5. Property, Plant and Equipment and Assets Held for Sale

Property, plant and equipment consisted of the following:

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During the years ended December 31, 2023 and 2022, the Company recognized depreciation expense of $7,654 and $8,197, respectively. Depreciation expense is included in cost of goods sold and depreciation and amortization in the consolidated statements of operations and comprehensive loss.

On February 15, 2023, the Company completed the Pennsylvania Transaction that included the sale of the White Haven Facility. The Company received cash proceeds of $15,000 and derecognized the property, plant and equipment with a net carrying value of $6,599, resulting in a gain on sale of assets of $8,401. See Note 13 — Leases for additional information.

During 2023, the Company refocused its Massachusetts retail operations, reducing the operating capacity of CAC’s Cambridge dispensary. As a result, the Company incurred a property and equipment impairment adjustment and loss of $2,788 during the year ended December 31, 2023. This loss is included in impairment loss and loss on disposal of assets in the consolidated statements of operations and comprehensive loss.

During 2022, in connection with management’s ongoing multi-phase plans to produce high-quality flowers 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. This loss is included in impairment loss and loss on disposal of assets in the consolidated statements of operations and comprehensive loss.