Property and Equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following as of September 30, 2017, and December 31, 2016 (in thousands):



	September 30, 2017			December 31, 2016
Leasehold improvements	$	3,116		$	3,274
Lab and clean room equipment	9,316			8,666
Furniture and office equipment	9,203			7,051
Construction in progress	2,583			3,300
Property and equipment, gross	24,218			22,291
Less accumulated depreciation	(10,954		)	(8,505		)
Property and equipment, net	$	13,264		$	13,786

Included in net property and equipment is approximately $427,000 of equipment covered under capital leases. The corresponding liability of approximately $8,600 is included in other liabilities in the accompanying Condensed Consolidated Balance Sheets. The interest rate for the lease is approximately 12% with a maturity date of January 2018.

Also included in net property and equipment is approximately $1.0 million in leasehold improvements paid for by the landlord of the Company's main facility with a corresponding liability included in other liabilities which is amortized over the term of the lease.

Gross depreciation expense for the nine months ended September 30, 2017 and 2016, was approximately $3,074,000 and $2,394,000, respectively, and approximately $1,013,000 and $838,000 for the three months ended September 30, 2017 and 2016, respectively. For the three and nine months ended September 30, 2017 approximately $626,000 of accumulated depreciation expense and $2,000,000 in gross book value of property and equipment was eliminated in connection with the Stability Divestiture.