Property and Equipment, Net, and Other Assets

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net, and Other Assets

4. Property and Equipment, Net, and Other Assets

At March 31, 2024 and December 31, 2023, property and equipment, net, and other assets consisted of the following:


	March 31,		December 31,
	2024		2023
	(Unaudited)
Property and equipment, net of accumulated depreciation of $3,105,356 and $2,932,371 as of March 31, 2024 and December 31, 2023, respectively	$	3,879,118	$	2,129,176
Right-of-use operating lease assets		1,725,715		1,862,455
Security deposits and other assets		610,460		634,459
Property and equipment, net, and other assets	$	6,215,293	$	4,626,090

We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. Depreciation expense for the three months ended March 31, 2024 was $172,985, including $133,793 of depreciation expense reflected within “Cost of revenue” in our condensed consolidated statements of operations as it related to assets used in directly servicing customer contracts. Depreciation expense for the three months ended March 31, 2023 was $238,163, including $84,123 of depreciation expense reflected within “Cost of revenue.”

We purchased 116 compactors, which were previously leased, and related equipment in the first quarter of 2024 for approximately $1.6 million. We purchased an additional 92 compactors and related equipment, which were also previously leased, on April 1, 2024 for approximately $1.5 million. All of the equipment is located at various customer locations. We subsequently financed 80% of the aggregate purchase price with draws on our PNC equipment term loan in the second quarter of 2024. Refer to Note 7, Notes Payable for additional information.

Right-of-use operating lease assets related to our office leases are recognized in accordance with ASC 842. Refer to Note 8, Leases for additional information.