Impairment Expense and (Gain) Loss, Net, on Disposal of Machinery and Equipment

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Impairment Expense and (Gain) Loss, Net, on Disposal of Machinery and Equipment

Impairment Expense and (Gain) Loss, Net, 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 subsequently reached an agreement with two unrelated third-party vendors in Taiwan to sell them certain of its manufacturing machinery and equipment. The sale of these assets occurred in the second and third quarter of 2023. During the same period, 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 (gain) loss, net, on disposal of machinery:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
(Gain) loss, net, on disposal of machinery in scaling back manufacturing	$	(310)	$	—	$	1,612	$	—
(Gain) loss, net, on disposal of machinery within normal course of business	—		(16)		96		(33)
(Gain) Loss, net, on disposal	(310)		(16)		1,708		(33)
Impairment of deposits	—		—		523		—
Impairment expense and (gain) loss, net, on disposal of machinery	$	(310)	$	(16)	$	2,231	$	(33)