Property, Plant and Equipment and Assets Held for Sale |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment and Assets Held for Sale | Note 5 – Property, Plant and Equipment and Assets Held for Sale
Major classes of property, plant and equipment consist of the following as of December 31 (in thousands):
Machinery and equipment also include furniture and fixtures and software.
Depreciation expense was $0.7 million and $0.7 million for the years ended December 31, 2025 and 2024, respectively.
During 2025 and 2024, two PVT units were transferred from inventory to property, plant and equipment totaling $0.2 million and $0.1 million, respectively. The unit transferred in 2025 is included in construction in progress at December 31, 2025. This equipment is and will be used internally to further the research and development of products used to grow silicon carbide crystals.
On November 6, 2025, the Company’s Board of Directors approved a comprehensive strategy to transform the Company in response to the continued fluctuations in order rates and the recent decline in the bookings of the Company’s CVD Equipment division. As part of this strategy, the Company transitioned the operating model for the CVD Equipment business from vertically integrated fabrication to outsourced fabrication of certain components. At December 31, 2025, the Company classified certain excess manufacturing equipment as held for sale with a fair value of $0.5 million based on an agreement the Company entered in January 2026 with a third-party to sell the equipment for this amount. The Company recorded an impairment charge of $0.2 million related to this equipment and related capitalized software during the year ended December 31, 2025.
The Company entered into an agreement with the Town of Islip Industrial Development Agency (Islip IDA) in July 2021 under which the Company was granted tax incentives whereby the Company agreed to make payments in lieu of all real estate taxes and assessments (PILOT payments). The agreement requires the Company to maintain certain employment levels at its Central Islip, New York facility. The agreement provides for the Islip IDA to recapture tax incentives provided to the Company in certain circumstances. Any recapture of such tax benefits could have a material adverse effect on the Company’s financial position and future results of operations and cash flows.
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 and 2024
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||