Quarterly report pursuant to Section 13 or 15(d)

5. PROPERTY AND EQUIPMENT

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5. PROPERTY AND EQUIPMENT
3 Months Ended
Mar. 31, 2019
Property, Plant and Equipment [Abstract]  
5. PROPERTY AND EQUIPMENT

Property and equipment and related accumulated depreciation are summarized as follows:

    March 31, 2019   December 31, 2018
Manufacturing and laboratory equipment   $ 8,366,402     $ 8,233,203  
Office equipment and computer software     1,571,178       1,608,994  
Furniture and fixtures     1,212,045       1,163,552  
Construction in process     911,744       845,538  
Leasehold improvements     1,673,084       1,660,709  
Land     4,339,441       4,339,441  
Buildings and building improvements     15,700,092       15,685,325  
      33,773,986       33,536,762  
Less: Accumulated depreciation     (4,079,222 )     (3,421,032 )
Total property and equipment, net   $ 29,694,764     $ 30,115,730  

 

Fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the asset’s estimated useful life. Land is not depreciated. The buildings were assigned a useful life of 30 years. Property and equipment other than land and buildings have useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the lesser of the lease term or their estimated useful lives.

 

The Company recorded depreciation expense on property and equipment for the three months ended March 31, 2019 and 2018 of $0.6 million. Depreciation expense for the three months ended March 31, 2018 includes $0.1 million on the plasma assets that were transferred to Biotest on January 1, 2019 (see Notes 1 and 11).