Property and Equipment, net

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

The following table summarizes the Company’s property and equipment (in thousands):


	June 30, 2021		December 31, 2020
Furniture and office equipment	$	902	$	315
Vehicle	350		229
Leasehold improvements	426		246
Machinery and equipment	12		—
Total property and equipment	1,690		790
Less: accumulated depreciation	(632)		(460)
Property and equipment, net	1,058		330
Fintech Village
Land	—		2,750
Assets retirement obligations - environmental remediation	—		4,500
Construction in progress (Fintech Village)	—		7,250
Property and Equipment, net	$	1,058	$	7,580

The Company recorded depreciation expense of $118,675 and $34,256, which is included in its operating expense, for the three months ended June 30, 2021 and 2020, respectively and $209,462 and $65,792 for the six months ended June 30, 2021 and 2020, respectively.

In the three months ended June 30, 2020 the Company ceased to use the premises for its New York City headquarters at 55 Broadway, and vacated the premises. As a result, the Company recorded an impairment loss of $0.2 million related to leasehold improvements and other fixed assets at that location.

Global Headquarters for Technology and Innovation in Connecticut (“Fintech Village”)

On January 28, 2021, the Company’s Board of Directors accepted an offer of $2.75 million for Fintech Village, and subsequently signed a sale contract on March 15, 2021. The Company believes that Fintech Village met the criteria for held for sale classification on January 28, 2021. As the sale is expected to be completed within one year, the land with a carrying amount of $2.6 million and the asset retirement cost of $4.5 million are recorded as “Held for sale assets (Fintech Village”) in the current asset section of the condensed consolidated balance sheet. The Company has estimated the costs to sell Fintech Village to be $0.2 million and has recorded these costs in “Loss on disposal of subsidiaries, net.”

The Company recorded asset retirement obligations for environmental remediation matters in connection with the acquisition of Fintech Village. The asset retirement obligations are not classified as held for sale as the purchaser will not assume these liabilities. However, as the sale of Fintech Village is expected to be completed within one year, the asset retirement obligations, which will be derecognized upon the sale, have been classified as current liabilities in the condensed consolidated balance sheet.

The following table summarizes the activity in the asset retirement obligation for the six months ended June 30, 2021 (in thousands):


	January 1, 2021		Liabilities Incurred		Remediation Performed		Accretion Expense		Revisions		June 30, 2021
	January 1, 2021		Liabilities Incurred		Remediation Performed		Accretion Expense		Revisions		June 30, 2021
Asset retirement obligation	$	4,653	$	—	$	—	$	—	$	—	$	4,653