Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.22.2.2
Property and Equipment
 6 Months Ended
Jul. 03, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Property and equipment as of July 3, 2022 and January 2, 2022, consisted of the following (in thousands):
July 3,
2022		 January 2,
2022
Machinery and equipment $ 47,884  $ 6,636 
Office equipment and software 1,236  918 
Furniture and fixtures 721  639 
Leasehold improvements 23,297  1,878 
Construction in process 23,916  71,133 
Total property and equipment 97,054  81,204 
Less: Accumulated depreciation (6,122) (4,591)
Property and equipment, net $ 90,932  $ 76,613 
In the second quarter of 2022, the Company has placed its leasehold improvement and machinery and equipment into service for the Company's first production line and transferred the amount that was previously capitalized as construction in process into the machinery and equipment category. The Company has begun its depreciation using the straight-line method on the date that machinery and equipment and leasehold improvement were placed into service. As of July 3, 2022, the Company’s second production line was not yet placed into service as it remains under construction.
The following table summarizes the depreciation and amortization expenses related to property and equipment (in thousands).
Quarters Ended Fiscal Years-to-Date Ended
July 3, 2022 June 30, 2021 July 3, 2022 June 30, 2021
Depreciation expense $ 1,217  $ 234  $ 1,531  $ 375