Property and Equipment and Intangible Assets

12 Months Ended

Dec. 31, 2016

Property and Equipment and Intangible Assets

Property and Equipment

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



December 31:	2016			2015
Machinery and equipment	$	9,026		$	8,557
Computer hardware and software	6,080			6,512
Leasehold improvements	2,041			2,406
Furniture and fixtures	382			438
Construction in progress	53			119
Total property and equipment, at cost	17,582			18,032
Less — accumulated depreciation and amortization	(14,452		)	(13,982		)
Total property and equipment	$	3,130		$	4,050

Depreciation expense for the years ended December 31, 2016, 2015 and 2014 was $1.6 million, $1.9 million and $1.9 million, respectively.

Intangible Assets

Intangible assets, net of amortization, consist of intellectual property such as license agreements and totaled $1.1 million and $1.2 million as of December 31, 2016 and 2015, respectively. The terms of the some of these license agreements provide for use of the licensed software into perpetuity while others are definite. The Company amortizes the cost of the license agreements over the estimated useful life, which can range between three to five years. A portion of these assets, approximating $0.4 million and $0.7 million, were placed into service during the years ended December 31, 2016 and 2015, respectively.

The following table illustrates the estimated future amortization expense of intangible assets as of December 31, 2016 (in thousands):



Year ending December 31,	Estimated Amortization Expense
2017	$	305
2018	247
2019	247
2020	149
2021	110
Thereafter	6
Total	$	1,064

Amortization of intangible assets was $0.3 million, $0.2 million and $0.1 million for the years ended December 31, 2016, 2015 and 2014 respectively. The Company recorded an impairment charge of $0.1 million during the year ended December 31, 2014 on one of the software license agreements placed into service. The Company did not record any impairment charges related to intangible assets for the years ended December 31, 2016 and 2015. As of December 31, 2016, intangible assets not yet placed into service totaled approximately $0.2 million.