PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2020

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

(2)   PROPERTY AND EQUIPMENT

The components of property and equipment are as follows (in thousands):

	June 30, 2020		December 31, 2019
Property and equipment
Office furniture and equipment	$	1,788	$	1,178
Assembly equipment		128		128
Vehicles		181		181
Leasehold improvements		544		500
Leased devices		1,180		934
	$	3,821		2,921
Less accumulated depreciation		(2,429)		(2,063)
	$	1,392	$	858

The Company monitors devices out on lease for potential loss and places an estimated reserve on the net book value based on historical loss rates.

Total depreciation expense related to our property and equipment was $97,000 and $76,000 for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense for the six-month periods ended June 30, 2020 and 2019 was $166,000 and $143,000, respectively.

Total depreciation expense related to devices out on lease was $0.2 million and $0.1 million for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense related to devices out on lease was $0.4 million and $0.2 million for the six months ended June 30, 2020 and 2019, respectively. Depreciation on leased units is reflected on the income statement as cost of revenue.