Property Plant and Equipment

3 Months Ended

Mar. 31, 2022

Property Plant and Equipment Income Statement Disclosures [Abstract]

Property, Plant and Equipment

Note 5: PROPERTY, PLANT, AND EQUIPMENT

Property, plant and equipment and related depreciation are summarized in the table below:

	March 31, 2022			December 31, 2021
Land	$	774		$	—
Buildings & improvements		13,509			1,483
Construction in process		218			63
Furniture, equipment & other		16,841			13,425
Leasehold improvements		35,514			35,538
Total	$	66,856		$	50,509
Less: accumulated depreciation		(9,041	)		(7,876	)
Total property, plant, and equipment, net	$	57,815		$	42,633

On January 28, 2022, in conjunction with a business combination with NECC, the Company acquired property, plant, and equipment totaling $15,238 (Note 7). The Company subsequently sold the property, plant, and equipment to a third-party and leased back the equipment from the third-party. As discussed in Note 9, the Company recognized this fact pattern as a failed sale-leaseback transaction, whereby the Company recognized the fixed assets on the balance sheet of NECC and established a construction finance liability for rental payments made as part of the lease agreement.

Approximately $33,000 of property and equipment is secured by LI Lending as collateral on the LI Lending note (Note 9). There were no significant contractual commitments for future capital expenditures as of March 31, 2022 and December 31, 2021.

Depreciation of property, plant and equipment is computed using the straight-line method over the asset’s estimated useful life. The Company does not depreciate land, which has an indefinite useful life. Depreciation expense for the for the three months ended March 31, 2022 and 2021 was $1,165 and $463, respectively, of which $948 and $325, respectively, is included in cost of goods sold.