Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

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Property and Equipment, Net
 9 Months Ended
Sep. 30, 2023
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,
2023		 December 31,
2022
Computers and telecom equipment $ 1,256  $ 599 
Lab equipment 981  871 
Furniture and fixtures 111  111 
Leasehold improvements 566  542 
Leased equipment 69,129  35,983 
Capitalized software 7,041  4,150 
Sales demo equipment 2,720  2,340 
Equipment held for lease1
25,656  7,826 
Construction in progress 638  71 
108,098  52,493 
Less: Accumulated depreciation and amortization (14,103) (7,786)
$ 93,995  $ 44,707 
1 Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.
As of September 30, 2023 and December 31, 2022, the net book value of capitalized software was $5.7 million and $3.5 million, respectively. These amounts include $0.5 million and $0.2 million of capitalized stock compensation costs, respectively. Depreciation and amortization expense related to property and equipment was $2.7 million and $1.4 million for the three months ended September 30, 2023 and 2022, and $6.8 million and $3.8 million for the nine months ended September 30, 2023 and 2022, respectively.
Leased equipment and the related accumulated depreciation were as follows:
September 30,
2023		 December 31,
2022
Leased equipment $ 69,129  $ 35,983 
Accumulated depreciation (10,698) (5,802)
Leased equipment, net $ 58,431  $ 30,181 
Depreciation expense related to leased units was $2.2 million and $1.1 million during the three months ended September 30, 2023 and 2022, and $5.4 million and $3.0 million for the nine months ended September 30, 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.