Property and Equipment

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

5. Property and Equipment

Property and equipment consist of the following (in thousands):

	Estimated Useful		December 31,
	Life (Years)		2021				2020
Land		—	$	875			$	875
Buildings	39-40			17,389				17,389
Building improvements	5-40			38,651				37,543
Machinery and equipment	3-15			55,334				55,054
Furniture, fixtures and office equipment	5-10			2,969				3,004
Computer equipment and software		3		8,163				8,319
Construction in progress		—		10,892		⁽¹⁾		503
				134,273				122,687
Less accumulated depreciation				(97,661	)			(96,820	)
Total property and equipment, net			$	36,612			$	25,867

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Construction in progress includes $4.7 million of equipment under construction for the manufacturing expansion for UT (the “UT Equipment”). The Company acts as agent on behalf of UT for the procurement of the UT Equipment. The Company has received $5.0 million in deposit for this service, which was recognized as deposit from customer in the consolidated balance sheet as of December 31, 2021. See Note 8 – Collaboration, Licensing and Other Arrangements.

Depreciation expense related to property and equipment for the years ended December 31, 2021 and 2020 was $2.0 million and $1.8 million, respectively. During the year ended December 31, 2021 and 2020, the Company retired $1.1 million and $0.3 million, respectively of manufacturing equipment, computer hardware and software, lab equipment, and furniture and fixtures, as it was no longer in service. The net book value for the disposed assets was de minimis.

On November 8, 2021, the Company sold certain land, building and improvements located in Danbury, CT (the “Property”) to an affiliate of Creative Manufacturing Properties (the “Purchaser”) for a sales price of $102.3 million, subject to terms and the conditions contained in a purchase and sale agreement. Effective with the closing of this transaction, the Company entered into a 20-year lease agreement with the Purchaser (the “Sale-Leaseback Transaction”). The sale of the Property and subsequent lease did not result in the transfer of control of the Property to the Purchaser; therefore, the Sale-Leaseback Transaction qualified as a failed sale leaseback transaction whereby the lease is accounted for as finance lease and the Property remains as a long-lived asset of the Company and is depreciated at its remaining useful life of 20 years or less. See Note 13 – Commitments and Contingencies.