Property and Equipment, Net

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

(3) Property and Equipment, Net

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

	March 31, 2019			December 31, 2018
Equipment	$	4,105		$	4,145
Computer equipment		450			481
Computer software		570			570
Furniture and fixtures		99			164
Leasehold improvements		3,941			3,941
Vehicles		10			10
Surgical instruments		10,807			10,722
Total cost		19,982			20,083
Less: accumulated depreciation		(13,600	)		(12,909	)
Property and equipment, net	$	6,382		$	7,174

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 $3.8 million and $4.4 million at March 31, 2019 and December 31, 2018, respectively. Instruments are recorded at cost and are carried at net book value (cost less accumulated depreciation).

Depreciation expense related to property and equipment, including property under capital lease, for the first three months of 2019 and 2018 was $0.8 million and $0.7 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 March 31, 2019, the Company has recorded $1.6 million gross assets in Equipment and $1.0 million of accumulated depreciation.