Annual report pursuant to Section 13 and 15(d)

Property and Equipment

Property and Equipment
12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Property and Equipment

3. Property and Equipment


The following is a summary of the components of property and equipment (in thousands):


    Year Ended December 31 ,  
    2016     2015  
Manufacturing and lab equipment   $ 223       $ 7,463  
Surgical instruments     5,269         8,672  
Leasehold improvements     863       1,439  
Software and computer equipment     816       845  
Furniture and equipment     629       629  
      7,800       19,048  
Less: accumulated depreciation     (6,911     (16,576 )
    $ 889     $ 2,472  


Depreciation expense for 2016 and 2015 was approximately $1.4 million and $1.7 million, respectively.


Management analyzed the undiscounted cash flows expected to be generated by the ceramic product line asset group and concluded that due to continuing declining revenues that the carrying value of ceramic related assets exceeded the total of the undiscounted cash flows.  As a result, the Company recognized impairment charges of approximately $0.22 million related to its ceramics equipment, approximately $0.17 million related to leasehold improvements, and approximately $0.46 related to its ceramics surgical instrument sets, totaling $0.85 million of impairment charges for the year ended December 31, 2016 to bring the carrying value to the estimated fair value. No impairment charge was recorded during the year ended December 31, 2015.