Property, plant and equipment, net and construction in progress

9 Months Ended

Sep. 30, 2016

Property, plant and equipment, net and construction in progress [Abstract]

Property, plant and equipment, net and construction in progress

6. Property, plant and equipment, net and construction in progress

At September 30, 2016 and December 31, 2015, property, plant and equipment, and construction in progress were comprised of the following (in thousands):

	September 30, 2016 (Unaudited)(1)			December 31, 2015
Property, plant and equipment	$	7,405		$	10,757
Construction in progress		-			93
Accumulated depreciation		(2,679	)		(3,311	)
Property, plant and equipment, net	$	4,726		$	7,539

⁽¹⁾ Reflects the effect of the Deconsolidation.

Depreciation expense amounted to $996,000 and $776,000 for the nine months ended September 30, 2016 and 2015, respectively.

Construction in progress

Construction in progress of approximately $1.6 million was transferred to property, plant and equipment as of June 1, 2016 when BioTime completed construction on tenant improvements at its new Alameda facility (see Note 13). Under the terms of the lease agreement, the landlord provided BioTime with an initial tenant improvement allowance of up to $1.4 million, which BioTime utilized entirely to construct a research and development laboratory, a diagnostic testing laboratory, and a small production facility that can be used to manufacture small cell banks and clinical materials for clinical studies. Additional tenant improvements of approximately $200,000 as of September 30, 2016 related to tenant improvements and construction costs that were not reimbursable by the landlord were paid by BioTime. The tenant improvements will be depreciated over the lease term.