Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment, Net

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Property, Plant and Equipment, Net
 6 Months Ended
Jun. 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:

June 30, December 31,
2023 2022
Building and leasehold improvements $ 26,276  $ 25,024 
Machinery and equipment 17,158  15,977 
Computer equipment and software 10,353  6,071 
Furniture and fixtures 2,729  1,804 
Land 1,547  3,245 
Vehicles 1,306  1,283 
Construction in progress 14,599  15,780 
Property, plant, and equipment, gross 73,968  69,184 
Less: accumulated depreciation and amortization (10,435) (9,733)
Total property, plant and equipment, net $ 63,533  $ 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 June 30, Six Months Ended June 30,
2023 2022 2023 2022
Cost of goods sold $ 343  $ 207  $ 688  $ 412 
General and administrative 1,276  811  2,636  1,586 
Total depreciation expense $ 1,619  $ 1,018  $ 3,324  $ 1,998 

The total depreciation expense for internal use software included in the above table was $179 and $532 for the three and six months ended June 30, 2023, respectively, and $183 and $366 for the three and six months ended June 30, 2022, respectively. The Company accelerated depreciation for the internal use software beginning January 1, 2023. This additional depreciation expense was $57 and $227 for the three and six months ended June 30, 2023, respectively.

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

Assets Held for Sale

The Company entered into a definitive agreement on June 27, 2023 to sell the land, building and improvements for one of BRCC's company-owned outposts for a total sale price of $1,500 with estimated closing costs of approximately $10 and an expected transaction closing during the third quarter of 2023. The net book value of the assets to be sold is approximately $2,692 as of June 30, 2023. The Company recorded an adjustment of approximately $1,202 in the current period of assets held for sale to recognize the assets at their estimated net realizable value less estimated cost to sell. This adjustment is presented within the "Impairment on assets held for sale" in the unaudited consolidated statement of operations. Simultaneously with closing on the property sale, the Company will enter into a lease with the buyer to continue the Company's operations of this Outpost location.

The Company entered into a definitive agreement on July 14, 2023 to sell an office property including the land, building and improvements for a total sale price of $4,200 with estimated closing costs of approximately $252 and an expected transaction closing during the third quarter of 2023. The net book value of the assets to be sold is approximately $2,553 as of June 30, 2023 which will result in a gain on the asset sale of approximately $1,395.