PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Land	$	2,468	$	2,590
Building	12,209		12,737
Machinery and equipment	42,298		40,411
Office furniture and equipment	2,236		2,047
Computer hardware and software	5,362		4,773
Leasehold and building improvements	10,765		10,728
Construction in progress	88		4
Property and equipment, gross	75,426		73,290
Less accumulated depreciation	(41,699)		(37,748)
Total property and equipment, net	$	33,727	$	35,542

The Company has subscription agreements whereby its instruments in inventory may be placed at a customer's location on a rental basis. For instruments classified as operating leases, the cost of these instruments is transferred to machinery and equipment and depreciated, typically over a 5 to 7 year period depending on the circumstance under which the instrument is placed with the customer. Our cost of instruments under operating leases as of September 30, 2021 and December 31, 2020, was $15.0 million and $13.6 million, respectively, before accumulated depreciation of $5.5 million and $4.7 million, respectively.

Depreciation expense was $1.7 million and $1.7 million for the three months ended September 30, 2021 and 2020, respectively, and $5.2 million and $4.3 million for the nine months ended September 30, 2021 and 2020, respectively.