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, consisted of the following (in thousands):
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.
The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef