Property and Equipment

9 Months Ended

Sep. 30, 2018

Property Plant And Equipment [Abstract]

4. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

	September 30,			December 31,
	2018			2017
	(in thousands)
Office equipment	$	279		$	279
Laboratory equipment		4,670			4,565
Leasehold improvements		7,711			7,712
Construction in progress		2,876			990
Software		96			96
Total property and equipment		15,632			13,642
Less: B depreciation		(11,280	)		(10,919	)
Property and equipment, net	$	4,352		$	2,723

Depreciation expense related to property and equipment amounted to $0.1 million and $0.4 million for the three months ended September 30, 2018 and 2017, respectively, and $0.4 million and $1.2 million for the nine months ended September 30, 2018 and 2017, respectively.

On September 5, 2018, the Company experienced a drop in stock price of 73%. As a result, the Company applied the multi-step process as described in FASB Accounting Standards Codification (“ASC”) Topic 360, “Property, Plant, and Equipment”. The first step requires the Company to determine whether there are indicators of impairment of its long-lived assets. It concluded that the drop in stock price was a triggering event for impairment. Step 2 of the process is to determine whether the carrying amount of the asset group is recoverable, based on a comparison of the total undiscounted future cash flows from the asset group to the carrying amount of the asset group. It was determined that the undiscounted cash flows are less than the carrying value of the net asset group. Step 3 is to measure the impairment loss by determining if the if the carrying value of the long-lived asset group exceeds its fair value. The Company concluded that the carrying value of the asset group did not exceed its fair value and therefore there is no impairment charge.