Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.8.0.1
Property and Equipment
 12 Months Ended
Dec. 31, 2017
Property Plant And Equipment [Abstract]  
Property and Equipment
6. Property and Equipment 
 
Fortress’ property and equipment, exclusive of National’s property and equipment consisted of the following:
 
 
 
Useful Life
 
As of December 31,
 
($ in thousands)
 
(Years)
 
2017
 
2016
 
Computer equipment
 
3
 
$
543
 
$
440
 
Furniture and fixtures
 
5
 
 
1,009
 
 
821
 
Machinery and Equipment
 
5
 
 
143
 
 
–
 
Leasehold improvements
 
5 - 15
 
 
5,351
 
 
5,396
 
Construction in progress (1)
 
NA
 
 
1,241
 
 
–
 
Total property and equipment
 
 
 
 
8,287
 
 
6,657
 
Less: Accumulated depreciation
 
 
 
 
(1,171)
 
 
(445)
 
Property and equipment, net
 
 
 
$
7,116
 
$
6,212
 
 
(1) For build-out of Mustang’s cell processing facility in Worcester, MA. The total cost of the construction for the Worcester facility is expected to be $3.5 million. The cost of the equipment for the facility is expected to be $2.5 million  
 
Depreciation expenses of Fortress’ property and equipment for the years ended December 31, 2017, 2016, and 2015 was $0.7 million, $0.4 million, and $26,000, respectively, and was recorded in both research and development expense and general and administrative expense in the Consolidated Statements of Operations.
 
National’s property and equipment as of September 30, 2017 consisted of the following:
 
 
 
Estimated Useful
 
September 30,
 
($ in thousands)
 
Lives (in years)
 
2017
 
2016
 
Equipment
 
5
 
$
1,306
 
$
600
 
Furniture and fixtures
 
5
 
 
284
 
 
65
 
Leasehold improvements
 
Lesser of useful life
or term of lease
 
 
1,006
 
 
259
 
Capital Leases (Primarily composed of computer equipment)
 
5
 
 
276
 
 
276
 
Total property and equipment
 
 
 
 
2,872
 
 
1,200
 
Less: Accumulated depreciation
 
 
 
 
(475)
 
 
(36)
 
Property and equipment, net
 
 
 
$
2,397
 
$
1,164
 
 
Depreciation expense of National's property and equipment for the fiscal year ended September 30, 2017 and the period from September 10, 2016 through September 30, 2016 was $0.4 million and $36,000, respectively.