Property and Equipment, Net, and Other Assets

3 Months Ended

Mar. 31, 2022

Property Plant And Equipment [Abstract]

Property and Equipment, Net, and Other Assets

4. Property and Equipment, net, and Other Assets

At March 31, 2022 and December 31, 2021, property and equipment, net, and other assets consisted of the following:

	March 31,		December 31,
	2022		2021
	(Unaudited)
Property and equipment, net of accumulated depreciation of $1,944,949      and $1,771,376 as of March 31, 2022 and December 31, 2021,      respectively	$	2,638,199	$	2,542,120
Right-of-use operating lease asset		1,703,764		1,945,438
Security deposits and other assets		1,053,008		1,109,008
Property and equipment, net, and other assets	$	5,394,971	$	5,596,566

We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. Depreciation expense for the three months ended March 31, 2022 was $173,573, including $72,348 of depreciation expense reflected within “Cost of revenue” in our condensed consolidated statements of operations as it related to assets used in directly servicing customer contracts. Depreciation expense for the three months ended March 31, 2021 was $110,136, including $68,376 of depreciation expense reflected within “Cost of revenue”.

We recorded right-of-use operating lease assets related to our office leases in accordance with ASC 842. Refer to Note 8, Leases for additional information.

On February 20, 2018 (the “Closing Date”), we entered into an Asset Purchase Agreement with Earth Media Partners, LLC to sell certain assets of our wholly owned subsidiary, Earth911, Inc., in exchange for a 19% interest in Earth Media Partners, LLC, which was recorded as an investment in the amount of $246,585 as of the Closing Date, and a potential future earn-out amount of approximately $350,000. The net assets sold related to the Earth911.com website business and consisted primarily of the website and its content and customers, deferred revenue, and accounts receivable as of the Closing Date. Earth911, Inc. was subsequently renamed Quest Sustainability Services, Inc. The carrying amount of our investment in Earth Media Partners, LLC is included in “Security deposits and other assets” above and we have an accrued receivable in the amount of $333,667 and $339,667 related to the earn-out included as of March 31, 2022 and December 31, 2021, respectively.