Property and Equipment, Net

5. Property and Equipment, Net

Property and equipment consist of the following (in thousands):


	As of,
	September 30, 2024		December 31, 2023
Capitalized internal-use software	$	22,679	$	11,682
Office equipment	3,632		3,633
Computer equipment	5,582		2,939
Furniture and fixtures	7,623		7,242
Leasehold improvements	46,061		45,768
Construction-in-progress	—		78
Asset retirement cost	643		643
Total property and equipment	86,220		71,985
Less accumulated depreciation and amortization	(41,031)		(28,535)
Total property and equipment, net	$	45,189	$	43,450

Depreciation and amortization expense related to property and equipment was approximately $4.6 million and $12.8 million for the three and nine months ended September 30, 2024, respectively, and $3.3 million and $9.7 million for the three and nine months ended September 30, 2023, respectively.

During the three months ended September 30, 2024 and 2023, the Company capitalized $3.9 million and $3.0 million of internal-use software development costs, respectively. Of the $3.9 million internal-use software development costs capitalized during the three months ended September 30, 2024, $0.9 million is attributable to stock-based compensation expense. Of the $3.0 million internal-use software development costs capitalized during the three months ended September 30, 2023, $1.2 million is attributable to stock-based compensation expense. During the nine months ended September 30, 2024 and 2023, the Company capitalized $10.8 million and $5.8 million of internal-use software development costs, respectively. Of the $10.8 million internal-use software development costs capitalized during the nine months ended September 30, 2024, $2.8 million is attributable to stock-based compensation expense. Of the $5.8 million internal-use software development costs capitalized during the nine months ended September 30, 2023, $1.2 million is attributable to stock-based compensation expense. The Company recorded amortization expense associated with its capitalized internal-use software development costs of $1.3 million and $0.5 million for the three months ended September 30, 2024 and 2023, respectively, and $3.1 million and $1.1 million for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense is included in cost of revenue in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

The asset retirement obligation is included in other non-current liabilities on the Condensed Consolidated Balance Sheets. Asset retirement obligation activity is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Beginning balance	$	781	$	741	$	761	$	722
Additions	—		—		—		—
Accretion	10		10		30		29
Ending balance	$	791	$	751	$	791	$	751