Property and equipment

12 Months Ended

Dec. 31, 2018

Note 6. Property and equipment

Property and equipment, net at the indicated dates consists of the following:


	December 31,
	2018		2017
	(in thousands)
Assets under capital lease	$	3,327	$	3,222
Leasehold improvements		4,340		4,195
Manufacturing, packaging and lab equipment		6,821		5,300
Office furniture and equipment		2,164		1,656
Assets under construction		188		1,056
		16,840		15,429
Accumulated depreciation and amortization (including $633 and $157 at December 31, 2018 and 2017, respectively, applicable to capital leases)		(8,926)		(7,226)
	$	7,914	$	8,203

Depreciation and amortization expense related to property and equipment was $1,750,000, $1,363,000 and $1,598,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Depreciation and amortization expense is recorded in cost of goods sold, research and development, or general and administrative expenses in the accompanying consolidated statements of operations. As noted in Note 7, the Company sold and leased back a substantial portion of its operating assets in a series of capital lease transactions.

On October 20, 2016, the Company utilized a third party auctioneer to conduct an auction of certain fully-depreciated equipment assets, resulting in net proceeds of approximately $415,000 which were paid during the fourth quarter of 2016 and were recorded as a gain on sale and included in other income (loss) in the Company’s consolidated statement of operations.