5.      Property and Equipment

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

Depreciation and amortization expense was $0.16 million and $0.68 million for the three and nine months ended September 30, 2024, respectively of which $0.14 million and $0.62 million, respectively, was recorded to general and administrative expense, and $0.02 million and $0.06 million, respectively, was expensed to cost of revenue. Depreciation and amortization expense was $0.16 million and $0.46 million for the three and nine months ended September 30, 2023, respectively, the majority of which was recorded to general and administrative expense, and a nominal amount was capitalized to cost of revenue.

Nxu recorded impairment charges for leasehold improvements classified as property and equipment of $0 and $43 thousand for the three and nine months ended September 30, 2024, respectively. See Note 11 — Leases for additional information.

4.      Property and Equipment

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

Depreciation expense for the years ended December 31, 2023 and 2022 was $0.6 million and $0.3 million, respectively, of which a nominal amount was capitalized to cost of revenue during the year ended December 31, 2023. No depreciation was capitalized to cost of revenue during the year ended December 31, 2022.

The Company capitalized internal use software costs of approximately $0.9 million during the year ended December 31, 2023, which is included in software in the table above and is primarily related to payroll and payroll-related costs for employees who are directly devoted time to the development of software products for internal use. No internal use software costs were capitalized during the year ended December 31, 2022.