PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2021

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

(2)   PROPERTY AND EQUIPMENT

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

	September 30, 2021		December 31, 2020
Property and equipment
Office furniture and equipment	$	2,232	$	2,362
Assembly equipment		100		143
Vehicles		203		198
Leasehold improvements		1,033		559
Sales rep demo units		122		361
Leased devices		1,223		809
		4,913		4,432
Less accumulated depreciation		(2,660)		(2,507)
	$	2,253	$	1,925

Total depreciation expense related to our property and equipment, exclusive of leased devices, was $0.2 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively. Depreciation expense for the nine months ended September 30, 2021 and 2020 was $0.7 million and $0.5 million, respectively.

Total depreciation expense related to devices out on lease was $0.4 million and $0.2 million for the three months ended September 30, 2021 and 2020, respectively. Depreciation expense related to devices out on lease was $1.0 million and $0.6 million for the nine months ended September 30, 2021 and 2020, respectively. Depreciation on leased units is reflected on the income statement as cost of revenue.

The Company monitors devices out on lease for potential loss and places an estimated reserve on the net book value based on an analysis of the number of units which are still with patients for which the Company cannot determine the current status.

The Company monitors demo devices for potential losses and places an estimated reserve on the net book value based on an analysis of terminated territory managers that have not yet returned their units.