Property and Equipment

12 Months Ended

Dec. 31, 2020

Property Plant And Equipment [Abstract]

Property and Equipment

9. PROPERTY AND EQUIPMENT

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

	As of December 31,
	2020			2019
Land	$	150		$	1,636
Buildings & improvements		3,745			11,157
Construction in process		19,934			8,561
Furniture, equipment & other		9,968			7,504
Leasehold improvements		5,839			16,057
Total		39,636			44,915
Less: accumulated depreciation		(6,018	)		(3,093	)
Total property and equipment, net	$	33,618		$	41,822

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 12 - Leases.

Approximately $33,000 of property and equipment is secured by LI Lending as collateral on the LI Lending note (Note 13).  There were no significant contractual commitments for future capital expenditures as of December 31, 2020 and 2019.

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, 2020 and 2019 was $1,052 and $2,553 respectively, of which $3,769 and $1,700 respectively is included in cost of goods sold.