Property, plant, and equipment consisted of the following (in thousands):


	As of December 31,
	2024			2023
Machinery and equipment	$	29,765		$	30,082
Office furniture and equipment		922			842
Vehicles		340			291
Leasehold improvements		24,346			24,673
		55,373			55,888
Less—Accumulated depreciation		(12,244	)		(7,528	)
		43,129			48,360
Construction in progress		2,624			2,004
Total property, plant, and equipment, net	$	45,753		$	50,364

Depreciation expense related to property, plant, and equipment recorded for the years ended December 31, 2024 and 2023 was $5.4 million and $4.5 million, respectively.

Teknova capitalizes interest on funds borrowed to finance certain of its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and depreciated over the asset’s useful life. Capitalized interest costs were zero and $0.9 million for the years ended December 31, 2024 and 2023, respectively.

There were no indicators of impairment of long-lived assets during the year ended December 31, 2024. In June 2023, the Company identified circumstances that indicated certain of its machinery and equipment may not be fully recoverable. Specifically, these circumstances included changes in the market price of the asset group, continued losses, and an expectation that, more likely than not, the long-lived assets in question would be sold or otherwise disposed of significantly before the end of their previously estimated useful life. The Company reviewed the recoverability of the carrying value of these assets and determined that their carrying value exceeded their fair value. The fair value of these assets was measured employing cost and market approaches, using Level 3 inputs under ASC 820, Fair Value Measurement (ASC 820). Unobservable inputs included salvage value estimates, replacement or reproduction cost estimates, as well as consideration of physical deterioration, and functional and economic obsolescence, where measurable. As a result of this fair value analysis, an impairment charge of $2.2 million was recorded related to these long-lived assets in the quarter ended June 30, 2023. Subsequently, the Company sold these assets during the quarter ended September 30, 2023 at an amount that approximated carrying value after the impairment charges recorded. No additional impairment of long-lived assets was recorded during the year ended December 31, 2023.