PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following:


(In thousands)	December 31, 2023		December 31, 2022
Land	$	—	$	1,600
Building and improvements	—		4,426
Machinery and equipment	2,651		2,613
Furniture and fixtures	233		211
Computer equipment and software	1,018		1,420
Leasehold improvements	212		178
Molds	923		847
Total property, plant and equipment	5,037		11,295
Less: accumulated depreciation and amortization	(3,522)		(5,041)
Property and equipment in service	1,515		6,254
Construction in progress	400		507
Property and equipment, net	$	1,915	$	6,761

Total depreciation expense was $0.7 million for each of the years ended December 31, 2023 and 2022, respectively. Depreciation expense is included within cost of goods sold and selling, general and administrative expense in the Consolidated Statements of Operations.

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.

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 (see Note 7). The Company received net cash proceeds of approximately $6.6 million after withholding the security deposit of approximately $0.6 million, equal to one year's rent, taxes, first month's rent, expenses, and fees. The $2.7 million gain on this transaction is presented in gain on sale-leaseback in the accompanying Consolidated Statement of Operations for the year ended December 31, 2023.