PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

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



	March 31, 2020			December 31, 2019
Land	$	694		$	694
Building	3,845			3,845
Machinery and equipment	28,294			28,777
Office furniture and equipment	1,348			1,345
Computer hardware and software	3,333			3,408
Leasehold and building improvements	10,566			10,558
Construction in progress	753			671
Property and equipment, gross	48,833			49,298
Less accumulated depreciation	(33,757		)	(33,829		)
Total property and equipment, net	$	15,076		$	15,469

The Company has subscription agreements whereby its instruments in inventory may be placed at a customer's location on a rental basis. The cost of these instruments is transferred to machinery and equipment and depreciated, typically over a 5 to 7 year period depending on the circumstance under which the instrument is placed with the customer. Our cost of instruments under operating leases as of March 31, 2020 and December 31, 2019, was $7.8 million and $8.1 million, respectively, before accumulated depreciation of $4.4 million and $4.6 million, respectively.

Depreciation expense was $0.9 million and $1.0 million for the three months ended March 31, 2020 and 2019, respectively.