Quarterly report pursuant to Section 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT

v3.23.2
PROPERTY, PLANT AND EQUIPMENT
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
NOTE D – PROPERTY, PLANT AND EQUIPMENT
 
Property, plant, and equipment as of June 30, 2023 and December 31, 2022 are as follows:
 
 
 
June 30, 2023
 
 
December 31, 2022
 
Land
 
$
7,855,872
 
 
$
7,855,872
 
Office equipment
 
 
2,223,309
 
 
 
2,047,549
 
Buildings
 
 
2,684,402
 
 
 
2,684,402
 
Refinery and industrial equipment
 
 
88,200,721
 
 
 
88,057,913
 
Transportation equipment
 
 
468,587
 
 
 
468,587
 
Construction in process
 
 
469,302,574
 
 
 
452,735,198
 
Construction period interest
 
 
141,024,810
 
 
 
95,795,804
 
Total cost
 
$
711,760,275
 
 
$
649,645,325
 
Less accumulated depreciation
 
 
(1,849,957
)
 
 
(1,112,498
)
Property, plant and equipment, net
 
$
709,910,318
 
 
$
648,532,827
 
 
Depreciation of office equipment and transportation equipment are computed using the straight-line method over estimated useful lives of
3
to
5
years. Refinery assets and buildings are depreciated using the straight-line method over estimated useful lives of
5
to
25
years. Depreciation expense for property and equipment was approximately $0.3 million and $0.6 million for the three months ended June 30, 2023 and June 30, 2022, respectively, and $0.6 million and $0.8 million for the six months ended June 30, 2023 and June 30, 2022, respectively. During the three months ended June 30, 2023 and 2022, interest of $
23.6
million and $
11.0
million, respectively, was capitalized and included in property, plant and equipment, net, and $
45.2
and $
21.8
million of interest was capitalized for the six months ending June 30, 2023 and 2022, respectively. The Company has recognized a total of $
141.0
million of capitalized interest during the construction of the Bakersfield Renewable Fuels Refinery.