Property and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

(3) Property and Equipment, Net

Property and equipment, net are as follows (in thousands):

	December 31, 2018			December 31, 2017
Equipment	$	4,145		$	4,471
Computer equipment		481			489
Computer software		570			524
Furniture and fixtures		164			215
Leasehold improvements		3,941			4,030
Vehicles		10			10
Surgical instruments		10,772			11,461
Total cost		20,083			21,201
Less: accumulated depreciation		(12,909	)		(11,288	)
	$	7,174		$	9,913

The Company deploys certain surgical instruments through its various sales channels for use with purchased implants during surgical procedures. The instruments are classified as non-current assets within property and equipment and depreciated using the straight-line method over a five-year useful life. The net book value of consigned surgical instruments was approximately $4.4 million and $6.6 million at December 31, 2018 and December 31, 2017, respectively. An impairment charge of $1.6 million was recorded for the year ended December 31, 2017 for instruments on consignment which were determined not to be recoverable. No impairment was recorded for the year ended December 31, 2018.

Depreciation expense related to property and equipment, including property under capital lease, for the years ended 2018 and 2017 was $3.2 million and $3.8 million, 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 December 31, 2018, the Company has recorded $1.6 million gross capital lease assets within Equipment, and $0.9 million of accumulated depreciation.