Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT, NET

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PROPERTY AND EQUIPMENT, NET
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET
The Company’s property and equipment, net, at September 30, 2024 and December 31, 2023 was comprised of the following (in thousands):
September 30,
2024		 December 31,
2023
Land $ 6,151  $ 4,819 
Buildings and building improvements 55,262  54,737 
Tenant improvements 26,406  25,451 
Furniture and fixtures 2,225  2,191 
Machinery and equipment 18,138  16,394 
Construction in progress 7,095  427 
115,277  104,019 
Less: accumulated depreciation (19,781) (14,916)
Property and equipment, net $ 95,496  $ 89,103 

The Company recorded depreciation expense related to property and equipment of $1.8 million and $1.6 million in the three months ended September 30, 2024 and 2023, respectively, and $5.7 million and $3.8 million in the nine months ended September 30, 2024 and 2023, respectively.

During the nine months ended September 30, 2024, the Company disposed of equipment and recorded a gain on the disposal of such assets aggregating approximately $20,000, net of insurance proceeds for such disposal of approximately $22,000.

In the first quarter of 2023, the Company disposed of equipment it had previously purchased in connection with its planned acquisition of The Harvest Foundation LLC ("Harvest") in Nevada as a result of the Company's withdrawal from the agreement to purchase Harvest. The Company recorded a loss on the disposal of assets aggregating $0.9 million, which is included as a component of Other expense, net, in the condensed consolidated statement of operations for the nine months ended September 30, 2023.