16.  COMMITMENTS AND CONTINGENCIES

The Company has capital commitments for capital expenditure amounting to $281 as at  June 30, 2026, as compared to capital commitment of $16 as at  June 30, 2025. As at June 2026, the capital commitment is attributable to China and Malaysia operation's capital investment. The increase in capital commitments reflects planned investments in equipment and infrastructure intended to support capacity expansion for current and expected burn-in service orders. 

Deposits with banks are not fully insured by the local government or agency and are consequently exposed to risk of loss. The Company believes that the probability of bank failure, causing loss to the Company, is remote.

During the third quarter of Fiscal 2026, the Company's Malaysia subsidiary entered into a one-year customs bond arrangement totaling MYR10 million or approximately $2,470. This bond serves as a financial guarantee for the payment of duties and taxes in the event of any violation of temporary import or controlled schemes. As of the reporting date, management does not expect any material liabilities to arise from this arrangement. Refer to Note 29, Subsequent Events, for an increase in the value of this bond arrangement effective after Fiscal 2026.

The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company’s consolidated financial statements.