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Property and Equipment
 12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Property and Equipment
PROPERTY AND EQUIPMENT
 
Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets and consist of the following (in thousands):
  
 
At December 31,
 
2016
 
2015
 
 
 
 
Equipment (useful life 3 - 15 years)
$
2,231

 
$
2,864

Tooling (useful life 2 - 5 years)
863

 
851

Vehicles (useful life 5 years)
39

 
39

Furniture and fixtures (useful life 5 years)
170

 
104

Computer software (useful life 3 years)
977

 
581

Leasehold improvements (the shorter of useful life or lease life)
256

 
509

Construction in progress
154

 
310

Property and equipment at cost
4,690

 
5,258

Less: accumulated depreciation
(2,365
)
 
(2,829
)
Property and equipment, net
$
2,325

 
$
2,429


 
Depreciation expense was $805 thousand, $266 thousand, and $184 thousand for the years ended December 31, 2016, 2015 and 2014, respectively.

During 2015, the Company invested in certain equipment to be used to increase our capabilities and reduce the cost of components used in our domestic manufacturing processes, as many of our sales opportunities were with respect to products made in the U.S. or meeting “Buy American” standards. These opportunities included our military maritime product line, as well as products for use in government-funded facilities, such as military bases, which must comply with certain domestic preference standards. As a result of the decline in 2016 sales as well as our expectation of limited sales of our military Intellitube® product going forward as a result of new competition for retrofit products for the U.S. Navy, coupled with the current cost of procuring components from our suppliers for such products, versus manufacturing them at a low volume, at December 31, 2016, we re-evaluated the economics of manufacturing versus purchasing such components from our suppliers and determined we would no longer use the equipment and software purchased to conduct this manufacturing. We evaluated the carrying value of the equipment and software compared to its fair value and determined that the equipment and software were impaired. Accordingly, we recorded an impairment loss of $857 thousand, to adjust the carrying value of the equipment and software to its net realizable value as of December 31, 2016.