Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Estimated useful lives by major asset category are as follows:



Manufacturing equipment	10 years
Laboratory equipment	7 years
Furniture and fixtures	5 years
Software, computer and other equipment	3 years
Leasehold improvements	Lower of estimated useful life or term of lease

Property, plant and equipment, net consists of the following:



(in thousands)	JUNE 30, 2019			DECEMBER 31, 2018
Manufacturing equipment	$	17,773		$	2,366
Laboratory equipment	7,169			6,038
Furniture and fixtures	1,620			1,815
Software, computer and other equipment	6,550			2,702
Leasehold improvements	29,511			4,072
Construction-in-progress	3,345			49,057
Property, plant and equipment	65,968			66,050
Less: Accumulated depreciation	(7,373		)	(5,525		)
Property, plant and equipment, net	$	58,595		$	60,525

Schedule of Computation of Diluted EPS

The potential common stock equivalents that have been excluded from the computation of Diluted EPS consist of the following:



	THREE MONTHS ENDED JUNE 30,		SIX MONTHS ENDED JUNE 30,
	2019	2018	2019	2018
2014 Convertible Notes⁽¹⁾	—	5,040,323	—	5,040,323
Outstanding stock options	7,514,268	7,046,345	7,514,268	7,046,345
Stock purchase warrants	79,500	154,500	79,500	154,500
Non-vested restricted stock awards	728,705	581,602	728,705	581,602
Total	8,322,473	12,822,770	8,322,473	12,822,770

⁽¹⁾

In July 2018, the entire outstanding principal amount of senior secured convertible notes (the “2014 Convertible Notes”) was converted into shares of Aerie common stock.