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1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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BUSINESS:
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Aehr Test Systems (the “Company”) was\rincorporated in California in May 1977 and primarily designs, engineers and manufactures test and burn-in equipment used in the semiconductor\rindustry. The Company’s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact parallel test and burn-in systems, the\rWaferPak full wafer contactor, the DiePak carrier, the WaferPak aligner, the DiePak autoloader, and test fixtures.
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LIQUIDITY:
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Since inception, the Company has incurred substantial\rcumulative losses and negative cash flows from operations. In response, the Company took steps to minimize expense levels, entered into\rcredit arrangements, and raised capital through public and private equity offerings, to increase the likelihood that it will have sufficient\rcash to support operations.
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At May 31, 2021, the Company had $4.6 million in\rcash and cash equivalents. The Company anticipates that the existing cash and cash equivalents balance together with income from operations,\rcollections of existing accounts receivable, revenue from its existing backlog of products, the sale of inventory on hand, deposits and\rdown payments against significant orders will be adequate to meet its working capital and capital equipment requirements, and its anticipated\rcash needs over the next 12 months. The Company’s future capital requirements will depend on many factors, including the Company’s\rgrowth rate, the timing and extent of its spending to support research and development activities, the timing and cost of establishing\radditional sales and marketing capabilities, the timing and cost to introduce new and enhanced products and the timing and cost to implement\rnew manufacturing technologies. In the event that additional financing is required from outside sources, the Company may not be able to\rraise it on terms acceptable to the Company or at all. Any additional debt financing obtained by the Company in the future could also\rinvolve restrictive covenants relating to the Company’s capital-raising activities and other financial and operational matters,\rwhich may make it more difficult for the Company to obtain additional capital and to pursue business opportunities, including potential\racquisitions. Additionally, if the Company raises additional funds through further issuances of equity, convertible debt securities or\rother securities convertible into equity, its existing stockholders could suffer significant dilution in their percentage ownership of\rthe Company, and any new equity securities the Company issue could have rights, preferences and privileges senior to those of holders\rof the Company’s common stock. If the Company is unable to obtain adequate financing or financing on terms satisfactory to the Company\rwhen the Company requires it, the Company’s ability to continue to grow or support its business and to respond to business challenges\rcould be significantly limited. On April 23, 2020, we received proceeds of $1,679,000 from a Paycheck Protection Program Loan (the “PPP\rLoan”), under the CARES Act which we used to retain employees, maintained payroll and made lease and utility payments. The entire\rPPP Loan balance and interest were forgiven on June 4, 2021, see Note 18, “Subsequent Event” of the Notes to Consolidated\rFinancial Statements.
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CONSOLIDATION:
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The consolidated financial statements include the\raccounts of the Company and both its wholly-owned and majority-owned foreign subsidiaries. Intercompany accounts and transactions have\rbeen eliminated.
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FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS:
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Assets and liabilities of the Company’s foreign\rsubsidiaries and a branch office are translated into U.S. Dollars from their functional currencies of Euros, Philippines Peso and New\rTaiwan Dollars using the exchange rate in effect at the balance sheet date. Additionally, their net sales and expenses are translated\rusing exchange rates approximating average rates prevailing during the fiscal year. Translation adjustments that arise from translating\rtheir financial statements from their local currencies to U.S. Dollars are accumulated and reflected as a separate component of shareholders’\requity.
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Transaction gains and losses that arise from exchange\rrate changes denominated in currencies other than the local currency are included in the Consolidated Statements of Operations as incurred.\rSee Note 13, “Other (Expense) Income, Net” for the detail of foreign exchange transaction gains and losses for all periods\rpresented.
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USE OF ESTIMATES:
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The preparation of financial statements in conformity\rwith accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that\raffect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements\rand the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant\restimates in the Company’s consolidated financial statements include allowance for doubtful accounts, valuation of inventory at\rthe lower of cost or net realizable value, and warranty reserves.
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CASH EQUIVALENTS:
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Cash equivalents consist of money market instruments\rpurchased with an original maturity of three months or less. These investments are reported at fair value.
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ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS:
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Accounts receivable are derived from the sale of\rproducts throughout the world to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in\rand test service companies. Accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains\ran allowance for doubtful accounts to reserve for potentially uncollectible trade receivables. The Company also reviews its trade receivables\rby aging category to identify specific customers with known disputes or collection issues. The Company exercises judgment when determining\rthe adequacy of these reserves as the Company evaluates historical bad debt trends, general economic conditions in the United States and\rinternationally, and changes in customer financial conditions. Uncollectible receivables are recorded as bad debt expense when all efforts\rto collect have been exhausted and recoveries are recognized when they are received. No significant adjustments to the allowance for doubtful\raccounts were recorded during the fiscal years ended May 31, 2021, 2020 or 2019.
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CONCENTRATION OF CREDIT RISK:
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The Company sells its products primarily to semiconductor\rmanufacturers in North America, Asia, and Europe. As of May 31, 2021, approximately 2%, 98% and 0% of gross accounts receivable were from\rcustomers located in North America, Asia and Europe, respectively. As of May 31, 2020, approximately 13%, 62% and 25% of gross accounts\rreceivable were from customers located in North America, Asia and Europe, respectively. Three customers accounted for 51%, 24% and 19%\rof gross accounts receivable as of May 31, 2021. Two customers accounted for 45% and 18% of gross accounts receivable as of May 31, 2020.\rFour customers accounted for 24%, 23%, 20% and 10% of net sales in fiscal 2021. Three customers accounted for 43%, 16% and 15% of net\rsales in fiscal 2020. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The\rCompany uses letter of credit terms for some of its international customers.
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The Company’s cash and cash equivalents are\rgenerally deposited with major financial institutions in the United States, Philippines, Germany and Taiwan. The Company invests its excess\rcash in money market funds and U.S. Treasury securities. The money market funds bear the risk associated with each fund. The money market\rfunds have variable interest rates. The Company has not experienced any material losses on its money market funds or short-term cash deposits.
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CONCENTRATION OF SUPPLY RISK:
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The Company relies on subcontractors to manufacture\rmany of the components and subassemblies used in its products. Quality or performance failures of the Company’s products or changes\rin its manufacturers’ financial or business condition could disrupt the Company’s ability to supply quality products to its\rcustomers and thereby have a material and adverse effect on its business and operating results. Some of the components and technologies\rused in the Company’s products are purchased and licensed from a single source or a limited number of sources. The loss of any of\rthese suppliers may cause the Company to incur additional transition costs, result in delays in the manufacturing and delivery of its\rproducts, or cause it to carry excess or obsolete inventory and could cause it to redesign its products.
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INVENTORIES:
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Inventories include material, labor and overhead,\rand are stated at the lower of cost (first-in, first-out method) or net realizable value. Net realizable value is the estimated selling\rprices in the ordinary course of business, less costs of completion, disposal and transportation. Provisions for excess, obsolete and\runusable inventories are made after management’s evaluation of future demand and market conditions. The Company adjusts inventory\rbalances to approximate the lower of its manufacturing costs or net realizable value. If actual future demand or market conditions become\rless favorable than those projected by management, additional inventory write-downs may be required, and would be reflected in cost of\rsales in the period the revision is made. During fiscal 2021, 2020 and 2019 the Company recognized a provision for inventory reserves\rof $176,000, $1,669,000, and $1,168,000, respectively.
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PROPERTY AND EQUIPMENT:
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Property and equipment are stated at cost less accumulated\rdepreciation and amortization. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Leasehold improvements\rare amortized over the lesser of their estimated useful lives or the term of the related lease. Furniture and fixtures, machinery and\requipment, and test equipment are depreciated on a straight-line basis over their estimated useful lives. The ranges of estimated useful\rlives are generally as follows:
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| Furniture and fixtures | \r | 2 to 6 years | ||
| Machinery and equipment | \r | 3 to 6 years | ||
| Test equipment | \r | 4 to 6 years |
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REVENUE RECOGNITION:
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The Company recognizes revenue when promised goods\ror services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange\rfor those goods or services by following a five-step process: (1) identify the contract with a customer, (2) identify the performance\robligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or\ras the Company satisfies a performance obligation, as further described below.
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Performance obligations include sales of systems,\rcontactors, spare parts, and services, as well as installation and training services included in customer contracts.
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A contract’s transaction price is allocated\rto each distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund\ror adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return\rprivileges, except for defective products during the warranty period.
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For contracts that contain multiple performance\robligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis.\rStandalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and\rservices and pricing practices in different geographies.
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Revenue for systems and spares are recognized at\ra point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed\ror ratably over the contractual period of generally one year or less.
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The Company has elected the practical expedient\rto not assess whether a contract has a significant financing component as the Company’s standard payment terms are less than one\ryear.
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We sell our products primarily through a direct\rsales force. In certain international markets, we sell our products through independent distributors. We consider revenue to be earned\rwhen all of the following criteria are met:
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● We have a contract with a customer that creates\renforceable rights and obligations,
\r\r● Promised performance obligations are identified,
\r\r● The transaction price, or the amount we expect\rto receive, is determinable and
\r\r● We have satisfied the performance obligations\rto the customer.
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Transfer of control is evidenced upon passage of\rtitle and risk of loss to the customer unless we are required to provide additional services.
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PRODUCT DEVELOPMENT COSTS AND CAPITALIZED SOFTWARE:
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Costs incurred in the research and development of\rnew products or systems are charged to operations as incurred. Costs incurred in the development of software programs for the Company’s\rproducts are charged to operations as incurred until technological feasibility of the software has been established. Generally, technological\rfeasibility is established when the software module performs its primary functions described in its original specifications, contains\rfeatures required for it to be usable in a production environment, is completely documented and the related hardware portion of the product\ris complete. After technological feasibility is established, any additional costs are capitalized. Capitalization of software costs ceases\rwhen the software is substantially complete and is ready for its intended use. Capitalized costs are amortized over the estimated life\rof the related software product using the greater of the units of sales or straight-line methods over ten years. No system software development\rcosts were capitalized or amortized in fiscal 2021, 2020 and 2019.
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IMPAIRMENT OF LONG-LIVED ASSETS:
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In the event that facts and circumstances indicate\rthat the carrying value of assets may be impaired, an evaluation of recoverability would be performed. If an evaluation is required, the\restimated future undiscounted cash flows associated with the asset would be compared to the asset’s carrying value to determine\rif a write-down is required.
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ADVERTISING COSTS:
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The Company expenses all advertising costs as incurred\rand the amounts were not material for all periods presented.
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SHIPPING AND HANDLING OF PRODUCTS:
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Amounts billed to customers for shipping and handling\rof products are included in net sales. Costs incurred related to shipping and handling of products are included in cost of sales.
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INCOME TAXES:
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Income taxes are accounted for under the asset-and-liability\rmethod as required by FASB ASC Topic 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for\rthe future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities\rand their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using\renacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or\rsettled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period corresponding\rto the enactment date. Under ASC 740, a valuation allowance is required when it is more likely than not all or some portion of the deferred\rtax assets will not be realized through generating sufficient future taxable income.
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FASB ASC Subtopic 740-10, Accounting for Uncertainty\rof Income Taxes, (“ASC 740-10”) defines the criterion an individual tax position must meet for any part of the benefit of\rthe tax position to be recognized in financial statements prepared in conformity with GAAP. The Company may recognize the tax benefit\rfrom an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities,\rbased solely on the technical merits of the respective tax position. The tax benefits recognized in the financial statements from such\ra tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement\rwith the tax authority. In accordance with the disclosure requirements of ASC 740-10, the Company’s policy on income statement classification\rof interest and penalties related to income tax obligations is to include such items as part of income taxes.
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COMPREHENSIVE LOSS:
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Comprehensive loss generally represents all changes\rin shareholders’ equity except those resulting from investments or contributions by shareholders. Unrealized gains and losses on\rforeign currency translation adjustments are included in the Company’s components of comprehensive loss, which are excluded from\rnet loss. In fiscal 2021 the Company recognized comprehensive income of $2,401,000 related to the completed liquidation of ATS-Japan,\ra majority owned subsidiary. Refer to Note 16, “Dissolution of Aehr Test Systems Japan,” for a further discussion of the transaction.\rComprehensive loss is included in the statements of comprehensive loss.
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RECENT ACCOUNTING PRONOUNCEMENTS:
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Accounting Standards Not Yet Adopted
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Financial Instruments
\r\rIn June 2016, the FASB issued an accounting standard\rupdate (“ASU”) that requires measurement and recognition of expected credit losses for financial assets held based on historical\rexperience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Due to\ra subsequent ASU in November 2019, the accounting standard will be effective for the Company beginning in the first quarter of fiscal\r2024 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. The Company does not expect a material impact\rof this accounting standard on its consolidated financial statements.
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Income Taxes
\r\rOn December 18, 2019, the FASB issued Accounting\rStandards Update ASU 2019-12 on Simplifying the Accounting for Income Taxes. The board decided to remove the exception to the incremental\rapproach for intra-period tax allocation when there is a loss from continuing operations and income or gain from other items (for example\rdiscontinued operations or other comprehensive income). There are also provisions related to state taxes and calculating income taxes\rin an interim period when a year-to-date loss exceeds the anticipated loss for the year. The new guidance is effective for fiscal years,\rand interim periods within those fiscal years, beginning on or after December 15, 2020. The Company has not yet adopted ASU 2019-12 and\rbelieves upon adoption there would be no material impact.
\r\r"}]},{"name":"rpt:f-844","factDimensions":{"xbrl:concept":"us-gaap:BusinessDescriptionAndBasisOfPresentationTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
BUSINESS:
\r\r\r\r
Aehr Test Systems (the “Company”) was\rincorporated in California in May 1977 and primarily designs, engineers and manufactures test and burn-in equipment used in the semiconductor\rindustry. The Company’s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact parallel test and burn-in systems, the\rWaferPak full wafer contactor, the DiePak carrier, the WaferPak aligner, the DiePak autoloader, and test fixtures.
\r\r"}]},{"name":"rpt:f-845","factDimensions":{"xbrl:concept":"AEHR:Liquidity","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
LIQUIDITY:
\r\r\r\r
Since inception, the Company has incurred substantial\rcumulative losses and negative cash flows from operations. In response, the Company took steps to minimize expense levels, entered into\rcredit arrangements, and raised capital through public and private equity offerings, to increase the likelihood that it will have sufficient\rcash to support operations.
\r\r\r\r
At May 31, 2021, the Company had $4.6 million in\rcash and cash equivalents. The Company anticipates that the existing cash and cash equivalents balance together with income from operations,\rcollections of existing accounts receivable, revenue from its existing backlog of products, the sale of inventory on hand, deposits and\rdown payments against significant orders will be adequate to meet its working capital and capital equipment requirements, and its anticipated\rcash needs over the next 12 months. The Company’s future capital requirements will depend on many factors, including the Company’s\rgrowth rate, the timing and extent of its spending to support research and development activities, the timing and cost of establishing\radditional sales and marketing capabilities, the timing and cost to introduce new and enhanced products and the timing and cost to implement\rnew manufacturing technologies. In the event that additional financing is required from outside sources, the Company may not be able to\rraise it on terms acceptable to the Company or at all. Any additional debt financing obtained by the Company in the future could also\rinvolve restrictive covenants relating to the Company’s capital-raising activities and other financial and operational matters,\rwhich may make it more difficult for the Company to obtain additional capital and to pursue business opportunities, including potential\racquisitions. Additionally, if the Company raises additional funds through further issuances of equity, convertible debt securities or\rother securities convertible into equity, its existing stockholders could suffer significant dilution in their percentage ownership of\rthe Company, and any new equity securities the Company issue could have rights, preferences and privileges senior to those of holders\rof the Company’s common stock. If the Company is unable to obtain adequate financing or financing on terms satisfactory to the Company\rwhen the Company requires it, the Company’s ability to continue to grow or support its business and to respond to business challenges\rcould be significantly limited. On April 23, 2020, we received proceeds of $1,679,000 from a Paycheck Protection Program Loan (the “PPP\rLoan”), under the CARES Act which we used to retain employees, maintained payroll and made lease and utility payments. The entire\rPPP Loan balance and interest were forgiven on June 4, 2021, see Note 18, “Subsequent Event” of the Notes to Consolidated\rFinancial Statements.
\r\r"}]},{"name":"rpt:f-846","factDimensions":{"xbrl:concept":"us-gaap:ConsolidationPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
CONSOLIDATION:
\r\r\r\r
The consolidated financial statements include the\raccounts of the Company and both its wholly-owned and majority-owned foreign subsidiaries. Intercompany accounts and transactions have\rbeen eliminated.
\r\r"}]},{"name":"rpt:f-847","factDimensions":{"xbrl:concept":"us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS:
\r\r\r\r
Assets and liabilities of the Company’s foreign\rsubsidiaries and a branch office are translated into U.S. Dollars from their functional currencies of Euros, Philippines Peso and New\rTaiwan Dollars using the exchange rate in effect at the balance sheet date. Additionally, their net sales and expenses are translated\rusing exchange rates approximating average rates prevailing during the fiscal year. Translation adjustments that arise from translating\rtheir financial statements from their local currencies to U.S. Dollars are accumulated and reflected as a separate component of shareholders’\requity.
\r\r\r\r
Transaction gains and losses that arise from exchange\rrate changes denominated in currencies other than the local currency are included in the Consolidated Statements of Operations as incurred.\rSee Note 13, “Other (Expense) Income, Net” for the detail of foreign exchange transaction gains and losses for all periods\rpresented.
\r\r"}]},{"name":"rpt:f-848","factDimensions":{"xbrl:concept":"us-gaap:UseOfEstimates","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
USE OF ESTIMATES:
\r\r\r\r
The preparation of financial statements in conformity\rwith accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that\raffect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements\rand the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant\restimates in the Company’s consolidated financial statements include allowance for doubtful accounts, valuation of inventory at\rthe lower of cost or net realizable value, and warranty reserves.
\r\r"}]},{"name":"rpt:f-849","factDimensions":{"xbrl:concept":"us-gaap:CashAndCashEquivalentsPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
CASH EQUIVALENTS:
\r\r\r\r
Cash equivalents consist of money market instruments\rpurchased with an original maturity of three months or less. These investments are reported at fair value.
\r\r"}]},{"name":"rpt:f-850","factDimensions":{"xbrl:concept":"us-gaap:ReceivablesTradeAndOtherAccountsReceivableAllowanceForDoubtfulAccountsPolicy","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS:
\r\r\r\r
Accounts receivable are derived from the sale of\rproducts throughout the world to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in\rand test service companies. Accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains\ran allowance for doubtful accounts to reserve for potentially uncollectible trade receivables. The Company also reviews its trade receivables\rby aging category to identify specific customers with known disputes or collection issues. The Company exercises judgment when determining\rthe adequacy of these reserves as the Company evaluates historical bad debt trends, general economic conditions in the United States and\rinternationally, and changes in customer financial conditions. Uncollectible receivables are recorded as bad debt expense when all efforts\rto collect have been exhausted and recoveries are recognized when they are received. No significant adjustments to the allowance for doubtful\raccounts were recorded during the fiscal years ended May 31, 2021, 2020 or 2019.
\r\r"}]},{"name":"rpt:f-851","factDimensions":{"xbrl:concept":"us-gaap:ConcentrationRiskCreditRisk","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
CONCENTRATION OF CREDIT RISK:
\r\r\r\r
The Company sells its products primarily to semiconductor\rmanufacturers in North America, Asia, and Europe. As of May 31, 2021, approximately 2%, 98% and 0% of gross accounts receivable were from\rcustomers located in North America, Asia and Europe, respectively. As of May 31, 2020, approximately 13%, 62% and 25% of gross accounts\rreceivable were from customers located in North America, Asia and Europe, respectively. Three customers accounted for 51%, 24% and 19%\rof gross accounts receivable as of May 31, 2021. Two customers accounted for 45% and 18% of gross accounts receivable as of May 31, 2020.\rFour customers accounted for 24%, 23%, 20% and 10% of net sales in fiscal 2021. Three customers accounted for 43%, 16% and 15% of net\rsales in fiscal 2020. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The\rCompany uses letter of credit terms for some of its international customers.
\r\r\r\r
The Company’s cash and cash equivalents are\rgenerally deposited with major financial institutions in the United States, Philippines, Germany and Taiwan. The Company invests its excess\rcash in money market funds and U.S. Treasury securities. The money market funds bear the risk associated with each fund. The money market\rfunds have variable interest rates. The Company has not experienced any material losses on its money market funds or short-term cash deposits.
\r\r"}]},{"name":"rpt:f-852","factDimensions":{"xbrl:concept":"AEHR:ConcentrationOfSupplyRiskPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
CONCENTRATION OF SUPPLY RISK:
\r\r\r\r
The Company relies on subcontractors to manufacture\rmany of the components and subassemblies used in its products. Quality or performance failures of the Company’s products or changes\rin its manufacturers’ financial or business condition could disrupt the Company’s ability to supply quality products to its\rcustomers and thereby have a material and adverse effect on its business and operating results. Some of the components and technologies\rused in the Company’s products are purchased and licensed from a single source or a limited number of sources. The loss of any of\rthese suppliers may cause the Company to incur additional transition costs, result in delays in the manufacturing and delivery of its\rproducts, or cause it to carry excess or obsolete inventory and could cause it to redesign its products.
\r\r"}]},{"name":"rpt:f-853","factDimensions":{"xbrl:concept":"us-gaap:InventoryPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
INVENTORIES:
\r\r\r\r
Inventories include material, labor and overhead,\rand are stated at the lower of cost (first-in, first-out method) or net realizable value. Net realizable value is the estimated selling\rprices in the ordinary course of business, less costs of completion, disposal and transportation. Provisions for excess, obsolete and\runusable inventories are made after management’s evaluation of future demand and market conditions. The Company adjusts inventory\rbalances to approximate the lower of its manufacturing costs or net realizable value. If actual future demand or market conditions become\rless favorable than those projected by management, additional inventory write-downs may be required, and would be reflected in cost of\rsales in the period the revision is made. During fiscal 2021, 2020 and 2019 the Company recognized a provision for inventory reserves\rof $176,000, $1,669,000, and $1,168,000, respectively.
\r\r"}]},{"name":"rpt:f-854","factDimensions":{"xbrl:concept":"us-gaap:PropertyPlantAndEquipmentPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
PROPERTY AND EQUIPMENT:
\r\r\r\r
Property and equipment are stated at cost less accumulated\rdepreciation and amortization. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Leasehold improvements\rare amortized over the lesser of their estimated useful lives or the term of the related lease. Furniture and fixtures, machinery and\requipment, and test equipment are depreciated on a straight-line basis over their estimated useful lives. The ranges of estimated useful\rlives are generally as follows:
\r\r\r\r\r\r
| Furniture and fixtures | \r | 2 to 6 years | ||
| Machinery and equipment | \r | 3 to 6 years | ||
| Test equipment | \r | 4 to 6 years |
"}]},{"name":"rpt:f-855","factDimensions":{"xbrl:concept":"us-gaap:RevenueRecognitionPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
REVENUE RECOGNITION:
\r\r\r\r
The Company recognizes revenue when promised goods\ror services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange\rfor those goods or services by following a five-step process: (1) identify the contract with a customer, (2) identify the performance\robligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or\ras the Company satisfies a performance obligation, as further described below.
\r\r\r\r
Performance obligations include sales of systems,\rcontactors, spare parts, and services, as well as installation and training services included in customer contracts.
\r\r\r\r
A contract’s transaction price is allocated\rto each distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund\ror adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return\rprivileges, except for defective products during the warranty period.
\r\r\r\r
For contracts that contain multiple performance\robligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis.\rStandalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and\rservices and pricing practices in different geographies.
\r\r\r\r
Revenue for systems and spares are recognized at\ra point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed\ror ratably over the contractual period of generally one year or less.
\r\r\r\r
The Company has elected the practical expedient\rto not assess whether a contract has a significant financing component as the Company’s standard payment terms are less than one\ryear.
\r\r\r\r
We sell our products primarily through a direct\rsales force. In certain international markets, we sell our products through independent distributors. We consider revenue to be earned\rwhen all of the following criteria are met:
\r\r\r\r
● We have a contract with a customer that creates\renforceable rights and obligations,
\r\r● Promised performance obligations are identified,
\r\r● The transaction price, or the amount we expect\rto receive, is determinable and
\r\r● We have satisfied the performance obligations\rto the customer.
\r\r\r\r
Transfer of control is evidenced upon passage of\rtitle and risk of loss to the customer unless we are required to provide additional services.
\r\r"}]},{"name":"rpt:f-856","factDimensions":{"xbrl:concept":"us-gaap:ResearchAndDevelopmentExpensePolicy","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
PRODUCT DEVELOPMENT COSTS AND CAPITALIZED SOFTWARE:
\r\r\r\r
Costs incurred in the research and development of\rnew products or systems are charged to operations as incurred. Costs incurred in the development of software programs for the Company’s\rproducts are charged to operations as incurred until technological feasibility of the software has been established. Generally, technological\rfeasibility is established when the software module performs its primary functions described in its original specifications, contains\rfeatures required for it to be usable in a production environment, is completely documented and the related hardware portion of the product\ris complete. After technological feasibility is established, any additional costs are capitalized. Capitalization of software costs ceases\rwhen the software is substantially complete and is ready for its intended use. Capitalized costs are amortized over the estimated life\rof the related software product using the greater of the units of sales or straight-line methods over ten years. No system software development\rcosts were capitalized or amortized in fiscal 2021, 2020 and 2019.
\r\r"}]},{"name":"rpt:f-857","factDimensions":{"xbrl:concept":"us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
IMPAIRMENT OF LONG-LIVED ASSETS:
\r\r\r\r
In the event that facts and circumstances indicate\rthat the carrying value of assets may be impaired, an evaluation of recoverability would be performed. If an evaluation is required, the\restimated future undiscounted cash flows associated with the asset would be compared to the asset’s carrying value to determine\rif a write-down is required.
\r\r"}]},{"name":"rpt:f-858","factDimensions":{"xbrl:concept":"us-gaap:AdvertisingCostsPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
ADVERTISING COSTS:
\r\r\r\r
The Company expenses all advertising costs as incurred\rand the amounts were not material for all periods presented.
\r\r"}]},{"name":"rpt:f-859","factDimensions":{"xbrl:concept":"us-gaap:ShippingAndHandlingCostPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
SHIPPING AND HANDLING OF PRODUCTS:
\r\r\r\r
Amounts billed to customers for shipping and handling\rof products are included in net sales. Costs incurred related to shipping and handling of products are included in cost of sales.
\r\r"}]},{"name":"rpt:f-860","factDimensions":{"xbrl:concept":"us-gaap:IncomeTaxPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
INCOME TAXES:
\r\r\r\r
Income taxes are accounted for under the asset-and-liability\rmethod as required by FASB ASC Topic 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for\rthe future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities\rand their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using\renacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or\rsettled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period corresponding\rto the enactment date. Under ASC 740, a valuation allowance is required when it is more likely than not all or some portion of the deferred\rtax assets will not be realized through generating sufficient future taxable income.
\r\r\r\r
FASB ASC Subtopic 740-10, Accounting for Uncertainty\rof Income Taxes, (“ASC 740-10”) defines the criterion an individual tax position must meet for any part of the benefit of\rthe tax position to be recognized in financial statements prepared in conformity with GAAP. The Company may recognize the tax benefit\rfrom an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities,\rbased solely on the technical merits of the respective tax position. The tax benefits recognized in the financial statements from such\ra tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement\rwith the tax authority. In accordance with the disclosure requirements of ASC 740-10, the Company’s policy on income statement classification\rof interest and penalties related to income tax obligations is to include such items as part of income taxes.
\r\r"}]},{"name":"rpt:f-861","factDimensions":{"xbrl:concept":"us-gaap:ComprehensiveIncomePolicyPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
COMPREHENSIVE LOSS:
\r\r\r\r
Comprehensive loss generally represents all changes\rin shareholders’ equity except those resulting from investments or contributions by shareholders. Unrealized gains and losses on\rforeign currency translation adjustments are included in the Company’s components of comprehensive loss, which are excluded from\rnet loss. In fiscal 2021 the Company recognized comprehensive income of $2,401,000 related to the completed liquidation of ATS-Japan,\ra majority owned subsidiary. Refer to Note 16, “Dissolution of Aehr Test Systems Japan,” for a further discussion of the transaction.\rComprehensive loss is included in the statements of comprehensive loss.
\r\r"}]},{"name":"rpt:f-862","factDimensions":{"xbrl:concept":"us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
RECENT ACCOUNTING PRONOUNCEMENTS:
\r\r\r\r
Accounting Standards Not Yet Adopted
\r\r\r\r
Financial Instruments
\r\rIn June 2016, the FASB issued an accounting standard\rupdate (“ASU”) that requires measurement and recognition of expected credit losses for financial assets held based on historical\rexperience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Due to\ra subsequent ASU in November 2019, the accounting standard will be effective for the Company beginning in the first quarter of fiscal\r2024 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. The Company does not expect a material impact\rof this accounting standard on its consolidated financial statements.
\r\r\r\r
Income Taxes
\r\rOn December 18, 2019, the FASB issued Accounting\rStandards Update ASU 2019-12 on Simplifying the Accounting for Income Taxes. The board decided to remove the exception to the incremental\rapproach for intra-period tax allocation when there is a loss from continuing operations and income or gain from other items (for example\rdiscontinued operations or other comprehensive income). There are also provisions related to state taxes and calculating income taxes\rin an interim period when a year-to-date loss exceeds the anticipated loss for the year. The new guidance is effective for fiscal years,\rand interim periods within those fiscal years, beginning on or after December 15, 2020. The Company has not yet adopted ASU 2019-12 and\rbelieves upon adoption there would be no material impact.
\r\r"}]},{"name":"rpt:f-863","factDimensions":{"xbrl:concept":"us-gaap:RevenueFromContractWithCustomerTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
2. REVENUE
\r\r\r\r
Disaggregation of revenue
\r\r\r\r
The following tables show revenues by major product\rcategories. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty\raround revenue recognition and cash flow are substantially similar.
\r\r\r\r
The Company’s revenues by product category\rare as follows (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Type of good / service: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| Systems | \r\r | $ | \r7,250 | \r\r | \r | $ | \r8,099 | \r\r | \r | $ | \r9,566 | \r|
| Contactors | \r\r | \r | 5,837 | \r\r | \r | \r | 10,784 | \r\r | \r | \r | 6,154 | \r|
| Services | \r\r | \r | 3,513 | \r\r | \r | \r | 3,408 | \r\r | \r | \r | 5,336 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r|
| Product lines: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Wafer-level | \r\r | $ | \r15,004 | \r\r | \r | $ | \r19,768 | \r\r | \r | $ | \r14,618 | \r|
| Test During Burn-In | \r\r | \r | 1,596 | \r\r | \r | \r | 2,523 | \r\r | \r | \r | 6,438 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r
\r\r
The following presents information about the Company’s\roperations in different geographic areas. Net sales are based upon ship-to location (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Geographic region: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| United States | \r\r | $ | \r5,386 | \r\r | \r | $ | \r13,544 | \r\r | \r | $ | \r13,468 | \r|
| Asia | \r\r | \r | 11,074 | \r\r | \r | \r | 7,556 | \r\r | \r | \r | 5,648 | \r|
| Europe | \r\r | \r | 140 | \r\r | \r | \r | 1,191 | \r\r | \r | \r | 1,940 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r
\r\r
With the exception of the amount of service contracts\rand extended warranties, the Company’s product category revenues are recognized at point in time when control transfers to customers.\rThe following presents revenue based on timing of recognition (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Timing of revenue recognition (in thousands): | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| Products and services transferred at a point in time | \r\r | $ | \r15,009 | \r\r | \r | $ | \r19,948 | \r\r | \r | $ | \r18,473 | \r|
| Services transferred over time | \r\r | \r | 1,591 | \r\r | \r | \r | 2,343 | \r\r | \r | \r | 2,583 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r
\r\r
Contract balances
\r\r\r\r
A receivable is recognized in the period the Company\rdelivers goods or provides services or when the Company’s right to consideration is unconditional. The Company usually does not\rrecord contract assets because the Company has an unconditional right to payment upon satisfaction of the performance obligation, and\rtherefore, a receivable is more commonly recorded than a contract asset.
\r\r\r\r
Contract liabilities include payments received in\radvance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on\rthe consolidated balance sheets at the end of each reporting period as a component of deferred revenue. Contract liabilities as of May\r31, 2021 and 2020 were $288,000 and $192,000, respectively. During the fiscal years ended May 31, 2021 and 2020, the Company recognized\r$164,000 and $1,545,000 of revenues that were included in contract liabilities as of May 31, 2020 and 2019, respectively.
\r\r\r\r
Remaining performance obligations
\r\r\r\r
On May 31, 2021, the Company had $194,000 of remaining\rperformance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. The Company\rexpects to recognize approximately 49% of its remaining performance obligations as revenue in fiscal 2022, and an additional 51% in fiscal\r2023 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one\ryear or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation.
\r\r\r\r
Costs to obtain or fulfill a contract
\r\r\r\r
The Company generally expenses sales commissions\rwhen incurred as a component of selling, general and administrative expense as the amortization period is typically less than one year.\rAdditionally, the majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventory and fixed\rassets, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial\rdue to the nature of the Company’s products and their respective manufacturing process.
\r\r"}]},{"name":"rpt:f-864","factDimensions":{"xbrl:concept":"us-gaap:EarningsPerShareTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
3. EARNINGS PER SHARE (“EPS”)
\r\r\r\r
Basic EPS is determined using the weighted average\rnumber of common shares outstanding during the period. Diluted EPS is determined using the weighted average number of common shares and\rpotential common shares (representing the dilutive effect of stock options, RSUs and ESPP shares) outstanding during the period using\rthe treasury stock method.
\r\r\r\r
The following table presents the computation of\rbasic and diluted net loss per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):
\r\r\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Numerator: Net loss | \r\r | $ | \r(2,027) | \r\r | \r | $ | \r(2,802) | \r\r | \r | $ | \r(5,235) | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Denominator for basic net loss per share: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Weighted average shares outstanding | \r\r | \r | 23,457 | \r\r | \r | \r | 22,882 | \r\r | \r | \r | 22,387 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Shares used in basic net loss per share calculation | \r\r | \r | 23,457 | \r\r | \r | \r | 22,882 | \r\r | \r | \r | 22,387 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Effect of dilutive securities | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Denominator for diluted net loss per share | \r\r | \r | 23,457 | \r\r | \r | \r | 22,882 | \r\r | \r | \r | 22,387 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Basic net loss per share | \r\r | $ | \r(0.09) | \r\r | \r | $ | \r(0.12) | \r\r | \r | $ | \r(0.23) | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Diluted net loss per share | \r\r | $ | \r(0.09) | \r\r | \r | $ | \r(0.12) | \r\r | \r | $ | \r(0.23) | \r
\r\r
For the purpose of computing diluted earnings per\rshare, the weighted average number of potential common shares does not include stock options with an exercise price greater than the average\rfair value of the Company’s common stock for the period, as the effect would be anti-dilutive. In the fiscal years ended May 31,\r2021, 2020 and 2019, potential common shares have not been included in the calculation of diluted net loss per share as the effect would\rbe anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for these periods\rare the same. Stock options to purchase 2,766,000, 3,153,000 and 3,107,000 shares of common stock were outstanding on May 31, 2021, 2020\rand 2019, respectively, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would\rbe anti-dilutive. ESPP rights to purchase 239,000, 192,000 and 297,000 ESPP shares were outstanding on May 31, 2021, 2020 and 2019, respectively,\rbut were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. RSUs\rfor 132,000 shares, 10,000 shares and 23,000 shares were outstanding on May 31, 2021, 2020 and 2019, respectively, but were not included\rin the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.
\r\r"}]},{"name":"rpt:f-865","factDimensions":{"xbrl:concept":"us-gaap:FairValueDisclosuresTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
4. FAIR VALUE OF FINANCIAL INSTRUMENTS
\r\r\r\r
The Company’s financial instruments are measured\rat fair value consistent with authoritative guidance. This authoritative guidance defines fair value, establishes a framework for using\rfair value to measure assets and liabilities, and disclosures required related to fair value measurements.
\r\r\r\r
The guidance establishes a fair value hierarchy\rbased on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs\rreflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources\rwhile unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy\rconsists of the following three levels:
\r\r\r\r
Level 1 - instrument valuations are obtained from real-time quotes for transactions\rin active exchange markets involving identical assets.
\r\r\r\r
Level 2 - instrument valuations are obtained from readily-available pricing\rsources for comparable instruments.
\r\r\r\r
Level 3 - instrument valuations are obtained without observable market values\rand require a high level of judgment to determine the fair value.
\r\r\r\r
The following table summarizes the Company’s\rfinancial assets measured at fair value on a recurring basis as of May 31, 2021 (in thousands):
\r\r\r\r
| \r | \r | Balance as of | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | |||||
| \r | \r | May 31, 2021 | \r\r | \r | Level 1 | \r\r | \r | Level 2 | \r\r | \r | Level 3 | \r|||||
| Money market funds | \r\r | $ | \r580 | \r\r | \r | $ | \r580 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r|
| Assets | \r\r | $ | \r580 | \r\r | \r | $ | \r580 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r
\r\r
The following table summarizes the Company’s\rfinancial assets measured at fair value on a recurring basis as of May 31, 2020 (in thousands):
\r\r\r\r
| \r | \r | Balance as of | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | |||||
| \r | \r | May 31, 2020 | \r\r | \r | Level 1 | \r\r | \r | Level 2 | \r\r | \r | Level 3 | \r|||||
| Money market funds | \r\r | $ | \r80 | \r\r | \r | $ | \r80 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r|
| Assets | \r\r | $ | \r80 | \r\r | \r | $ | \r80 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r
\r\r
Included in money market funds as of May 31, 2021\rand 2020 is $80,000 of restricted cash representing a security deposit for the Company’s United States manufacturing and office\rspace lease.
\r\r\r\r
There were no financial liabilities measured at\rfair value as of May 31, 2021 and 2020.
\r\r\r\r
There were no transfers between Level 1 and Level\r2 fair value measurements during the fiscal years ended May 31, 2021 and 2020.
\r\r\r\r
The carrying amounts of financial instruments including\rcash, cash equivalents, receivables, accounts payable and certain other accrued liabilities, approximate fair value due to their short\rmaturities. Based on the borrowing rates currently available to the Company for loans with similar terms, the carrying value of the debt\rapproximates the fair value.
\r\r"}]},{"name":"rpt:f-866","factDimensions":{"xbrl:concept":"us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
5. ACCOUNTS RECEIVABLE
\r\r\r\r
Accounts receivable comprise\r(in thousands):
\r\r\r\r
| \r | \r | May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| Accounts receivable | \r\r | $ | \r5,202 | \r\r | \r | $ | \r3,717 | \r|
| Less: Allowance for doubtful accounts | \r\r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | $ | \r5,202 | \r\r | \r | $ | \r3,717 | \r
\r\r
Accounts receivable represent customer trade receivables.\rAs of May 31, 2021 and 2020, there were no allowances for doubtful accounts.
\r\r"}]},{"name":"rpt:f-867","factDimensions":{"xbrl:concept":"us-gaap:SupplementalBalanceSheetDisclosuresTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
6. BALANCE SHEET DETAIL
\r\r\r\r
INVENTORIES:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Raw materials and sub-assemblies | \r\r | $ | \r5,859 | \r\r | \r | $ | \r5,055 | \r|
| Work in process | \r\r | \r | 2,988 | \r\r | \r | \r | 2,917 | \r|
| Finished goods | \r\r | \r | 2 | \r\r | \r | \r | 17 | \r|
| \r | \r | $ | \r8,849 | \r\r | \r | $ | \r7,989 | \r
\r\r
During the year ended May 31, 2021, 2020,\rand 2019, the Company wrote down $176,000, $1,669,000, and $1,168,000 of inventory, respectively.
\r\r\r\r
PROPERTY AND\rEQUIPMENT, NET:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Leasehold improvements | \r\r | $ | \r1,214 | \r\r | \r | $ | \r1,201 | \r|
| Furniture and fixtures | \r\r | \r | 627 | \r\r | \r | \r | 612 | \r|
| Machinery and equipment | \r\r | \r | 3,343 | \r\r | \r | \r | 3,038 | \r|
| Test equipment | \r\r | \r | 2,525 | \r\r | \r | \r | 2,516 | \r|
| \r | \r | \r | 7,709 | \r\r | \r | \r | 7,367 | \r|
| Less: Accumulated depreciation and amortization | \r\r | \r | (7,032 | \r) | \r\r | \r | (6,704 | \r) |
| \r | \r | $ | \r677 | \r\r | \r | $ | \r663 | \r
\r\r
Depreciation expense was $310,000, $384,000\rand $431,000 for fiscal 2021, 2020, and 2019, respectively.
\r\r\r\r
ACCRUED EXPENSES:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Payroll related | \r\r | $ | \r1,020 | \r\r | \r | $ | \r791 | \r|
| Warranty | \r\r | \r | 494 | \r\r | \r | \r | 246 | \r|
| Commissions and bonuses | \r\r | \r | 413 | \r\r | \r | \r | 139 | \r|
| Professional services | \r\r | \r | 168 | \r\r | \r | \r | 173 | \r|
| Investor relations | \r\r | \r | 22 | \r\r | \r | \r | 19 | \r|
| Accrued interest | \r\r | \r | 16 | \r\r | \r | \r | -- | \r|
| Taxes payable | \r\r | \r | 5 | \r\r | \r | \r | 30 | \r|
| Restructuring | \r\r | \r | -- | \r\r | \r | \r | 8 | \r|
| Other | \r\r | \r | 25 | \r\r | \r | \r | 33 | \r|
| \r | \r | $ | \r2,163 | \r\r | \r | $ | \r1,439 | \r
\r\r
CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Customer deposits | \r\r | $ | \r27 | \r\r | \r | $ | \r-- | \r|
| Deferred revenue | \r\r | \r | 162 | \r\r | \r | \r | 170 | \r|
| \r | \r | $ | \r189 | \r\r | \r | $ | \r170 | \r
"}]},{"name":"rpt:f-868","factDimensions":{"xbrl:concept":"us-gaap:IncomeTaxDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
7. INCOME TAXES
\r\r\r\r
Domestic and foreign\rcomponents of loss before income tax benefit (expense) are as follows (in thousands):
\r\r\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Domestic | \r\r | $ | \r(13,064) | \r\r | \r | $ | \r(2,751) | \r\r | \r | $ | \r(5,273) | \r|
| Foreign | \r\r | \r | 10,860 | \r\r | \r | \r | (15) | \r\r | \r | \r | 65 | \r|
| \r | \r | $ | \r(2,204) | \r\r | \r | $ | \r(2,766) | \r\r | \r | $ | \r(5,208) | \r
\r\r
\r\r
The income tax\rbenefit (expense) consists of the following (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Federal income taxes: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| Current | \r\r | $ | \r163 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r|
| Deferred | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| State income taxes: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Current | \r\r | \r | 13 | \r\r | \r | \r | (30) | \r\r | \r | \r | (6) | \r|
| Deferred | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Foreign income taxes: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Current | \r\r | \r | 1 | \r\r | \r | \r | (6) | \r\r | \r | \r | (21) | \r|
| Deferred | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | $ | \r177 | \r\r | \r | $ | \r(36) | \r\r | \r | $ | \r(27) | \r
\r\r
The Company’s\reffective tax rate differs from the U.S. federal statutory tax rate, as follows:
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| U.S. federal statutory tax rate | \r\r | \r | 21.0 | \r% | \r\r | \r | 21.0 | \r% | \r\r | \r | 21.0 | \r% |
| State taxes, net of federal tax effect | \r\r | \r | 0.6 | \r\r | \r | \r | 1.4 | \r\r | \r | \r | (1.0) | \r|
| Foreign rate differential | \r\r | \r | 9.8 | \r\r | \r | \r | (21.5) | \r\r | \r | \r | (0.7) | \r|
| Stock-based compensation | \r\r | \r | (4.7) | \r\r | \r | \r | (4.0) | \r\r | \r | \r | (2.8) | \r|
| Research and development credit | \r\r | \r | 4.0 | \r\r | \r | \r | -- | \r\r | \r | \r | 1.5 | \r|
| Change in valuation allowance | \r\r | \r | (32.1) | \r\r | \r | \r | 4.3 | \r\r | \r | \r | (15.6) | \r|
| Federal rate change impact | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Federal AMT refund | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| ASU 2016-09 adoption | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Controlled Foreign Corporation Liquidation | \r\r | \r | 9.8 | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Other | \r\r | \r | (0.4) | \r\r | \r | \r | (2.5) | \r\r | \r | \r | (2.9) | \r|
| Effective tax rate | \r\r | \r | 8.0 | \r% | \r\r | \r | (1.3) | \r% | \r\r | \r | (0.5) | \r% |
\r\r
The components of\rthe net deferred tax assets and liabilities are as follows (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| \r | \r | \r | \r | \r | \r | |||
| Deferred tax assets: | \r\r | \r | \r | \r | \r | |||
| Net operating losses | \r\r | $ | \r15,584 | \r\r | \r | $ | \r13,634 | \r|
| Lease Liability | \r\r | \r | 372 | \r\r | \r | \r | 483 | \r|
| Credit carryforwards | \r\r | \r | 5,298 | \r\r | \r | \r | 5,089 | \r|
| Inventory reserves | \r\r | \r | 1,006 | \r\r | \r | \r | 1,005 | \r|
| Reserves and accruals | \r\r | \r | 890 | \r\r | \r | \r | 739 | \r|
| Other | \r\r | \r | 450 | \r\r | \r | \r | 319 | \r|
| \r | \r | \r | 23,600 | \r\r | \r | \r | 21,269 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | |
| Deferred tax liabilities: | \r\r | \r | \r | \r | \r | \r | \r | |
| Operating lease right-of-use assets | \r\r | \r | (342) | \r\r | \r | \r | (449) | \r|
| Less: Valuation allowance | \r\r | \r | (23,258) | \r\r | \r | \r | (20,820) | \r|
| Net deferred tax assets (liabilities) | \r\r | $ | \r-- | \r\r | \r | $ | \r-- | \r
\r\r
The valuation allowance\rincreased by $2,438,000 during fiscal 2021, decreased by $118,000 during fiscal 2020, and increased by $813,000 during fiscal 2019. As\rof May 31, 2021 and 2020, the Company concluded that it is more likely than not that the deferred tax assets will not be realized and\rtherefore provided a full valuation allowance against the deferred tax assets. The Company will continue to evaluate the need for a valuation\rallowance against its deferred tax assets on a quarterly basis.
\r\r\r\r
At May 31, 2021 and\r2020, the Company has federal net operating loss carryforwards of approximately $64,298,000 and $54,601,000 respectively, to reduce future\rtaxable income. A portion of the federal net operating losses will begin to expire in 2024. Federal net operating losses of $13,383,000\rwill carryforward indefinitely and would be subject to an 80% taxable income limitation in the year utilized. At May 31, 2021 and 2020,\rthe Company has state net operating loss carryforwards of $29,812,000 and $29,386,000, respectively, to reduce future taxable income.\rThe state net operating loss carryforwards will begin to expire in 2028.
\r\r\r\r
At May 31, 2021 and\r2020, the Company has federal research and development credit carryforwards of approximately $2,201,000 and $2,113,000 respectively,\rto offset future tax liability. The federal credit carryforwards will begin to expire in 2022. At May 31, 2021 and 2020, The Company\rhas state research and development credit carryforwards of approximately $5,955,000 and $5,782,000 respectively, to offset future tax\rliability. The credit carryforwards are not subject to expiration. The Company also has alternative minimum tax credit carryforwards\rof $34,000 for state purposes. The credits may be used to offset regular tax and do not expire.
\r\r\r\r
ATS Japan was completely\rliquidated in July 2020. Thus, there is no more foreign net operating loss carryforward related to the Japan entity to the future.
\r\r\r\r
Internal Revenue Code\rof 1986, as amended (“IRC”) Section 382 (“§382”) limits the use of NOL and tax credit carryforwards in certain\rsituations where changes occur in the stock ownership of a company. In general, if we experience a greater than 50% aggregate change\rin ownership over a 3-year period, we are subject to an annual limitation under IRC §382 on the utilization of the Company’s\rpre-change NOL carryforwards. California and other states have similar laws. The annual limitation generally is determined by multiplying\rthe value of the Company’s stock at the time of such ownership change (subject to certain adjustments) by the applicable long-term\rexempt rate. Such limitations may result in expiration of a portion of the NOL carryforwards before utilization.
\r\r\r\r
The Company has made\rno provision for U.S. income taxes on undistributed earnings of certain foreign subsidiaries because it is the Company’s intention\rto permanently reinvest such earnings in its foreign subsidiaries. If such earnings were distributed, the Company would be subject to\radditional U.S. income tax expense.
\r\r\r\r
The Company maintains\rliabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored\rby management based on the best information available. The aggregate changes in the balance of gross unrecognized tax benefits are as\rfollows (in thousands):
\r\r\r\r
| Beginning balance as of May 31, 2018 | \r\r | $ | \r1,785 | \r|
| \r | \r | \r | \r | |
| Decreases related to prior year tax positions | \r\r | \r | (41) | \r|
| Increases related to current year tax positions | \r\r | \r | 65 | \r|
| \r | \r | \r | \r | |
| Balance at May 31, 2019 | \r\r | $ | \r1,809 | \r|
| \r | \r | \r | \r | |
| Decreases related to prior year tax positions | \r\r | \r | (11) | \r|
| Increases related to current year tax positions | \r\r | \r | 54 | \r|
| \r | \r | \r | \r | |
| Balance at May 31, 2020 | \r\r | $ | \r1,852 | \r|
| \r | \r | \r | \r | |
| Increases related to prior year tax positions | \r\r | \r | 11 | \r|
| Increases related to current year tax positions | \r\r | \r | 65 | \r|
| \r | \r | \r | \r | |
| Balance at May 31, 2021 | \r\r | $ | \r1,928 | \r
\r\r
As of May 31, 2021\rand 2020, the Company has not recorded interest and penalties associated with its unrecognized tax benefits. The Company’s unrecognized\rgross tax benefits would not reduce the annual effective tax rate if recognized because it has recorded a full valuation allowance on\rits deferred tax assets. The Company does not foresee any material changes to the gross unrecognized tax benefit within the next twelve\rmonths. The Company’s policy is to recognize interest and penalties in income tax expense.
\r\r\r\r
The Company’s\rfederal and state income tax returns are subject to possible examination by the taxing authorities until the expiration of the related\rstatutes of limitations on those tax returns. In general, the federal income tax returns have a three-year statute of limitations, and\rthe state income tax returns have a four-year statute of limitations. The Company’s foreign income tax returns are also subject\rto examination by the foreign tax authorities with the longest statute of limitations period of four-year.
\r\r\r\r
On March 27, 2020,\rthe CARES Act was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer\rportion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the\rnet interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The CARES\rAct did not have material impact to income taxes as the Company is in a historical loss position.
\r\r\r\r
On December 27, 2020,\rthe Consolidated Apportions Act of 2021 (“CCA”), a tax, funding and spending bill was signed into law and the Company does\rnot believe the CAA will materially impact the 2021 income tax provision.
\r\r\r\r
On June 29, 2020,\rCalifornia Governor Gavin Newsom signed Assembly Bill 85 (“AB 85”) into law as part of the California 2020 Budget Act, which\rtemporarily suspends the use of California net operating losses and imposes a cap on the amount of business incentive tax credits that\rcompanies can utilize against their net income for tax years 2020, 2021, and 2022. We analyzed the provisions of AB 85 and determined\rthere was no impact on our provision for income taxes for the current period and will continue to evaluate the impact, if any, AB 85\rmay have on our condensed consolidated financial statements and disclosures.
\r\r"}]},{"name":"rpt:f-869","factDimensions":{"xbrl:concept":"us-gaap:LesseeOperatingLeasesTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
8. LEASES
\r\r\r\r
The Company leases most of its manufacturing and\roffice space under operating leases. The Company entered into non-cancelable operating lease agreements for its United States manufacturing\rand office facilities and maintains equipment under non-cancelable operating leases in Germany. The Company’s principal administrative\rand production facilities are located in Fremont, California, in a 51,289 square foot building. The Company’s lease was renewed\rin February 2018 and expires in July 2023. The Company maintained a facility in Japan located in a 418 square foot office in Tokyo under\ra lease which expired in June 2020. The Company also maintained a 1,585 square foot warehouse in Yamanashi under a lease which expired\rin June 2020. The Company substantially closed its subsidiary Aehr Test Systems Japan K.K. in March 2020, completing the liquidation of\rthe legal entity in July 2020, see Note 17, “Restructuring,” of the Notes to Consolidated Financial Statements. The Company\rleases a 492 square foot sales and support office in Utting, Germany. The lease, which began February 1, 1992 and expires on January 31,\r2023, contains an automatic twelve months renewal, at rates to be determined, if no notice is given prior to six months from expiry. On\rNovember 18, 2020, the Company established a wholly owned new subsidiary, Aehr Test Systems Philippines Inc., which has been in full operation\rsince March 2021. The Company leases a facility in Philippines located in a 2,713 square foot building in\rClark Freeport Zone, Pampanga. The lease, which began January 1, 2021 and expires on December 31, 2025, contains an option to renew for\ranother three years at rates stipulated in the contract, notice for renewal is given 6 months from expiry. Under the lease agreements,\rthe Company is responsible for payments of utilities, taxes and insurance.
\r\r\r\r
The Company has only operating leases for real estate\rincluding corporate offices, warehouse space and certain equipment. A lease with an initial term of 12 months or less is generally not\rrecorded on the condensed consolidated balance sheet, unless the arrangement includes an option to purchase the underlying asset, or renew\rthe arrangement that the Company is reasonably certain to exercise (short-term leases). The Company recognizes lease expense on a straight-line\rbasis over the lease term for short-term leases that the Company does not record on its balance sheet. The Company’s operating leases\rhave remaining lease terms of 1 year to 5 years.
\r\r\r\r
The Company determines whether an arrangement is\ror contains a lease based on the unique facts and circumstances present at the inception of the arrangement. Operating lease liabilities\rand their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The\rinterest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental\rborrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments\rin a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs\rpaid or incentives received.
\r\r\r\r
The weighted average remaining lease term for the\rCompany’s operating leases was 2.4 years at May 31, 2021 and the weighted average discount rate was 5.4%.
\r\r\r\r
The Company’s operating lease cost under FASB\rASC Topic 842 was $761,000 for the year ended May 31, 2021. The Company’s operating lease cost under FASB ASC Topic\r842 was $734,000 for the year ended May 31, 2020.
\r\r\r\r
The following table presents supplemental cash flow\rinformation related to the Company’s operating leases (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| Cash paid for amounts included in the measurement of operating lease liabilities: | \r\r | \r | \r | \r | \r | |||
| Operating cash flows from operating leases | \r\r | $ | \r779 | \r\r | \r | $ | \r737 | \r|
| Right-of-use assets obtained in exchange for operating leases liabilities | \r\r | \r | 147 | \r\r | \r | \r | 2,859 | \r
\r\r
The following table presents the maturities of the\rCompany’s operating lease liabilities as of May 31, 2021 (in thousands):
\r\r\r\r
| Fiscal year | \r\r | Operating Leases | \r||
| 2022 | \r\r | $ | \r813 | \r|
| 2023 | \r\r | \r | 829 | \r|
| 2024 | \r\r | \r | 168 | \r|
| 2025 | \r\r | \r | 32 | \r|
| 2026 | \r\r | \r | 19 | \r|
| Thereafter | \r\r | \r | -- | \r|
| Total future minimum operating lease payments | \r\r | \r | 1,861 | \r|
| Less: imputed interest | \r\r | \r | (117) | \r|
| Present value of operating lease liabilities | \r\r | $ | \r1,744 | \r
"}]},{"name":"rpt:f-870","factDimensions":{"xbrl:concept":"us-gaap:DebtDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
9. BORROWING AND FINANCING ARRANGEMENTS
\r\r\r\r
On January 16, 2020, the Company entered into a\rLoan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). Pursuant to the Loan Agreement,\rthe Company may borrow up to (a) the lesser of (i) the revolving line of $4.0 million or (ii) the amount available under the borrowing\rbase minus (b) the outstanding principal balance of any advances, under a revolving line of credit which is collateralized by all the\rCompany’s assets except intellectual property. The borrowing base is 80% of eligible accounts, as determined by SVB from the Company’s\rmost recent borrowing base statement; provided, however, SVB has the right to decrease the foregoing percentage in its good faith business\rjudgment to mitigate the impact of certain events or conditions, which may adversely affect the collateral or its value. Subject to an\revent of default, the principal amount outstanding under the revolving line of credit will accrue interest at a floating per annum rate\requal to the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company’s\radjusted quick ratio, and (b) 4.75%. Interest is payable monthly on the last calendar day of each month and the outstanding principal\ramount, the unpaid interest and all other obligations are due on the maturity date, which is 364 days from the effective date of January\r13, 2020.
\r\r\r\r
On January 14, 2021, the Company entered into the\rFirst Amendment to Loan and Security Agreement (the “Amendment”) with Silicon Valley Bank. The Amendment, among other things,\rextends the Revolving Line Maturity Date to July 14, 2021; provided, however, that if the Company achieves specified operating metrics\ron a consolidated basis on or prior to May 31, 2021 the Amended Revolving Line Maturity Date is extended to January 13, 2022. On July\r8, 2021 the Company received confirmation from SVB that the Revolving Line Maturity Date has been extended to January 13, 2022.
\r\r\r\r
At May 31, 2021, the Company had drawn $1,400,000\ragainst the credit facility and was in compliance with all covenants related to obligations to meet reporting requirements. The balance\ravailable to borrow under the line at May 31, 2021 was $308,000. There are no financial covenants in the agreement.
\r\r"}]},{"name":"rpt:f-871","factDimensions":{"xbrl:concept":"us-gaap:LongTermDebtTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
10. LONG-TERM DEBT
\r\r\r\r
On April 23, 2020, the Company obtained the PPP Loan in the aggregate amount\rof $1,678,789 from SVB. The PPP Loan was evidenced by a promissory note dated April 23, 2020 (the “Note”) that matures on\rApril 23, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 23, 2020. The PPP Loan proceeds were\rused for payroll, health care benefits, rent and utilities.
\r\r\r\r
Under the terms of the CARES Act, PPP loan recipients\rcan apply for and be granted forgiveness for all or a portion of loans granted under the PPP. Such forgiveness will be determined, subject\rto limitations, based on the use of loan proceeds for payment of payroll costs, covered rent and mortgage obligations, and covered utility\rpayments incurred by the Company. On June 4, 2021, the entire PPP Loan balance and interest were forgiven, see Note 18, “Subsequent\rEvent” of the Notes to Consolidated Financial Statements.
\r\r"}]},{"name":"rpt:f-872","factDimensions":{"xbrl:concept":"us-gaap:ShareholdersEquityAndShareBasedPaymentsTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
11. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION
\r\r\r\r\r\r
STOCK-BASED COMPENSATION:
\r\r\r\r
Stock-based compensation expense consists of expenses\rfor stock options, restricted stock units, or RSUs, and employee stock purchase plan, or ESPP, purchase rights. Stock-based compensation\rexpense for stock options and ESPP purchase rights is measured at each grant date, based on the fair value of the award using the Black-Scholes\roption valuation model, and is recognized as expense over the employee’s requisite service period. This model was developed for\ruse in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. The Company’s\remployee stock options have characteristics significantly different from those of publicly traded options. For RSUs, stock-based compensation\rexpense is based on the fair value of the Company’s common stock at the grant date, and is recognized as expense over the employee’s\rrequisite service period. All of the Company’s stock-based compensation is accounted for as equity instruments.
\r\r\r\r
The following table summarizes the stock-based compensation\rexpense for the fiscal years ended May 31, 2021, 2020 and 2019 (in thousands, except per share data):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Stock-based compensation in the form of stock options, RSUs, and ESPP purchase rights, included in: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| \r | \r | \r | \r | \r | \r | \r | \r | \r | ||||
| Cost of sales | \r\r | $ | \r70 | \r\r | \r | $ | \r80 | \r\r | \r | $ | \r104 | \r|
| Selling, general and administrative | \r\r | \r | 816 | \r\r | \r | \r | 631 | \r\r | \r | \r | 545 | \r|
| Research and development | \r\r | \r | 215 | \r\r | \r | \r | 199 | \r\r | \r | \r | 256 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Net effect on net loss | \r\r | $ | \r1,101 | \r\r | \r | $ | \r910 | \r\r | \r | $ | \r905 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Effect on net loss per share: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Basic | \r\r | $ | \r0.05 | \r\r | \r | $ | \r0.04 | \r\r | \r | $ | \r0.04 | \r|
| Diluted | \r\r | $ | \r0.05 | \r\r | \r | $ | \r0.04 | \r\r | \r | $ | \r0.04 | \r
\r\r
As of May 31, 2021, 2020 and 2019, there were no\rstock-based compensation expenses capitalized as part of inventory.
\r\r\r\r
During fiscal 2021, 2020 and fiscal 2019, the Company\rrecorded stock-based compensation related to stock options and restricted stock units of $993,000, $751,000 and $650,000, respectively.
\r\r\r\r
As of May 31, 2021, the total compensation expense\rrelated to unvested stock-based awards under the Company’s 2016 Equity Incentive Plan, but not yet recognized, was $1,022,000 which\ris net of estimated forfeitures of $3,000. This expense will be amortized on a straight-line basis over a weighted average period of approximately\r2.4 years.
\r\r\r\r
During fiscal 2021, 2020 and fiscal 2019, the Company\rrecorded stock-based compensation related to its ESPP of $108,000, $159,000 and $255,000, respectively. The increase in fiscal 2019 is\rprimarily due to employees increasing their ESPP elections during the fiscal year.
\r\r\r\r
As of May 31, 2021, the total compensation expense\rrelated to purchase rights under the ESPP but not yet recognized was $229,000. This expense will be amortized on a straight-line basis\rover a weighted average period of approximately 1.2 years.
\r\r\r\r
Valuation Assumptions
\r\r\r\r
Valuation and Amortization Method. The Company estimates\rthe fair value of stock options granted using the Black-Scholes option valuation method and a single option award approach. The fair value\runder the single option approach is amortized on a straight-line basis over the requisite service periods of the awards, which is generally\rthe vesting period.
\r\r\r\r
Expected Term. The Company’s expected term\rrepresents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical\rexperience, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee\rbehavior as evidenced by changes to the terms of its stock-based awards.
\r\r\r\r
Volatility. Volatility is a measure of the amounts\rby which a financial variable such as stock price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility)\rduring a period. The Company uses the historical volatility for the past five years, which matches the expected term of most of the option\rgrants, to estimate expected volatility. Volatility for each of the ESPP’s four time periods of six months, twelve months, eighteen\rmonths, and twenty-four months is calculated separately and included in the overall stock-based compensation expense recorded.
\r\r\r\r
Risk-Free Interest Rate. The Company bases the risk-free\rinterest rate used in the Black-Scholes option valuation method on the implied yield in effect at the time of option grant on U.S. Treasury\rzero-coupon issues with a remaining term equivalent to the expected term of the stock awards including the ESPP.
\r\r\r\r
Fair Value. The fair values of the Company’s\rstock options granted to employees in fiscal 2021, 2020 and 2019 were estimated using the following weighted average assumptions in the\rBlack-Scholes option valuation method:
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| \r | \r | \r | \r | \r | \r | \r | \r | \r | ||||
| Expected term (in years) | \r\r | \r | 6 | \r\r | \r | \r | 5 | \r\r | \r | \r | 5 | \r|
| Volatility | \r\r | \r | 72.0 | \r% | \r\r | \r | 71.5 | \r% | \r\r | \r | 71.9 | \r% |
| Risk-free interest rates | \r\r | \r | 0.44 | \r% | \r\r | \r | 1.56 | \r% | \r\r | \r | 2.83 | \r% |
| Weighted average grant date fair value | \r\r | $ | \r1.12 | \r\r | \r | $ | \r0.95 | \r\r | \r | $ | \r1.33 | \r
\r\r
The fair value of our ESPP purchase rights for the\rfiscal 2021, 2020 and 2019 was estimated using the following weighted average assumptions:
\r\r\r\r
| \r | Year End May 31, | ||||
| \r | 2021 | \r\r | 2020 | \r\r | 2019 |
| \r | \r | \r | \r | \r | |
| Expected term (in years) | \r0.5 – 2.0 | \r\r | 0.5 – 2.0 | \r\r | 0.5 – 2.0 |
| Volatility | \r74% – 88% | \r\r | 62% – 77% | \r\r | 48% – 78% |
| Risk-free interest rates | \r0.04%–0.17% | \r\r | 0.14%–1.81% | \r\r | 2.33%–2.82% |
| Weighted average grant date fair value | \r$1.03 | \r\r | $0.79 | \r\r | $1.14 |
\r\r
EQUITY INCENTIVE PLAN:
\r\r\r\r
In October 2006, the Company’s 2006 Equity\rIncentive Plan was approved by the shareholders, which provides for granting of incentive stock options, non-statutory stock options,\rrestricted stock, restricted stock units, stock appreciation rights, performance units, performance shares and other stock or cash awards\ras the Company’s Board of Directors may determine.
\r\r\r\r
In October 2016, the Company’s 2016 Equity\rIncentive Plan was approved by the Company’s shareholders. The 2016 Equity Incentive Plan replaced our 2006 Equity Incentive Plan,\rwhich was scheduled to expire in October 2016, and will continue in effect until 2026. A total of 3,435,000 shares of common stock have\rbeen reserved for issuance under the Company’s 2016 Equity Incentive Plan, which includes 1,835,000 shares that remained available\rfor issuance under the 2006 Equity Incentive Plan. See the Company’s Registration Statement on Form S-8 filed with the Securities\rand Exchange Commission on November 22, 2019 for further information regarding the 2016 Equity Incentive Plan.
\r\r\r\r
As of May 31, 2021, out of the 4,036,000 shares\rauthorized for grant under the 2016 Equity Incentive Plan, 2,898,000 stock options and RSUs were outstanding. As of May 31, 2020, out\rof the 4,813,000 shares authorized for grant under the 2016 Equity Incentive Plan, 3,163,000 stock options and RSUs were outstanding.
\r\r\r\r
The following tables summarize the Company’s\rstock option and RSU transactions during fiscal 2021, 2020 and 2019 (in thousands):
\r\r\r\r\r\r
| \r | \r | Available | \r||
| \r | \r | Shares | \r||
| Balance, May 31, 2018 | \r\r | \r | 1,812 | \r|
| \r | \r | \r | \r | |
| Options granted | \r\r | \r | (804) | \r|
| RSUs cancelled | \r\r | \r | 8 | \r|
| Options terminated | \r\r | \r | 195 | \r|
| Options expired | \r\r | \r | (64) | \r|
| \r | \r | \r | \r | |
| Balance, May 31, 2019 | \r\r | \r | 1,147 | \r|
| \r | \r | \r | \r | |
| Additional shares reserved | \r\r | \r | 1,196 | \r|
| Options granted | \r\r | \r | (738) | \r|
| RSUs granted | \r\r | \r | (25) | \r|
| Shares withheld for taxes and not issued | \r\r | \r | 6 | \r|
| Options terminated | \r\r | \r | 457 | \r|
| Options expired | \r\r | \r | (393) | \r|
| \r | \r | \r | \r | |
| Balance, May 31, 2020 | \r\r | \r | 1,650 | \r|
| \r | \r | \r | \r | |
| Options granted | \r\r | \r | (297) | \r|
| RSUs granted | \r\r | \r | (340) | \r|
| RSUs cancelled | \r\r | \r | 1 | \r|
| Shares withheld for taxes and not issued | \r\r | \r | 9 | \r|
| Options terminated | \r\r | \r | 455 | \r|
| Options expired | \r\r | \r | (341) | \r|
| \r | \r | \r | \r | |
| Balance, May 31, 2021 | \r\r | \r | 1,137 | \r
\r\r
The following table summarized\rthe stock option transactions during fiscal 2021, 2020 and 2019 (in thousands, except per share data):
\r\r\r\r
| \r | \r | Outstanding Options | \r||||||||||
| \r | \r | \r | \r | \r | Weighted | \r\r | \r | \r | ||||
| \r | \r | Number | \r\r | \r | Average | \r\r | \r | Aggregate | \r||||
| \r | \r | of | \r\r | \r | Exercise | \r\r | \r | Intrinsic | \r||||
| \r | \r | Shares | \r\r | \r | Price | \r\r | \r | Value | \r||||
| Balances, May 31, 2018 | \r\r | \r | 2,859 | \r\r | \r | $ | \r2.04 | \r\r | \r | $ | \r1,987 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options granted | \r\r | \r | 804 | \r\r | \r | $ | \r2.19 | \r\r | \r | \r | \r | |
| Options terminated | \r\r | \r | (195) | \r\r | \r | $ | \r2.32 | \r\r | \r | \r | \r | |
| Options exercised | \r\r | \r | (361) | \r\r | \r | $ | \r0.85 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Balances, May 31, 2019 | \r\r | \r | 3,107 | \r\r | \r | $ | \r2.20 | \r\r | \r | $ | \r283 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options granted | \r\r | \r | 738 | \r\r | \r | $ | \r1.61 | \r\r | \r | \r | \r | |
| Options terminated | \r\r | \r | (457) | \r\r | \r | $ | \r1.98 | \r\r | \r | \r | \r | |
| Options exercised | \r\r | \r | (235) | \r\r | \r | $ | \r1.22 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Balances, May 31, 2020 | \r\r | \r | 3,153 | \r\r | \r | $ | \r2.17 | \r\r | \r | $ | \r102 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options granted | \r\r | \r | 297 | \r\r | \r | $ | \r1.78 | \r\r | \r | \r | \r | |
| Options terminated | \r\r | \r | (455) | \r\r | \r | $ | \r2.31 | \r\r | \r | \r | \r | |
| Options exercised | \r\r | \r | (229) | \r\r | \r | $ | \r1.54 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Balances, May 31, 2021 | \r\r | \r | 2,766 | \r\r | \r | $ | \r2.16 | \r\r | \r | $ | \r807 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options fully vested and expected to vest at May 31, 2021 | \r\r | \r | 2,732 | \r\r | \r | $ | \r2.16 | \r\r | \r | $ | \r795 | \r
\r\r
\r\r
The options outstanding and exercisable at May 31,\r2021 were in the following exercise price ranges (in thousands, except per share data):
\r\r\r\r
\r\r
| \r | \r | \r | \r | Options Outstanding | \r\r | \r | Options Exercisable | \r||||||||||||||||||||||||
| \r | \r | \r | \r | at May 31, 2021 | \r\r | \r | at May 31, 2021 | \r||||||||||||||||||||||||
| \r | \r Range of Exercise \rPrices | \r \r | \r | Number Outstanding Shares | \r\r | \r | Weighted Average Remaining Contractual Life (Years) | \r\r | \r | Weighted Average Exercise Price | \r\r | \r | Number Exercisable Shares | \r\r | \r | Weighted Average Remaining Contractual Life (Years) | \r\r | \r | Weighted Average Exercise Price | \r\r | \r | Aggregate Intrinsic Value | \r|||||||||
| \r | $ | \r1.22-$1.34 | \r\r | \r | \r | 133 | \r\r | \r | \r | 6.05 | \r\r | \r | $ | \r1.27 | \r\r | \r | \r | 56 | \r\r | \r | \r | 6.15 | \r\r | \r | $ | \r1.29 | \r\r | \r | \r | ||
| \r | $ | \r1.64-$1.86 | \r\r | \r | \r | 1,040 | \r\r | \r | \r | 4.80 | \r\r | \r | $ | \r1.70 | \r\r | \r | \r | 625 | \r\r | \r | \r | 4.33 | \r\r | \r | $ | \r1.69 | \r\r | \r | \r | \r | |
| \r | $ | \r2.03-$2.46 | \r\r | \r | \r | 1,035 | \r\r | \r | \r | 3.09 | \r\r | \r | $ | \r2.21 | \r\r | \r | \r | 814 | \r\r | \r | \r | 2.68 | \r\r | \r | $ | \r2.20 | \r\r | \r | \r | \r | |
| \r | $ | \r2.65-$2.81 | \r\r | \r | \r | 358 | \r\r | \r | \r | 0.46 | \r\r | \r | $ | \r2.72 | \r\r | \r | \r | 357 | \r\r | \r | \r | 0.45 | \r\r | \r | $ | \r2.72 | \r\r | \r | \r | \r | |
| \r | $ | \r3.46-$3.93 | \r\r | \r | \r | 200 | \r\r | \r | \r | 3.16 | \r\r | \r | $ | \r3.86 | \r\r | \r | \r | 193 | \r\r | \r | \r | 3.16 | \r\r | \r | $ | \r3.85 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| \r | $ | \r1.22-$3.93 | \r\r | \r | \r | 2,766 | \r\r | \r | \r | 3.54 | \r\r | \r | $ | \r2.16 | \r\r | \r | \r | 2,045 | \r\r | \r | \r | 2.94 | \r\r | \r | $ | \r2.26 | \r\r | \r | $ | \r492 | \r
\r\r
The total intrinsic values of options exercised\rwere $152,000, $160,000 and $338,000 during fiscal 2021, 2020 and 2019, respectively. The weighted average contractual life of the options\rexercisable and expected to be exercisable at May 31, 2021 was 3.52 years.
\r\r\r\r
Options to purchase 2,045,000, 2,203,000 and 2,314,000\rshares were exercisable at May 31, 2021, 2020 and 2019, respectively. These exercisable options had weighted average exercise prices of\r$2.26, $2.25 and $2.14 as of May 31, 2021, 2020 and 2019, respectively.
\r\r\r\r
During the fiscal year ended May 31, 2021,\rRSUs for 170,000 shares, net of 9,000 shares withheld to settle payroll taxes, were granted and fully vested to employees. The\rweighted average market value on the date of the grant of these RSUs was $1.92 per share. During the fiscal year ended May 31, 2021,\r37,000 RSUs became fully vested and 1,000 RSUs were cancelled. 132,000 RSUs were outstanding and unvested at May 31, 2021. The\rintrinsic value of the outstanding and unvested RSUs at May 31, 2021 was $297,000. During the fiscal year ended May 31, 2020, RSUs\rfor 10,000 shares, net of 6,000 shares withheld to settle payroll taxes, were granted and fully vested to employees. The market\rvalue on the date of the grant of these RSUs was $1.64 per share. During the fiscal year ended May 31, 2020, 13,000 RSUs became\rfully vested and there was no cancellation. 10,000 RSUs were outstanding and unvested at May 31, 2020. The intrinsic value of the\routstanding and unvested RSUs at May 31, 2020 was $16,000. During the fiscal year ended May 31, 2019, there were no RSUs granted to employees. \rDuring the fiscal year ended May 31, 2019, 16,000 RSUs became fully vested and 8,000 RSUs were cancelled. 23,000 RSUs were outstanding\rand unvested at May 31, 2019. The intrinsic value of the outstanding and unvested RSUs at May 31, 2019 was $40,000.
\r\r\r\r
During the fiscal year ended May 31, 2021, RSUs\rfor 161,000 shares were granted and fully vested to members of the Company’s Board of Directors. The weighted average market value\ron the date of the grant of these RSUs was $1.81 per share. During the fiscal year ended May 31, 2020, RSUs for 9,000 shares were granted\rand fully vested to members of the Company’s Board of Directors. The weighted average market value on the date of the grant of these\rRSUs was $1.64 per share. There were no RSUs granted to members of the Board of Directors during fiscal 2019.
\r\r\r\r
EMPLOYEE STOCK PURCHASE PLAN:
\r\r\r\r
In October 2006, the Company’s shareholders\rapproved the 2006 Employee Stock Purchase Plan. In October 2016, the Company’s shareholders approved the Company’s Amended\rand Restated 2006 Employee Stock Purchase Plan (the “Purchase Plan”), which amended and restated the 2006 Employee Stock Purchase\rPlan. The Purchase Plan extended the term of the 2006 Employee Stock Purchase Plan indefinitely. See the Company’s Registration\rStatements on Form S-8 filed with the Securities and Exchange Commission on November 14, 2016 and November 21, 2018 for further information\rregarding the Purchase Plan. The Purchase Plan has consecutive, overlapping, twenty-four month offering periods. Each twenty-four-month\roffering period includes four six-month purchase periods. The offering periods generally begin on the first trading day on or after April\r1 and October 1 each year. All employees who work a minimum of 20 hours per week and are customarily employed by the Company (or an affiliate\rthereof) for at least five months per calendar year are eligible to participate. Under the Purchase Plan, shares are purchased through\remployee payroll deductions at exercise prices equal to 85% of the lesser of the fair market value of the Company’s common stock\rat either the first day of an offering period or the last day of the purchase period. If a participant’s rights to purchase stock\runder all employee stock purchase plans of the Company accrue at a rate which exceeds $25,000 worth of stock for a calendar year, such\rparticipant may not be granted an option to purchase stock under the Purchase Plan. The maximum number of shares a participant may purchase\rduring a single purchase period is 3,000 shares. In October 2020, the Company’s shareholders approved an amendment to the Purchase\rPlan to increase the number of shares authorized for issuance thereunder by an additional 350,000 shares of the Company’s common\rstock. After such amendment, a total of 2,200,000 shares of the Company’s common stock have been authorized for issuance under the\rPurchase Plan. During the fiscal years ended May 31, 2021, 2020 and 2019, ESPP purchase rights of 279,000, 55,000, and 379,000 shares,\rrespectively, were granted. For the fiscal years ended May 31, 2021, 2020 and 2019, approximately 147,000, 136,000 and 125,000 shares\rof common stock, respectively, were issued under the Purchase Plan. As of May 31, 2021, a total of 1,764,000 shares have been issued under\rthe Purchase Plan, and 436,000 ESPP shares remain available for issuance.
\r\r"}]},{"name":"rpt:f-873","factDimensions":{"xbrl:concept":"us-gaap:CompensationAndEmployeeBenefitPlansTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
12. EMPLOYEE BENEFIT PLANS
\r\r\r\r
EMPLOYEE STOCK OWNERSHIP PLAN:
\r\r\r\r
The Company has a non-contributory, trusteed employee\rstock ownership plan for full-time employees who have completed three consecutive months of service and for part-time employees who have\rcompleted one year of service and have attained an age of 21. The Company can contribute either shares of the Company’s stock or\rcash to the plan. The contribution is determined annually by the Company and cannot exceed 15% of the annual aggregate salaries of those\remployees eligible for participation in the plan. On May 31, 2007, the Company converted the Aehr Test Systems Employee Stock Bonus Plan\rinto the Aehr Test Systems Employee Stock Ownership Plan (the “Plan”). The stock bonus plan was converted to an employee stock\rownership plan (“ESOP”) to enable the Plan to better comply with changes in the law regarding Company stock. Individuals’\raccount balances vest at a rate of 20% per year commencing upon completion of two years of service. Non-vested balances, which are forfeited\rfollowing termination of employment, are allocated to the remaining employees in the Plan. Under the Plan provisions, each employee who\rreaches age fifty-five (55) and has been a participant in the Plan for ten years will be offered an election each year to direct the transfer\rof up to 25% of his/her ESOP account to the employee self-directed account in the Savings and Retirement Plan. For anyone who met the\rabove prerequisites, the first election to diversify holdings was offered after May 31, 2008. In the sixth year, employees will be able\rto diversify up to 50% of their ESOP accounts. Contributions of $60,000 per year were authorized for the plan during fiscal 2021, 2020\rand 2019. The contribution amounts are recorded as compensation expense, in the period authorized and included in accrued expenses, in\rthe period authorized. Contributions of 36,000 shares were made to the ESOP during fiscal 2021 for fiscal 2020. Contributions of 34,000\rshares were made to the ESOP during fiscal 2020 for fiscal 2019. Contributions of 23,000 shares were made to the ESOP during fiscal 2019\rfor fiscal 2018. The contribution for fiscal 2021 will be made in fiscal 2022. Shares held in the ESOP are included in the EPS calculation.
\r\r\r\r
401(K) PLAN:
\r\r\r\r
The Company maintains a defined contribution savings\rplan (the “401(k) Plan”) to provide retirement income to all qualified employees of the Company. The 401(k) Plan is intended\rto be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. The 401(k) Plan is funded by voluntary pre-tax\rcontributions from employees. Contributions are invested, as directed by the participant, in investment funds available under the 401(k)\rPlan. The Company is not required to make, and did not make, any contributions to the 401(k) Plan during fiscal 2021, 2020 and 2019.
\r\r"}]},{"name":"rpt:f-874","factDimensions":{"xbrl:concept":"us-gaap:OtherIncomeAndOtherExpenseDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
13. OTHER (EXPENSE) INCOME, NET
\r\r\r\r
Other (expense) income, net comprises the following\r(in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Foreign exchange (loss) gain | \r\r | $ | \r(111) | \r\r | \r | $ | \r(12) | \r\r | \r | $ | \r43 | \r|
| Other (expense) income, net | \r\r | \r | (51) | \r\r | \r | \r | 1 | \r\r | \r | \r | 1 | \r|
| \r | \r | $ | \r(162) | \r\r | \r | $ | \r(11) | \r\r | \r | $ | \r44 | \r
"}]},{"name":"rpt:f-875","factDimensions":{"xbrl:concept":"us-gaap:ProductWarrantyDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
14. PRODUCT WARRANTIES
\r\r\r\r
The Company provides for the estimated cost of product\rwarranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs\rand processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation\ris affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual\rproduct failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated\rwarranty liability would be required.
\r\r\r\r
The standard warranty period is one year for systems\rand ninety days for parts and service.
\r\r\r\r
Following is a summary of changes in the Company’s\rliability for product warranties during the fiscal years ended May 31, 2021 and 2020 (in thousands):
\r\r\r\r
| \r | \r | May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| \r | \r | \r | \r | \r | \r | |||
| Balance at the beginning of the year | \r\r | $ | \r246 | \r\r | \r | $ | \r154 | \r|
| Accruals for warranties issued during the year | \r\r | \r | 390 | \r\r | \r | \r | 299 | \r|
| Adjustment to previously existing warranty | \r\r | \r | 346 | \r\r | \r | \r | -- | \r|
| Consumption of reserves | \r\r | \r | (488) | \r\r | \r | \r | (207) | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | |
| Balance at the end of the year | \r\r | $ | \r494 | \r\r | \r | $ | \r246 | \r
\r\r
The accrued warranty balance is included in accrued\rexpenses on the consolidated balance sheets.
\r\r"}]},{"name":"rpt:f-876","factDimensions":{"xbrl:concept":"us-gaap:SegmentReportingDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
15. SEGMENT INFORMATION
\r\r\r\r
The Company has only one reportable segment. The\rinformation for revenue category by type, product line, geography and timing of revenue recognition, is summarized in Note 2, “Revenue.”
\r\r\r\r
Property and equipment information is based on the\rphysical location of the assets. The following table presents property and equipment information for geographic areas (in thousands):
\r\r\r\r
| \r | \r | May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| United States | \r\r | $ | \r647 | \r\r | \r | $ | \r662 | \r|
| Asia | \r\r | \r | 30 | \r\r | \r | \r | 1 | \r|
| Europe | \r\r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | $ | \r677 | \r\r | \r | $ | \r663 | \r
\r\r
As of May 31, 2021, the operating lease right-of-use\rassets of $1,480,000 and $126,000 were allocated in the United States and Asia, respectively.
\r\r\r\r
There were no revenues through distributors for\rthe fiscal years ended May 31, 2021 and 2020.
\r\r"}]},{"name":"rpt:f-877","factDimensions":{"xbrl:concept":"AEHR:DissolutionOfAehrTestSystemsJapanTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
16. DISSOLUTION OF AEHR TEST SYSTEMS JAPAN
\r\r\r\r
On July 31, 2020, the Company completed the liquidation of ATS-Japan, a\rmajority owned subsidiary. Accordingly, the Company deconsolidated ATS-Japan and recognized an aggregate net gain of $2,401,000 for the\rperiod ended August 31, 2020. The net gain was mainly due to cumulative translation adjustment reclassified into earnings of $2,186,000\rand the residual income tax effect in connection with the cumulative translation adjustment released into income tax benefits of $215,000.
\r\r"}]},{"name":"rpt:f-878","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfSubsequentEventsTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
18. SUBSEQUENT EVENT
\r\r\r\r\r\r
On June 12, 2021, the Company received confirmation\rfrom the SVB that on June 4, 2021, the Small Business Administration approved the Company’s PPP Loan forgiveness application for\rthe entire PPP Loan balance of $1,678,789 and interest totaling $18,933, and that the remaining PPP Loan balance is zero.
\r\r\r\r"}]},{"name":"rpt:f-879","factDimensions":{"xbrl:concept":"us-gaap:RelatedPartyTransactionsDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
19. RELATED PARTY TRANSACTIONS
\r\r\r\r
Mario M. Rosati, one of the Company’s directors,\rwas also a member of Wilson Sonsini Goodrich & Rosati, Professional Corporation, which has served as the Company’s outside corporate\rcounsel and has received compensation at normal commercial rates for these services. Mario M. Rosati retired from Wilson Sonsini Goodrich\r& Rosati on January 31, 2020. The amounts of transactions during fiscal years ended May 31, 2020 were $78,000. At May 31, 2020 the\rCompany had a prepayment to Wilson Sonsini Goodrich & Rosati of $14,000.
\r\r"}]},{"name":"rpt:f-880","factDimensions":{"xbrl:concept":"us-gaap:CommitmentsAndContingenciesDisclosureTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
20. COMMITMENTS AND CONTINGENCIES
\r\r\r\r
COMMITMENTS
\r\r\r\r
At both May 31, 2021 and 2020, the Company had restricted\rcash of $80,000 held by a financial institution, representing a security deposit for its United States manufacturing and office space\rlease. This amount is included in other assets on the consolidated balance sheets.
\r\r\r\r
PURCHASE OBLIGATIONS
\r\r\r\r
The Company has purchase obligations to certain\rsuppliers. In some cases the products the Company purchases are unique and have provisions against cancellation of the order. At May 31,\r2021, the Company had $3,377,000 of purchase obligations which are due within the following 12 months. This amount does not include contractual\robligations recorded on the consolidated balance sheets as liabilities.
\r\r\r\r
CONTINGENCIES
\r\r\r\r
The Company may, from time to time, be involved\rin legal proceedings arising in the ordinary course of business. While there can be no assurances as to the ultimate outcome of any litigation\rinvolving the Company, management does not believe any pending legal proceedings will result in judgment or settlement that will have\ra material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
\r\r\r\r
In the normal course of business to facilitate sales\rof its products, the Company indemnifies other parties, including customers, with respect to certain matters, for example, including against\rlosses arising from a breach of representations or covenants, or from intellectual property infringement or other claims. These agreements\rmay limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered\rinto indemnification agreements with its officers and directors, and the Company’s bylaws contain similar indemnification obligations\rto the Company’s agents.
\r\r\r\r
It is not possible to determine the maximum potential\ramount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances\rinvolved in each particular agreement. To date, payments made by the Company under these agreements have not had a material impact on\rthe Company’s operating results, financial position or cash flows.
\r\r"}]},{"name":"rpt:f-881","factDimensions":{"xbrl:concept":"us-gaap:QuarterlyFinancialInformationTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
21. SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (UNAUDITED)
\r\r\r\r
The following tables (presented in thousands, except\rper share data) sets forth selected unaudited condensed consolidated statements of operations data for each of the four quarters of the\rfiscal years ended May 31, 2021 and 2020. The unaudited quarterly information has been prepared on the same basis as the annual information\rpresented elsewhere herein and, in the Company’s opinion, includes all adjustments (consisting only of normal recurring entries)\rnecessary for a fair statement of the information for the quarters presented. The operating results for any quarter are not necessarily\rindicative of results for any future period and should be read in conjunction with the audited consolidated financial statements of the\rCompany’s and the notes thereto included elsewhere herein.
\r\r\r\r
\r\r
| \r | \r | Three Months Ended | \r||||||||||||||
| \r | \r | Aug. 31, | \r\r | \r | Nov. 30, | \r\r | \r | Feb. 28, | \r\r | \r | May 31, | \r|||||
| \r | \r | 2020 | \r\r | \r | 2020 | \r\r | \r | 2021 | \r\r | \r | 2021 | \r|||||
| Net sales | \r\r | $ | \r2,012 | \r\r | \r | $ | \r1,683 | \r\r | \r | $ | \r5,267 | \r\r | \r | $ | \r7,638 | \r|
| Gross profit | \r\r | $ | \r227 | \r\r | \r | $ | \r377 | \r\r | \r | $ | \r1,894 | \r\r | \r | $ | \r3,534 | \r|
| Net income (loss) | \r\r | $ | \r107 | \r\r | \r | $ | \r(1,966 | \r) | \r\r | $ | \r(735 | \r) | \r\r | $ | \r567 | \r|
| Net income (loss) per share basic and diluted | \r\r | $ | \r0.00 | \r\r | \r | $ | \r(0.08 | \r) | \r\r | $ | \r(0.03 | \r) | \r\r | $ | \r0.02 | \r
\r\r
\r\r
| \r | \r | Three Months Ended | \r||||||||||||||
| \r | \r | Aug. 31, | \r\r | \r | Nov. 30, | \r\r | \r | Feb. 29, | \r\r | \r | May 31, | \r|||||
| \r | \r | 2019 | \r\r | \r | 2019 | \r\r | \r | 2020 | \r\r | \r | 2020 | \r|||||
| Net sales | \r\r | $ | \r5,533 | \r\r | \r | $ | \r6,874 | \r\r | \r | $ | \r6,111 | \r\r | \r | $ | \r3,773 | \r|
| Gross profit (loss) | \r\r | $ | \r2,271 | \r\r | \r | $ | \r3,202 | \r\r | \r | $ | \r2,991 | \r\r | \r | $ | \r(93 | \r) |
| Net (loss) income | \r\r | $ | \r(413 | \r) | \r\r | $ | \r251 | \r\r | \r | $ | \r245 | \r\r | \r | $ | \r(2,885 | \r) |
| Net (loss) income per share basic and diluted | \r\r | $ | \r(0.02 | \r) | \r\r | $ | \r0.01 | \r\r | \r | $ | \r0.01 | \r\r | \r | $ | \r(0.13 | \r) |
"}]},{"name":"rpt:f-882","factDimensions":{"xbrl:concept":"AEHR:ScheduleUsefulLifeForPropertyAndEquipmentTableTextblock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
The ranges of estimated useful lives are generally as follows:
\r\r\r\r
| Furniture and fixtures | \r | 2 to 6 years |
| Machinery and equipment | \r | 3 to 6 years |
| Test equipment | \r | 4 to 6 years |
The following table summarizes the Company’s financial assets measured\rat fair value on a recurring basis as of May 31, 2021 (in thousands):
\r\r\r\r
| \r | \r | Balance as of | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | |||||
| \r | \r | May 31, 2021 | \r\r | \r | Level 1 | \r\r | \r | Level 2 | \r\r | \r | Level 3 | \r|||||
| Money market funds | \r\r | $ | \r580 | \r\r | \r | $ | \r580 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r|
| Assets | \r\r | $ | \r580 | \r\r | \r | $ | \r580 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r
\r\r
The following table summarizes the Company’s\rfinancial assets measured at fair value on a recurring basis as of May 31, 2020 (in thousands):
\r\r\r\r
| \r | \r | Balance as of | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | |||||
| \r | \r | May 31, 2020 | \r\r | \r | Level 1 | \r\r | \r | Level 2 | \r\r | \r | Level 3 | \r|||||
| Money market funds | \r\r | $ | \r80 | \r\r | \r | $ | \r80 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r|
| Assets | \r\r | $ | \r80 | \r\r | \r | $ | \r80 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r
"}]},{"name":"rpt:f-884","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
Accounts receivable comprise (in thousands):
\r\r\r\r
| \r | \r | May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| Accounts receivable | \r\r | $ | \r5,202 | \r\r | \r | $ | \r3,717 | \r|
| Less: Allowance for doubtful accounts | \r\r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | $ | \r5,202 | \r\r | \r | $ | \r3,717 | \r
The following table presents supplemental cash flow information\rrelated to the Company’s operating leases (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| Cash paid for amounts included in the measurement of operating lease liabilities: | \r\r | \r | \r | \r | \r | |||
| Operating cash flows from operating leases | \r\r | $ | \r779 | \r\r | \r | $ | \r737 | \r|
| Right-of-use assets obtained in exchange for operating leases liabilities | \r\r | \r | 147 | \r\r | \r | \r | 2,859 | \r
The following table presents the maturities of the Company’s\roperating lease liabilities as of May 31, 2021 (in thousands):
\r\r\r\r
| Fiscal year | \r\r | Operating Leases | \r||
| 2022 | \r\r | $ | \r813 | \r|
| 2023 | \r\r | \r | 829 | \r|
| 2024 | \r\r | \r | 168 | \r|
| 2025 | \r\r | \r | 32 | \r|
| 2026 | \r\r | \r | 19 | \r|
| Thereafter | \r\r | \r | -- | \r|
| Total future minimum operating lease payments | \r\r | \r | 1,861 | \r|
| Less: imputed interest | \r\r | \r | (117) | \r|
| Present value of operating lease liabilities | \r\r | $ | \r1,744 | \r
The following table summarizes the stock-based compensation expense\rfor the fiscal years ended May 31, 2021, 2020 and 2019 (in thousands, except per share data):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Stock-based compensation in the form of stock options,\r RSUs, and ESPP purchase rights, included in: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| \r | \r | \r | \r | \r | \r | \r | \r | \r | ||||
| Cost of sales | \r\r | $ | \r70 | \r\r | \r | $ | \r80 | \r\r | \r | $ | \r104 | \r|
| Selling, general and administrative | \r\r | \r | 816 | \r\r | \r | \r | 631 | \r\r | \r | \r | 545 | \r|
| Research and development | \r\r | \r | 215 | \r\r | \r | \r | 199 | \r\r | \r | \r | 256 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Net effect on net loss | \r\r | $ | \r1,101 | \r\r | \r | $ | \r910 | \r\r | \r | $ | \r905 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Effect on net loss per share: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Basic | \r\r | $ | \r0.05 | \r\r | \r | $ | \r0.04 | \r\r | \r | $ | \r0.04 | \r|
| Diluted | \r\r | $ | \r0.05 | \r\r | \r | $ | \r0.04 | \r\r | \r | $ | \r0.04 | \r
The fair values of the Company’s stock options granted\rto employees in fiscal 2021, 2020 and 2019 were estimated using the following weighted average assumptions in the Black-Scholes option\rvaluation method:
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| \r | \r | \r | \r | \r | \r | \r | \r | \r | ||||
| Expected term (in years) | \r\r | \r | 6 | \r\r | \r | \r | 5 | \r\r | \r | \r | 5 | \r|
| Volatility | \r\r | \r | 72.0 | \r% | \r\r | \r | 71.5 | \r% | \r\r | \r | 71.9 | \r% |
| Risk-free interest rates | \r\r | \r | 0.44 | \r% | \r\r | \r | 1.56 | \r% | \r\r | \r | 2.83 | \r% |
| Weighted average grant date fair value | \r\r | $ | \r1.12 | \r\r | \r | $ | \r0.95 | \r\r | \r | $ | \r1.33 | \r
The fair value of our ESPP purchase rights for the fiscal 2021,\r2020 and 2019 was estimated using the following weighted average assumptions:
\r\r\r\r
| \r | Year\r End May 31, | ||||
| \r | 2021 | \r\r | 2020 | \r\r | 2019 |
| \r | \r | \r | \r | \r | |
| Expected term (in years) | \r0.5 – 2.0 | \r\r | 0.5 – 2.0 | \r\r | 0.5 – 2.0 |
| Volatility | \r74% – 88% | \r\r | 62% – 77% | \r\r | 48% – 78% |
| Risk-free interest rates | \r0.04%–0.17% | \r\r | 0.14%–1.81% | \r\r | 2.33%–2.82% |
| Weighted average grant date fair value | \r$1.03 | \r\r | $0.79 | \r\r | $1.14 |
The following tables summarize the Company’s stock option\rand RSU transactions during fiscal 2021, 2020 and 2019 (in thousands):
\r\r\r\r
| \r | \r | Available | \r||
| \r | \r | Shares | \r||
| Balance, May 31, 2018 | \r\r | \r | 1,812 | \r|
| \r | \r | \r | \r | |
| Options granted | \r\r | \r | (804) | \r|
| RSUs cancelled | \r\r | \r | 8 | \r|
| Options terminated | \r\r | \r | 195 | \r|
| Options expired | \r\r | \r | (64) | \r|
| \r | \r | \r | \r | |
| Balance, May 31, 2019 | \r\r | \r | 1,147 | \r|
| \r | \r | \r | \r | |
| Additional shares reserved | \r\r | \r | 1,196 | \r|
| Options granted | \r\r | \r | (738) | \r|
| RSUs granted | \r\r | \r | (25) | \r|
| Shares withheld for taxes and not issued | \r\r | \r | 6 | \r|
| Options terminated | \r\r | \r | 457 | \r|
| Options expired | \r\r | \r | (393) | \r|
| \r | \r | \r | \r | |
| Balance, May 31, 2020 | \r\r | \r | 1,650 | \r|
| \r | \r | \r | \r | |
| Options granted | \r\r | \r | (297) | \r|
| RSUs granted | \r\r | \r | (340) | \r|
| RSUs cancelled | \r\r | \r | 1 | \r|
| Shares withheld for taxes and not issued | \r\r | \r | 9 | \r|
| Options terminated | \r\r | \r | 455 | \r|
| Options expired | \r\r | \r | (341) | \r|
| \r | \r | \r | \r | |
| Balance, May 31, 2021 | \r\r | \r | 1,137 | \r
The options outstanding and exercisable at May 31, 2021 were\rin the following exercise price ranges (in thousands, except per share data):
\r\r\r\r
| \r | \r | \r | \r | Options Outstanding | \r\r | \r | Options Exercisable | \r||||||||||||||||||||||||
| \r | \r | \r | \r | at May 31, 2021 | \r\r | \r | at May 31, 2021 | \r||||||||||||||||||||||||
| \r | Range of Exercise \rPrices | \r \r | \r | Number Outstanding Shares | \r\r | \r | Weighted Average Remaining\r Contractual Life (Years) | \r\r | \r | Weighted Average Exercise\r Price | \r\r | \r | Number Exercisable Shares | \r\r | \r | Weighted Average Remaining\r Contractual Life (Years) | \r\r | \r | Weighted Average Exercise\r Price | \r\r | \r | Aggregate Intrinsic Value | \r|||||||||
| \r | $ | \r1.22-$1.34 | \r\r | \r | \r | 133 | \r\r | \r | \r | 6.05 | \r\r | \r | $ | \r1.27 | \r\r | \r | \r | 56 | \r\r | \r | \r | 6.15 | \r\r | \r | $ | \r1.29 | \r\r | \r | \r | ||
| \r | $ | \r1.64-$1.86 | \r\r | \r | \r | 1,040 | \r\r | \r | \r | 4.80 | \r\r | \r | $ | \r1.70 | \r\r | \r | \r | 625 | \r\r | \r | \r | 4.33 | \r\r | \r | $ | \r1.69 | \r\r | \r | \r | \r | |
| \r | $ | \r2.03-$2.46 | \r\r | \r | \r | 1,035 | \r\r | \r | \r | 3.09 | \r\r | \r | $ | \r2.21 | \r\r | \r | \r | 814 | \r\r | \r | \r | 2.68 | \r\r | \r | $ | \r2.20 | \r\r | \r | \r | \r | |
| \r | $ | \r2.65-$2.81 | \r\r | \r | \r | 358 | \r\r | \r | \r | 0.46 | \r\r | \r | $ | \r2.72 | \r\r | \r | \r | 357 | \r\r | \r | \r | 0.45 | \r\r | \r | $ | \r2.72 | \r\r | \r | \r | \r | |
| \r | $ | \r3.46-$3.93 | \r\r | \r | \r | 200 | \r\r | \r | \r | 3.16 | \r\r | \r | $ | \r3.86 | \r\r | \r | \r | 193 | \r\r | \r | \r | 3.16 | \r\r | \r | $ | \r3.85 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| \r | $ | \r1.22-$3.93 | \r\r | \r | \r | 2,766 | \r\r | \r | \r | 3.54 | \r\r | \r | $ | \r2.16 | \r\r | \r | \r | 2,045 | \r\r | \r | \r | 2.94 | \r\r | \r | $ | \r2.26 | \r\r | \r | $ | \r492 | \r
Following is a summary of changes in the Company’s liability\rfor product warranties during the fiscal years ended May 31, 2021 and 2020 (in thousands):
\r\r\r\r
| \r | \r | May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| \r | \r | \r | \r | \r | \r | |||
| Balance at the beginning of the year | \r\r | $ | \r246 | \r\r | \r | $ | \r154 | \r|
| Accruals for warranties issued during the year | \r\r | \r | 390 | \r\r | \r | \r | 299 | \r|
| Adjustment to previously existing warranty | \r\r | \r | 346 | \r\r | \r | \r | -- | \r|
| Consumption of reserves | \r\r | \r | (488) | \r\r | \r | \r | (207) | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | |
| Balance at the end of the year | \r\r | $ | \r494 | \r\r | \r | $ | \r246 | \r
The following table presents property and equipment information\rfor geographic areas (in thousands):
\r\r\r\r
| \r | \r | May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| United States | \r\r | $ | \r647 | \r\r | \r | $ | \r662 | \r|
| Asia | \r\r | \r | 30 | \r\r | \r | \r | 1 | \r|
| Europe | \r\r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | $ | \r677 | \r\r | \r | $ | \r663 | \r
The following tables (presented in thousands, except per share\rdata) sets forth selected unaudited condensed consolidated statements of operations data for each of the four quarters of the fiscal\ryears ended May 31, 2021 and 2020.
\r\r\r\r
| \r | \r | Three Months Ended | \r||||||||||||||
| \r | \r | Aug. 31, | \r\r | \r | Nov. 30, | \r\r | \r | Feb. 28, | \r\r | \r | May 31, | \r|||||
| \r | \r | 2020 | \r\r | \r | 2020 | \r\r | \r | 2021 | \r\r | \r | 2021 | \r|||||
| Net sales | \r\r | $ | \r2,012 | \r\r | \r | $ | \r1,683 | \r\r | \r | $ | \r5,267 | \r\r | \r | $ | \r7,638 | \r|
| Gross profit | \r\r | $ | \r227 | \r\r | \r | $ | \r377 | \r\r | \r | $ | \r1,894 | \r\r | \r | $ | \r3,534 | \r|
| Net income (loss) | \r\r | $ | \r107 | \r\r | \r | $ | \r(1,966 | \r) | \r\r | $ | \r(735 | \r) | \r\r | $ | \r567 | \r|
| Net income (loss) per share basic and diluted | \r\r | $ | \r0.00 | \r\r | \r | $ | \r(0.08 | \r) | \r\r | $ | \r(0.03 | \r) | \r\r | $ | \r0.02 | \r
\r\r
\r\r
| \r | \r | Three Months Ended | \r||||||||||||||
| \r | \r | Aug. 31, | \r\r | \r | Nov. 30, | \r\r | \r | Feb. 29, | \r\r | \r | May 31, | \r|||||
| \r | \r | 2019 | \r\r | \r | 2019 | \r\r | \r | 2020 | \r\r | \r | 2020 | \r|||||
| Net sales | \r\r | $ | \r5,533 | \r\r | \r | $ | \r6,874 | \r\r | \r | $ | \r6,111 | \r\r | \r | $ | \r3,773 | \r|
| Gross profit (loss) | \r\r | $ | \r2,271 | \r\r | \r | $ | \r3,202 | \r\r | \r | $ | \r2,991 | \r\r | \r | $ | \r(93 | \r) |
| Net (loss) income | \r\r | $ | \r(413 | \r) | \r\r | $ | \r251 | \r\r | \r | $ | \r245 | \r\r | \r | $ | \r(2,885 | \r) |
| Net (loss) income per share basic and diluted | \r\r | $ | \r(0.02 | \r) | \r\r | $ | \r0.01 | \r\r | \r | $ | \r0.01 | \r\r | \r | $ | \r(0.13 | \r) |
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17. RESTRUCTURING
\r\r\r\r
\r\r
During the fiscal year ended May 31, 2020, the\rCompany approved the dissolution of Aehr Test Systems Japan K.K (“ATS-Japan”), a majority owned subsidiary. In connection\rwith the dissolution plan, the Company recognized approximately $220,000 in the fourth quarter of fiscal 2020 related to severance payments\rfor individuals impacted in this reduction, legal fees associated with the dissolution process, and write-off of assets. The ATS-J subsidiary\rwas dissolved in March 2020. The liquidation process occurred from March 2020 through the final liquidation in July 2020, allowing creditors\rtime to submit claims and time for ATS-J to wind down and disposition any assets.
\r\r\r\r
During the fiscal year ended May 31, 2019, the\rCompany implemented a restructuring plan in order to streamline its operations and better align its structure with its objectives\rgoing forward. In connection with the restructuring plan, the Company recognized $725,000 of restructuring charges related to\remployee termination expenses during the fiscal year ended May 31, 2019. The Company paid $317,000 of the restructuring charge\rduring fiscal year ended May 31, 2019. At May 31, 2019, the balance of $408,000 of the restructuring charge was included in accrued\rexpenses on the accompanying condensed consolidated balance sheets and was paid in fiscal year 2020. The Company does not expect to\rincur any further expenses in connection with this restructuring plan.
\r"}]},{"name":"rpt:f-961","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
The following table summarized the stock option transactions\rduring fiscal 2021, 2020 and 2019 (in thousands, except per share data):
\r\r\r\r
| \r | \r | Outstanding Options | \r||||||||||
| \r | \r | \r | \r | \r | Weighted | \r\r | \r | \r | ||||
| \r | \r | Number | \r\r | \r | Average | \r\r | \r | Aggregate | \r||||
| \r | \r | of | \r\r | \r | Exercise | \r\r | \r | Intrinsic | \r||||
| \r | \r | Shares | \r\r | \r | Price | \r\r | \r | Value | \r||||
| Balances, May 31, 2018 | \r\r | \r | 2,859 | \r\r | \r | $ | \r2.04 | \r\r | \r | $ | \r1,987 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options granted | \r\r | \r | 804 | \r\r | \r | $ | \r2.19 | \r\r | \r | \r | \r | |
| Options terminated | \r\r | \r | (195) | \r\r | \r | $ | \r2.32 | \r\r | \r | \r | \r | |
| Options exercised | \r\r | \r | (361) | \r\r | \r | $ | \r0.85 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Balances, May 31, 2019 | \r\r | \r | 3,107 | \r\r | \r | $ | \r2.20 | \r\r | \r | $ | \r283 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options granted | \r\r | \r | 738 | \r\r | \r | $ | \r1.61 | \r\r | \r | \r | \r | |
| Options terminated | \r\r | \r | (457) | \r\r | \r | $ | \r1.98 | \r\r | \r | \r | \r | |
| Options exercised | \r\r | \r | (235) | \r\r | \r | $ | \r1.22 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Balances, May 31, 2020 | \r\r | \r | 3,153 | \r\r | \r | $ | \r2.17 | \r\r | \r | $ | \r102 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options granted | \r\r | \r | 297 | \r\r | \r | $ | \r1.78 | \r\r | \r | \r | \r | |
| Options terminated | \r\r | \r | (455) | \r\r | \r | $ | \r2.31 | \r\r | \r | \r | \r | |
| Options exercised | \r\r | \r | (229) | \r\r | \r | $ | \r1.54 | \r\r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Balances, May 31, 2021 | \r\r | \r | 2,766 | \r\r | \r | $ | \r2.16 | \r\r | \r | $ | \r807 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Options fully vested and expected to vest at May 31, 2021 | \r\r | \r | 2,732 | \r\r | \r | $ | \r2.16 | \r\r | \r | $ | \r795 | \r
The Company’s revenues by product category\rare as follows (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Type of good / service: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| Systems | \r\r | $ | \r7,250 | \r\r | \r | $ | \r8,099 | \r\r | \r | $ | \r9,566 | \r|
| Contactors | \r\r | \r | 5,837 | \r\r | \r | \r | 10,784 | \r\r | \r | \r | 6,154 | \r|
| Services | \r\r | \r | 3,513 | \r\r | \r | \r | 3,408 | \r\r | \r | \r | 5,336 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r|
| Product lines: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Wafer-level | \r\r | $ | \r15,004 | \r\r | \r | $ | \r19,768 | \r\r | \r | $ | \r14,618 | \r|
| Test During Burn-In | \r\r | \r | 1,596 | \r\r | \r | \r | 2,523 | \r\r | \r | \r | 6,438 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r
\r\r
The following presents information about the Company’s\roperations in different geographic areas. Net sales are based upon ship-to location (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Geographic region: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| United States | \r\r | $ | \r5,386 | \r\r | \r | $ | \r13,544 | \r\r | \r | $ | \r13,468 | \r|
| Asia | \r\r | \r | 11,074 | \r\r | \r | \r | 7,556 | \r\r | \r | \r | 5,648 | \r|
| Europe | \r\r | \r | 140 | \r\r | \r | \r | 1,191 | \r\r | \r | \r | 1,940 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r
\r\r
With the exception of the amount of service contracts\rand extended warranties, the Company’s product category revenues are recognized at point in time when control transfers to customers.\rThe following presents revenue based on timing of recognition (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Timing of revenue recognition (in thousands): | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| Products and services transferred at a point in time | \r\r | $ | \r15,009 | \r\r | \r | $ | \r19,948 | \r\r | \r | $ | \r18,473 | \r|
| Services transferred over time | \r\r | \r | 1,591 | \r\r | \r | \r | 2,343 | \r\r | \r | \r | 2,583 | \r|
| \r | \r | $ | \r16,600 | \r\r | \r | $ | \r22,291 | \r\r | \r | $ | \r21,056 | \r
"}]},{"name":"rpt:f-963","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
The following table presents the computation of basic and diluted\rnet loss per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Numerator: Net loss | \r\r | $ | \r(2,027) | \r\r | \r | $ | \r(2,802) | \r\r | \r | $ | \r(5,235) | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Denominator for basic net loss per share: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Weighted average shares outstanding | \r\r | \r | 23,457 | \r\r | \r | \r | 22,882 | \r\r | \r | \r | 22,387 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Shares used in basic net loss per share calculation | \r\r | \r | 23,457 | \r\r | \r | \r | 22,882 | \r\r | \r | \r | 22,387 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Effect of dilutive securities | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Denominator for diluted net loss per share | \r\r | \r | 23,457 | \r\r | \r | \r | 22,882 | \r\r | \r | \r | 22,387 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Basic net loss per share | \r\r | $ | \r(0.09) | \r\r | \r | $ | \r(0.12) | \r\r | \r | $ | \r(0.23) | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Diluted net loss per share | \r\r | $ | \r(0.09) | \r\r | \r | $ | \r(0.12) | \r\r | \r | $ | \r(0.23) | \r
Domestic and foreign components of loss before income tax benefit\r(expense) are as follows (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Domestic | \r\r | $ | \r(13,064) | \r\r | \r | $ | \r(2,751) | \r\r | \r | $ | \r(5,273) | \r|
| Foreign | \r\r | \r | 10,860 | \r\r | \r | \r | (15) | \r\r | \r | \r | 65 | \r|
| \r | \r | $ | \r(2,204) | \r\r | \r | $ | \r(2,766) | \r\r | \r | $ | \r(5,208) | \r
The income tax benefit (expense) consists of the following (in\rthousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Federal income taxes: | \r\r | \r | \r | \r | \r | \r | \r | \r | ||||
| Current | \r\r | $ | \r163 | \r\r | \r | $ | \r-- | \r\r | \r | $ | \r-- | \r|
| Deferred | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| State income taxes: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Current | \r\r | \r | 13 | \r\r | \r | \r | (30) | \r\r | \r | \r | (6) | \r|
| Deferred | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Foreign income taxes: | \r\r | \r | \r | \r | \r | \r | \r | \r | \r | \r | \r | |
| Current | \r\r | \r | 1 | \r\r | \r | \r | (6) | \r\r | \r | \r | (21) | \r|
| Deferred | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| \r | \r | $ | \r177 | \r\r | \r | $ | \r(36) | \r\r | \r | $ | \r(27) | \r
The Company’s effective tax rate differs from the U.S.\rfederal statutory tax rate, as follows:
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| U.S. federal statutory tax rate | \r\r | \r | 21.0 | \r% | \r\r | \r | 21.0 | \r% | \r\r | \r | 21.0 | \r% |
| State taxes, net of federal tax effect | \r\r | \r | 0.6 | \r\r | \r | \r | 1.4 | \r\r | \r | \r | (1.0) | \r|
| Foreign rate differential | \r\r | \r | 9.8 | \r\r | \r | \r | (21.5) | \r\r | \r | \r | (0.7) | \r|
| Stock-based compensation | \r\r | \r | (4.7) | \r\r | \r | \r | (4.0) | \r\r | \r | \r | (2.8) | \r|
| Research and development credit | \r\r | \r | 4.0 | \r\r | \r | \r | -- | \r\r | \r | \r | 1.5 | \r|
| Change in valuation allowance | \r\r | \r | (32.1) | \r\r | \r | \r | 4.3 | \r\r | \r | \r | (15.6) | \r|
| Federal rate change impact | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Federal AMT refund | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| ASU 2016-09 adoption | \r\r | \r | -- | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Controlled Foreign Corporation Liquidation | \r\r | \r | 9.8 | \r\r | \r | \r | -- | \r\r | \r | \r | -- | \r|
| Other | \r\r | \r | (0.4) | \r\r | \r | \r | (2.5) | \r\r | \r | \r | (2.9) | \r|
| Effective tax rate | \r\r | \r | 8.0 | \r% | \r\r | \r | (1.3) | \r% | \r\r | \r | (0.5) | \r% |
The components of the net deferred tax assets and liabilities\rare as follows (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r|||
| \r | \r | \r | \r | \r | \r | |||
| Deferred tax assets: | \r\r | \r | \r | \r | \r | |||
| Net operating losses | \r\r | $ | \r15,584 | \r\r | \r | $ | \r13,634 | \r|
| Lease Liability | \r\r | \r | 372 | \r\r | \r | \r | 483 | \r|
| Credit carryforwards | \r\r | \r | 5,298 | \r\r | \r | \r | 5,089 | \r|
| Inventory reserves | \r\r | \r | 1,006 | \r\r | \r | \r | 1,005 | \r|
| Reserves and accruals | \r\r | \r | 890 | \r\r | \r | \r | 739 | \r|
| Other | \r\r | \r | 450 | \r\r | \r | \r | 319 | \r|
| \r | \r | \r | 23,600 | \r\r | \r | \r | 21,269 | \r|
| \r | \r | \r | \r | \r | \r | \r | \r | |
| Deferred tax liabilities: | \r\r | \r | \r | \r | \r | \r | \r | |
| Operating lease right-of-use assets | \r\r | \r | (342) | \r\r | \r | \r | (449) | \r|
| Less: Valuation allowance | \r\r | \r | (23,258) | \r\r | \r | \r | (20,820) | \r|
| Net deferred tax assets (liabilities) | \r\r | $ | \r-- | \r\r | \r | $ | \r-- | \r
The aggregate changes in the balance of gross unrecognized tax\rbenefits are as follows (in thousands):
\r\r\r\r
| Beginning balance as of May 31, 2018 | \r\r | $ | \r1,785 | \r|
| \r | \r | \r | \r | |
| Decreases related to prior year tax positions | \r\r | \r | (41) | \r|
| Increases related to current year tax positions | \r\r | \r | 65 | \r|
| \r | \r | \r | \r | |
| Balance at May 31, 2019 | \r\r | $ | \r1,809 | \r|
| \r | \r | \r | \r | |
| Decreases related to prior year tax positions | \r\r | \r | (11) | \r|
| Increases related to current year tax positions | \r\r | \r | 54 | \r|
| \r | \r | \r | \r | |
| Balance at May 31, 2020 | \r\r | $ | \r1,852 | \r|
| \r | \r | \r | \r | |
| Increases related to prior year tax positions | \r\r | \r | 11 | \r|
| Increases related to current year tax positions | \r\r | \r | 65 | \r|
| \r | \r | \r | \r | |
| Balance at May 31, 2021 | \r\r | $ | \r1,928 | \r
Other (expense) income, net comprises the following (in thousands):
\r\r\r\r
| \r | \r | Year Ended May 31, | \r||||||||||
| \r | \r | 2021 | \r\r | \r | 2020 | \r\r | \r | 2019 | \r||||
| Foreign exchange (loss) gain | \r\r | $ | \r(111) | \r\r | \r | $ | \r(12) | \r\r | \r | $ | \r43 | \r|
| Other (expense) income, net | \r\r | \r | (51) | \r\r | \r | \r | 1 | \r\r | \r | \r | 1 | \r|
| \r | \r | $ | \r(162) | \r\r | \r | $ | \r(11) | \r\r | \r | $ | \r44 | \r
INVENTORIES:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Raw materials and sub-assemblies | \r\r | $ | \r5,859 | \r\r | \r | $ | \r5,055 | \r|
| Work in process | \r\r | \r | 2,988 | \r\r | \r | \r | 2,917 | \r|
| Finished goods | \r\r | \r | 2 | \r\r | \r | \r | 17 | \r|
| \r | \r | $ | \r8,849 | \r\r | \r | $ | \r7,989 | \r
"}]},{"name":"rpt:f-976","factDimensions":{"xbrl:concept":"us-gaap:PropertyPlantAndEquipmentTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
PROPERTY AND EQUIPMENT, NET:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Leasehold improvements | \r\r | $ | \r1,214 | \r\r | \r | $ | \r1,201 | \r|
| Furniture and fixtures | \r\r | \r | 627 | \r\r | \r | \r | 612 | \r|
| Machinery and equipment | \r\r | \r | 3,343 | \r\r | \r | \r | 3,038 | \r|
| Test equipment | \r\r | \r | 2,525 | \r\r | \r | \r | 2,516 | \r|
| \r | \r | \r | 7,709 | \r\r | \r | \r | 7,367 | \r|
| Less: Accumulated depreciation and amortization | \r\r | \r | (7,032 | \r) | \r\r | \r | (6,704 | \r) |
| \r | \r | $ | \r677 | \r\r | \r | $ | \r663 | \r
"}]},{"name":"rpt:f-977","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfAccruedLiabilitiesTableTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
ACCRUED EXPENSES:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Payroll related | \r\r | $ | \r1,020 | \r\r | \r | $ | \r791 | \r|
| Warranty | \r\r | \r | 494 | \r\r | \r | \r | 246 | \r|
| Commissions and bonuses | \r\r | \r | 413 | \r\r | \r | \r | 139 | \r|
| Professional services | \r\r | \r | 168 | \r\r | \r | \r | 173 | \r|
| Investor relations | \r\r | \r | 22 | \r\r | \r | \r | 19 | \r|
| Accrued interest | \r\r | \r | 16 | \r\r | \r | \r | -- | \r|
| Taxes payable | \r\r | \r | 5 | \r\r | \r | \r | 30 | \r|
| Restructuring | \r\r | \r | -- | \r\r | \r | \r | 8 | \r|
| Other | \r\r | \r | 25 | \r\r | \r | \r | 33 | \r|
| \r | \r | $ | \r2,163 | \r\r | \r | $ | \r1,439 | \r
"}]},{"name":"rpt:f-978","factDimensions":{"xbrl:concept":"AEHR:CustomerDepositsAndDeferredRevenueTableTextBlock","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"
CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM:
\r\r\r\r
| \r | \r | May 31, | \r||||||
| (In Thousands) | \r\r | 2021 | \r\r | \r | 2020 | \r|||
| Customer deposits | \r\r | $ | \r27 | \r\r | \r | $ | \r-- | \r|
| Deferred revenue | \r\r | \r | 162 | \r\r | \r | \r | 170 | \r|
| \r | \r | $ | \r189 | \r\r | \r | $ | \r170 | \r
"}]},{"name":"rpt:f-979","factDimensions":{"xbrl:concept":"AEHR:IncomeTaxBenefitRelatedToDissolutionOfSubsidiary","xbrl:period":"2020-06-01T00:00:00/2021-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"-215000","decimals":-3}]},{"name":"rpt:f-980","factDimensions":{"xbrl:concept":"AEHR:IncomeTaxBenefitRelatedToDissolutionOfSubsidiary","xbrl:period":"2019-06-01T00:00:00/2020-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"0","decimals":-3}]},{"name":"rpt:f-981","factDimensions":{"xbrl:concept":"AEHR:IncomeTaxBenefitRelatedToDissolutionOfSubsidiary","xbrl:period":"2018-06-01T00:00:00/2019-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"0","decimals":-3}]}]}}