Property and Equipment

9 Months Ended

Sep. 30, 2022

Property Plant And Equipment [Abstract]

Property and Equipment

6. Property and Equipment

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

	Estimated Useful
	Life (Years)		September 30, 2022			December 31, 2021
Land		—	$	875		$	875
Buildings	39-40			17,389			17,389
Building improvements	3-40			38,875			38,651
Machinery and equipment	1-15			59,349			55,334
Furniture, fixtures and office equipment	3-10			2,976			2,969
Computer equipment and software		3		8,445			8,163
Construction in progress		—		12,395			10,892		(1)
				140,304			134,273
Less accumulated depreciation				(99,122	)		(97,661	)
Total property and equipment, net			$	41,182		$	36,612

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(1) As of December 31, 2021, construction in progress included $4.7 million of equipment under construction for the manufacturing expansion for UT (the “UT Equipment”). See Note 10 – Collaboration, Licensing and Other Arrangements. The Company acted as agent on behalf of UT for the procurement of the UT Equipment. The Company received $5.0 million in deposit for this service, which was recognized as deposits from customer in the condensed consolidated balance sheet as of December 31, 2021. In April 2022, the Company and UT agreed that UT would hold title to the UT Equipment at all times. As such, there is no balance related to the UT Equipment included in construction in progress or deposit from customer in our consolidated condensed balance sheet as of September 30, 2022.

Depreciation expense related to property and equipment for the three and nine months ended September 30, 2022 and 2021 was as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Depreciation Expense	$	952	$	508	$	2,278	$	1,449

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 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.