Property and Equipment, Net

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and equipment

Property and equipment consisted of:


	September 30, 2022			December 31, 2021
Land	$	7,762		$	4,183
Assets in process		29,574			6,858
Buildings & improvements		185,563			118,014
Machinery & equipment		30,492			23,424
Office furniture & equipment		8,492			3,232
Assets under finance leases		4,760			239
Total cost		266,643			155,950
Less: accumulated depreciation		(22,518	)		(15,188	)
Property and equipment, net	$	244,125		$	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 nine months ended September 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 $3,006 and $8,519 for the three and nine months ended September 30, 2022, respectively ($2,538 and $5,944, respectively, were included in cost of sales) and $2,144 and $5,915 for the three and nine months ended September 30, 2021, respectively ($1,503 and $3,728, respectively, were included in cost of sales).