Property and Equipment, Net

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

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


	September 30, 2022		December 31, 2021
Computers and telecom equipment	$	466	$	40
Lab equipment	690		568
Furniture and fixtures	87		37
Leasehold improvements	542		491
Leased equipment	34,888		20,797
Internal-use software	3,255		1,146
Sales demo equipment	2,085		1,938
Equipment held for lease1	4,847		2,250
Construction in progress	180		—
	47,040		27,267
Less: Accumulated depreciation and amortization	(6,508)		(3,484)
	$	40,532	$	23,783

1Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.

Depreciation and amortization expense related to property and equipment was $1.4 million and $0.8 million for the three months ended September 30, 2022 and 2021, and $3.8 million and $1.9 million for the nine months ended September 30, 2022, and 2021, respectively.

Leased equipment and the related accumulated depreciation were as follows:


	September 30, 2022		December 31, 2021
Leased equipment	$	34,888	$	20,797
Accumulated depreciation	(4,868)		(2,631)
Leased equipment, net	$	30,020	$	18,166

Depreciation related to leased units was $1.1 million and $0.8 million during the three months ended September 30, 2022 and 2021, respectively. Depreciation expense related to leased units was $3.0 million and $1.8 million during the nine months ended September 30, 2022 and 2021, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.

Impairment of property and equipment was $0.6 million and $1.0 million for the three and nine months ended September 30, 2022, respectively. This impairment related to Edge units and prototype versions of Express that were removed from service and retired. The Company is transitioning domestic customers to current model Express units which decreased the economic value of Edge units and Express prototypes and resulted in impairment. Impairment of property and equipment was $1.7 million and $1.7 million for the three and nine months ended September 30, 2021.