Fixed Assets, net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Note 6. Fixed Assets, net

The components of fixed assets as of December 31, 2022 and 2021 are as follows:


	Useful Life (Years)	December 31, 2022			December 31, 2021
Mining machines	5	$	27,637,041			-
Furniture, computer and office equipment	3-5		216,312			200,930
Gross fixed assets			27,853,353			200,930
Less: accumulated depreciation			(661,036	)		(183,016	)
Fixed assets, net		$	27,192,317		$	17,914

As of December 31, 2022, approximately 5,600 mining machines have been received or were in transit with legal title passed to the Company, of which approximately 2,700 were placed into service at a Core Scientific location. There were 2,682 machines at a Compute North location which were awaiting transfer to storage as of December 31, 2022. Depreciation has not commenced on those machines not yet in service. The Company’s depreciation expense recognized for the years ended December 31, 2022 and 2021 was approximately $478,000 and approximately $11,000, respectively.

During the years ended December 31, 2022 and 2021 approximately $38,000 and $0, respectively, of loss related to the write-off of mining machines was recorded within "Loss on disposal of assets" in the consolidated statements of operation. There was no impairment loss recorded on fixed assets during the years ended December 31, 2022 or 2021.