Company: AWX
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001437749-25-015162
Chunk: 8

Company: AVALON HOLDINGS CORP
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 life of the asset which varies from10to30years for land improvements; 5to50years in the case of buildings and improvements; and from3to10years for machinery and equipment, vehicles and office furniture and equipment. Leasehold improvements are included in building improvements and amortized on a straight-line basis over the shorter of their estimated useful lives or term of the lease.

Major additions and improvements are charged to the property and equipment accounts while replacements, maintenance and repairs, which do not improve or extend the life of the respective asset, are expensed as incurred. The cost of assets retired or otherwise disposed of and the related accumulated depreciation is eliminated from the accounts in the year of disposal.

Property and equipment at March 31, 2025 and December 31, 2024 consists of the following (in thousands):

                                                      March 31,                    December 31,                
                                                      2025                         2024                        
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Land and land improvements                          $                17,071      $                   17,071  
  Buildings and improvements                                           54,728                          54,673  
  Machinery and equipment                                               9,963                           9,866  
  Office furniture and fixtures                                        10,597                          10,568  
  Vehicles                                                              1,125                           1,065  
  Construction in progress                                              1,376                           1,136  
                                                                       94,860                          94,379  
  Less accumulated depreciation and amortization                     ( 39,617                        ( 38,797  
  Property and equipment, net                         $                55,243      $                   55,582  

At March 31, 2025, the Company did nothave any significant fixed contractual commitments for construction projects.

Avalon reviews the carrying value of its long-lived assets whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. If indicators of impairment exist, Avalon would determine whether the estimated undiscounted sum of the future cash flows of such assets and their eventual disposition is less than its carrying amount. If less, an impairment loss would be recognized if, and to the extent that the carrying amount of such assets exceeds their respective fair value. Avalon would determine the fair value by using quoted market prices, if available, for such assets; or if quoted market prices are not available, Avalon would discount the expected estimated future cash flows. During the first three months