CarParts.com, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Note 3 – Property and Equipment, Net

The Company’s property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense for fiscal years 2022, 2021 and 2020 was $13,607, $9,895 and $7,657, respectively. The cost and related accumulated depreciation of assets retired or otherwise disposed of are removed from the accounts and the resultant gain or loss is reflected in earnings. Repairs and maintenance are expensed as incurred.

Property and equipment consisted of the following as of December 31, 2022 and January 1, 2022:


	December 31, 2022		January 1, 2022
Machinery and equipment		10,660		10,525
Computer software (purchased and developed) and equipment		24,143		14,785
Vehicles		305		251
Leasehold improvements		2,457		1,772
Furniture and fixtures		513		395
Construction in process		10,341		11,170
		48,419		38,898
Less accumulated depreciation and amortization		(24,129)		(18,162)
Property and equipment, net	$	24,290	$	20,736

Construction in process primarily relates to the Company’s internally developed software.

Depreciation and amortization of property and equipment is calculated by using the straight-line method for financial reporting purposes, at rates based on the following estimated useful lives:


	Years
Machinery and equipment	2	-	5
Computer software (purchased and developed)	2	-	5
Computer equipment	2	-	5
Vehicles	3	-	5
Leasehold improvements*	3	-	5
Furniture and fixtures	3	-	7

*	The estimated useful life is the lesser of 3-5 years or the lease term, whichever is shorter.

Refer to “Note 8 - Commitments and Contingencies” for additional lease information.