Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

v3.23.1
PROPERTY AND EQUIPMENT
 3 Months Ended
Mar. 31, 2023
PROPERTY AND EQUIPMENT  
Property And Equipment

5. PROPERTY AND EQUIPMENT

 

A reconciliation of the beginning and ending balances of property and equipment and accumulated depreciation during the three months ended March 31, 2023 and property and equipment, net as of December 31, 2022, are as follows:

 

 

 

Land and

 

 

Leasehold

 

 

Furniture

 

 

 

 

 

 

 

 

Construction

 

 

Right of

 

 

 

 

(in thousands)

 

Buildings

 

 

Improvements

 

 

and 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

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 29

 

Disposals

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Lease remeasurement

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,422 )

 

 

 (1,422 )

Balance - March 31, 2023

 

 $ 15,719

 

 

 $ 12,466

 

 

 $ 50

 

 

 $ 6,499

 

 

 $ 830

 

 

 $ 35

 

 

 $ 35,659

 

 

 $ 71,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - December 31, 2022

 

 $ (315 )

 

 $ (1,815 )

 

 $ (49 )

 

 $ (1,498 )

 

 $ (608 )

 

 $ -

 

 

 $ (9,719 )

 

 $ (14,004 )

Depreciation

 

 

 (53 )

 

 

 (216 )

 

 

 -

 

 

 

 (217 )

 

 

 (36 )

 

 

 -

 

 

 

 (573 )

 

 

 (1,095 )

Balance - March 31, 2023

 

 $ (368 )

 

 $ (2,031 )

 

 $ (49 )

 

 $ (1,715 )

 

 $ (644 )

 

 $ -

 

 

 $ (10,292 )

 

 $ (15,099 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value - March 31, 2023

 

 $ 15,351

 

 

 $ 10,435

 

 

 $ 1

 

 

 $ 4,784

 

 

 $ 186

 

 

 $ 35

 

 

 $ 25,367

 

 

 $ 56,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value - December 31, 2022

 

 $ 15,404

 

 

 $ 10,621

 

 

 $ 1

 

 

 $ 5,001

 

 

 $ 222

 

 

 $ 35

 

 

 $ 27,362

 

 

 $ 58,646

 

 

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 $1,095 and $1,429 were recorded for the three months ended March 31, 2023 and 2022, respectively, of which $1,069 and $1,260 respectively, were included in cost of goods sold. Depreciation expense of $0 and $143 was also recorded in other income (expense) for the three months ended March 31, 2023 and 2022, respectively.

 

During the three months ended March 31, 2023, the Company renegotiated the monthly payments on certain leases for its facilities. These revised leases resulted in a remeasurement of both the right of use asset and lease liability of $1,422.