Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.10.0.1
Property and Equipment
 9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment
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)
 
September 30,
2018
 
 
December 31,
2017
 
Computer equipment
 
3
 
$
648
 
 
$
543
 
Furniture and fixtures
 
5
 
 
1,128
 
 
 
1,009
 
Machinery and equipment
 
5
 
 
3,128
 
 
 
143
 
Leasehold improvements
 
5 - 15
 
 
9,236
 
 
 
5,351
 
Construction in process
(1)
 
N/A
 
 
33
 
 
 
1,241
 
Total property and equipment
 
 
 
 
14,173
 
 
 
8,287
 
Less: accumulated depreciation
 
 
 
 
(2,063
)
 
 
(1,171
)
Property and equipment, net
 
 
 
$
12,110
 
 
$
7,116
 
 
(1)
Relates to the Mustang cell processing facility.
 
Fortress's depreciation expense for the three months ended September 30, 2018 and 2017, was approximately $0.4 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 nine months ended September 30, 2018 and 2017, was approximately $0.9 million and $0.5 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 June 30, 2018 and September 30, 2017 consisted of the following ($ in thousands):
 
 
 
Estimated Useful
Lives (in years)
 
June 30,
2018
 
 
September 30,
2017
 
Equipment
 
5
 
$
1,854
 
 
$
1,306
 
Furniture and fixtures
 
5
 
 
323
 
 
 
284
 
Leasehold improvements
 
Lesser of useful life or term
 
 
1,041
 
 
 
1,006
 
Capital Leases (primarily composed of computer equipment)
 
5
 
 
276
 
 
 
276
 
Total property and equipment
 
 
 
 
3,494
 
 
 
2,872
 
Less: accumulated depreciation
 
 
 
 
(962
)
 
 
(475
)
Property and equipment, net
 
 
 
$
2,532
 
 
$
2,397
 
 
National's depreciation expense for the three months ended June 30, 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 nine months ended June 30, 2018 and 2017, was approximately $0.5 million and $0.3 million, respectively, and was recorded in National general and administrative expense in the Condensed Consolidated Statements of Operations.