Right-Of-Use and Financing Lease Assets, Machinery and Equipment, Net, and Construction in Progress

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Right-Of-Use and Financing Lease Assets, Machinery and Equipment, Net, and Construction in Progress

4. Right-Of-Use and Financing Lease Assets, Machinery and Equipment, Net, and Construction in Progress

Right-of-use and financing lease assets, machinery and equipment, net, and construction in progress were as follows:

	September 30, 2023			December 31, 2022
	(In thousands)
Right-of-use assets	$	4,036		$	3,499
Machinery and equipment		6,908			9,408
Accumulated depreciation and amortization		(5,819	)		(4,196	)
Right-of-use assets and machinery and equipment, net		5,125			8,711
Construction in progress		708			2,140
Right-of-use and financing lease assets, machinery and equipment, net, and construction in progress	$	5,833		$	10,851

Fixed asset depreciation and amortization expense amounted to $404,000 and $391,000 for the three months ended September 30, 2023 and 2022, respectively, and $1.3 million and $1.1 million for the nine months ended September 30, 2023 and 2022, respectively.

During the third quarter of 2023, in connection with a new sublease arrangement (see Note 7), the Company identified circumstances that indicated a potential impairment of certain leasehold improvements (included in construction in progress) and after a valuation was performed, management concluded that such leasehold improvements were impaired. Accordingly, the Company recorded an impairment of approximately $1.8 million.