Property and Equipment

9 Months Ended

Sep. 30, 2013

6. Property and Equipment

Property and equipment, net consists of (in thousands):

	September 30,			December 31,
	2013			2012
Land	$	286		$	282
Building and leasehold improvements		2,531			1,988
Furniture, fixture and office equipment		5,326			5,067
Machinery		10,297			9,789
Software (1)		2,058			1,812
Total		20,498			18,938
Accumulated depreciation (2)		(11,661	)		(10,046	)
Property and equipment, net	$	8,837		$	8,892

(1) Amounts shown as of September 30, 2013 are net of $0.2 million for software, which was impaired during the third quarter of 2013 due to a determination that it was no longer usable.

(2) Amounts shown as of September 30, 2013 in accumulated depreciation are net of reversal of accumulated depreciation totaling $ 50,000 related to assets impaired during the third quarter of 2013 as mentioned above.

The Company recorded depreciation expense of approximately $0.6 million and $1.8 million during the three and nine months ended September 30, 2013 respectively. A net increase of $1.6 million in accumulated depreciation is due to depreciation expense of $1.8 million recorded during the year, offset by change in foreign exchange rates between the balance sheet dates of $0.1 million, by the reversal of accumulated depreciation of $50,000 related to assets impaired, and reduction in accumulated depreciation of $50,000 related to fixed assets disposed during the nine months ended September 30, 2013.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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