Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, as follows:
Useful Lives
Furniture and fixtures
3 to 5 years
Computers and software
3 to 5 years
Machinery and equipment
3 to 5 years
Tooling
3 to 5 years
Leasehold improvementsShorter of the estimated lease term or useful life
Owned and operated systems
5 to 7 years
Property and equipment, net consisted of the following:
January 31,
20252024
(in thousands)
Furniture and fixtures$1,683 $1,718 
Computers and software9,937 8,520 
Machinery and equipment39,786 35,954 
Tooling16,524 15,852 
Leasehold improvements9,289 9,828 
Owned and operated systems31,880 27,723 
Construction in progress751 2,310 
109,850 101,905 
Less: Accumulated depreciation(74,489)(59,459)
Total Property and Equipment, Net$35,361 $42,446 
The following table presents the depreciation expense related to fixed assets:
Year ended January 31,
202520242023
(in thousands)
Depreciation Expense$17,107 $16,345 $13,404 

Historical Timeline

Fiscal YearFiled
2025Mar 28, 2025Showing above
2023Apr 3, 2023

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.