Property and Equipment, Net

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property and equipment

Property and equipment consisted of:


	June 30, 2022			December 31, 2021
Land	$	7,613		$	4,183
Assets in process		52,624			6,858
Buildings & improvements		157,814			118,014
Machinery & equipment		27,906			23,424
Office furniture & equipment		8,290			3,232
Assets under finance leases		4,961			239
Total cost		259,208			155,950
Less: accumulated depreciation		(20,411	)		(15,188	)
Property and equipment, net	$	238,797		$	140,762

Assets in process represent construction in progress related to both cultivation and dispensary facilities not yet completed, or otherwise not placed in service.

During the six months ended June 30, 2022 and the twelve months ended December 31, 2021, borrowing costs were not capitalized because the assets in process did not meet the criteria of a qualifying asset.

Depreciation expense was $3,027 and $5,513 for the three and six months ended June 30, 2022, respectively ($1,670 and $3,406, respectively included in cost of sales) and $1,805 and $3,771 for the three and six months ended June 30, 2021, respectively ($1,127 and $2,225 included in cost of sales).