Property and Equipment, net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and Equipment, net

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

	December 31, 2022		December 31, 2021
Furniture and office equipment	$	2,753	$	1,432
Vehicles	1,257		900
Leasehold improvements	4,577		581
Shop equipment	3,204		825
Total property and equipment	11,791		3,738
Less: accumulated depreciation	(2,719)		(833)
Property and equipment, net	$	9,072	$	2,905

The Company recorded depreciation expense of $2.2 million, $0.5 million and $0.1 million in the years ended December 31, 2022, 2021 and 2020, respectively.

Fintech Village

On October 10, 2018, the Company purchased a 58-acre former University of Connecticut campus in West Hartford from the State of Connecticut for $5.2 million in cash and also assumed responsibility of the environmental remediation. The Company obtained a surety bond in favor of the seller in connection with the Company’s environmental remediation obligations. The Company initially recorded asset retirement obligations in the amount of $8.0 million, which was the estimate performed by the seller and at a discount to the purchase price, therefore, the Company considered it a reasonable estimate of fair value of its asset retirement obligation pursuant to ASC 410.

On January 28, 2021, the Company’s Board accepted an offer of $2.8 million for Fintech Village, and subsequently signed a sale contract on March 15, 2021.

In the year ended December 31, 2021, the Company closed on the sale of Fintech Village for $2.8 million, excluding commissions and other costs of $0.2 million.

The asset retirement obligations were derecognized in the year ended December 31, 2021.

The following table summarizes the activity in the asset retirement obligation for the year ended December 31, 2021, (in thousands):

	January 1, 2021		Liabilities Incurred		Remediation Performed		Accretion Expense		Derecognition		December 31, 2021
Asset retirement obligation	$	4,653	$	—	$	—	$	—	$	(4,653)	$	—

In the year ended December 31, 2021, the Company impaired the remaining building with a carrying amount of $0.3 million and land with a carrying amount of $0.3 million and the related asset retirement cost with a carrying amount of $2.0 million and the capitalized architect costs with a carrying amount of $2.7 million.