Note 7. Property, Plant and Equipment, net Property, plant and equipment, net as of December 31, 2021 and 2020 consisted of the following: December 31, Useful life (in years) 2021 2020 Computer equipment and software 3 - 5 $ 9,267 $ 12,332 Furniture and equipment 5 - 7 1,060 1,168 Leasehold and building improvements (1) 3,821 4,282 Property, plant, and equipment, excluding internal-use software 14,148 17,782 Less: Accumulated depreciation and amortization (10,857) (12,837) Property, plant and equipment, excluding internal-use software, net 3,291 4,945 Internal-use software 3 43,314 38,488 Construction in progress - Internal-use software 1,082 1,616 Less: Accumulated depreciation and amortization - internal-use software (35,321) (31,947) Internal-use software, net 9,075 8,157 Property, plant and equipment, net $ 12,366 $ 13,102 (1) Useful lives for leasehold and building improvements represent the term of the lease or the estimated life of the related improvements, whichever is shorter. Depreciation expense from continuing operations was $5,932 and $7,394 for the years ended December 31, 2021 and 2020, respectively, of which $4,027 and $5,743, respectively, related to internal-use software costs. Amounts capitalized to internal-use software related to continuing operations for the years ended December 31, 2021 and 2020 were $4,727 and $3,437, respectively. In the fourth quarter of 2020, the Company’s discussions with and exploration of potential opportunities for its sequencing and molecular analysis solutions indicated that certain internal-use software developed by the Company related to its GPS Cancer product would not be utilized in those arrangements. As a result, the Company determined that the carrying value of these internal-use software assets was not recoverable as of December 31, 2020 and recorded an impairment loss of $729 within impairment of intangible assets, including internal-use software. Note 8. Intangible Assets, net The Company’s definite-lived intangible assets as of December 31, 2021 and 2020 consisted of the following: December 31, 2021 Customer Relationships Developed Technologies Trade Name Installed User Base Total Gross carrying amount $ 53,000 $ 34,500 $ 3,300 $ 1,400 $ 92,200 Accumulated amortization (21,161) (28,331) (3,163) (506) (53,161) Intangible assets, net $ 31,839 $ 6,169 $ 137 $ 894 $ 39,039 December 31, 2020 Customer Relationships Developed Technologies Trade Name Installed User Base Total Gross carrying amount $ 53,000 $ 34,500 $ 3,300 $ 1,400 $ 92,200 Accumulated amortization (17,528) (23,343) (3,088) (272) (44,231) Intangible assets, net $ 35,472 $ 11,157 $ 212 $ 1,128 $ 47,969 NantHealth, Inc. Notes to Consolidated Financial Statements (Dollars in thousands, except per share amounts) - 114 -
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