5.Property, Plant and Equipment

The property, plant and equipment consisted of the following:

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During the three months ended June 30, 2022 and 2021, the Company recognized depreciation expense of $1,994 and $1,472, respectively. For the six months ended June 30, 2022 and 2021, the Company recognized depreciation expense of $3,946 and $2,875, respectively. Depreciation expense is included in cost of goods sold and depreciation and amortization in the condensed consolidated statements of operations and comprehensive loss.

During the three months ended June 30, 2021, the Company recorded a gain on disposal of assets of $8. During the six months ended June 30, 2022 the Company recorded a gain on disposal of asset of $1. During the six months ended June 30, 2021, the Company recorded a loss on disposal of assets of $59. These gains and losses are included in gains (losses) on sale of assets in the condensed consolidated statements of operations and comprehensive loss.

In connection with management’s ongoing multi-phase plans to produce high-quality flowers, during the six months ended June 30, 2022, the Company replaced existing lights with new market-standard LED lights. As a result, the Company recorded a loss on disposal in the amount of $697, which represented the carrying value of existing lights. This loss is included in impairment loss and loss on disposal of assets in the condensed consolidated statements of operations and comprehensive loss.

On May 16, 2022, the Company purchased a facility located in Taunton, MA (the “Taunton Facility”) as described in Note 12 — Leases. As a result, $6,266 of land and $6,268 of building was recognized.