SHOULDER INNOVATIONS, INC.SI

SHOULDER INNOVATIONS, INC. PP&E Disclosure

10-KFiled Mar 10, 20261 min read
Estimated useful lives for financial reporting purposes are as follows:
Asset CategoryUseful Life (Years)
Machinery and equipment5
Instruments5
Computer equipment5
Furniture and Fixtures7
Leasehold Improvements10
Net property and equipment, net consist of the following:
December 31,
20252024
Instruments$18,803 $11,223 
Machinery and equipment94 94 
Computer equipment276 190 
Furniture and fixtures70 70 
Leasehold improvements167 150 
Total property and equipment19,410 11,727 
Less: Accumulated depreciation(6,878)(4,240)
Property and Equipment, Net $12,532 $7,487 

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.

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