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ASSETS HELD FOR SALE AND PROPERTY AND EQUIPMENT
 3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
ASSETS HELD FOR SALE AND PROPERTY AND EQUIPMENT ASSETS HELD FOR SALE AND PROPERTY AND EQUIPMENT
(In thousands)March 31, 2023
(Unaudited)		December 31,
2022
Land$— $1,600 
Building and improvements16 4,426 
Machinery and equipment2,472 2,613 
Furniture and fixtures213 211 
Computer equipment and software1,230 1,420 
Leasehold improvements178 178 
Molds847 847 
Total property, plant and equipment4,956 11,295 
Less: accumulated depreciation and amortization(3,387)(5,041)
Property and equipment in service1,569 6,254 
Construction in progress540 507 
Property and equipment, net$2,109 $6,761 
Assets held for sale$4,569 $— 

In an effort to improve liquidity and the balance sheet condition of the Company, management has been exploring options to leverage the Company’s unencumbered real property. On February 27, 2023, the Company’s Board of Directors approved a plan to sell and leaseback the Company's real property located in Clearwater, FL.

On March 14, 2023, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with VK Acquisitions VI, LLC (the “Purchaser”), for the sale of the Company’s facility located at 5115 Ulmerton Road, Clearwater, Florida, as more fully described in the Purchase Agreement (collectively, the “Property”) for a purchase price of $7,650,000.
In accordance with the requirements of ASC Topic 360, Property, Plant, and Equipment, the Company has determined that the real property to be sold meets the requirements to be presented as held for sale. Accordingly, the Company has presented the associated assets as held for sale in the accompanying unaudited condensed consolidated balance sheet and the table above at March 31, 2023.

In accordance with the terms of the Purchase Agreement, upon the closing of the sale of the Property, the Company will enter into a Single Tenant Industrial Building Lease (the “Lease”) with the Purchaser, pursuant to which the Property will be leased back to the Company. The Lease will have an initial term of ten (10) years commencing from the closing (the “Initial Term”), and a renewal term of five (5) years, exercisable at the Company’s option. The annual fixed rent will be $619,500 for the first year of the Initial Term, and will be subject to a 4% escalation every year thereafter through the Initial Term. Rent will be reset to the current market rate should the Company exercise the renewal option. The Lease provides for a 3% management fee on rent payments throughout the Initial Term and optional renewal term.

The Lease is a triple net lease, pursuant to which all costs, expenses, and obligations relating to the Property, including, repair and maintenance charges, utility charges, real estate taxes or other taxes that may be imposed that relate to the Property, shall be paid by the Company. In addition, the Lease contains other customary terms and provisions generally contained within leases of this type.
On May 8, 2023, the Company closed on the Purchase Agreement and concurrently executed a 10-year agreement to leaseback the underlying Property from the Purchaser. The Company received net cash proceeds of approximately $6,600,000, after withholding the security deposit equal to one years rent, taxes, first months rent, expenses, and fees. The Company anticipates that the net cash proceeds will be used to strengthen its balance sheet and provide working capital to its operations.