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Real Estate Held for Sale
 6 Months Ended
Jun. 30, 2020
Real Estate [Abstract]  
Real Estate Held for Sale

3. REAL ESTATE HELD FOR SALE

 

The Company owns a 14-acre tract in Riverton, Wyoming with a two-story, 30,400 square foot office building. The building served as the Company’s corporate headquarters until 2015 and is currently being leased to government agencies and other non-affiliated companies. In 2020 the Company made the decision to sell the land and building and began a process to determine the price at which it would list the property for sale. The process included obtaining an appraisal, analyzing operating statements for the building, reviewing capitalization rates and consulting a large national commercial real estate company. The Company determined that the realizable value of the building was in the range of $700 thousand to $900 thousand. A special committee of the board of directors was formed to evaluate the sales process and is exploring all available options to sell the land and building and will ultimately recommend any action to the Board of Directors regarding any potential sale. Following are the pre-impairment carrying amounts of the land and building at June 30, 2020, the estimated net proceeds, and a calculation of the loss recognized as a component of other income and expense in the condensed consolidated statement of operations.

 

    Amount  
    (in thousands)  
Pre-impairment carrying value of real estate held for sale:        
Building   $ 720  
Building improvements     276  
Land     380  
Total     1,376  
         
Fair value of real estate held for sale:        
Estimated sales price   $ 750  
Estimated cost to sell     (25 )
Estimated net proceeds   $ 725  
         
Loss recognized on real estate assets held for sale   $ 651