Property and Equipment

3 Months Ended

Mar. 31, 2022

Property Plant And Equipment [Abstract]

5. Property and Equipment

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

	Estimated Useful
	Life (Years)		March 31, 2022				December 31, 2021
Land		—	$	875			$	875
Buildings	39-40			17,389				17,389
Building improvements	5-40			38,651				38,651
Machinery and equipment	3-15			55,294				55,334
Furniture, fixtures and office equipment	5-10			2,969				2,969
Computer equipment and software		3		8,360				8,163
Construction in progress		—		15,824		⁽¹⁾		10,892
				139,362				134,273
Less accumulated depreciation				(97,909	)			(97,661	)
Total property and equipment, net			$	41,453			$	36,612

____________________

(1)

Construction in progress includes $7.7 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 $7.1 million in deposit for this service, which was recognized as deposits from customer in the condensed consolidated balance sheet as of March 31, 2022. See Note 8 – Collaboration, Licensing and Other Arrangements.

Depreciation expense related to property and equipment for the three months ended March 31, 2022 and 2021 was as follows (in thousands):

Three Months Ended

March 31,

2022

2021

Depreciation Expense

599

460

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 a 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.