Company: AAOI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015518
Chunk: 93

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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   14,701   17,291 
 Allowance for inventory   (16,596)  (15,251)
 Total inventories  $102,313  $88,135 

   For the three months ended  March 31, 2025 and 2024, the inventory reserve adjustment expensed for inventory was $1.9 million and $1.6 million, respectively.
    
   For the three months ended  March 31, 2025 and 2024, the direct inventory write-offs related to scrap, discontinued products and damaged inventories were both $0.9 million. 
       ​ 

       11

   Note 8.  Property, Plant & Equipment
   ​
   Property, plant and equipment consisted of the following for the periods indicated (in thousands):
   ​
   
     ​   March 31, 2025    December 31, 2024  
 Land improvements  $806  $806 
 Buildings and improvements   120,088   118,648 
 Machinery and equipment   296,966   275,617 
 Furniture and fixtures   5,293   5,150 
 Computer equipment and software   13,802   13,369 
 Transportation equipment   643   647 
 ​   437,598   414,237 
 Less accumulated depreciation   (209,085)  (204,500)
 ​   228,513   209,737 
 Construction in progress   11,839   8,397 
 Land   1,101   1,101 
 Total property, plant and equipment, net  $241,453  $219,235 

   ​
   For the three months ended  March 31, 2025 and 2024, the depreciation expense of property, plant and equipment was $5.6 million and $4.9 million, respectively. 
    
   As of  March 31, 2025, the Company concluded that its continued loss history constitutes a triggering event as described in ASC 360-10-35-21, Property, Plant, and Equipment.  The Company performed a recoverability test and concluded that future undiscounted cash flows exceed the carrying amount of the Company’s long-lived assets and therefore no impairment charge was recorded. 

   Note 9.  Intangible Assets