Note 3 - Property and Equipment

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 3 – PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

	December 31,
	2022			2021
Medical equipment and facilities	$	73,709,000		$	73,388,000
Office equipment		422,000			472,000
Construction in progress		106,000			91,000
		74,237,000			73,951,000
Accumulated depreciation		(50,770,000	)		(45,697,000	)
Net property and equipment	$	23,467,000		$	28,254,000

As of December 31, 2022 and 2021, approximately $2,201,000 and $2,697,000, respectively, of the net property and equipment balance is outside of the United States.  Depreciation expense recorded in costs of revenue and selling and administrative expense in the consolidated statements of income for the years ended  December 31, 2022 and 2021, was $4,783,000 and $4,972,000, respectively.

As of   April 1, 2021, the Company reduced its estimate for salvage value for nine of its Gamma Knife units. As of October 1, 2022, the Company further reduced its estimate for salvage value for one of its domestic Gamma Knife Perfexion units. The net effect of the change in estimate made October 1, 2022, for the year ended  December 31, 2022, was a decrease in net income of approximately $17,000 or $0.00 per diluted share. This change in estimate will also impact future periods. Salvage value is based on the estimated fair value of the equipment at the end of its useful life.

As of December 31, 2022 and 2021, the Company recognized a loss on the write down of impaired assets of $0 and $105,000, respectively. The impairment as of  December 31, 2021 was related to the estimate for removal costs of one of the Gamma Knife units that was impaired during the year ended December 31, 2020 and removed in January 2022. The Company reviewed its Gamma Knife equipment, in light of available information as of December 31, 2022 and concluded no additional impairment exists. The Company reviewed it’s PBRT equipment, in light of available information as of December 31, 2022 and 2021 and concluded no impairment exists.