PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and equipment consists of the following:


	DECEMBER 31,
	2019		2018
Medical equipment and facilities	$	92,132,000	$	94,031,000
Office equipment	594,000		589,000
Deposits and construction in progress	1,965,000		3,832,000
Deposits towards purchase of proton beam systems	2,250,000		2,250,000
	96,941,000		100,702,000
Accumulated depreciation	(55,461,000)		(54,008,000)
Net property and equipment	$	41,480,000	$	46,694,000

The Company has equipment that is secured under finance leases, which is included in Medical equipment and facilities, with a total cost of $46,642,000 and associated accumulated depreciation of $23,782,000 as of December 31, 2019 and a total cost of $46,559,000 and associated accumulated depreciation of $20,292,000 as of December 31, 2018. As of December 31, 2019, the Company has two idle Gamma Knife units with a cumulative net book value of $943,000. There are currently no commitments to place into service or trade in these units during 2020.

As of December 31, 2019, the Company has $1,965,000 in construction in progress. The construction in progress consists of deposits payments made for two Cobalt-60 reloads, capitalized and imputed interest, and other costs associated with on-going projects of the Company.

As of December 31, 2019, the Company has $2,250,000 in deposits toward the purchase of two MEVION S250i PBRT systems from Mevion. The Company has a commitment for the remaining balance for each system. The Company’s first MEVION S250 treated its first patient in April 2016. The Company has entered into a partnership agreement (LBE) with a radiation oncology physician group, which has contributed $400,000 towards the deposits on the third machine. The Company currently does not have customer contracts for the second and third units. The Company reviews the carrying value of these deposits for impairment on a quarterly basis, or as events or circumstances might indicate that the carrying value may not be recoverable. The Company has reviewed the deposits, in light of available information, as of December 31, 2019 and has not identified any impairment. See Note 12 - Commitments and Contingencies for additional discussion on purchase commitments.