Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSETS

v3.24.1
PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSETS
 12 Months Ended
Dec. 31, 2023
PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSETS  
Property And Equipment And Right Of Use Assets

5. PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSETS

 

A reconciliation of the beginning and ending balances of property and equipment, right of use assets and accumulated depreciation during the years ended December 31, 2023 and 2022, and property and equipment, net and right of use assets, net as of for the same years are as follows:

 

 

 

Land and

 

 

Leasehold

 

 

Furniture

and

 

 

 

 

 

 

Construction

 

 

Right of

 

 

 

(in thousands)

 

Buildings

 

 

Improvements

 

 

Fixtures

 

 

Equipment

 

 

Vehicles

 

 

in Process

 

 

Use Assets

 

 

Total

 

Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance-December 31, 2022

 

 $ 15,719

 

 

 $ 12,437

 

 

 $ 50

 

 

 $ 6,499

 

 

 $ 830

 

 

 $ 35

 

 

 $ 37,081

 

 

 $ 72,651

 

Additions

 

 

 -

 

 

 

 29

 

 

 

 -

 

 

 

 106

 

 

 

 -

 

 

 

 -

 

 

 

 17,068

 

 

 

 17,203

 

Disposals

 

 

 (15,719 )

 

 

 (202 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (15,921

) 

Remeasurements

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (4,602 )

 

 

 (4,602 )

Impairments

 

 

 -

 

 

 

 (10,148 )

 

 

 -

 

 

 

 (1,310 )

 

 

 -

 

 

 

 -

 

 

 

 (28,230 )

 

 

 (39,688

 

Balance-December 31, 2023

 

 $ -

 

 

 $ 2,116

 

 

 $ 50

 

 

 $ 5,295

 

 

 $ 830

 

 

 $ 35

 

 

 $ 21,317

 

 

 $ 29,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance-December 31, 2022

 

 $ (315 )

 

 $ (1,815 )

 

 $ (49 )

 

 $ (1,498 )

 

 $ (608 )

 

 $ -

 

 

 $ (9,719 )

 

 $ (14,004

) 

Depreciation

 

 

 (71 )

 

 

 (837 )

 

-

 

 

 

 (925 )

 

 

 (136 )

 

 

 -

 

 

 

 (2,742 )

 

 

 (4,711

) 

Disposals

 

 

 386

 

 

 

 55

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 441

 

Remeasurement

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 2,661

 

 

 

 2,661

 

Impairments

 

 

 -

 

 

 

 1,516

 

 

 

 -

 

 

 

 70

 

 

 -

 

 

 

 -

 

 

 

 6,810

 

 

 

 8,396

 

Balance-December 31, 2023

 

 $

 -

 

 

 $ (1,081 )

 

 $ (49 )

 

 $ (2,353 )

 

 $ (744 )

 

 $ -

 

 

 $ (2,990 )

 

 $ (7,217

) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value-December 31, 2023

 

 $ -

 

 

 $ 1,035

 

 

 $ 1

 

 

 $ 2,942

 

 

 $ 86

 

 

 $ 35

 

 

 $ 18,327

 

 

 $ 22,426

 

 

Construction in process represents assets under construction related to cultivation, manufacturing, and distribution facilities not yet completed or otherwise not placed in service.

 

Depreciation expense of $4,711, and $7,022, were recorded for the years ended December 31, 2023 and 2022 respectively, of which $4,613 and $6,292, respectively, were included in cost of goods sold. Depreciation expense of $608 was also recorded in other expense for the year ended December 31, 2022.

 

As a result of the Zabala lease termination, the Company wrote off $8,632 of leasehold improvements and $151 of equipment resulting in an impairment expense of $8,783, which was recorded in other income and expense.