Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net

Note 6. Property, Plant, and Equipment, Net

Property, plant, and equipment consisted of the following (in thousands):

	As of June 30, 2024			As of December 31, 2023
Machinery and equipment	$	29,834		$	30,082
Office furniture and equipment		842			842
Vehicles		291			291
Leasehold improvements		24,726			24,673
		55,693			55,888
Less—Accumulated depreciation		(10,104	)		(7,528	)
		45,589			48,360
Construction in progress		2,188			2,004
Total property, plant, and equipment, net	$	47,777		$	50,364

For the three and six months ended June 30, 2024, depreciation expense was $1.3 million and $2.7 million, respectively, and for the three and six months ended June 30, 2023, depreciation expense was $1.0 million and $1.9 million, respectively.

Teknova capitalizes interest on funds borrowed to finance certain of its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and depreciated over the asset’s useful life. For each of the three and six months ended June 30, 2024, capitalized interest costs were zero and for the three and six months ended June 30, 2023, capitalized interest costs were $0.3 million and $0.9 million, respectively.