| BALANCE SHEET INFORMATION |
3. BALANCE SHEET INFORMATION Inventories consisted of the following: | | May 29, | | | May 30, | | (In thousands) | | 2026 | | | 2025 | | | Raw materials and sub-assemblies | | $ | 29,247 | | | $ | 30,644 | | | Work in process | | | 11,441 | | | | 9,263 | | | Finished goods | | | 666 | | | | 2,090 | | | | $ | 41,354 | | | $ | 41,997 | |
Property and equipment, net consisted of the following: | | May 29, | | | May 30, | | (In thousands) | | 2026 | | | 2025 | | | Leasehold improvements | | $ | 6,096 | | | $ | 5,999 | | | Machinery and equipment | | | 4,375 | | | | 3,846 | | | Test equipment | | | 3,523 | | | | 2,898 | | | Furniture and fixtures | | | 1,518 | | | | 1,331 | | | Construction-in-process | | | 405 | | | | 362 | | | | | 15,917 | | | | 14,436 | | | Less: accumulated depreciation and amortization | | | (6,977 | ) | | | (5,467 | ) | | | $ | 8,940 | | | $ | 8,969 | |
Depreciation expense was $1.5 million, $1.0 million, and $0.7 million in fiscal years 2026, 2025, and 2024, respectively. Accrued expenses and other current liabilities consisted of the following: | | May 29, | | | May 30, | | | (In thousands) | | 2026 | | | 2025 | | | Commissions and bonuses | | $ | 1,466 | | | $ | 1,420 | | | Payroll related | | | 1,514 | | | | 1,335 | | | Professional services | | | 576 | | | | 436 | | | Warranty reserve | | | 676 | | | | 428 | | | Escrow payable | | | - | | | | 1,762 | | | Other | | | 1,051 | | | | 639 | | | | $ | 5,283 | | | $ | 6,020 | |
Changes in the Company’s warranty reserve were as follows: | | May 29, | | | May 30, | | (In thousands) | | 2026 | | | 2025 | | | Balance at the beginning of the period | | $ | 428 | | | $ | 234 | | | Accruals for warranties | | | 809 | | | | 679 | | | Warranties acquired through business combination | | | - | | | | 144 | | | Consumption of reserves | | | (1,277 | ) | | | (629 | ) | | Adjustments to previously existing warranty accruals | | | 716 | | | | - | | | Balance at the end of the period | | $ | 676 | | | $ | 428 | |
Adjustments to previously existing warranty accruals represent changes in estimates based on updated information regarding historical warranty experience and expected future claims. The accrued warranty balance is included in accrued expenses and other current liabilities on the consolidated balance sheets. Deferred revenue, short-term consisted of the following: | | May 29, | | | May 30, | | (In thousands) | | 2026 | | | 2025 | | | Customer deposits | | $ | 4,554 | | | $ | 1,802 | | | Deferred revenue | | | 638 | | | | 179 | | | | $ | 5,192 | | | $ | 1,981 | |
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