Annual report pursuant to Section 13 and 15(d)

Note 5 - Property and Equipment, Net

Note 5 - Property and Equipment, Net
12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]


Property and equipment, net


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



December 31,


Asset Class


Useful Life (Years)






Operational equipment

    3 - 10     $ 12,126     $ 12,094  

Lab equipment

    5       524       525  

Computer equipment

    3       222       221  

Office furniture and equipment

    3       221       221  


          1,047       1,047  


    39       19,508       19,508  

Asset retirement cost

    20             670  

Equipment under construction

            3,597       9,921  
              37,245       44,207  

Less: accumulated depreciation

            (12,362 )     (6,564 )
            $ 24,883     $ 37,643  


Property and equipment depreciation expense was $1.9 million and $3.5 million for the years ended December 31, 2020 and December 31, 2019, respectively. The building is a 136,750 square foot lead acid battery recycling plant built in McCarran, Nevada. Equipment under construction is comprised of various components being manufactured or installed by the Company, to be used in the McCarran, Nevada recycling plant.


On November 29, 2019, there was a fire in the AquaRefining area of the plant. As a result of the fire, during the year ended  December 31, 2019, the Company wrote off approximately $22.4 million of fixed assets that were damaged. These assets consisted of operational equipment, building and equipment under construction. The disposal of the fire damaged fixed assets included a decrease of accumulated depreciation of $2.5 million. The net write-off of fixed assets totaled $19.9 million. Further, during the year ended  December 31, 2020, the Company conducted a review of its fixed assets for impairment and as a result, recognized an impairment expense of $11.7 million with respect to the write-down of equipment to fair values. The impairment expense included a write-down of $7.7 million to equipment under construction that was not yet capitalized. In addition, certain other equipment was written down by $4.0 million to fair values, resulting in the acceleration to depreciation for identified assets.