Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets and consist of the following (in thousands):  

	At December 31,
	2019			2018
Equipment (useful life 3 - 15 years)	$	1,297		$	1,511
Tooling (useful life 2 - 5 years)	203			371
Vehicles (useful life 5 years)	47			47
Furniture and fixtures (useful life 5 years)	137			137
Computer software (useful life 3 years)	1,028			1,043
Leasehold improvements (the shorter of useful life or lease life)	211			211
Finance lease right-of-use asset	13			—
Construction in progress	48			55
Property and equipment at cost	2,984			3,375
Less: accumulated depreciation	(2,595		)	(2,765		)
Property and equipment, net	$	389		$	610

Depreciation expense was $0.3 million, $0.5 million, and $0.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Due to the specialized nature of the equipment and software previously used to manufacture MMM products prior to 2017 we were not able to find a buyer for this equipment in 2017. As a result, we re-evaluated the carrying of the equipment and software compared to its fair value and recorded an additional impairment loss of $0.2 million during 2017. We completed the sale of this equipment in the first quarter of 2018, recognizing net proceeds of approximately $0.2 million and a gain of approximately $15 thousand on the sale. The gain on the sale is classified on our Consolidated Statements of Operations under the caption, “Other expenses.”

In 2019, the Company ceased operations of the Taiwan affiliate and closed the Taiwan office. The net carrying value of the property and equipment of the office was immaterial. There were no impairment charges for property and equipment during 2019 and 2018.