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PROPERTY, PLANT AND EQUIPMENT, NET AND MINERAL RIGHTS
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT, NET AND MINERAL RIGHTS PROPERTY, PLANT AND EQUIPMENT, NET AND MINERAL RIGHTS
 
Property, plant and equipment at June 30, 2023 and December 31, 2022 include the following:
 
 June 30, 2023December 31, 2022
Land$6,328,338 $6,328,338 
Real property leased to third parties1,037,049 1,037,049 
Property, plant and equipment for mineral processing27,644,745 27,644,745 
Other property and equipment5,686,710 5,212,891 
Accumulated depreciation(27,084,404)(26,748,929)
Total property, plant and equipment, net$13,612,438 $13,474,094 
 
During the three-months ended June 30, 2023 and 2022, we recognized depreciation expense of $215,376 and $145,091, respectively. During the six-months ended June 30, 2023 and 2022, we recognized depreciation expense of $335,473 and $282,907, respectively.

On April 26, 2023, the Company closed on the purchase of Aqua Metals Transfer LLC, a subsidiary of Aqua Metals Inc. ("AQMS"), including land, buildings and related improvements therein and paid the $12 million due to AQMS, effectively taking full ownership of the land, buildings and related improvements and the previously existing lease with LINICO was terminated. As of June 30, 2023, assets held for sale include the land, buildings and related improvements with a balance of $20,638,942 (see Note 8, Assets Held For Sale).

Mineral Rights and Properties

Our properties at June 30, 2023 and December 31, 2022 consisted of the following: 
June 30, 2023December 31, 2022
Comstock Mineral Estate$12,164,013 $12,164,013 
Other mineral properties317,405 317,405 
Water rights820,595 90,000 
Total mineral rights and properties$13,302,013 $12,571,418 

The Comstock Mineral Estate includes all of the Company's resource areas and exploration targets. During the six-months ended June 30, 2023 and 2022, we did not record any depletion expense, as none of the properties are currently in production. All of our mineral exploration and mining lease payments are classified as selling, general and administrative expenses in the condensed consolidated statements of operations.

On June 30, 2023, the Company signed a Mineral Exploration and Mining Lease Agreement (the “Mining Lease”) with Mackay Precious Metals Inc (“Mackay”). The Mining Lease provides a twenty-year term granting Mackay the rights to conduct exploration on certain of the Company’s mineral properties in Storey County, Nevada. Mackay paid a lease initial fee of $1,250,000 and will make quarterly lease payments of $375,000 for the first four years, and quarterly lease payments of $250,000 thereafter. In addition, Mackay will reimburse carrying costs for the mineral properties, estimated to be $177,000 per year, and will pay a Net Smelter Return ("NSR") royalty of 1.5% from eventual mine production from the mineral properties. Mackay also committed to expenditures of $1,000,000 per year on a cumulative basis, and increasingly detailed technical reports after the first five, ten, and fifteen years.

We determined that the lease initial fee of $1,250,000 will be recognized as income ratably over the term of the lease and quarterly lease payments will be recognized as income in the period received. As of June 30, 2023, the Company received the lease initial fee and recorded deferred revenue of $1,250,000 reflected in deferred gain on our condensed consolidated balance sheet.

In March 2023, the Company acquired senior water rights (50-acre feet) associated with one of its existing properties and junior water rights (16-acre feet) for a total of $730,595.