Estimated useful lives by major asset category are as follows:
Asset
Life (in years)
Computer equipment
3
Equipment
5 - 7
Furniture and fixtures
7
Software and website
3
Leasehold improvements
Shorter of lease term or 10 years
Property and equipment, net, consist of the following (in thousands):

December 31,
2025
2024
Equipment
$
4,521 
$
4,188 
Furniture and fixtures
3,427
3,040
Leasehold improvements
27,208
25,682
Construction in progress
2,577
719
Other
1,018
1,018
Gross property and equipment
38,751
34,647
Less: accumulated depreciation
(19,129)
(13,021)
Total property and equipment, net
$
19,622 
$
21,626 

Total depreciation expense was as follows (in thousands):
December 31,
Classification
2025
2024
General and administrative expense
$
5,523 
$
4,836 
Cost of sales
586 
476 
Total depreciation expense
$
6,109 
$
5,312 

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 13, 2025
2023Mar 28, 2024
2022Mar 21, 2023
2021Mar 22, 2022

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.