PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following:


	December 31,
	2023		2022

Building	$	2,860	$	3,409
Machinery and equipment	16,237		16,688
Furniture and fixtures	1,145		1,146
Leasehold improvements	26,919		26,919
	$	47,161	$	48,162
Accumulated depreciation	(23,553)		(19,003)
Construction-in-process	3,905		171
Total property and equipment, net	$	27,513	$	29,330

Depreciation expense for the years ended December 31, 2023 and December 31, 2022, was $5,080 and $6,213, respectively, of which $1,901 and $3,181, respectively, was recorded in Selling, general, and administrative expense in the consolidated statements of operations. For the years ended December 31, 2023 and December 31, 2022, depreciation expense of $3,179 and $3,032, respectively, was recorded in Cost of goods sold in the consolidated statements of operations.

During the year ended December 31, 2023, an impairment loss to building assets of $548 was recorded within Asset Impairment in the consolidated statement of operations. The impairment resulted from a decline in market conditions at the Company's hemp farm that indicated a fair value less than the carrying value.