v3.26.1
Property, plant and equipment, net
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property, plant and equipment, net
Note 10 — Property, plant and equipment, net
Property, plant and equipment, net consist of the following as of June 30, 2026 and December 31, 2025:
As of
June 30, 2026December 31, 2025
Land$12,937 $12,937 
Building and improvements564,292 548,388 
Furniture and fixtures113,087 108,750 
Machinery and equipment141,730 133,648 
Information technology1,103 27,668 
Construction in progress23,083 22,618 
Property, plant and equipment, gross856,232 854,009 
Less: Accumulated depreciation(350,334)(333,623)
Property, plant and equipment, net$505,898 $520,386 
Assets included in construction in progress represent projects related to the Company's dispensary, cultivation, manufacturing, and corporate office facilities not yet completed or otherwise not ready for use.
For the three and six months ended June 30, 2026 and 2025, depreciation expense was as follows:
Three months ended June 30,Six months ended June 30,
2026202520262025
Depreciation expense(1):
Cost of goods sold$12,841 $11,952 $25,345 $23,767 
Operating expenses7,222 9,100 14,376 18,463 
Total depreciation expense$20,063 $21,052 $39,721 $42,230 
(1) Includes depreciation expense associated with assets under failed sale and leaseback obligations. See Note 12 — Failed sale and leaseback arrangements for further detail.
Asset specific impairment
2026
The Company did not recognize an impairment loss on Property, plant and equipment, net during the three and six months ended June 30, 2026.
2025
During the three and six months ended June 30, 2025, in a continued effort to optimize cultivation operations, additional assets with no future benefits to the Company were identified, the Company recognized an impairment gain of $1.2 million and an impairment loss of $2.5 million, respectively, within Gain (loss) on impairment on the Condensed Consolidated Statements of Operations (Unaudited), inclusive of $0.5 million and $0.8 million, respectively, of cultivation assets assigned to failed sale and leaseback arrangements. See Note 12 - Failed sale and leaseback arrangements for further details.