PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 3 – Property and Equipment

Property and equipment consists of the following:

	DECEMBER 31,
	2016		2015

Medical equipment and facilities	$	96,270,000	$	83,267,000
Office equipment		537,000		721,000
Deposits and construction in progress		6,073,000		5,796,000
Deposits towards purchase of proton beam systems		2,000,000		5,000,000

		104,880,000		94,784,000
Accumulated depreciation		(53,549,000)		(47,661,000)

Net property and equipment	$	51,331,000	$	47,123,000

The Company has equipment that is secured under capitalized leases, which is included in Medical equipment and facilities, with a total cost of $43,703,000 and associated accumulated depreciation of $16,642,000 as of December 31, 2016 and a total cost of $31,025,000 and associated accumulated depreciation of $13,417,000 as of December 31, 2015. As of December 31, 2016, the Company has two idle Gamma Knife units with a cumulative net book value of $1,483,000. One unit was traded in during 2016 to place a new unit at a new customer site in 2017. The Company plans to trade the second unit in for a new unit or place this unit at a new site.

As of December 31, 2016, the Company has $6,073,000 in construction in progress. Approximately $3,500,000 of this balance relates to the Company’s unit in Peru which has been under construction and is expected to be installed at a new customer site in 2017. The remaining construction in progress consists of progress payments made for a Cobalt-60 reload, deposits on Gamma Knife units, capitalized and imputed interest, and other costs associated with on-going projects of the Company.

As of December 31, 2016, the Company has $2,000,000 in deposits toward the purchase of two MEVION S250 PBRT systems from Mevion. The Company has a commitment for the remaining balance for each system. The Company’s first MEVION S250 treated its first patient in April 2016. The Company’s second and third PBRT units will not begin construction until the Company identifies satisfactory placement sites. The Company has entered into a partnership agreement (LBE) with a radiation oncology physician group, which has contributed $400,000 towards the deposits on the third machine. The Company reviews the carrying value of these deposits for impairment on a quarterly basis, or as events or circumstances might indicate that the carrying value may not be recoverable. The Company has reviewed the deposits, in light of available information, as of December 31, 2016 and has not identified any impairment. See Note 12-Commitments and Contingencies for additional discussion on purchase commitments.