Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net and Other Assets

v3.22.4
Property and Equipment, Net and Other Assets
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net and Other Assets Property and Equipment, Net and Other Assets
Property and equipment, net consists of the following:
December 31
2022 2021
Land $ 3,245  $ 2,196 
Buildings 651  — 
Building and leasehold improvements 24,373  11,273 
Computer equipment and software 6,071  3,474 
Machinery and equipment 15,977  8,323 
Vehicles 1,283  1,057 
Furniture and Fixtures 1,804  961 
Construction in progress 15,780  9,236 
69,184  36,520 
Less: accumulated depreciation and amortization (9,733) (5,406)
Property and Equipment, net $ 59,451  $ 31,114 
The portion of depreciation expense related to production and distribution facilities is included in cost of goods sold including occupancy costs on the consolidated statements of operations. Depreciation expense recorded in cost of goods sold and general and administrative expenses was as follows:

December 31
2022 2021 2020
Cost of goods sold $ 831  $ 773  $ 586 
General and administrative 3,519  2,073  764 
Total depreciation expense $ 4,350  $ 2,846  $ 1,350 

The total depreciation expense for internal use software included in the above table was $732, $798 and $138 for the years ended December 31, 2022, 2021 and 2020, respectively.
Substantially all long-lived assets are located in the United States.
Other Assets
In August 2021, the Company entered into an agreement with a related party, whereby the Company agreed to reimburse the related party for initial direct costs incurred totaling $1,000 for establishing retail coffee shop locations in the Phoenix, Arizona metropolitan area. After additional site evaluation in the fourth quarter 2021, the direct costs were subsequently written down to $571 as some locations will not be utilized.
In the fourth quarter of 2022, additional site evaluations were completed and an additional $331 was written off as the decision was made to not utilize certain sites. The remaining direct costs are included in Other assets for the respective Outposts and will be amortized over the life of the completed lease agreements.