Blüm Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Property, Equipment and Leasehold Improvements

Note 6 - Property, Equipment and Leasehold Improvements

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 6 – PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Property, equipment, and leasehold improvements consisted of the following:

	(in thousands)
	*June 30,*			*December 31,*
	*2024*			*2023*
Land and Building	$	5,872		$	7,581
Furniture and Equipment		170			168
Computer Hardware		282			281
Leasehold Improvements		5,592			5,241
Vehicles		26			19
Construction in Progress		450			538
Subtotal		12,392			13,828
Less Accumulated Depreciation		(4,815	)		(4,643	)
Property, Equipment and Leasehold Improvements, Net	$	7,577		$	9,185

Depreciation expense related to continuing operations was $0.22 million and $0.09 million for the three months ended June 30, 2024 and 2023, respectively, and $0.28 million and $0.18 million for the six months ended June 30, 2024 and 2023, respectively.

During the second fiscal quarter of 2024, management noted indicators of impairment of its property, equipment and leasehold improvements. Specifically, changes in circumstances resulted in changes to expected future cash flows from land and buildings. The Company used a quoted market price to determine fair value, resulting in an impairment loss of $1.71 million during the three months ended June 30, 2024.

All property, equipment and leasehold improvements related to discontinued operations are separately presented from the consolidated balance sheets as of June 30, 2024 and December 31, 2023. Refer to "Note 19 – Discontinued Operations".