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PROPERTY AND EQUIPMENT, NET | 12 Months Ended
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Dec. 31, 2024
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT, NET | 11. PROPERTY AND EQUIPMENT, NET At December 31, 2024 and 2023, property and equipment consisted of:
Schedule of property and equipment |  |  |  |  |  |  |  |
|  | December 31, 2024 |  |  | December 31, 2023 |
Building, land and improvements |  | $ | 80,822,000 |  |  | $ | 100,184,000 |
Crypto assets mining equipment |  |  | 12,150,000 |  |  |  | 50,640,000 |
Crane rental equipment |  |  | 34,588,000 |  |  |  | 34,469,000 |
Computer, software and related equipment |  |  | 11,308,000 |  |  |  | 10,533,000 |
Aircraft |  |  | 15,983,000 |  |  |  | 15,983,000 |
Other property and equipment |  |  | 11,417,000 |  |  |  | 11,066,000 |
|  |  | 166,268,000 |  |  |  | 222,875,000 |
Accumulated depreciation and amortization |  |  | (21,911,000 | ) |  |  | (27,209,000 | )
Property and equipment, net |  | $ | 144,357,000 |  |  | $ | 195,666,000 |
Summary of depreciation expense:
Schedule of depreciation |  |  |  |  |  |
|  | For the Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Depreciation expense |  | $ | 23,784,000 |  |  | $ | 26,911,000 |
Impairment of Property and Equipment During the year ended December 31, 2024, due to increases in the Bitcoin mining difficulty level, which compounded the continued impact of the Bitcoin halving event, we concluded that indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of the Company’s miners to be less than their net carrying value during the year ended December 31, 2024, and an impairment charge of $10.5 million was recognized, decreasing the net carrying value of the Company’s crypto assets mining equipment to their estimated fair value. The Company valued the miners using an income approach utilizing a discounted cash flow and a discount rate of 20%. The Company estimated the cash flow from the miners over a two-year period assuming a utilization rate of 98%, a mining difficulty level of 101.6 trillion, a Bitcoin price of $76,000 and a power cost of $0.055 per kilowatt-hour. The estimated fair value of the Company’s miners is classified in Level 3 of the fair value hierarchy with no observable inputs using a discounted cash flow methodology. In addition, the Company recorded impairment charges of $8.9 million related to AGREE’s real estate assets in each of the years ended December 31, 2024 and 2023. The fair values of property and equipment related to the real estate assets of AGREE were based on a discounted cash flow income approach for the hotel properties and a comparable sales market approach for the vacant land assets. Assumptions used in the discounted cash flow analysis included discount rates between 10.5% and 10.75%, terminal capitalization rates between 8.5% and 8.75% and occupancy rates between 59.2% and 78.8%. During the year ended December 31, 2023, certain unforeseen business developments and changes in financial projections at Avalanche International Corp. (“AVLP”) indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of AVLP property and equipment as of December 31, 2023 was $0, and an impairment charge of $14.0 million was recognized, which was based primarily on estimated liquidation value or expected proceeds from the sale or disposal of the assets. During the year ended December 31, 2023, the Company recognized an impairment charge of $4.1 million related to property and equipment at ROI, which was based primarily on estimated liquidation value or expected proceeds from the sale or disposal of the assets. Sale of St. Petersburg Property On December 13, 2024, AGREE completed the sale of its real property located in St. Petersburg, Florida (the “Florida Property”) for $13.0 million and recorded a gain on the sale of $0.2 million included in gain on the sale of fixed assets in the consolidated statement of operations.

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