Quarterly report pursuant to Section 13 or 15(d)

5. PROPERTY AND EQUIPMENT

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5. PROPERTY AND EQUIPMENT
9 Months Ended
Sep. 30, 2019
Property, Plant and Equipment [Abstract]  
5. PROPERTY AND EQUIPMENT

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

 

    September 30, 2019   December 31, 2018
Manufacturing and laboratory equipment   $ 8,705,021     $ 8,233,203  
Office equipment and computer software     1,650,948       1,608,994  
Furniture and fixtures     849,088       1,163,552  
Construction in process     2,703,037       845,538  
Leasehold improvements     1,673,084       1,660,709  
Land     4,339,441       4,339,441  
Buildings and building improvements     16,063,679       15,685,325  
      35,984,298       33,536,762  
Less: Accumulated depreciation     (5,271,383 )     (3,421,032 )
Total property and equipment, net   $ 30,712,915     $ 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 three 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 and nine months ended September 30, 2019 of $0.6 million and $1.8 million, respectively. Depreciation expense for the three and nine months ended September 30, 2018 was $0.6 million and $1.9 million, respectively, which includes $0.1 million and $0.3 million, respectively, of depreciation on the plasma assets that were transferred to Biotest on January 1, 2019 (see Notes 1 and 11).