Property and Equipment

3 Months Ended

Mar. 31, 2023

Property Plant And Equipment [Abstract]

Property and Equipment

6. Property and Equipment

Property and equipment consists of the following (dollars in thousands):

	Estimated Useful
	Life (Years)		March 31, 2023			December 31, 2022
Land		—	$	875		$	875
Buildings	39-40			17,389			17,389
Building improvements	5-40			43,113			38,952
Machinery and equipment	3-15			58,987			58,542
Furniture, fixtures and office equipment	5-10			2,976			2,976
Computer equipment and software		3		8,246			8,246
Construction in progress		—		22,804			16,706
				154,390			143,686
Less accumulated depreciation				(99,553	)		(98,560	)
Total property and equipment, net			$	54,837		$	45,126

Depreciation expense related to property and equipment was as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Depreciation Expense	$	1,038	$	599

In November 2021, the Company sold certain land, building and improvements located in Danbury, CT (the “Property”) to an affiliate of Creative Manufacturing Properties (the “Purchaser”) for a sales price of $102.3 million, subject to terms and conditions contained in a purchase and sale agreement. Effective with the closing of this transaction, the Company entered into a 20-year lease agreement with the Purchaser (the “Sale-Leaseback Transaction”). The sale of the Property and subsequent lease did not result in the transfer of control of the Property to the Purchaser; therefore, the Sale-Leaseback Transaction qualified as a failed sale leaseback transaction whereby the lease is accounted for as a finance lease and the Property remains as a long-lived asset of the Company and is depreciated at its remaining useful life of 20 years or less. See Note 15 – Commitments and Contingencies.