Property and Equipment, net

9 Months Ended

Sep. 30, 2020

Property and Equipment, net

Property and Equipment, net

Note 8.    Property and Equipment, net

The following table summarizes the Company’s property and equipment (in thousands):

	September 30,		December 31,
	2020		2019
Furniture and office equipment	$	309	$	441
Vehicle		121		62
Leasehold improvements		176		243
Total property and equipment		606		746
Less: accumulated depreciation		(441)		(368)
Property and equipment, net		165		378
Fintech Village
Land		3,043		3,043
Building		—		309
Assets retirement obligations - environmental remediation		6,294		6,496
Capitalized direct development cost		—		2,713
Construction in progress (Fintech Village)		9,337		12,561
Property and Equipment, net	$	9,502	$	12,939

The Company recorded depreciation expense of $25,170 and $65,862, which is included in its operating expenses, for the three months ended September 30, 2020 and 2019, respectively, and $90,962 and $102,991 for the nine months ended September 30, 2020 and 2019, respectively.

In the three months ended June 30, 2020 the Company ceased to use the premises for its New York City headquarters at 55 Broadway, and vacated the premises. As a result, the Company recorded an impairment loss of  $0.2 million related to leasehold improvements and other fixed assets at that location.

Global Headquarters for Technology and Innovation in Connecticut (“Fintech Village”)

The Company recorded asset retirement obligations for environmental remediation matters in connection with the acquisition of Fintech Village. The following table summarizes the activity in the asset retirement obligation for the nine months ended September 30, 2020 (in thousands):

	January 1,		Liabilities		Remediation		Accretion				September 30,
	2020		Incurred		Performed		Expense		Revisions		2020
Asset retirement obligation	$	5,094	$	—	$	(441)	$	—	$	—	$	4,653

The Company capitalized direct costs incurred on Fintech Village and the capitalized cost is recorded as part of Construction in progress. Capitalized costs were $0 million and $2.7 million as of September 30, 2020 and December 31, 2019, respectively, and are primarily related to legal and architect costs.

In the three months ended September 30, 2020, in relation to Fintech Village the Company recorded an impairment loss of $2.7 million for the capitalized architect costs, and recorded an impairment loss of $0.3 million for the remaining building and $0.2 million for the related asset retirement cost associated with the remaining building.

The Company has identified Fintech Village as a non-core asset and is evaluating its strategies for divesting of this asset.