PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2020

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 6: PROPERTY AND EQUIPMENT

Property and equipment consist of the following as of September 30, 2020 and December 31, 2019, respectively:

		September 30,		December 31,
	Estimated Useful Lives	2020		2019
Lab equipment	5 Years	$	1,388,000	$	111,000
Computers, equipment and software	3-5 Years		685,000		211,000
Office furniture	5 Years		646,000		178,000
Leasehold improvements	Lesser of lease term or estimated useful life		288,000		23,000
Total			3,007,000		523,000
Less: accumulated depreciation			(378,000)		(105,000)
Construction in progress			4,558,000		—
Total fixed assets, net		$	7,187,000	$	418,000

Depreciation expense for the three months ended September 30, 2020 and 2019 was approximately $0.1 million and $0.03 million, respectively. Depreciation expense for the nine months ended September 30, 2020 and 2019 was approximately $0.3 million and $0.07 million, respectively.

On June 26, 2020, the Company entered into a lease for a manufacturing facility in Houston, Texas. In connection with the manufacturing facility, the Company has incurred costs pursuant to an agreement with a vendor to design, engineer, build and eventually install modular cleanrooms in a manufacturing facility. $4.6 million is recorded in fixed assets - construction in progress on the balance sheet as of September 30, 2020. Upon completion of the facility's construction, all costs associated with the buildout will be recorded as either manufacturing equipment and/or leasehold improvements and amortized over the estimated useful life of the leasehold lease.

In connection with the research facility that the Company opened during the second quarter of 2020, the Company incurred approximately $1.3 million of costs acquiring necessary lab equipment to carry out its experiments. The $1.3 million is included in Lab equipment within fixed assets and is being depreciated over five years.