7. PROPERTY AND EQUIPMENT

6 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following:


($ in thousands)	March 31, 2023			September 30, 2022
Land	$	2,978		$	2,978
Land improvements		1,564			1,530
Building and improvements		50,853			32,332
Leasehold improvements		672			114
Miners		418,417			356,501
Mining equipment		18,672			17,587
Infrastructure		18,695			12,422
Machinery and equipment		1,525			1,269
Furniture and fixtures		364			331
Construction in progress		19,265			4,816
Total	$	533,005		$	429,880
Less: accumulated depreciation		(92,752	)		(53,099	)
Property and equipment, net	$	440,253		$	376,781

Depreciation expense for the six months ended March 31, 2023 and 2022 was $39,656 and $16,898, respectively. There were no disposals during the six months ended March 31, 2023. For the three months ended March 31, 2022, $3,979 of property and equipment was sold for a gain of $921. For the six months ended March 31, 2022, $4,390 of property and equipment was disposed of for a gain of $643, which included $411 of property and equipment that was written-off resulting in a loss of $278.

The Company placed-in service property and equipment of $88,675 during the six months ended March 31, 2023, which includes $31,192 in property and equipment acquired in the Mawson Transaction. This increase in fixed assets primarily consisted of miners and mining equipment of $63,002, which includes $12,914 acquired in the Mawson Transaction.

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 March 31, 2023, the Company has outstanding deposits totaling $34,020 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.