Impairment Expense and Loss on Disposal of Machinery and Equipment

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Impairment Expense and Loss on Disposal of Machinery and Equipment

Impairment Expense and Loss on Disposal of Machinery and Equipment

In February 2023, the Company started to execute a strategy to increase imports and scale back manufacturing in certain locations. The Company has since reached an agreement with two unrelated third-party vendors in Taiwan to sell them certain of its manufacturing machinery and equipment. The Company also cancelled certain equipment purchase commitments that it had previously paid deposits towards, and disposed of certain machinery and equipment through abandonment.

The Company recognized the following amounts related to impairment expense and loss on disposal of machinery:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
Loss on disposal of machinery in scaling back manufacturing	$	1,922	$	—	$	1,922	$	—
Loss (gain) on disposal of fixed assets within normal course of business	14		(21)		96		(17)
Loss on disposal	1,936		(21)		2,018		(17)
Impairment of deposits	523		—		523		—
Total impairment expense and loss on disposal of machinery	$	2,459	$	(21)	$	2,541	$	(17)