Property and Equipment, Net

12 Months Ended

Dec. 31, 2017

4. Property and Equipment, Net

Property and equipment, net, consists of the following (in thousands):


	December 31,		December 31,
	2017		2016
Furniture	$	919	$	108
Equipment		34,777		230
Leasehold improvements		7,123		777
Construction in progress		15,656		23,162
Property and equipment, gross		58,475		24,277
Less: accumulated depreciation		(2,301)		(76)
Property and equipment, net	$	56,174	$	24,201

Depreciation expense was $2.3 million for the year ended December 31, 2017. Depreciation expense for the years ended December 31, 2016 and 2015 was not material.

Furniture and equipment are depreciated on a straight-line basis over their estimated useful lives. The Company uses a life of five to ten years for office furniture and equipment. The Company uses a life of twenty years for its manufacturing pods. Leasehold improvements are depreciated over the shorter of their useful lives or the remaining term of the lease.

Construction in progress decreased by $7.5 million for the year ended December 31, 2017. This decrease is due to items previously classified as construction in progress being placed into service in the Company’s manufacturing facility during 2017 at which time the cost of the asset is transferred to the appropriate property and equipment account.