Note 7. Equipment Subject to Operating Lease. Net

The equipment subject to operating leases to customers had a cost basis of $1.9 million and accumulated depreciation of $0.8 million as of March 31, 2026. The equipment leased to customers had a cost basis of $2.5 million and accumulated depreciation of $0.9 million as of December 31, 2025.

The total depreciation expense was less than one hundred thousand and $0.1 million included in general and administrative for the three months ended March 31, 2026 and 2025, respectively.