Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

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Property and Equipment, Net
 3 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
March 31,
2024		 December 31,
2023
Computers and telecom equipment $ 1,481  $ 1,331 
Lab equipment 1,588  1,171 
Furniture and fixtures 111  111 
Leasehold improvements 566  566 
Leased equipment 90,200  80,206 
Capitalized software 10,520  8,629 
Sales demo equipment 2,853  2,758 
Equipment held for lease1
39,163  32,910 
Construction in progress 3,094  2,493 
149,576  130,175 
Less: Accumulated depreciation and amortization (20,234) (17,254)
$ 129,342  $ 112,921 
1 Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.
As of March 31, 2024 and December 31, 2023, the net book value of capitalized software was $8.6 million and $7.0 million, respectively. These amounts include $0.9 million and $0.7 million of capitalized stock compensation costs, respectively. Depreciation and amortization expense related to property and equipment was $3.5 million and $1.8 million for the three months ended March 31, 2024 and 2023, respectively, which included amortization expense of capitalized software of $0.3 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively.
Leased equipment and the related accumulated depreciation were as follows:
March 31,
2024		 December 31,
2023
Leased equipment $ 90,200  $ 80,206 
Accumulated depreciation (15,661) (13,283)
Leased equipment, net $ 74,539  $ 66,923 
Depreciation expense related to leased units was $2.9 million and $1.4 million during the three months ended March 31, 2024 and 2023, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.
The Company did not record any loss from impairment of property and equipment during the three months ended March 31, 2024 and recorded $0.1 million of loss from impairment of property and equipment during the three months ended March 31, 2023. 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.