Property Plant and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT, AND EQUIPMENT

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

	March 31, 2023		December 31, 2022
Land	$	774	$	774
Buildings & improvements	13,995		13,784
Construction in process	241		82
Furniture, equipment & other	19,000		19,296
Leasehold improvements	36,291		36,287
Total	$	70,301	$	70,223
Less: accumulated depreciation	(14,919)		(13,317)
Total property, plant, and equipment, net	$	55,382	$	56,906

Depreciation expense for the three months ended March 31, 2023 and 2022 was $1.7 million and $1.2 million, respectively, of which $1.5 million and $0.9 million, respectively, is included in cost of goods sold.

Unless specifically excluded in the LI Lending note, all property, plant, and equipment is secured by LI Lending as collateral on the LI Lending note (Note 7).

On October 27, 2022, the Company amended its lease agreement for the Company’s facility located in Matteson, Illinois by creating an option to increase the tenant improvement allowance for the facility between $15.0 million and $19.9 million. On November 10, 2022, the Company exercised its option and entered into a Second Amendment to Lease Agreement, increasing the tenant improvement allowance under the lease by $19.9 million; extending the term of the lease to 20 years after the amendment; increasing the base rent by $0.2 million per month (abated until April 1, 2023); and increasing the security deposit by $2.2 million, to be funded pro rata out of draws on the tenant improvement allowance.