Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.22.2.2
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Note G – Property, Plant & Equipment
Property, plant and equipment were as follows:
  June 30,
2022		 December 31,
2021
Computer equipment
 $ 1,334  $ 1,380 
Furniture and fixtures
 775  783 
Laboratory equipment
 3,745  16,856 
Leasehold improvements
 1,853  2,205 
Construction in process 571  415 
8,278  21,639 
Less: accumulated depreciation
 (2,454) (2,255)
Total property, plant and equipment, net
$ 5,824  $ 19,384 

During the second quarter of 2022, there was a significant and prolonged decline in the Company’s market capitalization driven by general economic conditions, including heightened inflation, rising interest rates and volatility in the capital markets, which indicated that recorded finite-lived assets may be impaired. As a result, the Company performed a quantitative impairment test in accordance with ASC 360 and determined that the carrying value of two asset groups within the Mission Solutions reporting unit were not recoverable based on entity-specific, undiscounted net cash flows. Accordingly, impairment expense was measured as the amount by which the carrying value of the asset groups exceeded their fair value as of June 30, 2022. The fair value of the two asset groups was determined using an income approach based on a discounted cash flow model. Fair value estimates result from a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions that have been deemed reasonable by measurement as of the measurement date.
Based on the results of the quantitative impairment test, the Company recognized impairment expense related to property and equipment of $12.9 million during the three and six months ended June 30, 2022. Please refer to Note I for additional information related to the drivers of the decline in estimated future cash flows for the Mission Solutions reporting unit.