BALANCE SHEET INFORMATION

9 Months Ended

Feb. 29, 2024

BALANCE SHEET INFORMATION

BALANCE SHEET INFORMATION

3. BALANCE SHEET INFORMATION

Inventories

Inventories consisted of the following:

	February 29,		May 31,
(In thousands)	2024		2023
Raw materials and sub-assemblies	$	24,770	$	15,953
Work in process		11,080		5,764
Finished goods		2,235		2,191
	$	38,085	$	23,908

Property and equipment

Property and equipment, net consisted of the following:

	Useful life	February 29,			May 31,
(In thousands)	(in years)	2024			2023
Leasehold improvements	*	$	1,643		$	1,310
Machinery and equipment	3 - 5		5,775			5,445
Test equipment	4 - 5		3,030			2,998
Furniture and fixtures	2 - 5		717			706
			11,165			10,459
Less: accumulated depreciation and amortization			(8,015	)		(7,700	)
		$	3,150		$	2,759

* Lesser of estimated useful life or lease term.

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.

The following is a summary of changes in the Company's liability for product warranties during the three and nine months ended February 29, 2024 and February 28, 2023:

	Three Months Ended						Nine Months Ended
	February 29,			February 28,			February 29,			February 28,
(In thousands)	2024			2023			2024			2023
Balance at the beginning of the period	$	221		$	311		$	267		$	410
Accruals for warranties issued during the period		117			84			344			207
Adjustments to previously existing warranty accruals		-			-			-			61
Consumption of reserves		(123	)		(107	)		(396	)		(390	)
Balance at the end of the period	$	215		$	288		$	215		$	288

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:

	February 29,		May 31,
(In thousands)	2024		2023
Customer deposits	$	418	$	2,690
Deferred revenue		68		132
	$	486	$	2,822