6. Property and equipment, net

Property and equipment, net, consisted of the following (in thousands):

Property and equipment depreciation expense was $200,000 and $421,000 for the three and six months ended June 30, 2025 and $235,000 and $453,000 three and six months ended June 30, 2024, respectively. Equipment under construction is comprised of our lithium-ion battery recycling commercial equipment along with various components being manufactured or installed by the Company.

In April 2025, the Company’s Board of Directors approved a plan to sell a facility located at TRIC that was under construction and intended for the Company’s Li AquaRefining recycling campus. The decision was driven by a change in the Company’s priorities and capital allocation plans. The facility included the building structure, the underlying land, and various permanent improvements, and was previously classified as construction-in-progress within property, plant, and equipment on the Company’s consolidated balance sheet as of December 31, 2024. In accordance with ASC 360-10-45-13, the Company determined that the assets met the criteria to be classified as held for sale in April 2025. During the first quarter of 2025, the Company recognized an impairment charge of $5,247,000, to write down the assets held for sale to their estimated fair value of $4,100,000, which represents a Level 3 measurement based on a market analysis of comparable properties recently sold.

The sale of the facility was completed in June 2025 for total net proceeds of approximately $4,064,000. Throughout the second quarter of 2025, the Company also sold additional equipment for total net proceeds of approximately $283,000. In connection with these sales, the Company recognized an additional impairment and loss on disposal of property, plant, and equipment of $3,765,000 for the three months ended June 30, 2025.