Note 2 - Property and Equipment

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note 2.    Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation for Gamma Knife units 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 between three and ten years, and after accounting for salvage value on the equipment where indicated. The Company determines salvage value 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, 2024 and December 31, 2023:

	March 31,			December 31,
	2024			2023
Medical equipment and facilities	$	75,272,000		$	77,150,000
Office equipment		314,000			306,000
Construction in progress		3,549,000			3,771,000
		79,135,000			81,227,000
Accumulated depreciation		(52,256,000	)		(55,383,000	)
Net property and equipment	$	26,879,000		$	25,844,000
Net property and equipment held outside of the United States	$	5,984,000		$	3,966,000

Depreciation expense in the condensed consolidated statements of operations for the three-month periods ended March 31, 2024 and 2023 is as follows:

	March 31,		March 31,
	2024		2023
Depreciation expense	$	1,334,000	$	1,367,000