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PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consisted of the following (in thousands):
 September 30, 2022December 31, 2021
Land$2,029 $2,959 
Building10,787 11,288 
Machinery and equipment38,218 39,851 
Office furniture and equipment2,145 1,732 
Computer hardware and software5,332 5,285 
Leasehold and building improvements10,878 10,796 
Construction in progress653 286 
Property and equipment, gross70,042 72,197 
Less accumulated depreciation (38,983)(38,784)
Total property and equipment, net$31,059 $33,413 
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, 2022 and December 31, 2021, was $16.0 million and $15.1 million, respectively, before accumulated depreciation of $6.3 million and $5.8 million, respectively.
Depreciation expense was $1.4 million and $1.7 million for the three months ended September 30, 2022 and 2021, respectively, and $3.3 million and $5.2 million for the nine months ended September 30, 2022 and 2021, respectively.