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

NOTE I – PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following (in thousands):

 

    As of December 31,  
    2016     2015  
Computer, network and other equipment   $ 8,805     $ 7,150  
Monitoring equipment     5,692       3,015  
Furniture and fixtures     486       888  
Leasehold improvements     264       374  
Total property and equipment     15,247       11,427  
Accumulated depreciation and amortization     (9,225 )     (6,632 )
    $ 6,022     $ 4,795  

 

During the year ended December 31, 2016, we transferred $2.7 million of inventory to monitoring equipment within property and equipment. Monitoring equipment includes devices and hardware owned by us and used by customers under managed service arrangements. Depreciation expense for monitoring equipment included in cost of sales for subscription and support revenues in the accompanying consolidated statements of operations and comprehensive (loss) income was $1.4 million, $0.8 million and less than $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

 

Depreciation and amortization expense for property and equipment, including assets totalling $1.2 million recorded as capital leases, was $1.5 million, $2.0 million, and $1.6 million for the years ended December 31, 2016, 2015, and 2014 respectively.