Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment, Net

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Property, Plant and Equipment, Net
 9 Months Ended
Sep. 30, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net Property, Plant and Equipment, Net
Property, plant and equipment, net consists of the following:

September 30, December 31,
2023 2022
Building and leasehold improvements $ 26,805  $ 25,024 
Machinery and equipment 18,299  15,977 
Computer equipment and software 6,585  6,071 
Furniture and fixtures 2,622  1,804 
Land 1,547  3,245 
Vehicles 1,191  1,283 
Construction in progress 20,161  15,780 
Property, plant, and equipment, gross 77,210  69,184 
Less: accumulated depreciation and amortization (12,327) (9,733)
Total property, plant and equipment, net $ 64,883  $ 59,451 

The portion of depreciation expense related to production and distribution facilities is included in cost of goods sold including occupancy costs on the unaudited consolidated statements of operations. Depreciation expense recorded in cost of goods sold and general and administrative expenses was as follows:

Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Cost of goods sold $ 363  $ 207  $ 1,049  $ 619 
General and administrative 1,625  825  4,262  2,411 
Total depreciation expense $ 1,988  $ 1,032  $ 5,311  $ 3,030 

The total depreciation expense for internal use software included in the above table was $440 and $971 for the three and nine months ended September 30, 2023, respectively, and $183 and $549 for the three and nine months ended September 30, 2022, respectively. The Company accelerated depreciation for the internal use software beginning January 1, 2023 and fully depreciated the assets as of June 30, 2023. This additional depreciation expense recorded was zero and $227 for the three and nine months ended September 30, 2023, respectively.

Substantially all long-lived assets are located in the United States.

Assets Held for Sale

The Company sold the land, building and improvements for one of BRCC's company-owned Outposts during the current quarter for a total sale price of $1,500. The net book value of the assets sold was approximately $2,692 which resulted in a loss on the assets sale of $1,201, which reflects closing costs of approximately $9. This loss is presented within "Other operating (income) expense, net" in the unaudited consolidated statement of operations. This loss is netted with the gain on sale of an office property discussed below. Simultaneously with the sale of the property, the Company entered into a lease with the buyer to continue the Company's operations of this Outpost location.

The Company sold an office property including the land, building and improvements during the current quarter for a total sale price of $4,058. The net book value of the assets sold was approximately $2,648 which resulted in a gain on the asset sale of approximately $1,097, which reflects closing costs of approximately $313. This gain is presented within "Other operating (income) expense, net" in the unaudited consolidated statement of operations. This gain is netted with the loss on the sale of the Outpost location described above.