Company: AEHR
Filing Date: 2025-10-08
Form Type: 10-Q
Source: 0001654954-25-011582
Chunk: 9

Company: AEHR TEST SYSTEMS
Filing Date: 2025-10-08
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 August 29, 2025 and $0.2 million for the three months ended August 30, 2024. 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 parts and service.

 10Table of Contents

 The following is a summary of changes in the Company's liability for product warranties during the three months ended August 29, 2025 and August 30, 2024:   Three Months Ended   August 29,  August 30, (In thousands) 2025  2024 Balance at the beginning of the period $428  $234 Accruals for warranties issued during the period  169   178 Adjustments to previously existing warranty accruals  204   - Consumption of reserves  (291)  (193)Balance at the end of the period $510  $219  The accrued warranty balance is included in accrued expenses on the accompanying Condensed Consolidated Balance Sheets. Deferred revenue Deferred revenue, short-term consisted of the following:   August 29,  May 30, (In thousands) 2025  2025 Customer deposits $826  $1,802 Deferred revenue  293   179   $1,119  $1,981 

4. GOODWILL AND PURCHASED INTANGIBLE ASSETS Goodwill There were no impairments to goodwill during the three months ended August 29, 2025 and August 30, 2024, respectively. Purchased Intangible Assets The Company’s purchased intangible assets, net, were as follows:   August 29, 2025  May 30, 2025 (In thousands)   Accumulated       Accumulated    Finite-lived intangible assets: Gross  Amortization  Net