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PROPERTY AND EQUIPMENT, NET
 6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

9. PROPERTY AND EQUIPMENT, NET

 

At June 30, 2021 and December 31, 2020, property and equipment consisted of:

 

   June 30, 2021   December 31, 2020 
Cryptocurrency machines and related equipment  $593,000   $567,000 
Computer, software and related equipment   3,896,000    3,057,000 
Office furniture and equipment   672,000    490,000 
Land   2,567,000    — 
Building   1,283,000    — 
Leasehold improvements   2,136,000    1,352,000 
    11,147,000    5,466,000 
Accumulated depreciation and amortization   (3,885,000)   (3,343,000)
Property and equipment, net  $7,262,000   $2,123,000 

 

For the six months ended June 30, 2021 and 2020, depreciation expense amounted to $446,000 and $260,000, respectively.

 

Acquisition of Michigan Cloud Data Center

 

On January 29, 2021, Alliance Cloud Services, LLC, a majority-owned subsidiary of Ault Alliance, closed on the acquisition of a 617,000 square foot energy-efficient facility located on a 34.5 acre site in southern Michigan for a purchase price of $3.9 million. The facility is subject to a final corrective measures plan with the Environment Protection Agency. The seller performed remedial activities at the Michigan facility relating to historical soil and groundwater contamination and the Company is responsible for ongoing monitoring and final remediation plans. The Company’s estimated cost of the environmental remediation obligation is approximately $369,000 and reflects its best estimate of probable future costs for remediation based on the current assessment data and regulatory obligations. Future costs will depend on many factors, including the extent of work necessary to implement monitoring and final remediation plans and the Company’s time frame for remediation. The Company may incur actual costs in the future that are materially different than this estimate and such costs could have a material impact on results of operations, financial condition, and cash flows during the period in which they are recorded.