1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
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Organization\u00a0
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Aehr Test Systems (the \u201cCompany\u201d) was incorporated in California in May 1977 and primarily designs, engineers and manufactures test and burn-in equipment used in the semiconductor industry. The Company\u2019s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact parallel test and burn-in systems, the WaferPak full wafer contactor, the DiePak Carrier, the WaferPak Aligner, the DiePak Autoloader, and test fixtures.
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Principles of Consolidation\u00a0
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The consolidated financial statements include the accounts of the Company and its wholly-owned foreign subsidiaries. Intercompany accounts and transactions have been eliminated.
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Foreign Currency Translation and Transactions
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Assets and liabilities of the Company\u2019s foreign subsidiaries are translated into U.S. Dollars from their functional currencies using the exchange rate in effect at the balance sheet date. Additionally, revenues and expenses are translated using exchange rates approximating average rates prevailing during the fiscal year. Translation adjustments that arise from translating their financial statements from their local currencies to U.S. Dollar are accumulated and reflected as a separate component of shareholders\u2019 equity.
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Transaction gains and losses that arise from exchange rate changes denominated in currencies other than the local currency are included in the consolidated statements of operations as incurred.
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Use of Estimates\u00a0
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The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (\u201cGAAP\u201d) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the Company\u2019s consolidated financial statements include revenue recognition, inventory valuation and accounting for income taxes.
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Cash and Cash Equivalents\u00a0
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Cash equivalents consist of money market instruments purchased 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 Credit Losses\u00a0
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Accounts receivable are derived from the sale of products throughout the world to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in and test service companies. Accounts receivable are recorded at the invoiced amount and are not interest bearing.
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The Company maintains an allowance for credit losses for expected uncollectible accounts receivable and assess collectibility by reviewing accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when specific customers with known disputes or collectibility issues are identified. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Changes in circumstances, such as an unexpected material adverse change in a major customer\u2019s ability to meet its financial obligation to the Company, may require the Company to further adjust its estimates of the recoverability of accounts receivable. The credit losses recognized on accounts receivable during the years ended May 31, 2024, 2023 and 2022 were not significant and management has determined that no allowance for credit losses was required as of May 31, 2024 and 2023.
Concentration of Credit Risk
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Financial instruments which subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company\u2019s cash and cash equivalents are generally deposited with major financial institutions in the United States, Philippines, Germany and Taiwan. The Company invests its excess cash in money market funds and U.S. Treasury securities. The Company\u2019s cash and investment balances held at banks and brokerage firms may at time exceed federally insured levels. The Company has not experienced any material losses on its money market funds or short-term cash deposits.
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The Company performs credit evaluations of its customers\u2019 financial condition and generally requires no collateral. The Company had revenues from individual customers in excess of 10% of total revenues as follows:\u00a0
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\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Customer A | \u00a0 | \u00a0 | 67.3 | % | \u00a0 | \u00a0 | 78.8 | % | \u00a0 | \u00a0 | 81.8 | % |
Customer B | \u00a0 | \u00a0 | 16.7 | % | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | ||
Customer C | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 10.4 | % | \u00a0 | * | \u00a0 |
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\u00a0* Amount was less than 10% of total revenue
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The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows:\u00a0
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\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Customer A | \u00a0 | \u00a0 | 49.9 | % | \u00a0 | \u00a0 | 81.6 | % |
Customer B | \u00a0 | \u00a0 | 16.5 | % | \u00a0 | \u00a0 | 16.5 | % |
Customer C | \u00a0 | \u00a0 | 12.3 | % | \u00a0 | * | \u00a0 |
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* Amount was less than 10% of total gross accounts receivable
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Inventories
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Inventories include material, labor and overhead, and are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Net realizable value is the estimated selling prices in the ordinary course of business, less costs of completion, disposal and transportation. Provisions for excess, obsolete and unusable inventories are made after management\u2019s evaluation of future demand and market conditions. If actual future demand or market conditions become less favorable than those projected by management, additional adjustment for excess or obsolete inventory may be required, and would be reflected in cost of sales in the period the revision is made.
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Property and Equipment\u00a0
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Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Leasehold improvements are amortized over the lesser of their estimated useful lives or the term of the related lease. Furniture and fixtures, machinery and equipment, and test equipment are depreciated on a straight-line basis over their estimated useful lives. The ranges of estimated useful lives are generally as follows:
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Furniture and fixtures\u00a0\u00a0\u00a0 | 2 to 5 years |
Machinery and equipment | 3 to 5 years |
Test equipment\u00a0\u00a0 | 4 to 5 years |
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Long-Lived Assets
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The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. Such an impairment charge would be measured as the excess of the carrying value of the asset over its fair value.
Warranty Reserves
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The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company\u2019s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company\u2019s estimates, revisions to the estimated warranty liability would be required. The standard warranty period is one year for systems and ninety days for parts and service.
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Revenue Recognition
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The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below.
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Performance obligations include sales of systems, WaferPak contactors, spare parts, and services, as well as installation and training services included in customer contracts. A contract\u2019s transaction price is allocated to each distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return privileges, except for defective products during the warranty period.
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For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and services and pricing practices in different geographies. Revenue for systems and spares is recognized at a point in time, which is generally upon shipment or delivery and evidenced by transfer of title and risk of loss to the customer. Revenue from services is recognized over time as the customer receives the benefit over the contractual period of generally one year or less.
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The Company has elected the practical expedient to not assess whether a contract has a significant financing component as the Company\u2019s standard payment terms are less than one year.
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The Company sells its products primarily through a direct sales force. In certain international markets, the Company sells its products through independent distributors.
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\u00a0Shipping And Handling Costs
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Amounts billed to customers for shipping and handling of products are included in revenue. Costs incurred related to shipping and handling of products are included in cost of revenue.
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Stock-based Compensation Expense
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Stock-based compensation expense consists of expenses for stock options, restricted stock units (\u201cRSUs\u201d), performance RSUs (\u201cPRSUs\u201d), and an employee stock purchase plan (\u201cESPP\u201d). Stock-based compensation cost 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 option valuation model, and is recognized as expense over the employee\u2019s requisite service period. For RSUs, PRSUs, restricted shares and performance restricted shares, stock-based compensation expense is based on the fair value of the Company\u2019s common stock at the grant date, and is recognized as expense over the employee\u2019s requisite service period. All of the Company\u2019s stock-based compensation is accounted for as an equity instrument.
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Income Taxes\u00a0
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The Company accounts for income taxes in accordance with the authoritative guidance, which requires income tax effects for changes in tax laws to be recognized in the period in which the law is enacted. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryforwards. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted for the effect of a change in tax rates, laws, or status when the change is enacted.
During the year ended May 31, 2024, the Company concluded that its deferred tax assets are more likely than not to become realizable, and as such, the Company reversed all $21.9 million of its existing valuation allowance. The conclusion that a valuation allowance was no longer needed was based on three years of cumulative pre-tax income, current year utilization of federal and state net operating losses, combined with estimates of future years' pre-tax income that are sufficient to realize the remaining deferred tax assets. The amount of the deferred tax asset considered realizable can change if estimates of future taxable income change or if objective negative and positive evidence change. As of May 31, 2023, the Company maintained a full valuation allowance against its deferred tax assets.
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The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the consolidated financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
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Comprehensive Income (Loss)
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Comprehensive income (loss) generally represents all changes in shareholders\u2019 equity except those resulting from investments or contributions by shareholders. Unrealized gains and losses from available-for-sale securities and on foreign currency translation adjustments are included in the Company\u2019s components of comprehensive income (loss), which are excluded from net income. Comprehensive income (loss) is included in the consolidated statements of comprehensive income.
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Reclassifications
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Certain reclassifications have been made to the previous year consolidated financial statements to conform to the current period presentation. The reclassifications had no impact on net income, total assets, total liabilities, or shareholders\u2019 equity.
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\u00a0Accounting Standards Adopted
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In June 2016, the Financial Accounting Standards Board (\u201cFASB\u201d) issued Accounting Standard Update (\u201cASU\u201d) 2016-13, Financial Instruments \u2013 Credit Losses (Topic 326), that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. \u00a0The Company adopted this update beginning in the first quarter of its fiscal year ended May 31, 2024 on a modified retrospective basis and the adoption had no material impact on the consolidated financial statements.
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Recent Accounting Pronouncements Not Yet Adopted
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Improvements to Reportable Segment Disclosures: In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. The Company is currently evaluating the effect of this pronouncement on its disclosures.
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Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures.
"}]},{"name":"rpt:f-415","factDimensions":{"xbrl:concept":"us-gaap:BusinessDescriptionAndBasisOfPresentationTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Aehr Test Systems (the \u201cCompany\u201d) was incorporated in California in May 1977 and primarily designs, engineers and manufactures test and burn-in equipment used in the semiconductor industry. The Company\u2019s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact parallel test and burn-in systems, the WaferPak full wafer contactor, the DiePak Carrier, the WaferPak Aligner, the DiePak Autoloader, and test fixtures.
"}]},{"name":"rpt:f-416","factDimensions":{"xbrl:concept":"us-gaap:ConsolidationPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The consolidated financial statements include the accounts of the Company and its wholly-owned foreign subsidiaries. Intercompany accounts and transactions have been eliminated.
"}]},{"name":"rpt:f-417","factDimensions":{"xbrl:concept":"us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Assets and liabilities of the Company\u2019s foreign subsidiaries are translated into U.S. Dollars from their functional currencies using the exchange rate in effect at the balance sheet date. Additionally, revenues and expenses are translated using exchange rates approximating average rates prevailing during the fiscal year. Translation adjustments that arise from translating their financial statements from their local currencies to U.S. Dollar are accumulated and reflected as a separate component of shareholders\u2019 equity.
\u00a0
Transaction gains and losses that arise from exchange rate changes denominated in currencies other than the local currency are included in the consolidated statements of operations as incurred.
"}]},{"name":"rpt:f-418","factDimensions":{"xbrl:concept":"us-gaap:UseOfEstimates","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (\u201cGAAP\u201d) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the Company\u2019s consolidated financial statements include revenue recognition, inventory valuation and accounting for income taxes.
"}]},{"name":"rpt:f-419","factDimensions":{"xbrl:concept":"us-gaap:CashAndCashEquivalentsPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Cash equivalents consist of money market instruments purchased with an original maturity of three months or less. These investments are reported at fair value.
"}]},{"name":"rpt:f-420","factDimensions":{"xbrl:concept":"aehr:ReceivablesTradeAndOtherAccountsReceivableAllowanceForDoubtfulAccountsPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Accounts receivable are derived from the sale of products throughout the world to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in and test service companies. Accounts receivable are recorded at the invoiced amount and are not interest bearing.
\u00a0
The Company maintains an allowance for credit losses for expected uncollectible accounts receivable and assess collectibility by reviewing accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when specific customers with known disputes or collectibility issues are identified. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Changes in circumstances, such as an unexpected material adverse change in a major customer\u2019s ability to meet its financial obligation to the Company, may require the Company to further adjust its estimates of the recoverability of accounts receivable. The credit losses recognized on accounts receivable during the years ended May 31, 2024, 2023 and 2022 were not significant and management has determined that no allowance for credit losses was required as of May 31, 2024 and 2023.
"}]},{"name":"rpt:f-421","factDimensions":{"xbrl:concept":"us-gaap:ConcentrationRiskCreditRisk","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Financial instruments which subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company\u2019s cash and cash equivalents are generally deposited with major financial institutions in the United States, Philippines, Germany and Taiwan. The Company invests its excess cash in money market funds and U.S. Treasury securities. The Company\u2019s cash and investment balances held at banks and brokerage firms may at time exceed federally insured levels. The Company has not experienced any material losses on its money market funds or short-term cash deposits.
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The Company performs credit evaluations of its customers\u2019 financial condition and generally requires no collateral. The Company had revenues from individual customers in excess of 10% of total revenues as follows:\u00a0
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\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Customer A | \u00a0 | \u00a0 | 67.3 | % | \u00a0 | \u00a0 | 78.8 | % | \u00a0 | \u00a0 | 81.8 | % |
Customer B | \u00a0 | \u00a0 | 16.7 | % | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | ||
Customer C | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 10.4 | % | \u00a0 | * | \u00a0 |
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\u00a0* Amount was less than 10% of total revenue
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The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows:\u00a0
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\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Customer A | \u00a0 | \u00a0 | 49.9 | % | \u00a0 | \u00a0 | 81.6 | % |
Customer B | \u00a0 | \u00a0 | 16.5 | % | \u00a0 | \u00a0 | 16.5 | % |
Customer C | \u00a0 | \u00a0 | 12.3 | % | \u00a0 | * | \u00a0 |
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* Amount was less than 10% of total gross accounts receivable
"}]},{"name":"rpt:f-422","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfRevenueByMajorCustomersByReportingSegmentsTableTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Customer A | \u00a0 | \u00a0 | 67.3 | % | \u00a0 | \u00a0 | 78.8 | % | \u00a0 | \u00a0 | 81.8 | % |
Customer B | \u00a0 | \u00a0 | 16.7 | % | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | ||
Customer C | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 10.4 | % | \u00a0 | * | \u00a0 |
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Customer A | \u00a0 | \u00a0 | 49.9 | % | \u00a0 | \u00a0 | 81.6 | % |
Customer B | \u00a0 | \u00a0 | 16.5 | % | \u00a0 | \u00a0 | 16.5 | % |
Customer C | \u00a0 | \u00a0 | 12.3 | % | \u00a0 | * | \u00a0 |
Inventories include material, labor and overhead, and are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Net realizable value is the estimated selling prices in the ordinary course of business, less costs of completion, disposal and transportation. Provisions for excess, obsolete and unusable inventories are made after management\u2019s evaluation of future demand and market conditions. If actual future demand or market conditions become less favorable than those projected by management, additional adjustment for excess or obsolete inventory may be required, and would be reflected in cost of sales in the period the revision is made.
"}]},{"name":"rpt:f-435","factDimensions":{"xbrl:concept":"us-gaap:PropertyPlantAndEquipmentPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Leasehold improvements are amortized over the lesser of their estimated useful lives or the term of the related lease. Furniture and fixtures, machinery and equipment, and test equipment are depreciated on a straight-line basis over their estimated useful lives. The ranges of estimated useful lives are generally as follows:
\u00a0
Furniture and fixtures\u00a0\u00a0\u00a0 | 2 to 5 years |
Machinery and equipment | 3 to 5 years |
Test equipment\u00a0\u00a0 | 4 to 5 years |
Furniture and fixtures\u00a0\u00a0\u00a0 | 2 to 5 years |
Machinery and equipment | 3 to 5 years |
Test equipment\u00a0\u00a0 | 4 to 5 years |
The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. Such an impairment charge would be measured as the excess of the carrying value of the asset over its fair value.
"}]},{"name":"rpt:f-444","factDimensions":{"xbrl:concept":"us-gaap:StandardProductWarrantyPolicy","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company\u2019s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company\u2019s estimates, revisions to the estimated warranty liability would be required. The standard warranty period is one year for systems and ninety days for parts and service.
"}]},{"name":"rpt:f-445","factDimensions":{"xbrl:concept":"us-gaap:RevenueRecognitionPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below.
\u00a0
Performance obligations include sales of systems, WaferPak contactors, spare parts, and services, as well as installation and training services included in customer contracts. A contract\u2019s transaction price is allocated to each distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return privileges, except for defective products during the warranty period.
\u00a0
For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and services and pricing practices in different geographies. Revenue for systems and spares is recognized at a point in time, which is generally upon shipment or delivery and evidenced by transfer of title and risk of loss to the customer. Revenue from services is recognized over time as the customer receives the benefit over the contractual period of generally one year or less.
\u00a0
The Company has elected the practical expedient to not assess whether a contract has a significant financing component as the Company\u2019s standard payment terms are less than one year.
\u00a0
The Company sells its products primarily through a direct sales force. In certain international markets, the Company sells its products through independent distributors.
"}]},{"name":"rpt:f-446","factDimensions":{"xbrl:concept":"us-gaap:ShippingAndHandlingCostPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Amounts billed to customers for shipping and handling of products are included in revenue. Costs incurred related to shipping and handling of products are included in cost of revenue.
"}]},{"name":"rpt:f-447","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Stock-based compensation expense consists of expenses for stock options, restricted stock units (\u201cRSUs\u201d), performance RSUs (\u201cPRSUs\u201d), and an employee stock purchase plan (\u201cESPP\u201d). Stock-based compensation cost 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 option valuation model, and is recognized as expense over the employee\u2019s requisite service period. For RSUs, PRSUs, restricted shares and performance restricted shares, stock-based compensation expense is based on the fair value of the Company\u2019s common stock at the grant date, and is recognized as expense over the employee\u2019s requisite service period. All of the Company\u2019s stock-based compensation is accounted for as an equity instrument.
"}]},{"name":"rpt:f-448","factDimensions":{"xbrl:concept":"us-gaap:IncomeTaxPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company accounts for income taxes in accordance with the authoritative guidance, which requires income tax effects for changes in tax laws to be recognized in the period in which the law is enacted. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryforwards. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted for the effect of a change in tax rates, laws, or status when the change is enacted.
During the year ended May 31, 2024, the Company concluded that its deferred tax assets are more likely than not to become realizable, and as such, the Company reversed all $21.9 million of its existing valuation allowance. The conclusion that a valuation allowance was no longer needed was based on three years of cumulative pre-tax income, current year utilization of federal and state net operating losses, combined with estimates of future years' pre-tax income that are sufficient to realize the remaining deferred tax assets. The amount of the deferred tax asset considered realizable can change if estimates of future taxable income change or if objective negative and positive evidence change. As of May 31, 2023, the Company maintained a full valuation allowance against its deferred tax assets.
\u00a0
The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the consolidated financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
"}]},{"name":"rpt:f-449","factDimensions":{"xbrl:concept":"us-gaap:ComprehensiveIncomePolicyPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Comprehensive income (loss) generally represents all changes in shareholders\u2019 equity except those resulting from investments or contributions by shareholders. Unrealized gains and losses from available-for-sale securities and on foreign currency translation adjustments are included in the Company\u2019s components of comprehensive income (loss), which are excluded from net income. Comprehensive income (loss) is included in the consolidated statements of comprehensive income.
"}]},{"name":"rpt:f-450","factDimensions":{"xbrl:concept":"us-gaap:PriorPeriodReclassificationAdjustmentDescription","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Certain reclassifications have been made to the previous year consolidated financial statements to conform to the current period presentation. The reclassifications had no impact on net income, total assets, total liabilities, or shareholders\u2019 equity.
"}]},{"name":"rpt:f-451","factDimensions":{"xbrl:concept":"aehr:AccountingStandardsAdoptedPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"In June 2016, the Financial Accounting Standards Board (\u201cFASB\u201d) issued Accounting Standard Update (\u201cASU\u201d) 2016-13, Financial Instruments \u2013 Credit Losses (Topic 326), that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. \u00a0The Company adopted this update beginning in the first quarter of its fiscal year ended May 31, 2024 on a modified retrospective basis and the adoption had no material impact on the consolidated financial statements.
"}]},{"name":"rpt:f-452","factDimensions":{"xbrl:concept":"us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Improvements to Reportable Segment Disclosures: In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. The Company is currently evaluating the effect of this pronouncement on its disclosures.
\u00a0
Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures.
"}]},{"name":"rpt:f-453","factDimensions":{"xbrl:concept":"us-gaap:CashCashEquivalentsAndShortTermInvestmentsTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"2.\u00a0 CASH, CASH EQUIVALENTS AND INVESTMENTS
\u00a0
The following table summarizes the Company\u2019s cash, cash equivalents and investments by security type as of May 31, 2024:
\u00a0
\u00a0 | \u00a0 | \u00a0 | \u00a0 | Gross | \u00a0 | \u00a0 | \u00a0 | |||||
Balances as of May 31, 2024 | \u00a0 | \u00a0 | \u00a0 | Unrealized | \u00a0 | \u00a0 | Estimated | \u00a0 | ||||
(In thousands) | \u00a0 | Cost | \u00a0 | \u00a0 | Gain (Loss) | \u00a0 | \u00a0 | Fair Value | \u00a0 | |||
Cash | \u00a0 | $ | 5,029 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 5,029 | \u00a0 |
Cash equivalents: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 44,130 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 44,130 | \u00a0 |
Total cash and cash equivalents | \u00a0 | $ | 49,159 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 49,159 | \u00a0 |
Long-term investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 150 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 150 | \u00a0 |
Total cash, cash equivalents and investments | \u00a0 | $ | 49,309 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 49,309 | \u00a0 |
\u00a0
The following table summarizes the Company\u2019s cash, cash equivalents and investments by security type as of May 31, 2023:
\u00a0
\u00a0 | \u00a0 | \u00a0 | \u00a0 | Gross | \u00a0 | \u00a0 | \u00a0 | |||||
Balances as of May 31, 2023 | \u00a0 | \u00a0 | \u00a0 | Unrealized | \u00a0 | \u00a0 | Estimated | \u00a0 | ||||
(In thousands) | \u00a0 | Cost | \u00a0 | \u00a0 | Loss | \u00a0 | \u00a0 | Fair Value | \u00a0 | |||
Cash | \u00a0 | $ | 3,182 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 3,182 | \u00a0 |
Cash equivalents: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 26,872 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 26,872 | \u00a0 |
Total cash and cash equivalents | \u00a0 | $ | 30,054 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 30,054 | \u00a0 |
Short-term investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
U. S. treasury securities | \u00a0 | $ | 17,870 | \u00a0 | \u00a0 | $ | (17 | ) | \u00a0 | $ | 17,853 | \u00a0 |
Long-term investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 150 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 150 | \u00a0 |
Total cash, cash equivalents and investments | \u00a0 | $ | 48,074 | \u00a0 | \u00a0 | $ | (17 | ) | \u00a0 | $ | 48,057 | \u00a0 |
\u00a0
Long-term investments are included in other non-current assets on the accompanying consolidated balance sheets.
\u00a0
Unrealized gains and losses on investments classified as available-for-sale are included within accumulated other comprehensive loss, net of any related tax effect. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to results of operations.
"}]},{"name":"rpt:f-454","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfCashCashEquivalentsAndShortTermInvestmentsTableTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | \u00a0 | \u00a0 | Gross | \u00a0 | \u00a0 | \u00a0 | |||||
Balances as of May 31, 2024 | \u00a0 | \u00a0 | \u00a0 | Unrealized | \u00a0 | \u00a0 | Estimated | \u00a0 | ||||
(In thousands) | \u00a0 | Cost | \u00a0 | \u00a0 | Gain (Loss) | \u00a0 | \u00a0 | Fair Value | \u00a0 | |||
Cash | \u00a0 | $ | 5,029 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 5,029 | \u00a0 |
Cash equivalents: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 44,130 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 44,130 | \u00a0 |
Total cash and cash equivalents | \u00a0 | $ | 49,159 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 49,159 | \u00a0 |
Long-term investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 150 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 150 | \u00a0 |
Total cash, cash equivalents and investments | \u00a0 | $ | 49,309 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 49,309 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | Gross | \u00a0 | \u00a0 | \u00a0 | |||||
Balances as of May 31, 2023 | \u00a0 | \u00a0 | \u00a0 | Unrealized | \u00a0 | \u00a0 | Estimated | \u00a0 | ||||
(In thousands) | \u00a0 | Cost | \u00a0 | \u00a0 | Loss | \u00a0 | \u00a0 | Fair Value | \u00a0 | |||
Cash | \u00a0 | $ | 3,182 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 3,182 | \u00a0 |
Cash equivalents: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 26,872 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 26,872 | \u00a0 |
Total cash and cash equivalents | \u00a0 | $ | 30,054 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 30,054 | \u00a0 |
Short-term investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
U. S. treasury securities | \u00a0 | $ | 17,870 | \u00a0 | \u00a0 | $ | (17 | ) | \u00a0 | $ | 17,853 | \u00a0 |
Long-term investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Money market funds | \u00a0 | $ | 150 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | 150 | \u00a0 |
Total cash, cash equivalents and investments | \u00a0 | $ | 48,074 | \u00a0 | \u00a0 | $ | (17 | ) | \u00a0 | $ | 48,057 | \u00a0 |
\u00a03. FAIR VALUE OF FINANCIAL INSTRUMENTS
\u00a0
The Company\u2019s financial instruments are measured at fair value consistent with authoritative guidance. This authoritative guidance defines fair value, establishes a framework for using fair value to measure assets and liabilities, and disclosures required related to fair value measurements.
\u00a0
The guidance establishes a fair value hierarchy based on inputs to valuation techniques that are used to measure fair value that is either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity\u2019s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:
\u00a0
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
\u00a0
Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings.
\u00a0
Level 3 - Unobservable inputs that are supported by little or no market activities.
The following table summarizes the Company\u2019s financial assets measured at fair value on a recurring basis as of May 31, 2024:
\u00a0
\u00a0 | \u00a0 | Balance as of | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||
(In thousands) | \u00a0 | May 31, 2024 | \u00a0 | \u00a0 | Level 1 | \u00a0 | \u00a0 | Level 2 | \u00a0 | \u00a0 | Level 3 | \u00a0 | ||||
Money market funds | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0\u00a0
The following table summarizes the Company\u2019s financial assets measured at fair value on a recurring basis as of May 31, 2023:
\u00a0
\u00a0 | \u00a0 | Balance as of | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||
(In thousands) | \u00a0 | May 31, 2023 | \u00a0 | \u00a0 | Level 1 | \u00a0 | \u00a0 | Level 2 | \u00a0 | \u00a0 | Level 3 | \u00a0 | ||||
Money market funds | \u00a0 | $ | 27,022 | \u00a0 | \u00a0 | $ | 27,022 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
U. S. treasury securities | \u00a0 | \u00a0 | 17,853 | \u00a0 | \u00a0 | \u00a0 | 17,853 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
Total | \u00a0 | $ | 44,875 | \u00a0 | \u00a0 | $ | 44,875 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0\u00a0
Included in money market funds as of May 31, 2024 and 2023 was $0.2 million restricted cash, representing a security deposit for the Company\u2019s United States manufacturing and office space lease which is included in other non-current assets in the consolidated balance sheets.
\u00a0
There were no financial liabilities measured at fair value as of May 31, 2024 and 2023.
\u00a0
There were no transfers between Level 1 and Level 2 fair value measurements during the fiscal years ended May 31, 2024 and 2023.
\u00a0
The carrying amounts of financial instruments including cash equivalents, accounts receivables, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities.
"}]},{"name":"rpt:f-489","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Balance as of | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||
(In thousands) | \u00a0 | May 31, 2024 | \u00a0 | \u00a0 | Level 1 | \u00a0 | \u00a0 | Level 2 | \u00a0 | \u00a0 | Level 3 | \u00a0 | ||||
Money market funds | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0 | \u00a0 | Balance as of | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||
(In thousands) | \u00a0 | May 31, 2023 | \u00a0 | \u00a0 | Level 1 | \u00a0 | \u00a0 | Level 2 | \u00a0 | \u00a0 | Level 3 | \u00a0 | ||||
Money market funds | \u00a0 | $ | 27,022 | \u00a0 | \u00a0 | $ | 27,022 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
U. S. treasury securities | \u00a0 | \u00a0 | 17,853 | \u00a0 | \u00a0 | \u00a0 | 17,853 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
Total | \u00a0 | $ | 44,875 | \u00a0 | \u00a0 | $ | 44,875 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
4. BALANCE SHEET INFORMATION
\u00a0
Inventories consisted of the following:
\u00a0
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Raw materials and sub-assemblies | \u00a0 | $ | 22,410 | \u00a0 | \u00a0 | $ | 15,953 | \u00a0 |
Work in process | \u00a0 | \u00a0 | 13,593 | \u00a0 | \u00a0 | \u00a0 | 5,764 | \u00a0 |
Finished goods | \u00a0 | \u00a0 | 1,467 | \u00a0 | \u00a0 | \u00a0 | 2,191 | \u00a0 |
\u00a0 | \u00a0 | $ | 37,470 | \u00a0 | \u00a0 | $ | 23,908 | \u00a0 |
\u00a0
Property and equipment, net\u00a0consisted of the following:
\u00a0
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Leasehold improvements | \u00a0 | $ | 1,588 | \u00a0 | \u00a0 | $ | 1,310 | \u00a0 |
Machinery and equipment | \u00a0 | \u00a0 | 4,528 | \u00a0 | \u00a0 | \u00a0 | 5,445 | \u00a0 |
Test equipment | \u00a0 | \u00a0 | 1,928 | \u00a0 | \u00a0 | \u00a0 | 2,998 | \u00a0 |
Furniture and fixtures | \u00a0 | \u00a0 | 175 | \u00a0 | \u00a0 | \u00a0 | 706 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | 8,219 | \u00a0 | \u00a0 | \u00a0 | 10,459 | \u00a0 |
Less: accumulated depreciation and amortization | \u00a0 | \u00a0 | (4,966 | ) | \u00a0 | \u00a0 | (7,700 | ) |
\u00a0 | \u00a0 | $ | 3,253 | \u00a0 | \u00a0 | $ | 2,759 | \u00a0 |
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
Depreciation expense was $0.7 million, $0.5 million, and $0.4 million for fiscal 2024, 2023, and 2022, respectively.
Accrued expenses consisted of the following:
\u00a0
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Commissions and bonuses | \u00a0 | $ | 1,290 | \u00a0 | \u00a0 | $ | 1,728 | \u00a0 |
Payroll related | \u00a0 | \u00a0 | 1,202 | \u00a0 | \u00a0 | \u00a0 | 1,491 | \u00a0 |
Professional services | \u00a0 | \u00a0 | 503 | \u00a0 | \u00a0 | \u00a0 | 520 | \u00a0 |
Other | \u00a0 | \u00a0 | 371 | \u00a0 | \u00a0 | \u00a0 | 404 | \u00a0 |
\u00a0 | \u00a0 | $ | 3,366 | \u00a0 | \u00a0 | $ | 4,143 | \u00a0 |
\u00a0\u00a0
Changes in the Company\u2019s warranty reserve were as follows:
\u00a0
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Balance at the beginning of the period | \u00a0 | $ | 267 | \u00a0 | \u00a0 | $ | 410 | \u00a0 |
Accruals for warranties issued during the period | \u00a0 | \u00a0 | 511 | \u00a0 | \u00a0 | \u00a0 | 420 | \u00a0 |
Adjustments to previously existing warranty accruals | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 61 | \u00a0 |
Consumption of reserves | \u00a0 | \u00a0 | (544 | ) | \u00a0 | \u00a0 | (624 | ) |
Balance at the end of the period | \u00a0 | $ | 234 | \u00a0 | \u00a0 | $ | 267 | \u00a0 |
\u00a0
The accrued warranty balance is included in accrued expenses on the consolidated balance sheets.
\u00a0
Deferred revenue, short-term\u00a0consisted of the following:
\u00a0
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Customer deposits | \u00a0 | $ | 1,248 | \u00a0 | \u00a0 | $ | 2,690 | \u00a0 |
Deferred revenue | \u00a0 | \u00a0 | 97 | \u00a0 | \u00a0 | \u00a0 | 132 | \u00a0 |
\u00a0 | \u00a0 | $ | 1,345 | \u00a0 | \u00a0 | $ | 2,822 | \u00a0 |
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Raw materials and sub-assemblies | \u00a0 | $ | 22,410 | \u00a0 | \u00a0 | $ | 15,953 | \u00a0 |
Work in process | \u00a0 | \u00a0 | 13,593 | \u00a0 | \u00a0 | \u00a0 | 5,764 | \u00a0 |
Finished goods | \u00a0 | \u00a0 | 1,467 | \u00a0 | \u00a0 | \u00a0 | 2,191 | \u00a0 |
\u00a0 | \u00a0 | $ | 37,470 | \u00a0 | \u00a0 | $ | 23,908 | \u00a0 |
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Leasehold improvements | \u00a0 | $ | 1,588 | \u00a0 | \u00a0 | $ | 1,310 | \u00a0 |
Machinery and equipment | \u00a0 | \u00a0 | 4,528 | \u00a0 | \u00a0 | \u00a0 | 5,445 | \u00a0 |
Test equipment | \u00a0 | \u00a0 | 1,928 | \u00a0 | \u00a0 | \u00a0 | 2,998 | \u00a0 |
Furniture and fixtures | \u00a0 | \u00a0 | 175 | \u00a0 | \u00a0 | \u00a0 | 706 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | 8,219 | \u00a0 | \u00a0 | \u00a0 | 10,459 | \u00a0 |
Less: accumulated depreciation and amortization | \u00a0 | \u00a0 | (4,966 | ) | \u00a0 | \u00a0 | (7,700 | ) |
\u00a0 | \u00a0 | $ | 3,253 | \u00a0 | \u00a0 | $ | 2,759 | \u00a0 |
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Commissions and bonuses | \u00a0 | $ | 1,290 | \u00a0 | \u00a0 | $ | 1,728 | \u00a0 |
Payroll related | \u00a0 | \u00a0 | 1,202 | \u00a0 | \u00a0 | \u00a0 | 1,491 | \u00a0 |
Professional services | \u00a0 | \u00a0 | 503 | \u00a0 | \u00a0 | \u00a0 | 520 | \u00a0 |
Other | \u00a0 | \u00a0 | 371 | \u00a0 | \u00a0 | \u00a0 | 404 | \u00a0 |
\u00a0 | \u00a0 | $ | 3,366 | \u00a0 | \u00a0 | $ | 4,143 | \u00a0 |
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Balance at the beginning of the period | \u00a0 | $ | 267 | \u00a0 | \u00a0 | $ | 410 | \u00a0 |
Accruals for warranties issued during the period | \u00a0 | \u00a0 | 511 | \u00a0 | \u00a0 | \u00a0 | 420 | \u00a0 |
Adjustments to previously existing warranty accruals | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 61 | \u00a0 |
Consumption of reserves | \u00a0 | \u00a0 | (544 | ) | \u00a0 | \u00a0 | (624 | ) |
Balance at the end of the period | \u00a0 | $ | 234 | \u00a0 | \u00a0 | $ | 267 | \u00a0 |
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Customer deposits | \u00a0 | $ | 1,248 | \u00a0 | \u00a0 | $ | 2,690 | \u00a0 |
Deferred revenue | \u00a0 | \u00a0 | 97 | \u00a0 | \u00a0 | \u00a0 | 132 | \u00a0 |
\u00a0 | \u00a0 | $ | 1,345 | \u00a0 | \u00a0 | $ | 2,822 | \u00a0 |
\u00a05. INCOME TAXES
\u00a0
Domestic and foreign components of income before income tax expense (benefit) are as follows:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Domestic | \u00a0 | $ | 12,355 | \u00a0 | \u00a0 | $ | 14,541 | \u00a0 | \u00a0 | $ | 9,416 | \u00a0 |
Foreign | \u00a0 | \u00a0 | 103 | \u00a0 | \u00a0 | \u00a0 | 76 | \u00a0 | \u00a0 | \u00a0 | 125 | \u00a0 |
\u00a0 | \u00a0 | $ | 12,458 | \u00a0 | \u00a0 | $ | 14,617 | \u00a0 | \u00a0 | $ | 9,541 | \u00a0 |
The income tax expense (benefit) consists of the following:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Federal income taxes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Current | \u00a0 | $ | 6 | \u00a0 | \u00a0 | $ | 28 | \u00a0 | \u00a0 | $ | 59 | \u00a0 |
Deferred | \u00a0 | \u00a0 | (14,377 | ) | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
State income taxes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | 14 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 5 | \u00a0 |
Deferred | \u00a0 | \u00a0 | (6,396 | ) | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
Foreign income taxes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | 55 | \u00a0 | \u00a0 | \u00a0 | 32 | \u00a0 | \u00a0 | \u00a0 | 27 | \u00a0 |
Deferred | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
\u00a0 | \u00a0 | $ | (20,698 | ) | \u00a0 | $ | 60 | \u00a0 | \u00a0 | $ | 91 | \u00a0 |
\u00a0
The Company\u2019s effective tax rate differs from the U.S. federal statutory tax rate, as follows:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
U.S. federal statutory tax rate | \u00a0 | \u00a0 | 21.0 | % | \u00a0 | \u00a0 | 21.0 | % | \u00a0 | \u00a0 | 21.0 | % |
State taxes, net of federal tax effect | \u00a0 | \u00a0 | (51.1 | ) | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 0.1 | \u00a0 |
Foreign rate differential | \u00a0 | \u00a0 | 0.2 | \u00a0 | \u00a0 | \u00a0 | 0.7 | \u00a0 | \u00a0 | \u00a0 | 0.3 | \u00a0 |
Stock-based compensation | \u00a0 | \u00a0 | (8.4 | ) | \u00a0 | \u00a0 | (9.1 | ) | \u00a0 | \u00a0 | (11.0 | ) |
Research and development credit | \u00a0 | \u00a0 | (1.5 | ) | \u00a0 | \u00a0 | (2.3 | ) | \u00a0 | \u00a0 | (1.3 | ) |
Change in valuation allowance | \u00a0 | \u00a0 | (126.0 | ) | \u00a0 | \u00a0 | (9.3 | ) | \u00a0 | \u00a0 | (4.7 | ) |
PPP Loan | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | (3.7 | ) |
Other | \u00a0 | \u00a0 | (0.3 | ) | \u00a0 | \u00a0 | (0.6 | ) | \u00a0 | \u00a0 | 0.4 | \u00a0 |
Effective tax rate | \u00a0 | \u00a0 | (166.1 | )% | \u00a0 | \u00a0 | 0.4 | % | \u00a0 | \u00a0 | 1.1 | % |
\u00a0
The components of the net deferred tax assets and liabilities are as follows:
\u00a0
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Deferred tax assets: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Net operating losses | \u00a0 | $ | 9,344 | \u00a0 | \u00a0 | $ | 11,964 | \u00a0 |
Lease liability | \u00a0 | \u00a0 | 1,310 | \u00a0 | \u00a0 | \u00a0 | 1,335 | \u00a0 |
Credit carryforwards | \u00a0 | \u00a0 | 6,739 | \u00a0 | \u00a0 | \u00a0 | 6,235 | \u00a0 |
Inventory reserves | \u00a0 | \u00a0 | 1,070 | \u00a0 | \u00a0 | \u00a0 | 938 | \u00a0 |
Reserves and accruals | \u00a0 | \u00a0 | 855 | \u00a0 | \u00a0 | \u00a0 | 1,200 | \u00a0 |
Capitalized research and development | \u00a0 | \u00a0 | 2,645 | \u00a0 | \u00a0 | \u00a0 | 1,187 | \u00a0 |
Other | \u00a0 | \u00a0 | 23 | \u00a0 | \u00a0 | \u00a0 | 297 | \u00a0 |
Less: valuation allowance | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | (21,859 | ) |
\u00a0 | \u00a0 | \u00a0 | 21,986 | \u00a0 | \u00a0 | \u00a0 | 1,297 | \u00a0 |
Deferred tax liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Operating lease right-of-use assets | \u00a0 | \u00a0 | (1,213 | ) | \u00a0 | \u00a0 | (1,297 | ) |
Net deferred tax assets | \u00a0 | $ | 20,773 | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0
The valuation allowance decreased by $21.9 million during fiscal 2024, $1.1 million during fiscal 2023, and $0.3 million during fiscal 2022. As of May 31, 2023, the Company maintained a valuation allowance on all the U.S. net deferred tax assets as it was determined that it was more likely than not that the Company would not recognize the benefits of these assets. The Company continued to record a valuation allowance through the first nine months of fiscal 2024. In the fourth quarter of fiscal 2024, the Company concluded that the valuation allowance related to the U.S. federal and state deferred tax assets was no longer required due to existence of sufficient positive evidence to support that it is more likely than not that its deferred tax assets are realizable.
At May 31, 2024 and 2023, the Company has federal net operating loss carryforwards of approximately $34.6 million and $47.0 million respectively, to reduce future taxable income. A portion of the federal net operating losses will begin to expire in 2033. Federal net operating losses of $14.4 million will carryforward indefinitely and would be subject to an 80% taxable income limitation in the year utilized. At May 31, 2024 and 2023, the Company has state net operating loss carryforwards of $29.8 million and $30.2 million respectively, to reduce future taxable income. The state net operating loss carryforwards will begin to expire in 2028.
\u00a0
At May 31, 2024 and 2023, the Company has federal research and development credit carryforwards of approximately $3.3 million and $2.9 million, respectively, to offset future tax liability. The federal credit carryforwards began to expire in 2022. At May 31, 2024 and 2023, the Company has state research and development credit carryforwards of approximately $7.1 million and $6.6 million respectively, to offset future tax liability. The state credit carryforwards are not subject to expiration. The Company also has alternative minimum tax credit carryforwards of $30 thousand for state purposes. The credits may be used to offset regular tax and do not expire.
\u00a0
Sections 382 and 383 of the Internal Revenue Code limit the annual use of NOL carryforwards and tax credit carryforwards, respectively, following an ownership change. NOL carryforwards may be subject to annual limitations under Section 382 (or comparable provisions of state law) if certain changes in ownership of our company were to occur. In general, an ownership change occurs for the purposes of Section 382 if there is a more than 50% change in ownership of a company by 5% shareholders over a 3-year testing period. During the year ended May 31, 2024, we completed a Section 382 study and determined that there is no limitation on the Company\u2019s ability to utilize its NOLs under Section 382.
\u00a0
The Company has made no provision for U.S. income taxes on undistributed earnings of certain foreign subsidiaries because it is the Company\u2019s intention to permanently reinvest such earnings in its foreign subsidiaries. If such earnings were distributed, the Company would be subject to additional U.S. income tax expense.
\u00a0
The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available.
\u00a0
The aggregate changes in the balance of gross unrecognized tax benefits are as follows:
\u00a0
\u00a0(In thousands) | \u00a0 | \u00a0 | \u00a0 | |
Balance at May 31, 2021 | \u00a0 | $ | 1,928 | \u00a0 |
Increases related to prior year tax positions | \u00a0 | \u00a0 | 12 | \u00a0 |
Increases related to current year tax positions | \u00a0 | \u00a0 | 78 | \u00a0 |
Balance at May 31, 2022 | \u00a0 | \u00a0 | 2,018 | \u00a0 |
Increases related to prior year tax positions | \u00a0 | \u00a0 | 90 | \u00a0 |
Increases related to current year tax positions | \u00a0 | \u00a0 | 168 | \u00a0 |
Balance at May 31, 2023 | \u00a0 | \u00a0 | 2,276 | \u00a0 |
Increases related to prior year tax positions | \u00a0 | \u00a0 | 35 | \u00a0 |
Decreases related to prior year tax positions | \u00a0 | \u00a0 | (28 | ) |
Increases related to current year tax positions | \u00a0 | \u00a0 | 233 | \u00a0 |
Decreases related to current year tax positions | \u00a0 | \u00a0 | (32 | ) |
Balance at May 31, 2024 | \u00a0 | $ | 2,484 | \u00a0 |
\u00a0
As of May 31, 2024 and 2023, the total amount of unrecognized tax benefits was approximately $2.5 million and $2.3 million, respectively. The unrecognized tax benefit of $2.5 million would impact the effective tax rate, if recognized. The Company had zero accrued interest and accrued penalties related to unrecognized tax benefit as of May 31, 2024. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months. The Company policy is to recognize interest and penalties in income tax expense.
\u00a0
The Company\u2019s federal and state income tax returns are subject to possible examination by the taxing authorities until the expiration of the related statutes of limitations on those tax returns. In general, the federal income tax returns have a three-year statute of limitations, and the state income tax returns have a four-year statute of limitations. The Company\u2019s foreign income tax returns are also subject to examination by the foreign tax authorities with the longest statute of limitations period of four-year. The Company is not currently under audit with the Internal Revenue Service, or any foreign, state or local jurisdictions, nor has it been notified of any other potential future income tax audit.
"}]},{"name":"rpt:f-569","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Domestic | \u00a0 | $ | 12,355 | \u00a0 | \u00a0 | $ | 14,541 | \u00a0 | \u00a0 | $ | 9,416 | \u00a0 |
Foreign | \u00a0 | \u00a0 | 103 | \u00a0 | \u00a0 | \u00a0 | 76 | \u00a0 | \u00a0 | \u00a0 | 125 | \u00a0 |
\u00a0 | \u00a0 | $ | 12,458 | \u00a0 | \u00a0 | $ | 14,617 | \u00a0 | \u00a0 | $ | 9,541 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Federal income taxes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Current | \u00a0 | $ | 6 | \u00a0 | \u00a0 | $ | 28 | \u00a0 | \u00a0 | $ | 59 | \u00a0 |
Deferred | \u00a0 | \u00a0 | (14,377 | ) | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
State income taxes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | 14 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 5 | \u00a0 |
Deferred | \u00a0 | \u00a0 | (6,396 | ) | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
Foreign income taxes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | 55 | \u00a0 | \u00a0 | \u00a0 | 32 | \u00a0 | \u00a0 | \u00a0 | 27 | \u00a0 |
Deferred | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
\u00a0 | \u00a0 | $ | (20,698 | ) | \u00a0 | $ | 60 | \u00a0 | \u00a0 | $ | 91 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
U.S. federal statutory tax rate | \u00a0 | \u00a0 | 21.0 | % | \u00a0 | \u00a0 | 21.0 | % | \u00a0 | \u00a0 | 21.0 | % |
State taxes, net of federal tax effect | \u00a0 | \u00a0 | (51.1 | ) | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 0.1 | \u00a0 |
Foreign rate differential | \u00a0 | \u00a0 | 0.2 | \u00a0 | \u00a0 | \u00a0 | 0.7 | \u00a0 | \u00a0 | \u00a0 | 0.3 | \u00a0 |
Stock-based compensation | \u00a0 | \u00a0 | (8.4 | ) | \u00a0 | \u00a0 | (9.1 | ) | \u00a0 | \u00a0 | (11.0 | ) |
Research and development credit | \u00a0 | \u00a0 | (1.5 | ) | \u00a0 | \u00a0 | (2.3 | ) | \u00a0 | \u00a0 | (1.3 | ) |
Change in valuation allowance | \u00a0 | \u00a0 | (126.0 | ) | \u00a0 | \u00a0 | (9.3 | ) | \u00a0 | \u00a0 | (4.7 | ) |
PPP Loan | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | (3.7 | ) |
Other | \u00a0 | \u00a0 | (0.3 | ) | \u00a0 | \u00a0 | (0.6 | ) | \u00a0 | \u00a0 | 0.4 | \u00a0 |
Effective tax rate | \u00a0 | \u00a0 | (166.1 | )% | \u00a0 | \u00a0 | 0.4 | % | \u00a0 | \u00a0 | 1.1 | % |
\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
Deferred tax assets: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Net operating losses | \u00a0 | $ | 9,344 | \u00a0 | \u00a0 | $ | 11,964 | \u00a0 |
Lease liability | \u00a0 | \u00a0 | 1,310 | \u00a0 | \u00a0 | \u00a0 | 1,335 | \u00a0 |
Credit carryforwards | \u00a0 | \u00a0 | 6,739 | \u00a0 | \u00a0 | \u00a0 | 6,235 | \u00a0 |
Inventory reserves | \u00a0 | \u00a0 | 1,070 | \u00a0 | \u00a0 | \u00a0 | 938 | \u00a0 |
Reserves and accruals | \u00a0 | \u00a0 | 855 | \u00a0 | \u00a0 | \u00a0 | 1,200 | \u00a0 |
Capitalized research and development | \u00a0 | \u00a0 | 2,645 | \u00a0 | \u00a0 | \u00a0 | 1,187 | \u00a0 |
Other | \u00a0 | \u00a0 | 23 | \u00a0 | \u00a0 | \u00a0 | 297 | \u00a0 |
Less: valuation allowance | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | (21,859 | ) |
\u00a0 | \u00a0 | \u00a0 | 21,986 | \u00a0 | \u00a0 | \u00a0 | 1,297 | \u00a0 |
Deferred tax liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Operating lease right-of-use assets | \u00a0 | \u00a0 | (1,213 | ) | \u00a0 | \u00a0 | (1,297 | ) |
Net deferred tax assets | \u00a0 | $ | 20,773 | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0(In thousands) | \u00a0 | \u00a0 | \u00a0 | |
Balance at May 31, 2021 | \u00a0 | $ | 1,928 | \u00a0 |
Increases related to prior year tax positions | \u00a0 | \u00a0 | 12 | \u00a0 |
Increases related to current year tax positions | \u00a0 | \u00a0 | 78 | \u00a0 |
Balance at May 31, 2022 | \u00a0 | \u00a0 | 2,018 | \u00a0 |
Increases related to prior year tax positions | \u00a0 | \u00a0 | 90 | \u00a0 |
Increases related to current year tax positions | \u00a0 | \u00a0 | 168 | \u00a0 |
Balance at May 31, 2023 | \u00a0 | \u00a0 | 2,276 | \u00a0 |
Increases related to prior year tax positions | \u00a0 | \u00a0 | 35 | \u00a0 |
Decreases related to prior year tax positions | \u00a0 | \u00a0 | (28 | ) |
Increases related to current year tax positions | \u00a0 | \u00a0 | 233 | \u00a0 |
Decreases related to current year tax positions | \u00a0 | \u00a0 | (32 | ) |
Balance at May 31, 2024 | \u00a0 | $ | 2,484 | \u00a0 |
6. LEASES
\u00a0
The Company leases its manufacturing and office space under operating leases. The principal administrative and production facility is located in Fremont, California, in a 51,289 square foot building. The Company entered into a non-cancelable operating lease agreement for its United States manufacturing and office facility, which was amended in December 2022 to extend the lease term to September 2030. The total commitments, net of tenant incentives of up to $0.3 million expected to be received by December 2024, under the modified lease are $8.6 million. The modified lease contains an option to further extend the lease for five years. The lease modification resulted in an increase in the Company\u2019s operating lease right-of-use assets and operating lease liabilities of $5.9 million each in December 2022. The Company leases a 492 square foot sales and support office in Utting, Germany. The lease, which began on February 1, 1992 and expires on January 31, 2025, contains an automatic twelve months renewal. The Company leases a facility in the Philippines located in a 6,458 square foot building in Clark Freeport Zone, Pampanga. The lease, amended in 2023, began on November 1, 2023 and expires on June 30, 2029 with an option to renew for another three or five years at the prevailing market rate. Under the lease agreements, the Company is responsible for payments of utilities, taxes and insurance.
\u00a0
The Company has only operating leases for real estate including corporate offices, warehouse space and certain equipment. A lease with an initial term of 12 months or less is generally not recorded on the consolidated balance sheets, unless the arrangement includes an option to purchase the underlying asset, or renew the arrangement that the Company is reasonably certain to exercise. The Company recognizes lease expense on a straight-line basis over the lease term for short-term leases that the Company does not record on its consolidated balance sheets. The Company\u2019s operating leases have remaining lease terms of one year to six years.
\u00a0
The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of the arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.
\u00a0
As of May 31, 2024, the weighted average remaining lease term for the Company\u2019s operating leases was 6.2 years and the weighted average discount rate was 7.58%.
\u00a0
The Company\u2019s operating lease cost was $1.2 million, $0.9 million, and $0.8 million for the years ended May 31, 2024, 2023, and 2022, respectively.
\u00a0
The following table presents supplemental cash flow information related to the Company\u2019s operating leases:\u00a0
\u00a0
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Operating cash flows paid for operating leases | \u00a0 | $ | 916 | \u00a0 | \u00a0 | $ | 835 | \u00a0 | \u00a0 | $ | 813 | \u00a0 |
Right-of-use assets obtained in exchange for operating leases liabilities | \u00a0 | $ | 318 | \u00a0 | \u00a0 | $ | 5,855 | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0 \u00a0
The following table presents the maturities of the Company\u2019s operating lease liabilities as of May 31, 2024:
\u00a0
\u00a0(In thousands) | \u00a0 | \u00a0 | \u00a0 | |
Fiscal year | \u00a0 | Operating Leases | \u00a0 | |
2025 | \u00a0 | $ | 921 | \u00a0 |
2026 | \u00a0 | \u00a0 | 1,244 | \u00a0 |
2027 | \u00a0 | \u00a0 | 1,284 | \u00a0 |
2028 | \u00a0 | \u00a0 | 1,316 | \u00a0 |
2029 | \u00a0 | \u00a0 | 1,361 | \u00a0 |
Thereafter | \u00a0 | \u00a0 | 1,798 | \u00a0 |
Total future minimum operating lease payments | \u00a0 | \u00a0 | 7,924 | \u00a0 |
Less: imputed interest | \u00a0 | \u00a0 | (1,727 | ) |
Present value of operating lease liabilities | \u00a0 | $ | 6,197 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Operating cash flows paid for operating leases | \u00a0 | $ | 916 | \u00a0 | \u00a0 | $ | 835 | \u00a0 | \u00a0 | $ | 813 | \u00a0 |
Right-of-use assets obtained in exchange for operating leases liabilities | \u00a0 | $ | 318 | \u00a0 | \u00a0 | $ | 5,855 | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0(In thousands) | \u00a0 | \u00a0 | \u00a0 | |
Fiscal year | \u00a0 | Operating Leases | \u00a0 | |
2025 | \u00a0 | $ | 921 | \u00a0 |
2026 | \u00a0 | \u00a0 | 1,244 | \u00a0 |
2027 | \u00a0 | \u00a0 | 1,284 | \u00a0 |
2028 | \u00a0 | \u00a0 | 1,316 | \u00a0 |
2029 | \u00a0 | \u00a0 | 1,361 | \u00a0 |
Thereafter | \u00a0 | \u00a0 | 1,798 | \u00a0 |
Total future minimum operating lease payments | \u00a0 | \u00a0 | 7,924 | \u00a0 |
Less: imputed interest | \u00a0 | \u00a0 | (1,727 | ) |
Present value of operating lease liabilities | \u00a0 | $ | 6,197 | \u00a0 |
7. BORROWING ARRANGEMENTS
\u00a0
Payroll Protection Program Loan
\u00a0
On April 23, 2020, the Company obtained a Payroll Protection Program loan (\u201cPPP Loan\u201d) in the aggregate amount of $1.7 million from Silicon Valley Bank (\u201cSVB\u201d). The PPP Loan was evidenced by a promissory note dated April 23, 2020 (the \u201cNote\u201d) that matured on April 23, 2022 and bore interest at a rate of 1% per annum, payable monthly commencing on November 23, 2020. The PPP Loan proceeds were used for payroll, health care benefits, rent and utilities.
\u00a0
Under the terms of the Coronavirus Aid, Relief, and Economic Security Act (\u201cCARES Act\u201d), PPP Loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP Loan. On June 12, 2021, the Company received confirmation from SVB that on June 4, 2021, the Small Business Administration approved the Company\u2019s PPP Loan forgiveness application for the entire PPP Loan balance of $1.7 million and interest totaling $20 thousand, and the Company recognized a gain on loan forgiveness of $1.7 million.
\u00a0
\u00a0SVB Credit Facility
\u00a0
The Company terminated the revolving line as described below on January 4, 2024.
\u00a0
On January 16, 2020, the Company entered into a Loan and Security Agreement (the \u201cLoan Agreement\u201d) with Silicon Valley Bank (\u201cSVB\u201d). Pursuant to the Loan Agreement, the 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 base under a revolving line of credit which is collateralized by all the Company\u2019s assets except intellectual property. The borrowing base is 80% of eligible accounts, as determined by SVB from the Company\u2019s most recent borrowing base statement; provided, however, SVB has the right to decrease the foregoing percentage in its good faith business judgment to mitigate the impact of certain events or conditions, which may adversely affect the collateral or its value. Subject to an event of default, the principal amount outstanding under the revolving line of credit will accrue interest at a floating per annum rate equal to the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company\u2019s adjusted quick ratio, and (b) 4.75%. Interest is payable monthly on the last calendar day of each month and the outstanding principal amount, the unpaid interest and all other obligations are due on the maturity date, which is 364 days from the effective date of January 13, 2020.
\u00a0
On January 14, 2021, the Company entered into the First Amendment to Loan and Security Agreement (the \u201cAmendment\u201d) with SVB. The Amendment, among other things, extended the Revolving Line Maturity Date to July 14, 2021; provided, however, that if the Company achieved specified operating metrics on a consolidated basis on or prior to May 31, 2021 the Amended Revolving Line Maturity Date would be extended to January 13, 2022.
\u00a0
On January 11, 2022, the Company entered into the Second Amendment to the Loan and Security Agreement (the \u201cSecond Amendment\u201d) with SVB. The Second Amendment, among other things, (A) increased the available amount of the line up to the lesser of (i) $10 million or (ii) the available amount under the borrowing base, under a revolving line of credit, (B) allowed for borrowing up to $3 million of the available balance based upon eligible customer purchase orders, (C) reduced the interest rate for account advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company\u2019s adjusted quick ratio, and (b) 3.25%, reduces the interest rate for purchase order advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.5%, which additional percentage depends on the Company\u2019s adjusted quick ratio, and (b) 3.75%, and (D) extended the maturity date to January 13, 2023.
\u00a0
On January 10, 2023, the Company entered into the Third Amendment to the Loan and Security Agreement (the \u201cThird Amendment\u201d) with SVB. The Third Amendment, among other things, extends the Revolving Line Maturity Date to January 13, 2024, provided, however, that (i) if the Company submits a fiscal year 2024 plan of record that is generally acceptable to SVB, and (ii) the minimum net liquidity at the end of November 30, 2023 is at least $20.0 million, the Amended Revolving Line Maturity Date would be extended to January 13, 2025.
"}]},{"name":"rpt:f-705","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity","xbrl:period":"2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:PlanNameAxis":"aehr:FirstAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"1700000","decimals":-5}]},{"name":"rpt:f-706","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateTerms","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","us-gaap:PlanNameAxis":"aehr:FirstAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"The PPP Loan was evidenced by a promissory note dated April 23, 2020 (the \u201cNote\u201d) that matured on April 23, 2022 and bore interest at a rate of 1% per annum"}]},{"name":"rpt:f-707","factDimensions":{"xbrl:concept":"srt:BankLoans","xbrl:period":"2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:PlanNameAxis":"aehr:FirstAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"1700000","decimals":-5}]},{"name":"rpt:f-708","factDimensions":{"xbrl:concept":"us-gaap:InterestPaid","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:PlanNameAxis":"aehr:FirstAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"20000","decimals":-3}]},{"name":"rpt:f-709","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityDecreaseForgiveness1","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:PlanNameAxis":"aehr:FirstAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"1700000","decimals":-5}]},{"name":"rpt:f-710","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity","xbrl:period":"2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:PlanNameAxis":"aehr:OriginalLoanAndSecurityAgreementMember"},"factValues":[{"value":"4000000.0","decimals":-5}]},{"name":"rpt:f-711","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateTerms","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","us-gaap:PlanNameAxis":"aehr:OriginalLoanAndSecurityAgreementMember"},"factValues":[{"value":"the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company\u2019s adjusted quick ratio, and (b) 4.75%"}]},{"name":"rpt:f-712","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityExpirationDate1","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","us-gaap:PlanNameAxis":"aehr:FirstAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"2022-01-13"}]},{"name":"rpt:f-713","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity","xbrl:period":"2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:PlanNameAxis":"aehr:SecondAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"10000000","decimals":-6}]},{"name":"rpt:f-714","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateTerms","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","us-gaap:PlanNameAxis":"aehr:SecondAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company\u2019s adjusted quick ratio, and (b) 3.25%"}]},{"name":"rpt:f-715","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityExpirationDate1","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","us-gaap:PlanNameAxis":"aehr:SecondAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"2023-01-13"}]},{"name":"rpt:f-716","factDimensions":{"xbrl:concept":"aehr:AmountOfMinimumNetLiquidityOfCreditFacilities","xbrl:period":"2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:PlanNameAxis":"aehr:ThirdAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"20000000.0","decimals":-5}]},{"name":"rpt:f-717","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityExpirationDate1","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","us-gaap:PlanNameAxis":"aehr:ThirdAmendmentToLoanAndSecurityAgreementMember"},"factValues":[{"value":"2025-01-13"}]},{"name":"rpt:f-718","factDimensions":{"xbrl:concept":"aehr:RetirementPlanDisclouserTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a08. RETIREMENT PLAN
\u00a0
Employee Savings and Retirement Plan
\u00a0
The Company maintains a defined contribution savings plan (the \u201c401(k) Plan\u201d) to provide retirement income to all qualified employees of the Company. The 401(k) Plan is intended to 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 contributions from employees. Contributions are invested, as directed by the participant, in investment funds available under the 401(k) Plan. The Company is not required to make, and did not make, any contributions to the 401(k) Plan during the fiscal years ended May 31, 2024, 2023 and 2022.
"}]},{"name":"rpt:f-719","factDimensions":{"xbrl:concept":"us-gaap:CommitmentsAndContingenciesDisclosureTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a09. COMMITMENTS AND CONTINGENCIES
\u00a0
Commitment\u00a0
\u00a0
Purchase obligations consist of non-cancelable significant contractual obligations. As of May 31, 2024, the Company\u2019s unconditional purchase obligations, which have a remaining term in excess of 12 months, are not material.
\u00a0
Contingencies
\u00a0
The Company may, from time to time, be involved in legal proceedings arising in the ordinary course of business. While there can be no assurances as to the ultimate outcome of any litigation involving the Company, management does not believe any pending legal proceedings will result in judgment or settlement that will have a material adverse effect on the Company\u2019s consolidated financial position, results of operations or cash flows.
\u00a0
In the normal course of business to facilitate sales of its products, the Company indemnifies other parties, including customers, with respect to certain matters, for example, including against losses arising from a breach of representations or covenants, or from intellectual property infringement or other claims. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors, and the Company\u2019s bylaws contain similar indemnification obligations to the Company\u2019s agents.
\u00a0
It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, payments made by the Company under these agreements have not had a material impact on the Company\u2019s operating\u00a0results, financial position or cash flow.
"}]},{"name":"rpt:f-720","factDimensions":{"xbrl:concept":"us-gaap:StockholdersEquityNoteDisclosureTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"10. EQUITY
\u00a0
On August 25, 2021, the Board of Directors authorized management to take actions necessary for the execution of a $75 million shelf registration. A Registration Statement on Form S-3 was filed with the SEC on September 3, 2021. A Prospectus Supplement for sales of $25 million of common stock pursuant to an \"At the Market\" (\"ATM\") offering program was subsequently filed on September 17, 2021. The Company sold 1,696,729 shares of common stock at an average selling price of $14.73 per share between September and October 2021. The gross proceeds to the Company were $25 million, before commission fees of $0.7 million and offering expenses of $0.3 million. Another Prospectus Supplement for an ATM sales of $25 million of common stock was subsequently filed on February 8, 2023. The Company sold 208,917 shares of common stock at an average selling price of $34.78 per share in February 2023. The gross proceeds to the Company during the quarter ended February 28, 2023 were $7.3 million, before commissions of $0.2 million and offering expenses of $0.2 million. The Company did not sell any shares under the ATM during the year ended May 31, 2024. As of May 31, 2024, the remaining amount of the ATM offering was $17.7 million.
"}]},{"name":"rpt:f-721","factDimensions":{"xbrl:concept":"aehr:ShelfRegistrationAmount","xbrl:period":"2021-08-26T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"75000000","decimals":-6}]},{"name":"rpt:f-722","factDimensions":{"xbrl:concept":"us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction","xbrl:period":"2021-09-01T00:00:00/2021-09-18T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"xbrla:shares"},"factValues":[{"value":"1696729","decimals":0}]},{"name":"rpt:f-723","factDimensions":{"xbrl:concept":"us-gaap:SaleOfStockPricePerShare","xbrl:period":"2021-09-18T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD/xbrla:shares"},"factValues":[{"value":"14.73"}]},{"name":"rpt:f-724","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromOtherEquity","xbrl:period":"2021-09-01T00:00:00/2021-09-18T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"25000000","decimals":-6}]},{"name":"rpt:f-725","factDimensions":{"xbrl:concept":"us-gaap:SalesCommissionsAndFees","xbrl:period":"2021-09-01T00:00:00/2021-09-18T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"700000","decimals":-5}]},{"name":"rpt:f-726","factDimensions":{"xbrl:concept":"us-gaap:NoninterestExpenseOfferingCost","xbrl:period":"2021-09-01T00:00:00/2021-09-18T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"300000","decimals":-5}]},{"name":"rpt:f-727","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromOtherEquity","xbrl:period":"2021-10-01T00:00:00/2021-10-11T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"25000000","decimals":-6}]},{"name":"rpt:f-728","factDimensions":{"xbrl:concept":"us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction","xbrl:period":"2023-02-01T00:00:00/2023-03-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"xbrla:shares"},"factValues":[{"value":"208917","decimals":0}]},{"name":"rpt:f-729","factDimensions":{"xbrl:concept":"us-gaap:SaleOfStockPricePerShare","xbrl:period":"2023-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD/xbrla:shares"},"factValues":[{"value":"34.78"}]},{"name":"rpt:f-730","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromOtherEquity","xbrl:period":"2023-02-01T00:00:00/2023-03-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"7300000","decimals":-5}]},{"name":"rpt:f-731","factDimensions":{"xbrl:concept":"us-gaap:SalesCommissionsAndFees","xbrl:period":"2023-02-01T00:00:00/2023-03-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"200000","decimals":-5}]},{"name":"rpt:f-732","factDimensions":{"xbrl:concept":"us-gaap:NoninterestExpenseOfferingCost","xbrl:period":"2023-02-01T00:00:00/2023-03-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"200000","decimals":-5}]},{"name":"rpt:f-733","factDimensions":{"xbrl:concept":"aehr:OutstandingAmounTofATMOffering","xbrl:period":"2023-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"17700000","decimals":-5}]},{"name":"rpt:f-734","factDimensions":{"xbrl:concept":"us-gaap:CompensationAndEmployeeBenefitPlansTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"11. EMPLOYEE STOCK PLANS
\u00a0
2023 Equity Incentive Plan
\u00a0
On October 23, 2023, the shareholders of the Company approved the 2023 Equity Incentive Plan (the \"2023 Plan\") to replace the Company\u2019s 2016 Equity Incentive Plan\u00a0(the \u201c2016 Plan\u201d) and reserved a total of 1,500,000 shares of common stock under the 2023 Plan.
\u00a0
The 2023 Plan permits grants to employees of share-based awards, including stock options, RSUs, PRSUs, restricted shares, performance restricted shares. Full value awards, which are equity awards other than options, stock appreciation rights or other awards that are based solely on an increase in value of the shares following the grant date, when granted or forfeited will be counted as the same number of common stock shares added or deducted to the remaining available shares for issuance under the 2023 Plan.\u00a0
2016 Equity Incentive Plan
\u00a0
In October 2016, the Company\u2019s 2016 Plan was approved by the Company\u2019s shareholders. The 2016 Plan replaced the 2006 Equity Incentive Plan and would continue in effect until 2026. The exercise price of each stock option equals the market value of the Company's common stock on the date of grant. Options typically vest over four years, subject to the grantee\u2019s continued service with the Company through the scheduled vesting date, and expire in seven years from the grant date. A total of 4,848,000 shares of common stock have been reserved for issuance under the Company\u2019s 2016 Plan. Full value awards, which are equity awards other than options, stock appreciation rights or other awards that are based solely on an increase in value of the shares following the grant date, when granted or forfeited will be counted as two times the number of shares added or deducted to the remaining available shares for issuance under the 2016 Plan.
\u00a0
The following table summarizes the total stock-based compensation expense for the fiscal years ended May 31, 2024, 2023, and 2022:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
(In thousands, except per share data) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Cost of sales | \u00a0 | $ | 330 | \u00a0 | \u00a0 | $ | 331 | \u00a0 | \u00a0 | $ | 234 | \u00a0 |
Research and development | \u00a0 | \u00a0 | 639 | \u00a0 | \u00a0 | \u00a0 | 706 | \u00a0 | \u00a0 | \u00a0 | 968 | \u00a0 |
Selling, general and administrative | \u00a0 | \u00a0 | 1,549 | \u00a0 | \u00a0 | \u00a0 | 1,711 | \u00a0 | \u00a0 | \u00a0 | 1,721 | \u00a0 |
Net effect on net income | \u00a0 | $ | 2,518 | \u00a0 | \u00a0 | $ | 2,748 | \u00a0 | \u00a0 | $ | 2,923 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Effect on earnings per share: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u00a0 Basic | \u00a0 | $ | 0.09 | \u00a0 | \u00a0 | $ | 0.10 | \u00a0 | \u00a0 | $ | 0.11 | \u00a0 |
\u00a0 Diluted | \u00a0 | $ | 0.09 | \u00a0 | \u00a0 | $ | 0.09 | \u00a0 | \u00a0 | $ | 0.11 | \u00a0 |
\u00a0\u00a0 \u00a0
As of May 31, 2024 and 2023, stock-based compensation totaling $0.3 million and $0.1 million, respectively, was capitalized as part of inventory.
The following table presents the combined stock activities and the total number of shares available for grant under the Company\u2019s equity incentive plans:
\u00a0
(in thousands) | \u00a0 | Available Shares for Grant | \u00a0 | |
Balance, May 31, 2021 | \u00a0 | \u00a0 | 573 | \u00a0 |
Additional shares reserved under the 2016 Plan | \u00a0 | \u00a0 | 1,414 | \u00a0 |
Options granted | \u00a0 | \u00a0 | (303 | ) |
RSUs granted | \u00a0 | \u00a0 | (1,044 | ) |
RSUs cancelled | \u00a0 | \u00a0 | 20 | \u00a0 |
Shares withheld for taxes and not issued | \u00a0 | \u00a0 | (30 | ) |
Options terminated | \u00a0 | \u00a0 | 105 | \u00a0 |
Balance, May 31, 2022 | \u00a0 | \u00a0 | 735 | \u00a0 |
Options granted | \u00a0 | \u00a0 | (110 | ) |
RSUs granted | \u00a0 | \u00a0 | (674 | ) |
RSUs cancelled | \u00a0 | \u00a0 | 60 | \u00a0 |
Options terminated | \u00a0 | \u00a0 | 16 | \u00a0 |
Balance, May 31, 2023 | \u00a0 | \u00a0 | 27 | \u00a0 |
Shares reserved under the 2023 Plan | \u00a0 | \u00a0 | 1,500 | \u00a0 |
Shares retired under the 2016 Plan | \u00a0 | \u00a0 | (95 | ) |
Options granted | \u00a0 | \u00a0 | (4 | ) |
RSUs granted | \u00a0 | \u00a0 | (221 | ) |
RSUs cancelled | \u00a0 | \u00a0 | 144 | \u00a0 |
Options terminated | \u00a0 | \u00a0 | 12 | \u00a0 |
Balance, May 31, 2024 | \u00a0 | \u00a0 | 1,363 | \u00a0 |
\u00a0
Restricted Stock Units, Performance Restricted Stock Units and Restricted Stock Awards
\u00a0
The Company\u2019s nonvested RSU, PRSU and restricted stock awards granted to employees and members of the Company\u2019s Board of Directors for the fiscal year ended May 31, 2024 were as follows:
\u00a0
\u00a0 | \u00a0 | Number of Shares | \u00a0 | \u00a0 | Weighted Average Grant Date Fair Value | \u00a0 | \u00a0 | Weighted Average Remaining Contractual Term | \u00a0 | \u00a0 | Aggregate Intrinsic Value | \u00a0 | ||||
\u00a0 | \u00a0 | (in thousands) | \u00a0 | \u00a0 | Per Share | \u00a0 | \u00a0 | (In Years) | \u00a0 | \u00a0 | (in thousands) | \u00a0 | ||||
Unvested, May 31, 2023 | \u00a0 | \u00a0 | 345 | \u00a0 | \u00a0 | $ | 6.40 | \u00a0 | \u00a0 | \u00a0 | 2.35 | \u00a0 | \u00a0 | $ | 11,392 | \u00a0 |
Granted (1) | \u00a0 | \u00a0 | 205 | \u00a0 | \u00a0 | \u00a0 | 31.36 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Vested | \u00a0 | \u00a0 | (170 | ) | \u00a0 | \u00a0 | 9.31 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Forfeited | \u00a0 | \u00a0 | (86 | ) | \u00a0 | \u00a0 | 13.63 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unvested, May 31, 2024 | \u00a0 | \u00a0 | 294 | \u00a0 | \u00a0 | $ | 20.08 | \u00a0 | \u00a0 | \u00a0 | 2.29 | \u00a0 | \u00a0 | $ | 3,381 | \u00a0 |
\u00a0
(1) | Includes 88,000 performance-based awards. The number of shares subject to performance-based conditions represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. |
\u00a0
During fiscal 2024, the Company recorded stock-based compensation related to RSUs, PRSUs, performance restricted shares and restricted shares of $1.3 million. As of May 31, 2024, the total unrecognized compensation expense related to unvested RSU, PRSU and restricted shares was $3.9 million. This expense will be amortized on a straight-line basis over a weighted average period of approximately 2.29 years.
Stock Options
\u00a0
The following table summarized the stock option transactions during fiscal 2024:
\u00a0
\u00a0 | \u00a0 | Number of Shares | \u00a0 | \u00a0 | Weighted Average Exercise Price | \u00a0 | \u00a0 | Weighted Average Remaining Contractual Term | \u00a0 | \u00a0 | Aggregated Intrinsic Value | \u00a0 | ||||
\u00a0 | \u00a0 | (in thousands) | \u00a0 | \u00a0 | Per Share | \u00a0 | \u00a0 | (In Years) | \u00a0 | \u00a0 | (in thousands) | \u00a0 | ||||
Balances, May 31, 2023 | \u00a0 | \u00a0 | 961 | \u00a0 | \u00a0 | $ | 3.67 | \u00a0 | \u00a0 | \u00a0 | 4.02 | \u00a0 | \u00a0 | $ | 28,211 | \u00a0 |
Options granted | \u00a0 | \u00a0 | 4 | \u00a0 | \u00a0 | \u00a0 | 49.21 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Options terminated | \u00a0 | \u00a0 | (12 | ) | \u00a0 | \u00a0 | 3.78 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Options exercised | \u00a0 | \u00a0 | (251 | ) | \u00a0 | \u00a0 | 2.51 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balances, May 31, 2024 | \u00a0 | \u00a0 | 702 | \u00a0 | \u00a0 | $ | 4.37 | \u00a0 | \u00a0 | \u00a0 | 3.26 | \u00a0 | \u00a0 | $ | 5,322 | \u00a0 |
Options exercisable, May 31, 2024 | \u00a0 | \u00a0 | 536 | \u00a0 | \u00a0 | $ | 3.26 | \u00a0 | \u00a0 | \u00a0 | 2.83 | \u00a0 | \u00a0 | $ | 4,512 | \u00a0 |
Options exercisable and expected to vest | \u00a0 | \u00a0 | 701 | \u00a0 | \u00a0 | $ | 4.37 | \u00a0 | \u00a0 | \u00a0 | 3.26 | \u00a0 | \u00a0 | $ | 5,320 | \u00a0 |
\u00a0\u00a0 \u00a0
The fair value of the Company\u2019s stock options granted to employees was estimated on the date of grant using the Black-Scholes model and the straight-line attribution approach with the following weighted average assumptions:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Expected term (in years) | \u00a0 | \u00a0 | 5 | \u00a0 | \u00a0 | 5-6 | \u00a0 | \u00a0 | 5-6 | \u00a0 | ||
Volatility | \u00a0 | \u00a0 | 93 | % | \u00a0 | \u00a0 | 86 | % | \u00a0 | \u00a0 | 88 | % |
Risk-free interest rates | \u00a0 | \u00a0 | 4.34 | % | \u00a0 | \u00a0 | 3.12 | % | \u00a0 | \u00a0 | 1.50 | % |
Weighted average grant date fair value | \u00a0 | $ | 36.02 | \u00a0 | \u00a0 | $ | 6.29 | \u00a0 | \u00a0 | $ | 4.01 | \u00a0 |
\u00a0
The total intrinsic values of options exercised were $9.5 million, $17.1 million, and $12.5 million during fiscal 2024, 2023, and 2022, respectively.
\u00a0
During fiscal 2024, the Company recorded stock-based compensation related to its stock options of $0.4 million. \u00a0As of May 31, 2024, the Company had $0.9 million of total unrecognized compensation expense related to unvested stock options granted and outstanding which is expected to be recognized over a weighted average remaining period of 3.26 years.
\u00a0
Employee Stock Purchase Plan
\u00a0
The ESPP permits employees to purchase common stock at a discount through payroll withholdings at certain specified dates (purchase period) within a defined offering period. The purchase price is 85.0% of the fair market value of the common stock at the end of the purchase period and is intended to qualify as an \u201cemployee stock purchase plan\u201d under Section 423 of the Internal Revenue Code.
\u00a0
For the fiscal years ended May 31, 2024, 2023, and 2022, approximately 72,000, 211,000, and 178,000 shares of common stock, were issued under the ESPP. As of May 31, 2024, 326,000 shares remain available for issuance under the ESPP.
The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes model with the following weighted-average assumptions:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||
Expected term (in years) | \u00a0 | 0.5 \u2013 2.0 | \u00a0 | \u00a0 | 0.5 \u2013 2.0 | \u00a0 | \u00a0 | 0.5 \u2013 2.0 | \u00a0 | |||
Volatility | \u00a0 | 70% \u2013 94 | % | \u00a0 | 91% \u2013 203 | %\u00a0 | \u00a0 | 101% \u2013 272 | %\u00a0 | |||
Risk-free interest rates | \u00a0 | 4.72%\u20135.53 | % | \u00a0 | 3.97%\u20134.94 | %\u00a0 | \u00a0 | 0.05%\u20132.44 | %\u00a0 | |||
Weighted average grant date fair value | \u00a0 | $ | 6.30 | \u00a0 | \u00a0 | $ | 13.60 | \u00a0 | \u00a0 | $ | 9.68 | \u00a0 |
\u00a0\u00a0\u00a0\u00a0 \u00a0
During fiscal 2024, 2023, and 2022, the Company recorded stock-based compensation related to its ESPP of $0.8 million, $0.8 million, and $0.9 million, respectively.
\u00a0
As of May 31, 2024, the total unrecognized compensation expense related to purchase rights under the ESPP was $1.1 million. This expense will be amortized on a straight-line basis over a weighted average period of approximately 1.2 years.
\u00a0
\u00a0Employee Stock Ownership Plan\u00a0
\u00a0
The Company has a non-contributory, trusteed employee stock ownership plan or Employee Stock Ownership Plan (\u201cESOP\u201d) for full-time and part-time employees. The Company can contribute either shares of the Company\u2019s stock or cash to the ESOP. During the fiscal years ended May 31, 2024, 2023 and 2022, the Company contributed 9,085, 29,832 and 26,666 shares to the ESOP. As a result, the Company recognized stock-based compensation expense totaling $0.3 million, $0.3 million and $0.3 million during the fiscal years ended May 31, 2024, 2023 and 2022, respectively. Shares held in the ESOP are included in the net income per share calculation.
"}]},{"name":"rpt:f-735","factDimensions":{"xbrl:concept":"us-gaap:CommonStockCapitalSharesReservedForFutureIssuance","xbrl:period":"2023-10-24T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"aehr:EquityIncentivePlanTwoZeroTwoThreeMember"},"factValues":[{"value":"1500000","decimals":0}]},{"name":"rpt:f-736","factDimensions":{"xbrl:concept":"us-gaap:CommonStockCapitalSharesReservedForFutureIssuance","xbrl:period":"2024-06-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"aehr:EquityIncentivePlan2016Member"},"factValues":[{"value":"4848000","decimals":0}]},{"name":"rpt:f-737","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
(In thousands, except per share data) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Cost of sales | \u00a0 | $ | 330 | \u00a0 | \u00a0 | $ | 331 | \u00a0 | \u00a0 | $ | 234 | \u00a0 |
Research and development | \u00a0 | \u00a0 | 639 | \u00a0 | \u00a0 | \u00a0 | 706 | \u00a0 | \u00a0 | \u00a0 | 968 | \u00a0 |
Selling, general and administrative | \u00a0 | \u00a0 | 1,549 | \u00a0 | \u00a0 | \u00a0 | 1,711 | \u00a0 | \u00a0 | \u00a0 | 1,721 | \u00a0 |
Net effect on net income | \u00a0 | $ | 2,518 | \u00a0 | \u00a0 | $ | 2,748 | \u00a0 | \u00a0 | $ | 2,923 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Effect on earnings per share: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u00a0 Basic | \u00a0 | $ | 0.09 | \u00a0 | \u00a0 | $ | 0.10 | \u00a0 | \u00a0 | $ | 0.11 | \u00a0 |
\u00a0 Diluted | \u00a0 | $ | 0.09 | \u00a0 | \u00a0 | $ | 0.09 | \u00a0 | \u00a0 | $ | 0.11 | \u00a0 |
(in thousands) | \u00a0 | Available Shares for Grant | \u00a0 | |
Balance, May 31, 2021 | \u00a0 | \u00a0 | 573 | \u00a0 |
Additional shares reserved under the 2016 Plan | \u00a0 | \u00a0 | 1,414 | \u00a0 |
Options granted | \u00a0 | \u00a0 | (303 | ) |
RSUs granted | \u00a0 | \u00a0 | (1,044 | ) |
RSUs cancelled | \u00a0 | \u00a0 | 20 | \u00a0 |
Shares withheld for taxes and not issued | \u00a0 | \u00a0 | (30 | ) |
Options terminated | \u00a0 | \u00a0 | 105 | \u00a0 |
Balance, May 31, 2022 | \u00a0 | \u00a0 | 735 | \u00a0 |
Options granted | \u00a0 | \u00a0 | (110 | ) |
RSUs granted | \u00a0 | \u00a0 | (674 | ) |
RSUs cancelled | \u00a0 | \u00a0 | 60 | \u00a0 |
Options terminated | \u00a0 | \u00a0 | 16 | \u00a0 |
Balance, May 31, 2023 | \u00a0 | \u00a0 | 27 | \u00a0 |
Shares reserved under the 2023 Plan | \u00a0 | \u00a0 | 1,500 | \u00a0 |
Shares retired under the 2016 Plan | \u00a0 | \u00a0 | (95 | ) |
Options granted | \u00a0 | \u00a0 | (4 | ) |
RSUs granted | \u00a0 | \u00a0 | (221 | ) |
RSUs cancelled | \u00a0 | \u00a0 | 144 | \u00a0 |
Options terminated | \u00a0 | \u00a0 | 12 | \u00a0 |
Balance, May 31, 2024 | \u00a0 | \u00a0 | 1,363 | \u00a0 |
\u00a0 | \u00a0 | Number of Shares | \u00a0 | \u00a0 | Weighted Average Grant Date Fair Value | \u00a0 | \u00a0 | Weighted Average Remaining Contractual Term | \u00a0 | \u00a0 | Aggregate Intrinsic Value | \u00a0 | ||||
\u00a0 | \u00a0 | (in thousands) | \u00a0 | \u00a0 | Per Share | \u00a0 | \u00a0 | (In Years) | \u00a0 | \u00a0 | (in thousands) | \u00a0 | ||||
Unvested, May 31, 2023 | \u00a0 | \u00a0 | 345 | \u00a0 | \u00a0 | $ | 6.40 | \u00a0 | \u00a0 | \u00a0 | 2.35 | \u00a0 | \u00a0 | $ | 11,392 | \u00a0 |
Granted (1) | \u00a0 | \u00a0 | 205 | \u00a0 | \u00a0 | \u00a0 | 31.36 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Vested | \u00a0 | \u00a0 | (170 | ) | \u00a0 | \u00a0 | 9.31 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Forfeited | \u00a0 | \u00a0 | (86 | ) | \u00a0 | \u00a0 | 13.63 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unvested, May 31, 2024 | \u00a0 | \u00a0 | 294 | \u00a0 | \u00a0 | $ | 20.08 | \u00a0 | \u00a0 | \u00a0 | 2.29 | \u00a0 | \u00a0 | $ | 3,381 | \u00a0 |
\u00a0 | \u00a0 | Number of Shares | \u00a0 | \u00a0 | Weighted Average Exercise Price | \u00a0 | \u00a0 | Weighted Average Remaining Contractual Term | \u00a0 | \u00a0 | Aggregated Intrinsic Value | \u00a0 | ||||
\u00a0 | \u00a0 | (in thousands) | \u00a0 | \u00a0 | Per Share | \u00a0 | \u00a0 | (In Years) | \u00a0 | \u00a0 | (in thousands) | \u00a0 | ||||
Balances, May 31, 2023 | \u00a0 | \u00a0 | 961 | \u00a0 | \u00a0 | $ | 3.67 | \u00a0 | \u00a0 | \u00a0 | 4.02 | \u00a0 | \u00a0 | $ | 28,211 | \u00a0 |
Options granted | \u00a0 | \u00a0 | 4 | \u00a0 | \u00a0 | \u00a0 | 49.21 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Options terminated | \u00a0 | \u00a0 | (12 | ) | \u00a0 | \u00a0 | 3.78 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Options exercised | \u00a0 | \u00a0 | (251 | ) | \u00a0 | \u00a0 | 2.51 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balances, May 31, 2024 | \u00a0 | \u00a0 | 702 | \u00a0 | \u00a0 | $ | 4.37 | \u00a0 | \u00a0 | \u00a0 | 3.26 | \u00a0 | \u00a0 | $ | 5,322 | \u00a0 |
Options exercisable, May 31, 2024 | \u00a0 | \u00a0 | 536 | \u00a0 | \u00a0 | $ | 3.26 | \u00a0 | \u00a0 | \u00a0 | 2.83 | \u00a0 | \u00a0 | $ | 4,512 | \u00a0 |
Options exercisable and expected to vest | \u00a0 | \u00a0 | 701 | \u00a0 | \u00a0 | $ | 4.37 | \u00a0 | \u00a0 | \u00a0 | 3.26 | \u00a0 | \u00a0 | $ | 5,320 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Expected term (in years) | \u00a0 | \u00a0 | 5 | \u00a0 | \u00a0 | 5-6 | \u00a0 | \u00a0 | 5-6 | \u00a0 | ||
Volatility | \u00a0 | \u00a0 | 93 | % | \u00a0 | \u00a0 | 86 | % | \u00a0 | \u00a0 | 88 | % |
Risk-free interest rates | \u00a0 | \u00a0 | 4.34 | % | \u00a0 | \u00a0 | 3.12 | % | \u00a0 | \u00a0 | 1.50 | % |
Weighted average grant date fair value | \u00a0 | $ | 36.02 | \u00a0 | \u00a0 | $ | 6.29 | \u00a0 | \u00a0 | $ | 4.01 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31, | \u00a0 | |||||||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||
Expected term (in years) | \u00a0 | 0.5 \u2013 2.0 | \u00a0 | \u00a0 | 0.5 \u2013 2.0 | \u00a0 | \u00a0 | 0.5 \u2013 2.0 | \u00a0 | |||
Volatility | \u00a0 | 70% \u2013 94 | % | \u00a0 | 91% \u2013 203 | %\u00a0 | \u00a0 | 101% \u2013 272 | %\u00a0 | |||
Risk-free interest rates | \u00a0 | 4.72%\u20135.53 | % | \u00a0 | 3.97%\u20134.94 | %\u00a0 | \u00a0 | 0.05%\u20132.44 | %\u00a0 | |||
Weighted average grant date fair value | \u00a0 | $ | 6.30 | \u00a0 | \u00a0 | $ | 13.60 | \u00a0 | \u00a0 | $ | 9.68 | \u00a0 |
12. REVENUE
\u00a0
Disaggregation of Revenue
\u00a0
The following tables show revenues by major product categories. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flow are substantially similar.
\u00a0
The Company\u2019s revenues by product category are as follows:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Systems | \u00a0 | $ | 24,169 | \u00a0 | \u00a0 | $ | 38,844 | \u00a0 | \u00a0 | $ | 25,224 | \u00a0 |
Contactors | \u00a0 | \u00a0 | 37,560 | \u00a0 | \u00a0 | \u00a0 | 21,873 | \u00a0 | \u00a0 | \u00a0 | 22,647 | \u00a0 |
Services | \u00a0 | \u00a0 | 4,489 | \u00a0 | \u00a0 | \u00a0 | 4,244 | \u00a0 | \u00a0 | \u00a0 | 2,958 | \u00a0 |
\u00a0 | \u00a0 | $ | 66,218 | \u00a0 | \u00a0 | $ | 64,961 | \u00a0 | \u00a0 | $ | 50,829 | \u00a0 |
The following presents information about the Company\u2019s operations in different geographic areas.\u00a0 Net revenues are based on ship-to locations:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Asia | \u00a0 | $ | 58,076 | \u00a0 | \u00a0 | $ | 55,609 | \u00a0 | \u00a0 | $ | 45,700 | \u00a0 |
United States | \u00a0 | \u00a0 | 3,532 | \u00a0 | \u00a0 | \u00a0 | 9,289 | \u00a0 | \u00a0 | \u00a0 | 5,110 | \u00a0 |
Europe | \u00a0 | \u00a0 | 4,610 | \u00a0 | \u00a0 | \u00a0 | 63 | \u00a0 | \u00a0 | \u00a0 | 19 | \u00a0 |
\u00a0 | \u00a0 | $ | 66,218 | \u00a0 | \u00a0 | $ | 64,961 | \u00a0 | \u00a0 | $ | 50,829 | \u00a0 |
\u00a0
With the exception of the amount of service contracts and extended warranties, the Company\u2019s product category revenues are recognized at point in time when control transfers to customers.\u00a0 The following presents revenue based on timing of recognition:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Timing of revenue recognition: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Products and services transferred at a point in time | \u00a0 | $ | 64,590 | \u00a0 | \u00a0 | $ | 63,531 | \u00a0 | \u00a0 | $ | 49,441 | \u00a0 |
Services transferred over time | \u00a0 | \u00a0 | 1,628 | \u00a0 | \u00a0 | \u00a0 | 1,430 | \u00a0 | \u00a0 | \u00a0 | 1,388 | \u00a0 |
\u00a0 | \u00a0 | $ | 66,218 | \u00a0 | \u00a0 | $ | 64,961 | \u00a0 | \u00a0 | $ | 50,829 | \u00a0 |
\u00a0
Contract Balances
\u00a0
Accounts receivable are recognized in the period the Company delivers goods and provides services or when the Company\u2019s right to consideration is unconditional. Contract assets include unbilled receivables which represent revenues that are earned in advance of scheduled billings to customers. These amounts are primarily related to product sales where transfer of control has occurred but the Company has not yet invoiced. As of May 31, 2024, unbilled receivables were $0.2 million and were included in prepaid expenses and other current assets on the accompanying consolidated balance sheets. Contract assets were not significant as of May 31, 2023.
\u00a0
Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities as of May 31, 2024 and May 31, 2023 were $1.4 million and $2.9 million, respectively, and were included in deferred revenue, short-term and deferred revenue, long-term on the accompanying consolidated balance sheets. During the fiscal years ended May 31, 2024 and 2023, the Company recognized $2.8 million and $2.2 million, respectively, of revenues that were included in contract liabilities as of May 31, 2023 and 2022, respectively.
\u00a0
Remaining Performance Obligations
\u00a0
As of May 31, 2024, the remaining performance obligations, exclusive of customer deposits, which were comprised of deferred service contracts and extended warranty contracts not yet delivered, are not material. The foregoing excludes the value of the remaining performance obligations that have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation.
\u00a0
Costs to Obtain or Fulfill a Contract
\u00a0
The Company generally expenses sales commissions when incurred as a component of selling, general and administrative expense as the amortization period is typically less than one year. Additionally, the majority of the Company\u2019s cost of fulfillment as a manufacturer of products is classified as inventory and fixed assets, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of the Company\u2019s products and their respective manufacturing process.
"}]},{"name":"rpt:f-880","factDimensions":{"xbrl:concept":"us-gaap:DisaggregationOfRevenueTableTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Systems | \u00a0 | $ | 24,169 | \u00a0 | \u00a0 | $ | 38,844 | \u00a0 | \u00a0 | $ | 25,224 | \u00a0 |
Contactors | \u00a0 | \u00a0 | 37,560 | \u00a0 | \u00a0 | \u00a0 | 21,873 | \u00a0 | \u00a0 | \u00a0 | 22,647 | \u00a0 |
Services | \u00a0 | \u00a0 | 4,489 | \u00a0 | \u00a0 | \u00a0 | 4,244 | \u00a0 | \u00a0 | \u00a0 | 2,958 | \u00a0 |
\u00a0 | \u00a0 | $ | 66,218 | \u00a0 | \u00a0 | $ | 64,961 | \u00a0 | \u00a0 | $ | 50,829 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Asia | \u00a0 | $ | 58,076 | \u00a0 | \u00a0 | $ | 55,609 | \u00a0 | \u00a0 | $ | 45,700 | \u00a0 |
United States | \u00a0 | \u00a0 | 3,532 | \u00a0 | \u00a0 | \u00a0 | 9,289 | \u00a0 | \u00a0 | \u00a0 | 5,110 | \u00a0 |
Europe | \u00a0 | \u00a0 | 4,610 | \u00a0 | \u00a0 | \u00a0 | 63 | \u00a0 | \u00a0 | \u00a0 | 19 | \u00a0 |
\u00a0 | \u00a0 | $ | 66,218 | \u00a0 | \u00a0 | $ | 64,961 | \u00a0 | \u00a0 | $ | 50,829 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Timing of revenue recognition: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Products and services transferred at a point in time | \u00a0 | $ | 64,590 | \u00a0 | \u00a0 | $ | 63,531 | \u00a0 | \u00a0 | $ | 49,441 | \u00a0 |
Services transferred over time | \u00a0 | \u00a0 | 1,628 | \u00a0 | \u00a0 | \u00a0 | 1,430 | \u00a0 | \u00a0 | \u00a0 | 1,388 | \u00a0 |
\u00a0 | \u00a0 | $ | 66,218 | \u00a0 | \u00a0 | $ | 64,961 | \u00a0 | \u00a0 | $ | 50,829 | \u00a0 |
13. NET INCOME PER SHARE
\u00a0
Basic net income per share is determined using the weighted average number of common shares outstanding during the period. Diluted net income per share is determined using the weighted average number of common shares and potential common shares (representing the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options, and vesting of outstanding RSUs and ESPP shares) during the period using the treasury stock method. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on net income per share.
The following table presents the computation of basic and diluted net income per share:
\u00a0
\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands, except per share data) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Numerator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Net income | \u00a0 | $ | 33,156 | \u00a0 | \u00a0 | $ | 14,557 | \u00a0 | \u00a0 | $ | 9,450 | \u00a0 |
Denominator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Basic weighted average shares outstanding | \u00a0 | \u00a0 | 28,818 | \u00a0 | \u00a0 | \u00a0 | 27,785 | \u00a0 | \u00a0 | \u00a0 | 26,014 | \u00a0 |
Dilutive effect of common equivalent shares outstanding | \u00a0 | \u00a0 | 799 | \u00a0 | \u00a0 | \u00a0 | 1,430 | \u00a0 | \u00a0 | \u00a0 | 1,760 | \u00a0 |
Diluted weighted average shares outstanding | \u00a0 | \u00a0 | 29,617 | \u00a0 | \u00a0 | \u00a0 | 29,215 | \u00a0 | \u00a0 | \u00a0 | 27,774 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Net income per share - Basic | \u00a0 | $ | 1.15 | \u00a0 | \u00a0 | $ | 0.52 | \u00a0 | \u00a0 | $ | 0.36 | \u00a0 |
Net income per share - Diluted | \u00a0 | $ | 1.12 | \u00a0 | \u00a0 | $ | 0.50 | \u00a0 | \u00a0 | $ | 0.34 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Antidilutive employee share-based awards, excluded | \u00a0 | \u00a0 | 351 | \u00a0 | \u00a0 | \u00a0 | 5 | \u00a0 | \u00a0 | \u00a0 | 64 | \u00a0 |
\u00a0 | \u00a0 | Year Ended May 31 | \u00a0 | |||||||||
(In thousands, except per share data) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2022 | \u00a0 | |||
Numerator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||
Net income | \u00a0 | $ | 33,156 | \u00a0 | \u00a0 | $ | 14,557 | \u00a0 | \u00a0 | $ | 9,450 | \u00a0 |
Denominator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Basic weighted average shares outstanding | \u00a0 | \u00a0 | 28,818 | \u00a0 | \u00a0 | \u00a0 | 27,785 | \u00a0 | \u00a0 | \u00a0 | 26,014 | \u00a0 |
Dilutive effect of common equivalent shares outstanding | \u00a0 | \u00a0 | 799 | \u00a0 | \u00a0 | \u00a0 | 1,430 | \u00a0 | \u00a0 | \u00a0 | 1,760 | \u00a0 |
Diluted weighted average shares outstanding | \u00a0 | \u00a0 | 29,617 | \u00a0 | \u00a0 | \u00a0 | 29,215 | \u00a0 | \u00a0 | \u00a0 | 27,774 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Net income per share - Basic | \u00a0 | $ | 1.15 | \u00a0 | \u00a0 | $ | 0.52 | \u00a0 | \u00a0 | $ | 0.36 | \u00a0 |
Net income per share - Diluted | \u00a0 | $ | 1.12 | \u00a0 | \u00a0 | $ | 0.50 | \u00a0 | \u00a0 | $ | 0.34 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Antidilutive employee share-based awards, excluded | \u00a0 | \u00a0 | 351 | \u00a0 | \u00a0 | \u00a0 | 5 | \u00a0 | \u00a0 | \u00a0 | 64 | \u00a0 |
14.\u00a0 ACCUMULATED OTHER COMPREHENSIVE LOSS
\u00a0
Changes in the components of accumulated other comprehensive loss, net of tax, were as follows:
\u00a0
\u00a0 | \u00a0 | Cumulative | \u00a0 | \u00a0 | Unrealized loss | \u00a0 | \u00a0 | \u00a0 | ||||
(In thousands) | \u00a0 | translation adjustment | \u00a0 | \u00a0 | on investments, net | \u00a0 | \u00a0 | Total | \u00a0 | |||
Balance as of May 31, 2022 | \u00a0 | $ | (105 | ) | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | (105 | ) |
Other comprehensive loss before reclassifications | \u00a0 | \u00a0 | (33 | ) | \u00a0 | \u00a0 | (17 | ) | \u00a0 | \u00a0 | (50 | ) |
Balance as of May 31, 2023 | \u00a0 | \u00a0 | (138 | ) | \u00a0 | \u00a0 | (17 | ) | \u00a0 | \u00a0 | (155 | ) |
Other comprehensive income (loss) before reclassifications | \u00a0 | \u00a0 | (20 | ) | \u00a0 | \u00a0 | 17 | \u00a0 | \u00a0 | \u00a0 | (3 | ) |
Balance as of May 31, 2024 | \u00a0 | $ | (158 | ) | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | (158 | ) |
\u00a0 | \u00a0 | Cumulative | \u00a0 | \u00a0 | Unrealized loss | \u00a0 | \u00a0 | \u00a0 | ||||
(In thousands) | \u00a0 | translation adjustment | \u00a0 | \u00a0 | on investments, net | \u00a0 | \u00a0 | Total | \u00a0 | |||
Balance as of May 31, 2022 | \u00a0 | $ | (105 | ) | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | (105 | ) |
Other comprehensive loss before reclassifications | \u00a0 | \u00a0 | (33 | ) | \u00a0 | \u00a0 | (17 | ) | \u00a0 | \u00a0 | (50 | ) |
Balance as of May 31, 2023 | \u00a0 | \u00a0 | (138 | ) | \u00a0 | \u00a0 | (17 | ) | \u00a0 | \u00a0 | (155 | ) |
Other comprehensive income (loss) before reclassifications | \u00a0 | \u00a0 | (20 | ) | \u00a0 | \u00a0 | 17 | \u00a0 | \u00a0 | \u00a0 | (3 | ) |
Balance as of May 31, 2024 | \u00a0 | $ | (158 | ) | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | (158 | ) |
15. SEGMENT INFORMATION
\u00a0
The Company has only one reportable segment. The information for revenue category by type, geography and timing of revenue recognition, is summarized in Note 12, \u201cRevenue.\u201d
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Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas:
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\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
United States | \u00a0 | $ | 3,128 | \u00a0 | \u00a0 | $ | 2,713 | \u00a0 |
International | \u00a0 | \u00a0 | 125 | \u00a0 | \u00a0 | \u00a0 | 46 | \u00a0 |
Total long-lived assets, net | \u00a0 | $ | 3,253 | \u00a0 | \u00a0 | $ | 2,759 | \u00a0 |
\u00a0\u00a0\u00a0\u00a0 \u00a0
As of May 31, 2024, the operating lease right-of-use assets of $5.4 million and $0.3 million were allocated in the United States and international locations, respectively. As of May 31, 2023, operating lease right-of-use assets of $6.0 million and $0.2 million were allocated in the United States and international locations, respectively.
"}]},{"name":"rpt:f-960","factDimensions":{"xbrl:concept":"us-gaap:LongLivedAssetsByGeographicAreasTableTextBlock","xbrl:period":"2023-06-01T00:00:00/2024-06-01T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | May 31, | \u00a0 | |||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||
United States | \u00a0 | $ | 3,128 | \u00a0 | \u00a0 | $ | 2,713 | \u00a0 |
International | \u00a0 | \u00a0 | 125 | \u00a0 | \u00a0 | \u00a0 | 46 | \u00a0 |
Total long-lived assets, net | \u00a0 | $ | 3,253 | \u00a0 | \u00a0 | $ | 2,759 | \u00a0 |
16. SUBSEQUENT EVENTS
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On July 15, 2024, the Company entered into a Stock Purchase Agreement to acquire all the outstanding shares of Incal Technology, Inc. (\u201cacquiree\u201d), a California corporation based in Fremont, California and specializing in packaged part reliability/burn-in test solutions. The acquisition aligns with the Company\u2019s strategic objective to expand its market presence and diversify its product offering. Under the terms of the agreement, the Company will acquire all of the outstanding capital stock of the acquiree for a purchase price of $21.0 million, consisting of $14.0 million in cash and issuance of $7.0 million in shares of the Company\u2019s common stock, subject to certain post-closing adjustments with respect to working capital. The acquisition is expected to close within the first quarter of fiscal year 2025, subject to customary closing conditions.
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