Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:
Asset CategoryEstimated Useful Life
Office furniture and equipment3 years
Laboratory equipment4 years
Leasehold improvementsLesser of lease term or estimated useful lives
Property and equipment, net consists of the following (in thousands):
December 31,
2025
December 31,
2024
Office furniture and equipment$452 $1,333 
Laboratory equipment1,752 6,178 
Leasehold improvements8,910 9,282 
Property and equipment, at cost11,114 16,793 
Less: accumulated depreciation and impairment charges(7,591)(9,420)
Property and equipment, net$3,523 $7,373 

Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 20, 2025
2023Mar 20, 2024
2022Mar 24, 2023
2021Mar 25, 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.