Property and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property and equipment are stated at cost less accumulated depreciation. Depreciation for Gamma Knife, IGRT, and other equipment is determined using the straight-line method over the estimated useful lives of the assets, which for medical and office equipment is generally 3 – 10 years, and after accounting for salvage value on the equipment where indicated. Salvage value is based on the estimated fair value of the equipment at the end of its useful life.

Depreciation for PBRT equipment is determined using the modified units of production method, which is a function of both time and usage of the equipment. This depreciation method allocates costs considering the projected volume of usage through the useful life of the PBRT unit, which has been estimated at 20 years. The estimated useful life of the PBRT unit is consistent with the estimated economic life of 20 years.

The following table summarizes property and equipment as of March 31, 2020 and December 31, 2019:


	March 31,		December 31,
	2020		2019

Medical equipment and facilities	$	93,429,000	$	92,132,000
Office equipment	597,000		594,000
Deposits and construction in progress	2,006,000		1,965,000
Deposits towards purchase of proton beam systems	2,250,000		2,250,000

	98,282,000		96,941,000
Accumulated depreciation	(57,112,000)		(55,461,000)

Net property and equipment	$	41,170,000	$	41,480,000

As of March 31, 2020, approximately $2,820,000 of the net property and equipment balance is outside of the United States. As of March 31, 2020, 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.