Depreciation is recorded, once assets are placed in service, using the straight-line method over the estimated useful lives of the respective assets, which are as follows:
Asset type
Estimated useful life
Computers and computer equipment
3 years
Laboratory equipment
3 years
Manufacturing equipment
3 years
Website development costs
1-2 years
Property and equipment, net consists of the following:
 
 
December 31, 2018
 
December 31, 2017
Manufacturing equipment
$
421,999

 
$
421,999

Computers and computer equipment
275,670

 
311,847

Website development costs
177,886

 
177,886

Laboratory equipment

 
13,368

Capital in progress

 
28,823

Total property and equipment
875,555

 
953,923

Accumulated depreciation
(801,095
)
 
(622,883
)
Property and equipment, net
$
74,460

 
$
331,040


 

Historical Timeline

Fiscal YearFiled
2018Mar 6, 2019Showing above
2017Mar 7, 2018
2016Mar 8, 2017
2015Mar 8, 2016

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.