Property and Equipment, Net, and Other Assets

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net, and Other Assets

4. Property and Equipment, Net, and Other Assets

At June 30, 2024 and December 31, 2023, property and equipment, net, and other assets consisted of the following:


	June 30,		December 31,
	2024		2023
	(Unaudited)
Property and equipment, net of accumulated depreciation of $3,380,977 and $2,932,371 as of June 30, 2024 and December 31, 2023, respectively	$	5,635,413	$	2,129,176
Right-of-use operating lease assets		1,587,152		1,862,455
Security deposits and other assets		616,259		634,459
Property and equipment, net, and other assets	$	7,838,824	$	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 June 30, 2024 was $280,054, including $240,954 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 and was $453,039 for the six months ended June 30, 2024, including $374,747 of depreciation expense reflected within “Cost of revenue”. Depreciation expense for the three months ended June 30, 2023 was $256,291, including $86,714 of depreciation expense reflected within “Cost of revenue”, and was $494,453 for the six months ended June 30, 2023, including $170,837 of depreciation expense reflected in “Cost of revenue”.

During the six months ended June 30, 2024, we purchased 208 compactors and related equipment for approximately $3.1 million. This equipment, which we previously leased, is located at various customer locations. In connection with the purchase, we financed 80% of the aggregate purchase price with draws on our PNC equipment term loan. 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.