Property and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

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

	December 31,				Estimated Useful Life
	2022		2021
Network equipment and software	$	1,913	$	4,665	3 to 5 Years
Computer equipment and software	294		$	5,070	3 to 5 Years
Leasehold improvements	—		$	690	(*)
Office furniture and equipment	—		$	92	3 to 10 Years
	2,207		10,517
Accumulated depreciation	(2,204)		(10,358)
Property and equipment, net	$	3	$	159

(*) – Depreciated over the shorter period of the estimated useful life (five years) or the lease term.

Related depreciation expense was $78,000 and $365,000 for the years ended December 31, 2022 and December 31, 2021, respectively.

During the year ended December 31, 2022, the Company disposed of fixed assets of $7,928,000, the corresponding accumulated depreciation of $7,900,000, and received proceeds on the sale of $30,000 which resulted in a gain on disposal of $2,000. In addition, during the year ended December 31, 2022, the Company considered the declines in revenue for the Collaboration Products reporting segment and the decline in the Company’s market capitalization to be triggering events for an impairment test of assets for this segment. Based on the corresponding recoverability tests of the asset group for this reporting unit, it was determined that the carrying value exceeded the gross cash flows of the asset group. The recoverability test consisted of comparing the estimated undiscounted cash flows expected to be generated by those assets to the respective carrying amounts, and involves significant judgements and assumptions, related primarily to the future revenue and profitability of the assets. Based on the fair value of the asset group, which was determined using a market approach, we recorded impairment charges of $393,000 on fixed assets and the corresponding accumulated depreciation of $332,000, resulting in an impairment loss of $61,000 on the carrying value of the assets. During the year ended December 31, 2021, the Company recorded impairment charges of $98,000.