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


	July 3, 2026			January 2, 2026
Machinery and equipment	$	49,411		$	45,137
Computer equipment and software		12,538			10,525
Furniture and fixtures		7,461			7,483
Leasehold improvements		24,527			19,403
Construction in process		19,765			30,340
Total property, plant and equipment, gross		113,702			112,888
Less accumulated depreciation		(43,772	)		(39,565	)
Total property, plant and equipment, net	$	69,930		$	73,323

As discussed in Note 1 – Basis of Presentation and Significant Accounting Policies, during the three and six months ended June 27, 2025, the Company recognized fixed asset impairment expense of $700,000 and $7,759,000, respectively, primarily on leasehold improvements and machinery and equipment as the Company will no longer be using these assets. The Company also recognized impairment during the six months ended June 27, 2025 of $2,751,000 for internally developed software that the Company will no longer be using as it transitions 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				Six Months Ended
	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
Cost of sales	$	936	$	772	$	1,811	$	1,640
General and administrative		1,090		841		1,931		1,916
Selling and marketing		190		174		372		349
Research and development		174		188		383		370
Total depreciation expense	$	2,390	$	1,975	$	4,497	$	4,275