		(3,863	)
At December 31, 2022		20,524			38,821			32,461			91,806
Depreciation expense		2,041			3,661			1,824			7,526
Disposals		(127	)		(272	)		(2,098	)		(2,497	)
Transferred to assets held for sale		-			(2,989	)		-			(2,989	)
Exchange differences		124			687			383			1,194
At December 31, 2023		22,562			39,908			32,570			95,040
Net book value
At December 31, 2022		6,932			27,288			7,302			41,522
At December 31, 2023		5,563			13,756			5,758			25,077

As at December 31, 2023, the Company had $0.2 million of assets in progress of completion which were excluded from assets subject to depreciation (2022 – $0.1 million).

During the year ended December 31, 2022, depreciation expense included $1.1 million of incremental depreciation on the acceleration of useful lives associated with the closing of the Phoenix Facility. The year ended December 31, 2023, did not include any significant amounts related to accelerated depreciation (refer to Note 6).

On September 27, 2023, the Company announced its intention to permanently close the Rock Hill Facility in South Carolina. $10.3 million of manufacturing equipment at Rock Hill was transferred to assets held for sale (refer to Note 6).

As at December 31, 2023, the Company determined that there were no impairment indicators warranting an impairment test.

During the year ended December 31, 2022, the Company has incurred negative cash flows from operations and accordingly management determined that this was an indicator of impairment for property, plant and equipment assets. The Company estimated the undiscounted cash flows to be generated from the use and ultimate disposition of the property, plant and equipment assets. To estimate the undiscounted cash flows of the reporting unit, the Company applied the income approach. Sales and cost projections were based on assumptions driven by current economic conditions. The Company considered various scenarios and probability-weighted the likelihood of each scenario in determining the reporting unit’s fair value. The average compounded annual growth rate of revenues was 5%-10%. Other key assumptions used in the quantitative assessment of the reporting unit’s undiscounted cashflows was terminal growth rate of 2%. The Company estimated the undiscounted cash flows to be generated from the use and ultimate disposition of the property, plant and equipment assets. The results of the test indicated that the undiscounted cash flows exceeded the carrying values of property, plant and equipment, therefore, no impairment charge was required at December 31, 2022.