v3.26.1
Note 9 - Property, Plant and Equipment, Net
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Property, Plant, and Equipment [Text Block]

9. PROPERTY, PLANT AND EQUIPMENT, NET

 

Property, plant and equipment, net comprised the following:

 

 

 

June 30,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Machinery and equipment

 

$

23,141

 

 

$

23,577

 

Peat bogs and related development

 

 

12,413

 

 

 

12,828

 

Building and improvements

 

 

7,510

 

 

 

8,917

 

Land

 

 

3,670

 

 

 

4,093

 

Furniture and fixtures

 

 

3,398

 

 

 

3,721

 

Computer equipment

 

 

3,055

 

 

 

3,044

 

Leasehold improvements

 

 

490

 

 

 

530

 

Gross property, plant and equipment

 

 

53,677

 

 

 

56,710

 

Less: accumulated depreciation

 

 

(27,290

)

 

 

(26,376

)

Total property, plant and equipment, net

 

$

26,387

 

 

$

30,334

 

 

Depreciation, depletion and amortization expense related to property, plant and equipment, net was $988 and $2,019 for the three and six months ended June 30, 2026, respectively. Depreciation, depletion and amortization expense related to property, plant and equipment, net was $1,481 and $2,857 for the three and six months ended June 30, 2025, respectively. As noted in Note 5 – Intangible Assets, Net, the Company recorded impairment charges of $3,784 for property, plant, and equipment during the fourth quarter of fiscal 2025. The impairment charges were primarily related to Leasehold improvements, Land, and Building and improvements.

 

As of  June 30, 2026, Land, Building and improvements and Computer equipment, contain finance leases assets, recorded at cost of $9,623, less accumulated depreciation of $3,385. As of  December 31, 2025, Land, Building and improvements, Computer equipment, and Machinery and equipment contain finance leases assets, recorded at cost of $9,817, less accumulated depreciation of $3,242.

 

The Company operates peat bogs in Alberta, Canada. Under current provincial laws the Company is subject to certain AROs and the remediation of the peat bog sites are under provincial oversight. The Company periodically evaluates expected remediation costs associated with the peat bog sites that it operates. When the Company concludes that it is probable that a liability has been incurred, a provision is made for management's estimate of the liability. As of  June 30, 2026, and  December 31, 2025, the Company had AROs of $156 and $170, respectively, recorded in Accrued expenses and other current liabilities on the condensed consolidated balance sheets. As of  June 30, 2026, and  December 31, 2025, the Company had AROs of $4,584 and $4,668, respectively, recorded in other long-term liabilities on the condensed consolidated balance sheets.

 

The following table presents changes in AROs for the following periods:

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Balance, beginning of the period

 

$

4,783

 

 

$

4,549

 

 

$

4,838

 

 

$

4,516

 

Liabilities incurred in the period

 

 

—

 

 

 

40

 

 

 

—

 

 

 

40

 

Liabilities settled in the period

 

 

12

 

 

 

(16

)

 

 

(8

)

 

 

(26

)

Accretion expense

 

 

43

 

 

 

40

 

 

 

86

 

 

 

77

 

Other

 

 

(98

)

 

 

234

 

 

 

(176

)

 

 

240

 

Balance, end of the period

 

$

4,740

 

 

$

4,847

 

 

$

4,740

 

 

$

4,847

 

 

The Company notes that peat bogs and corresponding AROs were sold in conjunction with the Aurora Peat Products business. Refer to Note 17 – Subsequent Events for further details.