Fortress Biotech, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

6.	Property and Equipment

Fortress’s property and equipment, exclusive of National’s property and equipment, consisted of the following ($ in thousands):

	Estimated Useful Lives (in years)	June 30, 2018		December 31, 2017
Computer equipment	3	$	648	$	543
Furniture and fixtures	5		1,128		1,009
Machinery and equipment	5		1,897		143
Leasehold improvements	5 15		9,181		5,351
Construction in process ⁽¹⁾	N/A		864		1,241
Total property and equipment			13,718		8,287
Less: accumulated depreciation			(1,674)		(1,171)
Property and equipment, net		$	12,044	$	7,116

(1)

Relates to the Mustang cell processing facility.

Fortress's depreciation expense for the three months ended June 30, 2018 and 2017, was approximately $0.3 million and $0.2 million, respectively, and was recorded in research and development, manufacturing and general and administrative expense in the Condensed Consolidated Statements of Operations. Fortress’s depreciation expense for the six months ended June 30, 2018 and 2017, was approximately $0.5 million and $0.4 million, respectively, and was recorded in research and development, manufacturing and general and administrative expense in the Condensed Consolidated Statements of Operations.

National’s property and equipment as of March 31, 2018 and September 30, 2017 consisted of the following ($ in thousands):

	Estimated Useful Lives (in years)	March 31, 2018		September 30, 2017
Equipment	5	$	1,344	$	1,306
Furniture and fixtures	5		291		284
Leasehold improvements	Lesser of useful life or term		1,011		1,006
Capital Leases (primarily composed of computer equipment)	5		276		276
Fixed assets gross			2,922		2,872
Accumulated depreciation and amortization			(803)		(475)
Fixed asset - net		$	2,119	$	2,397

National's depreciation expense for the three months ended March 31, 2018 and 2017, was approximately $0.2 million and $0.1 million respectively, and was recorded in National general and administrative expense in the Condensed Consolidated Statements of Operations. National’s depreciation expense for the six months ended March 31, 2018 and 2017, was approximately $0.3 million and $0.2 million, respectively, and was recorded in National general and administrative expense in the Condensed Consolidated Statements of Operations.