Property and equipment, net
|12 Months Ended|
Dec. 31, 2019
|Property, Plant and Equipment [Abstract]|
|Property and equipment, net||
Property and equipment, net, consisted of the following (in thousands):
Depreciation expense was $3.5 million and $3.2 million for the years ended December 31, 2019 and December 31, 2018, 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.
The Company has financed certain equipment purchases through the use of capital leases. The lease terms are generally between 24 and 36 months with an option to purchase the asset at the end of the lease for $1. Total equipment included in the above table, subject to capital leases, is immaterial to our consolidated financial statements at December 31, 2019. Total equipment included in the above table at December 31, 2018 subject to capital leases is $0.4 million less accumulated depreciation of $0.2 million, resulting in net fixed assets under capital lease of $0.2 million. These assets are depreciated using the same useful lives as noted above and included in depreciation expense.
On November 29, 2019, there was a fire in the AquaRefining area of the plant. As a result of the fire, 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.
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef