Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.8.0.1
Property and Equipment
 12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
Property and Equipment

3. Property and Equipment

 

The following is a summary of the components of property and equipment (in thousands):

 

    Year Ended December 31,  
    2017     2016  
Manufacturing and lab equipment   $ 223     $ 223  
Surgical instruments     6,398       5,269  
Leasehold improvements     863       863  
Software and computer equipment     745       816  
Furniture and equipment     635       629  
      8,864       7,800  
Less: accumulated depreciation     (7,418 )     (6,911 )
    $ 1,446     $ 889  

 

Depreciation expense for 2017 and 2016 was approximately $0.6 million and $1.4 million, respectively.

 

Management analyzed the undiscounted cash flows expected to be generated by the ceramic product line asset group and concluded that due to continuing declining revenues that the carrying value of ceramic related assets exceeded the total of the undiscounted cash flows. As a result, the Company recognized impairment charges of approximately $0.2 million related to its ceramics equipment, approximately $0.2 million related to leasehold improvements, and approximately $0.5 million related to its ceramics surgical instrument sets, totaling $0.9 million of impairment charges for the year ended December 31, 2016, to bring the carrying value to the estimated fair value. No impairment charge was recorded during the year ended December 31, 2017.