Property and Equipment, Net

6 Months Ended

Jun. 30, 2021

Property Plant And Equipment [Abstract]

Property and Equipment, Net

4. Property and Equipment, Net

Property and equipment, net consists of the following:

	June 30, 2021		December 31, 2020
Furniture, fixtures and equipment	$	190,117	$	125,538
Laboratory equipment		1,041,749		959,585
Computers and telecommunications		270,755		220,316
Software		94,409		64,409
Leasehold improvements		1,682,538		1,285,883
Construction-in-progress		3,300,000		—
Property and equipment, at cost		6,579,568		2,655,731
Less: accumulated depreciation and amortization		(1,828,558)		(1,598,811)
Property and equipment, net	$	4,751,010	$	1,056,920

As of June 30, 2021, construction-in-progress primarily includes costs related to the procurement of long-lead equipment and build out of the suite associated with the Company’s manufacturing collaboration with Lonza Houston, Inc. (“Lonza”) for the manufacture of AdCOVID or other adenovirus-based vaccines. Under the agreement, the Company has committed approximately $23.0 million to Lonza to procure long-lead equipment and construct a dedicated manufacturing suite for clinical and commercial production of adenovirus-based vaccines. This work is expected to be completed by the end of 2021.

In June 2021, the Company announced the discontinuation of further development of AdCOVID following the Company’s review of findings from the Phase 1 clinical trial. Construction continues at Lonza, and the Company is currently assessing its strategic options with respect to the suite. The Company’s current expectation is that, more likely than not, the suite will be disposed of significantly before the end of its previously estimated useful life. As of June 30, 2021, the Company recorded $8.1 million of impairment loss on construction-in-progress in the accompanying unaudited consolidated statements of operations and comprehensive loss, with $3.3 million remaining capitalized in the unaudited consolidated balance sheet, as it represents expected recoveries available to the Company under the construction contract.

Depreciation expense related to property and equipment was approximately $68,450 and $60,664 for the three months ended June 30, 2021 and 2020, respectively, and $136,108 and $120,169 for the six months ended June 30, 2021 and 2020, respectively.