NOTE 7 – PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Property, equipment, and leasehold improvements as of December 31, 2024 and 2023 consisted of the following:

Depreciation expense related to continuing operations was $0.58 million and $0.33 million for the years ended December 31, 2024 and 2023, respectively.

During the fiscal third quarter ended September 30, 2023, the Company disposed of net assets primarily consisting of property and equipment totaling $1.54 million which was recorded as a loss on disposal of assets for the year ended December 31, 2023.

During the second fiscal quarter of 2024, management noted indicators of impairment of its property, equipment and leasehold improvements within its corporate asset group. Specifically, changes in circumstances resulted in changes to expected future cash flows from land and building. The Company used a recent transaction price to determine fair value, resulting in an impairment loss of $1.71 million during the year ended  December 31, 2024. The impairment charges relating to property, equipment and leasehold improvements are presented in the “Impairment Expense” line in the consolidated statements of operations.

All property, equipment and leasehold improvements related to discontinued operations are separately presented from the consolidated balance sheets as of December 31, 2024 and 2023. Refer to "Note 21 - Discontinued Operations".