PROPERTY AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

7. PROPERTY AND EQUIPMENT, NET

The following table presents the components of property and equipment, net (in thousands):

	September 30, 2022			December 31, 2021
Machinery and equipment	$	5,777		$	8,502
Land and buildings		–			2,000
Computers and software		992			1,129
Leasehold improvements		2,038			2,107
Construction in progress		–			133
Furniture and equipment		119			123
Total property and equipment, gross		8,926			13,994
Accumulated depreciation		(6,427	)		(7,071	)
Total property and equipment, net	$	2,499		$	6,923

The Company sold SkinTE under Section 361 of the Public Health Service Act in 2020 and into 2021 and, after the Company’s decision to file an IND under Section 351 of that Act, under an enforcement discretion position stated by the FDA in a regenerative medicine policy framework to help facilitate regenerative medicine therapies. The FDA’s stated period of enforcement discretion ended May 31, 2021. Consequently, the Company terminated commercial sales of SkinTE on May 31, 2021, and ceased its SkinTE commercial operations. As a result, there are no product sales from commercial SkinTE after June 2021 and the Company has eliminated or reduced costs associated with commercial sale of SkinTE.

The Company evaluated the future use of its commercial property and equipment and recorded an impairment charge of approximately $0.2 million during the nine months ended September 30, 2022. The impairment charge related to lab equipment designated as held for sale within the regenerative medicine products reporting segment.

Depreciation and amortization expense for property and equipment, including assets acquired under financing leases was as follows (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
General and administrative expense	$	14	$	71	$	75	$	667
Research and development expense		359		575		1,156		1,416
Total depreciation and amortization expense	$	373	$	646	$	1,231	$	2,083