v3.25.4
PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT
NOTE 4.     PROPERTY AND EQUIPMENT
Property and equipment as of December 31, 2025 and December 31, 2024 consisted of the following:
($ in thousands)December 31, 2025December 31, 2024
Land and Buildings$213,171 $209,668 
Machinery and Equipment42,905 44,347 
Furniture and Fixtures47,745 43,054 
Leasehold Improvements170,849 183,522 
Website, Computer Equipment and Software11,975 11,853 
Vehicles2,678 2,784 
Construction In Progress22,988 12,037 
Total property and equipment, gross512,311 507,265 
Less: Accumulated depreciation(185,119)(162,419)
Property and equipment, net$327,192 $344,846 
As of December 31, 2025 and December 31, 2024, costs related to unfinished construction at the Company’s facilities and dispensaries were capitalized in construction in progress and not depreciated. Depreciation will commence when construction is completed and the facilities and dispensaries are available for their intended use.
The following table reflects depreciation expense related to property and equipment for the years ended December 31, 2025 and 2024:
Year Ended December 31,
($ in thousands)20252024
Depreciation expense included in cost of goods sold and ending inventory$26,313 $28,648 
Depreciation expense included in selling, general, and administrative expense14,416 15,547 
Total depreciation expense$40,729 $44,195 
As of December 31, 2025 and December 31, 2024, ending inventory includes $8.8 million and $8.2 million of capitalized depreciation, respectively.
The following table reflects depreciation expense capitalized to cost of goods sold and depreciation expense capitalized to ending inventory for the years ended December 31, 2025 and 2024:
Year Ended December 31,
($ in thousands)20252024
Capitalized expense included in cost of goods sold$25,664 $33,299 
Capitalized expense to inventory for prior periods8,345 12,795 
During the year ended December 31, 2025, the Company disposed of $1.3 million of property and equipment no longer in use in various states. The Company recorded a total $1.3 million net loss on the disposals of those assets. In the same period, the Company sold $1.9 million of property and equipment in various states and recorded $1.1 million in net losses on the sales. The gains and losses on disposals and sale of these assets are recorded in Other expense, net on the Consolidated Statements of Operations.

During the year ended December 31, 2025, the Company recorded $0.3 million of impairment of property and equipment related to the shut down of our Cub City cultivation facility. See Note 10 “Acquisitions and Dispositions” for additional information.

During the year ended December 31, 2024, the Company sold $0.3 million of property and equipment and recorded a $0.1 million net gain, primarily related to the sale of a medical dispensary in Pennsylvania. The gain is recorded in Other expense, net on the Consolidated Statements of Operations.
During the year ended December 31, 2024, the Company additionally disposed of $0.8 million of property and equipment no longer in use in various states. The Company recorded a total $0.8 million net loss on the disposal of those assets which is recorded in Other expense, net in the Consolidated Statements of Operations.