| Property and Equipment |
7. Property and Equipment. Property and equipment, net, consisted of the following at: | | | | | | | | | June 30, 2026 | | June 30, 2025 | Machinery and equipment | | $ | 12,404,000 | | $ | 12,092,000 | Leasehold improvements | | | 637,000 | | | 359,000 | Bushes | | | 503,000 | | | 489,000 | Vehicles | | | 411,000 | | | 393,000 | Furniture and fixtures | | | 203,000 | | | 199,000 | Capitalized software | | | 159,000 | | | 43,000 | Construction in progress | | | — | | | 240,000 | Property and equipment, gross | | | 14,317,000 | | | 13,815,000 | Less: accumulated depreciation | | | (4,230,000) | | | (2,382,000) | Property and equipment, net | | $ | 10,087,000 | | $ | 11,433,000 |
At June 30, 2026, property and equipment, net, of $956,000 and $433,000 were located in the Netherlands and South Africa, respectively. Included in machinery and equipment at June 30, 2026 and June 30, 2025 was $338,000 and $318,000, respectively, of spare parts that are not currently in use and not being depreciated. The components of depreciation expense are as follows within the consolidated statements of operations: | | | | | | | | | | | | Year Ended | | Six Months Ended | | Year Ended | | | June 30, 2026 | | June 30, 2025 | | December 31, 2024 | Depreciation in cost of goods sold | | $ | 1,768,000 | | $ | 847,000 | | $ | 1,267,000 | Depreciation in sales, general and administrative expenses | | | 80,000 | | | 24,000 | | | 64,000 | Total | | $ | 1,848,000 | | $ | 871,000 | | $ | 1,331,000 |
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