PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2023

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

(5)   PROPERTY AND EQUIPMENT

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

	September 30, 2023		December 31, 2022
Property and equipment
Office furniture and equipment	$	3,190	$	2,819
Assembly equipment		212		110
Vehicles		151		203
Leasehold improvements		1,173		1,173
Leased devices		1,332		1,162
Capital projects		234		—
	$	6,292	$	5,467
Less accumulated depreciation		(3,824)		(3,292)
	$	2,468	$	2,175

Total depreciation expense related to our property and equipment was $0.2 million and $0.1 million for the three months ended September 30, 2023 and 2022, respectively. Depreciation expense for the nine months ended September 30, 2023 and 2022, was $0.6 million and $0.5 million, respectively.

Total depreciation expense related to devices out on lease was $0.5 million and $0.3 million for the three months ended September 30, 2023 and 2022, respectively. Depreciation expense related to devices out on lease was $1.4 million and $1.0 million for the nine months ended September 30, 2023 and 2022, 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.