Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

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Property and Equipment, Net
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
December 31,
2023 2022
Computers and telecom equipment $ 1,331  $ 599 
Lab equipment 1,171  871 
Furniture and fixtures 111  111 
Leasehold improvements 566  542 
Leased equipment 80,206  35,983 
Capitalized software 8,629  4,150 
Sales demo equipment 2,758  2,340 
Equipment held for lease1
32,910  7,826 
Construction in progress 2,493  71 
130,175  52,493 
Less: Accumulated depreciation and amortization (17,254) (7,786)
$ 112,921  $ 44,707 
(1) Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.
As of December 31, 2023 and 2022, the net book value of capitalized software was $7.0 million and $3.5 million, respectively. These amounts include $0.7 million and approximately $0.2 million of capitalized stock compensation costs, respectively. Depreciation expense and amortization expense related to property and equipment was $9.9 million and $5.5
million for the years ended December 31, 2023 and 2022, respectively, which included amortization expense of capitalized software of $1.0 million and $0.6 million for the years ended December 31, 2023 and 2022, respectively.
Leased equipment and the related accumulated depreciation were as follows:
December 31,
2023 2022
Leased equipment $ 80,206  $ 35,983 
Accumulated depreciation (13,283) (5,802)
Leased equipment, net $ 66,923  $ 30,181 
Depreciation expense related to leased units was $8.0 million and $4.3 million during the years ended December 31, 2023 and 2022, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.
Loss from impairment of property and equipment was $0.3 million and $1.2 million during the years ended December 31, 2023 and 2022, respectively. This primarily related to the removal of Evolv Edge units and Evolv Express prototypes from service, resulting in an impairment of the remaining economic value of such units.