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

9 Months Ended

Sep. 30, 2024

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 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.

During the three and nine months ended September 30, 2023, the Company recorded a net gain of $310,000 and a net loss of $1,612,000, respectively, on disposal of machinery and equipment associated with the sale of machinery to the vendors in Taiwan. During the nine months ended September 30, 2023, the Company recorded $523,000 of impairment expense related to the unrecoverable cancelled deposits.

The Company also recorded a net gain of $27,000 and net loss of $505,000 on disposal of fixed assets during the normal course of business for the three and nine months ended September 30, 2024, respectively, and recorded a net loss of $0 and $96,000 on disposal of fixed assets during the normal course of business for the three and nine months ended September 30, 2023, respectively.