Property and Equipment, Net

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

(4)

Property and Equipment, Net

Property and equipment, net are as follows:

	June 30,		December 31,
	2017		2016
Equipment	$	4,548,670	$	4,629,754
Computer equipment		499,265		416,233
Computer software		507,154		529,726
Furniture and fixtures		184,665		181,566
Leasehold improvements		4,036,484		4,053,837
Vehicles		10,000		10,000
Surgical instruments		13,033,537		13,876,757
Total cost		22,819,775		23,697,873
Less: accumulated depreciation		(8,782,732)		(7,857,143)
Property and equipment, net	$	14,037,043	$	15,840,730

The Company provides surgical instruments to surgeons to use during surgical procedures. Instruments are classified as non-current assets and are recorded as property and equipment. Instruments are recorded at cost and are carried at book value (cost less accumulated depreciation). Depreciation is calculated using the straight-line method using a five year useful life. Depreciation expense related to property and equipment, including property under capital lease, for the first six months of 2017 and 2016 was $1,862,124 and $1,406,026, respectively.

The Company leases certain equipment under capital leases. For financial reporting purposes, minimum lease payments relating to the assets have been capitalized. As of June 30, 2017, the Company has recorded $1,562,408 gross assets in Equipment, and $457,666 of accumulated depreciation relating to assets under capital leases.