Property, plant and equipment, net consisted of the following (in thousands):


	April 3, 2026			January 2, 2026
Machinery and equipment	$	49,014		$	45,137
Computer equipment and software		10,485			10,525
Furniture and fixtures		7,462			7,483
Leasehold improvements		24,475			19,403
Construction in process		21,872			30,340
Total property, plant and equipment, gross		113,308			112,888
Less accumulated depreciation		(41,570	)		(39,565	)
Total property, plant and equipment, net	$	71,738		$	73,323

As discussed in Note 1 – Basis of Presentation and Significant Accounting Policies, during the three months ended March 28, 2025, the Company recognized fixed asset impairment expense of $7,059,000 primarily on leasehold improvements and machinery and equipment as the Company will no longer be using these assets. The Company also recognized impairment of $2,751,000 for internally developed software that the Company will no longer be using as it will transition to a cloud-based software solution. These amounts are recorded in Restructuring, impairment and related charges on the Condensed Consolidated Statements of Operations.

Construction in process primarily consists of the build out and validation of machinery and equipment.

The Company recorded depreciation expense in the following categories as follows (in thousands):


	Three Months Ended
	April 3, 2026		March 28, 2025
Cost of sales	$	875	$	868
General and administrative		841		1,075
Selling and marketing		182		175
Research and development		209		182
Total depreciation expense	$	2,107	$	2,300