ARTESIAN RESOURCES CORP 10-K

ITEM 2. PROPERTIES Our corporate headquarters are located at 664 Churchmans Road, Newark, Delaware and are owned by Artesian Water. The Company owns approximately six acres of land in New Castle County, Delaware zoned for office development and two nine-acre parcels of land in Sussex County, Delaware for water and wastewater treatment facilities and elevated water storage. The Company also owns an office facility located in Sussex County, Delaware. The facility consists of approximately 10,000 square feet of office space along with approximately 10,000 square feet of warehouse space. The Company owns land, rights-of-way, easements, transmission and distribution mains, collection mains, pump facilities, treatment plants, lift stations, treatment/disposal facilities, storage tanks, meters, vehicles and related equipment and facilities. The following table indicates our utility plant as of December 31, 2022. Utility plant comprises : In thousands Estimated Useful Life (In Years) December 31, 2022 Utility plant at original cost Utility plant in service-Water Intangible plant --- $ 140 Source of supply plant 45-85 25,223 Pumping and water treatment plant 8-62 116,915 Transmission and distribution plant Mains 81 338,368 Services 39 56,396 Storage tanks 76 34,567 Meters 26 29,720 Hydrants 60 17,751 General plant 5-31 65,632 Utility plant in service-Wastewater Intangible plant --- 117 Treatment and disposal plant 21-81 66,420 Collection mains and lift stations 81 49,189 General plant 5-31 1,845 Property held for future use --- 4,489 Construction work in progress --- 34,213 840,985 Less – accumulated depreciation 172,954 $ 668,031 Substantially all of Artesian Water's utility plant, except the utility plant in the town of Townsend, Delaware, is pledged as security for our First Mortgage Bonds. As of December 31, 2022, no other water utility plant has been pledged as security for loans. Two parcels of land in Artesian Wastewater are pledged as security for a loan. We believe that our properties are generally maintained in good condition and in accordance with current standards of good water and wastewater works industry practice. We believe that all of our existing facilities adequately meet current necessary production capacities and current levels of utilization. 17 Table of Contents ITEM 3. LEGAL PROCEEDINGS For a discussion of our legal proceedings, refer to Note 17 to our Consolidated Financial Statements. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II