Property, Equipment and Leasehold Improvements

12 Months Ended

Aug. 31, 2022

Property, Equipment and Leasehold Improvements

Property, Equipment and Leasehold Improvements

Note 3. Property, Equipment and Leasehold Improvements

Property, equipment and leasehold improvements are summarized as follows:

	August 31,
	2022		2021
Held for use:
Machinery and equipment	$	10,759,000	$	10,482,000
Furniture and fixtures		3,016,000		2,645,000
Vehicles		137,000		137,000
Leasehold improvements		7,405,000		6,743,000
Construction in progress		497,000		104,000
Total held for use		21,814,000		20,111,000
Less: accumulated depreciation and amortization		(13,335,000)		(11,842,000)
Total property, equipment, and leasehold improvements held for use, net	$	8,479,000	$	8,269,000

In September 2019, Bisco entered into Commercial Lease Agreement with the Trust (the “Hunter Lease”), pursuant to which Bisco leased from the Trust approximately 80,000 square feet of office and warehouse space located at 5065 East Hunter Avenue in Anaheim, California (the “Hunter Property”). During fiscal 2019, the Company started construction of leasehold improvements on the Hunter Property to house its new corporate headquarters, which was financed by the Construction Loan from the Bank. See Note 4. As of August 31, 2022, construction in progress included solar power roof installation on Hunter Property and other minor leasehold improvements awaiting city permits for completion.

For the years ended August 31, 2022 and 2021, depreciation and amortization expense was $1,491,000 and $1,525,000, respectively.