PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

10. PROPERTY AND EQUIPMENT, NET

At December 31, 2023 and 2022, property and equipment consisted of:

	December 31, 2023			December 31, 2022
Building, land and improvements	$	15,752,000		$	12,995,000
Bitcoin mining equipment		50,640,000			42,438,000
Crane rental equipment		34,469,000			32,453,000
Computer, software and related equipment		14,335,000			23,168,000
Aircraft		15,983,000			15,983,000
Other property and equipment		8,603,000			4,896,000
		139,782,000			131,933,000
Accumulated depreciation and amortization		(30,953,000	)		(5,882,000	)
Property and equipment placed in service, net		108,829,000			126,051,000
Construction in progress AVLP equipment		-			9,400,000
Deposits on Bitcoin mining equipment		-			11,328,000
Property and equipment, net	$	108,829,000		$	146,779,000

Summary of depreciation expense:

	For the Year Ended December 31,
	2023		2022
Depreciation expense	$	25,660,000	$	13,939,000

Impairment of Property and Equipment

During the year ended December 31, 2023, certain unforeseen business developments and changes in financial projections at AVLP indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of AVLP property and equipment as of December 31, 2023 was $0, and an impairment charge of $14.0 million was recognized.

During the year ended December 31, 2023, the Company recognized an impairment charge of $3.9 million related to property and equipment at ROI.

During the year ended December 31, 2022, adverse changes in business climate, including decreases in the price of Bitcoin and resulting decrease in the market price of miners, indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of the Company’s miners to be less than their net carrying value as of December 31, 2022, and an impairment charge of $79.6 million was recognized, decreasing the net carrying value of the Company’s Bitcoin mining equipment to their estimated fair value. The estimated fair value of the Company’s miners is classified in Level 2 of the fair value hierarchy due to the quoted market prices for similar assets.

Compute North Bankruptcy

On September 22, 2022, Compute North Holdings, Inc. (along with its affiliated debtors, collectively, “Compute North”), filed for bankruptcy protection. The Company had a deposit of approximately $2.0 million with Compute North for services yet to be performed by Compute North. The Company assessed this financial exposure and recorded an impairment of the deposit totaling $2 million during the year ended December 31, 2022.