Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v3.21.2
Property and Equipment, Net
9 Months Ended
Sep. 30, 2021
Property and Equipment, Net  
Property and Equipment, Net

7. Property and Equipment, Net

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

September 30, 

December 31, 

    

2021

    

2020

Computers and telecom equipment

$

216

$

217

Lab equipment

 

568

 

487

Software

 

58

 

59

Furniture and fixtures

 

37

 

37

Leasehold improvements

 

553

 

95

Leased equipment

 

19,484

 

10,948

 

20,916

 

11,843

Less: Accumulated depreciation and amortization

 

(3,133)

 

(2,527)

$

17,783

$

9,316

Depreciation and amortization expense related to property and equipment was $0.8 million and $0.3 million for the three months ended September 30, 2021 and 2020, and $1.9 million and $0.7 million for the nine months ended September 30, 2021, and 2020, respectively.

Leased equipment and the related accumulated depreciation were as follows:

September 30, 

December 31, 

    

2021

    

2020

Leased equipment

$

19,484

$

10,948

Accumulated depreciation

 

(2,180)

 

(1,649)

Leased equipment, net

$

17,304

$

9,299

Depreciation related to leased units was $0.8 million and $0.2 million during the three months ended September 30, 2021 and 2020, respectively. Depreciation expense related to leased units was $1.8 million and $0.6 million during the nine months ended September 30, 2021 and 2020, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.

Impairment of property and equipment was $1.7 million for the three and nine months ended September 30, 2021. There was no impairment for the three and nine months ended September 30, 2020. This related to Edge units and prototype versions of Express that were removed from service and retired. The Company is transitioning domestic customers to Express which decreased the economic value of these assets and resulted in impairment.