Property and Equipment, Net

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

Note 5. Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	As of December 31,
	2021			2020
Laboratory equipment	$	2,659		$	2,951
Software and computer equipment		548			591
Machinery and equipment		1,809			2,046
Furniture and fixtures		211			181
Vehicles		417			428
Leasehold improvements		2,306			2,229
Property and equipment, gross		7,950			8,426
Less accumulated depreciation and amortization		(5,659	)		(4,887	)
Property and equipment, net	$	2,291		$	3,539

Depreciation expense was $929,000 and $632,000 for the years ended December 31, 2021 and 2020, respectively.

As of December 31, 2021 and 2020, respectively, there was $267,000 and $239,000 of construction in progress included in property and equipment that had not been placed into service and was not subject to depreciation.

The Company recorded impairments of property and equipment in the amount of $1.5 million and $0 for the years ended December 31, 2021, and 2020, respectively. The majority was related to the fact that Arcadia and Legacy mutually agreed to wind down the cultivation activities of Archipelago, due to regulatory challenges and a saturated hemp market. As a result, the Company assessed Archipelago’s fixed assets for impairment through an asset recoverability test, and recorded write-downs in the amount of $1.4 million for the year ended December 31, 2021, calculating the fair value using prices for similar assets. An additional fixed assets impairment in the amount of $100,000 was recorded as of December 31, 2021, for other fixed assets, not related to Archipelago, determined to have no future economic benefit.