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

The Company’s property, plant and equipment consisted of the following:

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During the three months ended March 31, 2025 and 2024, the Company recognized depreciation expense of $1,179 and $1,548, respectively. Depreciation expense is included in cost of goods sold and depreciation and amortization in the condensed consolidated statements of operations and comprehensive loss.

Assets Held for Sale

On January 28, 2025, CAC entered into an asset purchase agreement with In Good Health, Inc. for the sale of substantially all the assets and assumption of certain liabilities of its dispensaries located in Taunton and Brockton, Massachusetts. The purchase price for the assets is $2,000 plus the assumption of certain liabilities, and the sale is expected to be completed within the next 12 months. As a result, the Company reclassified $1,541 of its assets to assets held for sale on the condensed consolidated balance sheet as of March 31, 2025. Of this amount, $1,300 was reclassified out of property, plant and equipment, net.

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See below for the cost and related accumulated amortization by asset class transferred out of property, plant and equipment, net:

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