Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v3.22.2.2
Property and Equipment, Net
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
September 30,
2022		 December 31,
2021
Computers and telecom equipment $ 466  $ 40 
Lab equipment 690  568 
Furniture and fixtures 87  37 
Leasehold improvements 542  491 
Leased equipment 34,888  20,797 
Internal-use software 3,255  1,146 
Sales demo equipment 2,085  1,938 
Equipment held for lease1
4,847  2,250 
Construction in progress 180  — 
47,040  27,267 
Less: Accumulated depreciation and amortization (6,508) (3,484)
$ 40,532  $ 23,783 
1Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.
Depreciation and amortization expense related to property and equipment was $1.4 million and $0.8 million for the three months ended September 30, 2022 and 2021, and $3.8 million and $1.9 million for the nine months ended September 30, 2022, and 2021, respectively.
Leased equipment and the related accumulated depreciation were as follows:
September 30,
2022		 December 31,
2021
Leased equipment $ 34,888  $ 20,797 
Accumulated depreciation (4,868) (2,631)
Leased equipment, net $ 30,020  $ 18,166 
Depreciation related to leased units was $1.1 million and $0.8 million during the three months ended September 30, 2022 and 2021, respectively. Depreciation expense related to leased units was $3.0 million and $1.8 million during the nine months ended September 30, 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.
Impairment of property and equipment was $0.6 million and $1.0 million for the three and nine months ended September 30, 2022, respectively. This impairment related to Edge units and prototype versions of Express that were removed from service and retired. The Company is transitioning domestic customers to current model Express units which decreased the economic value of Edge units and Express prototypes and resulted in impairment. Impairment of property and equipment was $1.7 million and $1.7 million for the three and nine months ended September 30, 2021.