Property and Equipment

12 Months Ended

Dec. 31, 2021

Property Plant and Equipment Income Statement Disclosures [Abstract]

Property and Equipment

Note 7: PROPERTY AND EQUIPMENT

Property and equipment and related depreciation are summarized in the table below:

	As of December 31,
	2021			2020
Land	$	—		$	150
Buildings & improvements		1,483			3,745
Construction in process		63			19,934
Furniture, equipment & other		13,425			9,968
Leasehold improvements		35,538			5,839
Total	$	50,509		$	39,636
Less: accumulated depreciation		(7,876	)		(6,018	)
Total property and equipment, net	$	42,633		$	33,618

On December 17, 2020, the Company closed two sale and lease back transactions to sell its Olympia, Washington cultivation and processing facility and its Georgetown, Massachusetts combination cultivation, production and dispensary to Innovative Industrial Properties, Inc. (“IIPR”). Under the long-term agreements, the Company will lease back the facilities and continue to operate and manage them. As a result of the sale, the Company disposed of $12,665 of land, buildings, building improvements, and equipment. The Company recognized a gain of $3,345 on the transactions. For further information regarding these transactions, see Note 10 - Leases.

Approximately $33,000 of property and equipment is secured by LI Lending as collateral on the LI Lending note (Note 11). There were no significant contractual commitments for future capital expenditures as of December 31, 2021 and 2020.

Depreciation of property and equipment is computed using the straight-line method over the asset’s estimated useful life. Depreciation expense for the year ended December 31, 2021 and 2020 was $4,092 and $1,052 respectively, of which $1,534 and $3,769 respectively is included in cost of goods sold.