Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 21

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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7.  Inventories
   ​
   Inventories, net consist of the following for the periods indicated (in thousands):​

       September 30, 2025    December 31, 2024  
 Raw materials  $108,606  $50,379 
 Work in process and sub-assemblies   77,214   35,716 
 Finished goods   121   17,291 
 Allowance for inventory   (15,727)  (15,251)
 Total inventories  $170,214  $88,135 

   For the three months ended  September 30, 2025 and 2024, the inventory reserve adjustment expensed for inventory was $2.1 million and $0.7 million, respectively. For nine months ended  September 30, 2025 and 2024, the inventory reserve adjustment expensed for inventory was $5.4 million and $2.4 million, respectively.
    
   For the three months ended  September 30, 2025 and 2024, the direct inventory write-offs related to scrap, discontinued products and damaged inventories were $4.4 million and $0.7 million, respectively. For the nine months ended  September 30, 2025 and 2024, the direct inventory write-offs related to scrap, discontinued products and damaged inventories were $6.3 million and $2.4 million, respectively.
       ​ 

       12

   Note 8.  Property, Plant & Equipment
   ​
   Property, plant and equipment consisted of the following for the periods indicated (in thousands):
   ​
   
       September 30, 2025    December 31, 2024  
 Land improvements  $806  $806 
 Buildings and improvements   134,349   118,648 
 Machinery and equipment   363,264   275,617 
 Furniture and fixtures   6,393   5,150 
 Computer equipment and software   16,706   13,369 
 Transportation equipment   673   647 
   522,191   414,237 
 Less accumulated depreciation   (227,918)  (204,500)
   294,273   209,737 
 Construction in progress   14,929   8,