7. PROPERTY AND EQUIPMENT

3 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following:


($ in thousands)	December 31, 2022			September 30, 2022
Land	$	2,978		$	2,978
Land improvements		1,530			1,530
Building and improvements		50,973			32,332
Leasehold improvements		672			114
Miners		409,160			356,501
Mining equipment		18,437			17,587
Infrastructure		18,695			12,422
Machinery and equipment		1,525			1,269
Furniture and fixtures		337			331
Construction in progress		2,395			4,816
Total	$	506,702		$	429,880
Less: accumulated depreciation		(71,925	)		(53,099	)
Property and equipment, net	$	434,777		$	376,781

Depreciation expense for the three months ended December 31, 2022 and 2021 was $18,827 and $6,468, respectively. There were no disposals during the three months ended December 31, 2022. For the three months ended December 31, 2021, $411 of property and equipment was written-off resulting in a loss of $278.

The Company placed-in service property and equipment of $79,243 during the three months ended December 31, 2022, which includes $31,192 in property and equipment acquired in the Mawson acquisition. This increase in fixed assets primarily consisted of miners and mining equipment of $53,510, which includes $12,914 acquired in the Mawson acquisition.

Construction in progress: The Company is expanding its facilities in the State of Georgia, including infrastructure, building, and land improvements to expand its mining operations.

As of December 31, 2022 , the Company has outstanding deposits totaling $5,814 for mining equipment included in long-term assets on the consolidated balance sheets. The Company also has $3,500 in prepaid expense relating to payments made on the purchase of infrastructure assets. These prepayments will be applied to the purchase price when the vendor ships the miners and the infrastructure assets.