Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

v3.23.1
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2022
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,
2022 2021
Computers and telecom equipment $ 599  $ 40 
Lab equipment 871  568 
Furniture and fixtures 111  37 
Leasehold improvements 542  491 
Leased equipment 35,983  20,797 
Capitalized software 4,150  1,146 
Sales demo equipment 2,340  1,938 
Equipment held for lease1
7,826  2,250 
Construction in progress 71  — 
52,493  27,267 
Less: Accumulated depreciation and amortization (7,786) (3,484)
$ 44,707  $ 23,783 
1Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.
As of December 31, 2022 and 2021, the net book value of capitalized software was $3.5 million and $1.1 million, respectively. These amounts include $0.2 million and less than $0.1 million of capitalized stock compensation costs. Depreciation expense and amortization expense related to property and equipment was $5.5 million and $2.9 million for the years ended December 31, 2022 and 2021, respectively, which included amortization expense of capitalized software of $0.6 million and less than $0.1 million for the years ended December 31, 2022 and 2021, respectively.
Leased equipment and the related accumulated depreciation were as follows:
December 31,
2022 2021
Leased equipment $ 35,983  $ 20,797 
Accumulated depreciation (5,802) (2,631)
Leased equipment, net $ 30,181  $ 18,166 
Depreciation expense related to leased units was $4.3 million and $2.5 million during the years ended December 31, 2022 and 2021, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.