Company: AEHR
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001654954-25-000285
Chunk: 14

Company: AEHR TEST SYSTEMS
Filing Date: 2025-01-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 during the six months ended November 29, 2024. The carrying amounts of financial instruments, including cash equivalents, accounts receivable, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities.

4. BALANCE SHEET INFORMATION Inventories Inventories consisted of the following:   November 29,  May 31, (In thousands) 2024  2024 Raw materials and sub-assemblies $25,200  $22,410 Work in process  13,953   13,593 Finished goods  4,623   1,467   $43,776  $37,470  Property and equipment Property and equipment, net consisted of the following:   Useful life November 29,  May 31, (In thousands) (in years) 2024  2024 Leasehold improvements *  $2,699  $1,588 Machinery and equipment 3 - 5   4,718   4,528 Test equipment 4 - 5   1,965   1,928 Furniture and fixtures 2 - 5   198   175      9,580   8,219 Less: accumulated depreciation     (5,274)  (4,966)    $4,306  $3,253  * Lesser of estimated useful life or lease term.

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Depreciation expense was $0.2 million and $0.4 million for the three and six months ended November 29, 2024, respectively. Depreciation expense was $0.1 million and $0.3 million for the three and six months ended November 30, 2023, respectively. Product warranties The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The standard warranty period is one year for systems and ninety days for