Property and Equipment, Net

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

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


	December 31,
	2023		2022
Computers and telecom equipment	$	1,331	$	599
Lab equipment	1,171		871
Furniture and fixtures	111		111
Leasehold improvements	566		542
Leased equipment	80,206		35,983
Capitalized software	8,629		4,150
Sales demo equipment	2,758		2,340
Equipment held for lease1	32,910		7,826
Construction in progress	2,493		71
	130,175		52,493
Less: Accumulated depreciation and amortization	(17,254)		(7,786)
	$	112,921	$	44,707

(1) Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.

As of December 31, 2023 and 2022, the net book value of capitalized software was $7.0 million and $3.5 million, respectively. These amounts include $0.7 million and approximately $0.2 million of capitalized stock compensation costs, respectively. Depreciation expense and amortization expense related to property and equipment was $9.9 million and $5.5

million for the years ended December 31, 2023 and 2022, respectively, which included amortization expense of capitalized software of $1.0 million and $0.6 million for the years ended December 31, 2023 and 2022, respectively.

Leased equipment and the related accumulated depreciation were as follows:


	December 31,
	2023		2022
Leased equipment	$	80,206	$	35,983
Accumulated depreciation	(13,283)		(5,802)
Leased equipment, net	$	66,923	$	30,181

Depreciation expense related to leased units was $8.0 million and $4.3 million during the years ended December 31, 2023 and 2022, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.

Loss from impairment of property and equipment was $0.3 million and $1.2 million during the years ended December 31, 2023 and 2022, respectively. This primarily related to the removal of Evolv Edge units and Evolv Express prototypes from service, resulting in an impairment of the remaining economic value of such units.