Depreciation and amortization are computed using the straight-line method over the following useful lives:
Computer equipment
3 years - 5 years
Software
3 years - 5 years
Lab equipment and furniture
5 years - 10 years
Leasehold improvements
Shorter of lease term or useful life
Property and equipment consist of the following (dollars in thousands):
 December 31,
2024
December 31,
2023
Lab equipment and furniture$13,370 $13,069 
Leasehold improvements14,023 14,023 
Software883 883 
Computer equipment1,112 960 
29,388 28,935 
Less accumulated depreciation and amortization(17,843)(15,405)
Total$11,545 $13,530 
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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.