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Property and Equipment
9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment
NOTE 8. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):

 
September 30,
December 31,
 
2018
2017
Computer equipment
$
2,801

$
2,756

Technical equipment
3,820

3,348

Facilities
4,006

3,621

Instruments
4,821

1,400

Capital projects in progress
107

349

Total property and equipment
$
15,555

$
11,474

Accumulated depreciation
(8,143
)
(6,584
)
Property and equipment, net
$
7,412

$
4,890



Depreciation expense for the three months ended September 30, 2018 and 2017 was $662,000 and $550,000, respectively, and for the nine months ended September 30, 2018 and 2017 was $1.7 million and $1.6 million, respectively.
During the nine months ended September 30, 2018, $1.9 million of systems in the field were reclassified out of inventory and into property and equipment, which included $1.2 million of systems in the field as a component of inventory at June 30, 2018. These transfers were the result of a change in the Company’s principal model for instrument acquisition from outright sales of systems to placing systems with customers and recovering that cost through the sale of test kits pursuant to reagent rental agreements. The reclassification from inventory to property and equipment did not have an effect on prior period net income, and the systems will be depreciated going forward.