1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
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Organization
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Aehr Test Systems (the \u201cCompany\u201d) was incorporated in California in May 1977 and develops and manufactures test and burn-in equipment used in the semiconductor industry.\u00a0 The Company\u2019s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact and singulated die/module parallel test and burn-in systems, the Sonoma, Tahoe and Echo packaged parts burn-in products, the WaferPak full wafer contactor, the DiePak carrier, the WaferPak aligner, the DiePak autoloader, and test fixtures.
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Basis of Presentation
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The unaudited Condensed Consolidated Financial Statements included in this quarterly report on Form 10-Q include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (\u201cGAAP\u201d) for interim financial reporting and the rules and regulations of the Securities and Exchange Commission (the \u201cSEC\u201d) for interim reporting. Accordingly, the unaudited Condensed Consolidated Financial Statements do not include certain information and footnote disclosures normally included in the annual consolidated financial statements. In the opinion of management, the unaudited Condensed Consolidated Financial Statements for the interim periods presented have been prepared on a basis consistent with the May 31, 2024 audited Consolidated Financial Statements and reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated financial position and results of operations as of and for such periods indicated. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended May 31, 2024.
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Beginning on June 1, 2024, the Company changed its fiscal year to the 52- or 53-week period ending on the Friday nearest May 31. The second fiscal quarter in fiscal 2025 ended on November 29, 2024 and the Company\u2019s fiscal year 2025 will end on May 30, 2025.
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Principles of Consolidation
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The Company\u2019s Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and all significant intercompany accounts and transactions have been eliminated upon consolidation.
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Critical Accounting Policies and use of Estimates
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The Company\u2019s significant accounting policies are disclosed in the Company\u2019s Annual Report on Form 10-K for the year ended May 31, 2024. Except for the accounting policies related to Business Combination and Goodwill and Intangible Assets, as discussed below, there have been no significant changes to these accounting policies during the three and six months ended November 29, 2024. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Critical accounting estimates in these Condensed Consolidated Financial Statements include valuation of inventory at the lower of cost or net realizable value, valuation of intangible assets and impairment of long-lived assets and goodwill. Actual results could differ from those estimates.
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Business Combination
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The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the consideration transferred over the fair value of assets acquired and liabilities assumed on the acquisition date. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed, these estimates are inherently uncertain and subject to refinement. Key estimates and assumptions in valuing certain of the intangible assets and goodwill the Company has acquired include, but are not limited to, expected future cash flows from acquired developed technology, customer relationships, and trade names. Unanticipated events and circumstances could impact the accuracy or validity of such assumptions, estimates or actual results.
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The authoritative guidance allows a measurement period of the purchase price allocation that ends when the entity has obtained all relevant information about facts that existed at the acquisition date, and that cannot exceed one year from the date of acquisition. As a result, during the measurement period the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments will be recorded in the consolidated statements of operations.
Goodwill
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Goodwill represents the excess of the total purchase price over the fair value of net identifiable assets acquired in a business combination. The Company assesses goodwill for impairment annually during each fourth fiscal quarter or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. In the valuation of goodwill, management estimates future cash flows to be derived from the Company\u2019s business. If these estimates or their related assumptions change in the future, the Company may be required to record an impairment. Management may first evaluate qualitative factors to assess if it is more likely than not that the fair value of a reporting unit is less than its carrying amount and to determine if an impairment test is necessary. Management may choose to proceed directly to the quantitative impairment test, bypassing the initial qualitative assessment. The quantitative test compares the fair value of the reporting unit to its carrying value, including goodwill allocated to that reporting unit. A goodwill impairment loss would be the amount by which a reporting unit\u2019s carrying value exceeds its fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.
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Definite-lived Intangible Assets
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The Company performs valuations of assets acquired and liabilities assumed on the acquisition accounted for as a business combination and allocates the purchase price of the acquired business to the identifiable net tangible and intangible assets. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Intangible assets are amortized over their estimated useful lives using the straight-line method which approximates the pattern of consumption of economic benefits.
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Impairment of Long-Lived Assets
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The Company evaluates long-lived assets, including property and equipment and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If such evaluation indicates that the carrying amount of the asset or the asset group is not recoverable, any impairment loss would be equal to the amount the carrying value exceeds the fair value. There was no impairment recorded during the three and six months ended November 29, 2024 and November 30, 2023.
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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 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 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||
| Customer A | \u00a0 | \u00a0 | 46.5 | % | \u00a0 | \u00a0 | 46.9 | % | \u00a0 | \u00a0 | 68.4 | % | \u00a0 | \u00a0 | 66.9 | % |
| Customer B | \u00a0 | \u00a0 | 12.1 | % | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | |||
| Customer C | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 34.6 | % | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 20.0 | % |
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* Amount was less than 10% of total revenues
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 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
| Customer A | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 49.9 | % | |
| Customer B | \u00a0 | \u00a0 | 13.3 | % | \u00a0 | * | \u00a0 | |
| Customer C | \u00a0 | \u00a0 | 20.3 | % | \u00a0 | \u00a0 | 16.5 | % |
| Customer D | \u00a0 | \u00a0 | 12.7 | % | \u00a0 | \u00a0 | 12.3 | % |
| Customer E | \u00a0 | \u00a0 | 12.7 | % | \u00a0 | * | \u00a0 |
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* Amount was less than 10% of total gross accounts receivable
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Recent Accounting Pronouncements Not Yet Adopted
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Improvements to Reportable Segment Disclosures: In November 2023, the Financial Accounting Standards Board (\u201cFASB\u201d) issued Accounting Standard Update (\u201cASU\u201d) 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-444","factDimensions":{"xbrl:concept":"us-gaap:BusinessDescriptionAndBasisOfPresentationTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Aehr Test Systems (the \u201cCompany\u201d) was incorporated in California in May 1977 and develops and manufactures test and burn-in equipment used in the semiconductor industry.\u00a0 The Company\u2019s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact and singulated die/module parallel test and burn-in systems, the Sonoma, Tahoe and Echo packaged parts burn-in products, the WaferPak full wafer contactor, the DiePak carrier, the WaferPak aligner, the DiePak autoloader, and test fixtures.
"}]},{"name":"rpt:f-445","factDimensions":{"xbrl:concept":"us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The unaudited Condensed Consolidated Financial Statements included in this quarterly report on Form 10-Q include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (\u201cGAAP\u201d) for interim financial reporting and the rules and regulations of the Securities and Exchange Commission (the \u201cSEC\u201d) for interim reporting. Accordingly, the unaudited Condensed Consolidated Financial Statements do not include certain information and footnote disclosures normally included in the annual consolidated financial statements. In the opinion of management, the unaudited Condensed Consolidated Financial Statements for the interim periods presented have been prepared on a basis consistent with the May 31, 2024 audited Consolidated Financial Statements and reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated financial position and results of operations as of and for such periods indicated. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended May 31, 2024.
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Beginning on June 1, 2024, the Company changed its fiscal year to the 52- or 53-week period ending on the Friday nearest May 31. The second fiscal quarter in fiscal 2025 ended on November 29, 2024 and the Company\u2019s fiscal year 2025 will end on May 30, 2025.
"}]},{"name":"rpt:f-446","factDimensions":{"xbrl:concept":"us-gaap:ConsolidationPolicyTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company\u2019s Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and all significant intercompany accounts and transactions have been eliminated upon consolidation.
"}]},{"name":"rpt:f-447","factDimensions":{"xbrl:concept":"us-gaap:UseOfEstimates","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company\u2019s significant accounting policies are disclosed in the Company\u2019s Annual Report on Form 10-K for the year ended May 31, 2024. Except for the accounting policies related to Business Combination and Goodwill and Intangible Assets, as discussed below, there have been no significant changes to these accounting policies during the three and six months ended November 29, 2024. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Critical accounting estimates in these Condensed Consolidated Financial Statements include valuation of inventory at the lower of cost or net realizable value, valuation of intangible assets and impairment of long-lived assets and goodwill. Actual results could differ from those estimates.
"}]},{"name":"rpt:f-448","factDimensions":{"xbrl:concept":"us-gaap:BusinessCombinationsAndOtherPurchaseOfBusinessTransactionsPolicyTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the consideration transferred over the fair value of assets acquired and liabilities assumed on the acquisition date. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed, these estimates are inherently uncertain and subject to refinement. Key estimates and assumptions in valuing certain of the intangible assets and goodwill the Company has acquired include, but are not limited to, expected future cash flows from acquired developed technology, customer relationships, and trade names. Unanticipated events and circumstances could impact the accuracy or validity of such assumptions, estimates or actual results.
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The authoritative guidance allows a measurement period of the purchase price allocation that ends when the entity has obtained all relevant information about facts that existed at the acquisition date, and that cannot exceed one year from the date of acquisition. As a result, during the measurement period the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments will be recorded in the consolidated statements of operations.
"}]},{"name":"rpt:f-449","factDimensions":{"xbrl:concept":"us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"Goodwill represents the excess of the total purchase price over the fair value of net identifiable assets acquired in a business combination. The Company assesses goodwill for impairment annually during each fourth fiscal quarter or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. In the valuation of goodwill, management estimates future cash flows to be derived from the Company\u2019s business. If these estimates or their related assumptions change in the future, the Company may be required to record an impairment. Management may first evaluate qualitative factors to assess if it is more likely than not that the fair value of a reporting unit is less than its carrying amount and to determine if an impairment test is necessary. Management may choose to proceed directly to the quantitative impairment test, bypassing the initial qualitative assessment. The quantitative test compares the fair value of the reporting unit to its carrying value, including goodwill allocated to that reporting unit. A goodwill impairment loss would be the amount by which a reporting unit\u2019s carrying value exceeds its fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.
"}]},{"name":"rpt:f-450","factDimensions":{"xbrl:concept":"aehr:IntangibleAssetsFiniteLivedPolicyTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company performs valuations of assets acquired and liabilities assumed on the acquisition accounted for as a business combination and allocates the purchase price of the acquired business to the identifiable net tangible and intangible assets. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Intangible assets are amortized over their estimated useful lives using the straight-line method which approximates the pattern of consumption of economic benefits.
"}]},{"name":"rpt:f-451","factDimensions":{"xbrl:concept":"us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"The Company evaluates long-lived assets, including property and equipment and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If such evaluation indicates that the carrying amount of the asset or the asset group is not recoverable, any impairment loss would be equal to the amount the carrying value exceeds the fair value. There was no impairment recorded during the three and six months ended November 29, 2024 and November 30, 2023.
"}]},{"name":"rpt:f-452","factDimensions":{"xbrl:concept":"us-gaap:ConcentrationRiskCreditRisk","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","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 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 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||
| Customer A | \u00a0 | \u00a0 | 46.5 | % | \u00a0 | \u00a0 | 46.9 | % | \u00a0 | \u00a0 | 68.4 | % | \u00a0 | \u00a0 | 66.9 | % |
| Customer B | \u00a0 | \u00a0 | 12.1 | % | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | |||
| Customer C | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 34.6 | % | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 20.0 | % |
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* Amount was less than 10% of total revenues
The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows:\u00a0
\u00a0
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
| Customer A | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 49.9 | % | |
| Customer B | \u00a0 | \u00a0 | 13.3 | % | \u00a0 | * | \u00a0 | |
| Customer C | \u00a0 | \u00a0 | 20.3 | % | \u00a0 | \u00a0 | 16.5 | % |
| Customer D | \u00a0 | \u00a0 | 12.7 | % | \u00a0 | \u00a0 | 12.3 | % |
| Customer E | \u00a0 | \u00a0 | 12.7 | % | \u00a0 | * | \u00a0 |
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* Amount was less than 10% of total gross accounts receivable
"}]},{"name":"rpt:f-453","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfRevenueByMajorCustomersByReportingSegmentsTableTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||
| Customer A | \u00a0 | \u00a0 | 46.5 | % | \u00a0 | \u00a0 | 46.9 | % | \u00a0 | \u00a0 | 68.4 | % | \u00a0 | \u00a0 | 66.9 | % |
| Customer B | \u00a0 | \u00a0 | 12.1 | % | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | \u00a0 | * | \u00a0 | |||
| Customer C | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 34.6 | % | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 20.0 | % |
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
\u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
| Customer A | \u00a0 | * | \u00a0 | \u00a0 | \u00a0 | 49.9 | % | |
| Customer B | \u00a0 | \u00a0 | 13.3 | % | \u00a0 | * | \u00a0 | |
| Customer C | \u00a0 | \u00a0 | 20.3 | % | \u00a0 | \u00a0 | 16.5 | % |
| Customer D | \u00a0 | \u00a0 | 12.7 | % | \u00a0 | \u00a0 | 12.3 | % |
| Customer E | \u00a0 | \u00a0 | 12.7 | % | \u00a0 | * | \u00a0 |
Improvements to Reportable Segment Disclosures: In November 2023, the Financial Accounting Standards Board (\u201cFASB\u201d) issued Accounting Standard Update (\u201cASU\u201d) 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-470","factDimensions":{"xbrl:concept":"us-gaap:BusinessCombinationDisclosureTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"2. BUSINESS COMBINATION
\u00a0
On July 31, 2024, the Company completed its acquisition of Incal Technology, Inc. (\u201cIncal\u201d), a company that specializes in packaged part reliability/burn-in test solutions. The acquisition date fair value of the consideration transferred for Incal was approximately $22.2 million, which consisted of the following:
\u00a0
(In thousands) | \u00a0 | Fair Value | \u00a0 | |
| Cash | \u00a0 | $ | 10,631 | \u00a0 |
| Common stock under transfer restriction | \u00a0 | \u00a0 | 9,381 | \u00a0 |
| Escrow payable | \u00a0 | \u00a0 | 2,381 | \u00a0 |
| Working capital adjustments (1) | \u00a0 | \u00a0 | (240 | ) |
| Total | \u00a0 | $ | 22,153 | \u00a0 |
\u00a0
(1) Included in Prepaid expenses and other current assets
\u00a0
As part of the purchase consideration, the Company issued 552,355 shares of its restricted common stock. The restricted stock issued to the shareholders of Incal is subject to a six-month holding period, during which time the shares cannot be transferred or sold without registration under the Securities Act of 1933, as amended, or pursuant to an available exemption. The fair value of the restricted shares was determined based on the closing price of the Company\u2019s common stock on the acquisition date, adjusted for a discount related to the lack of marketability due to the transfer restrictions. The total fair value of the restricted shares issued as part of the consideration was $9.4 million.
\u00a0
The escrow payable recorded at the acquisition date represented the present value of total escrow amount. The total escrow amount at the acquisition date included: (1) $2.1 million designated for the sellers' indemnification obligations and expected to be settled after 15 months, and (2) $0.7 million designated for the sellers' payment obligations and expected to be settled after 60 days. The escrow payable will be settled with cash of $2.8 million held in an escrow account for working capital adjustments and potential indemnification obligations in connection with the acquisition of Incal. Of the $2.8 million cash restricted in escrow, $0.7 million is included in Prepaid expenses and other current assets and $2.1 million is included in Other noncurrent assets.
\u00a0
During the three months ended November 29, 2024, the Company updated the purchase consideration, which reflects a reduction in the receivable related to the working capital adjustment from $0.8 million to $0.2 million and a reduction in escrow payable related to indemnification from $2.8 million to $2.5 million, based on negotiations with the seller. As a result, the total purchase consideration has been adjusted from $21.9 million to $22.2 million. Accordingly, the goodwill balance has increased from $10.4 million to $10.7 million.
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date:
\u00a0
(In thousands) | \u00a0 | Fair Value | \u00a0 | |
| Cash | \u00a0 | $ | 16 | \u00a0 |
| Accounts receivable | \u00a0 | \u00a0 | 1,285 | \u00a0 |
| Inventory | \u00a0 | \u00a0 | 2,829 | \u00a0 |
| Goodwill | \u00a0 | \u00a0 | 10,742 | \u00a0 |
| Property and equipment | \u00a0 | \u00a0 | 129 | \u00a0 |
| Intangible assets | \u00a0 | \u00a0 | 12,000 | \u00a0 |
| Operating lease right-of-use assets | \u00a0 | \u00a0 | 810 | \u00a0 |
| Other assets, current and noncurrent | \u00a0 | \u00a0 | 63 | \u00a0 |
| Accounts payable, accrued expenses and other liabilities, current and noncurrent | \u00a0 | \u00a0 | (2,240 | ) |
| Deferred revenue | \u00a0 | \u00a0 | (489 | ) |
| Operating lease liabilities, current and noncurrent | \u00a0 | \u00a0 | (714 | ) |
| Deferred tax liabilities, net | \u00a0 | \u00a0 | (2,278 | ) |
| Total | \u00a0 | $ | 22,153 | \u00a0 |
\u00a0
The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from future growth and will not be deductible for income tax purposes.
\u00a0
The following table summarizes the fair value of the separately identifiable intangible assets at the time of acquisition:
\u00a0
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Estimated Useful life | \u00a0 | ||
| (In thousands) | \u00a0 | Fair Value | \u00a0 | \u00a0 | (in years) | \u00a0 | ||
| Developed technology | \u00a0 | $ | 9,130 | \u00a0 | \u00a0 | \u00a0 | 12 | \u00a0 |
| Trade names | \u00a0 | \u00a0 | 1,050 | \u00a0 | \u00a0 | \u00a0 | 10 | \u00a0 |
| Customer relationships | \u00a0 | \u00a0 | 810 | \u00a0 | \u00a0 | \u00a0 | 11 | \u00a0 |
| Non-compete agreements and others | \u00a0 | \u00a0 | 1,010 | \u00a0 | \u00a0 | 1-3 | \u00a0 | |
| Total intangible assets acquired | \u00a0 | $ | 12,000 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u00a0
Acquisition-related costs were $0.5 million for the six months ended November 29, 2024 and were expensed in the period incurred within selling, general and administrative expense in the Company's Condensed Consolidated Statements of Operations.
\u00a0
The Company's Condensed Consolidated Statement of Operations includes $5.0 million in revenue and $0.4 million in net income contributed by Incal from the date of acquisition. Pro forma results of operations for this acquisition have not been presented, as the acquisition was not determined to be significant as of the date of acquisition.
\u00a0
The purchase consideration allocation remains preliminary, and as additional information becomes available, the Company may further revise it during the remainder of the measurement period.
"}]},{"name":"rpt:f-471","factDimensions":{"xbrl:concept":"us-gaap:AssetAcquisitionConsiderationTransferred","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"22200000","decimals":-5}]},{"name":"rpt:f-472","factDimensions":{"xbrl:concept":"aehr:ScheduleOfAcquisitionDateFairValueOfTheConsiderationTableTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"(In thousands) | \u00a0 | Fair Value | \u00a0 | |
| Cash | \u00a0 | $ | 10,631 | \u00a0 |
| Common stock under transfer restriction | \u00a0 | \u00a0 | 9,381 | \u00a0 |
| Escrow payable | \u00a0 | \u00a0 | 2,381 | \u00a0 |
| Working capital adjustments (1) | \u00a0 | \u00a0 | (240 | ) |
| Total | \u00a0 | $ | 22,153 | \u00a0 |
(In thousands) | \u00a0 | Fair Value | \u00a0 | |
| Cash | \u00a0 | $ | 16 | \u00a0 |
| Accounts receivable | \u00a0 | \u00a0 | 1,285 | \u00a0 |
| Inventory | \u00a0 | \u00a0 | 2,829 | \u00a0 |
| Goodwill | \u00a0 | \u00a0 | 10,742 | \u00a0 |
| Property and equipment | \u00a0 | \u00a0 | 129 | \u00a0 |
| Intangible assets | \u00a0 | \u00a0 | 12,000 | \u00a0 |
| Operating lease right-of-use assets | \u00a0 | \u00a0 | 810 | \u00a0 |
| Other assets, current and noncurrent | \u00a0 | \u00a0 | 63 | \u00a0 |
| Accounts payable, accrued expenses and other liabilities, current and noncurrent | \u00a0 | \u00a0 | (2,240 | ) |
| Deferred revenue | \u00a0 | \u00a0 | (489 | ) |
| Operating lease liabilities, current and noncurrent | \u00a0 | \u00a0 | (714 | ) |
| Deferred tax liabilities, net | \u00a0 | \u00a0 | (2,278 | ) |
| Total | \u00a0 | $ | 22,153 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Estimated Useful life | \u00a0 | ||
| (In thousands) | \u00a0 | Fair Value | \u00a0 | \u00a0 | (in years) | \u00a0 | ||
| Developed technology | \u00a0 | $ | 9,130 | \u00a0 | \u00a0 | \u00a0 | 12 | \u00a0 |
| Trade names | \u00a0 | \u00a0 | 1,050 | \u00a0 | \u00a0 | \u00a0 | 10 | \u00a0 |
| Customer relationships | \u00a0 | \u00a0 | 810 | \u00a0 | \u00a0 | \u00a0 | 11 | \u00a0 |
| Non-compete agreements and others | \u00a0 | \u00a0 | 1,010 | \u00a0 | \u00a0 | 1-3 | \u00a0 | |
| Total intangible assets acquired | \u00a0 | $ | 12,000 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
3. FAIR VALUE OF FINANCIAL INSTRUMENTS
\u00a0
The Company measures its cash equivalents and money market funds at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value:
\u00a0
Level 1 \u2014 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
\u00a0
Level 2 \u2014 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 \u2014 Unobservable inputs that are supported by little or no market activities.
The following table represents the Company\u2019s assets measured at fair value on a recurring basis as of November 29, 2024, and the basis for that measurement:
\u00a0
\u00a0 | \u00a0 | Balance as of | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||
(In thousands) | \u00a0 | November\u00a029,\u00a02024 | \u00a0 | \u00a0 | Level 1 | \u00a0 | \u00a0 | Level 2 | \u00a0 | \u00a0 | Level 3 | \u00a0 | ||||
| Money market funds | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
| Total | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0
The following table represents the Company\u2019s assets measured at fair value on a recurring basis as of May 31, 2024, and the basis for that measurement:
\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 |
| Total | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
\u00a0
Included in money market funds as of November 29, 2024 and May 31, 2024 is $0.2 million restricted cash representing a security deposit for the Company\u2019s United States manufacturing and office space lease. There were no financial liabilities measured at fair value as of November 29, 2024 and May 31, 2024. There were no transfers between Level 1 and Level 2 fair value measurements during the six months ended November 29, 2024. The carrying amounts of financial instruments, including cash equivalents, accounts receivable, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities.
"}]},{"name":"rpt:f-515","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Balance as of | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||
(In thousands) | \u00a0 | November\u00a029,\u00a02024 | \u00a0 | \u00a0 | Level 1 | \u00a0 | \u00a0 | Level 2 | \u00a0 | \u00a0 | Level 3 | \u00a0 | ||||
| Money market funds | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
| Total | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | 31,123 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \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 |
| Total | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | 44,280 | \u00a0 | \u00a0 | $ | - | \u00a0 | \u00a0 | $ | - | \u00a0 |
4. BALANCE SHEET INFORMATION
\u00a0
Inventories
\u00a0
Inventories consisted of the following:
\u00a0
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| Raw materials and sub-assemblies | \u00a0 | $ | 25,200 | \u00a0 | \u00a0 | $ | 22,410 | \u00a0 |
| Work in process | \u00a0 | \u00a0 | 13,953 | \u00a0 | \u00a0 | \u00a0 | 13,593 | \u00a0 |
| Finished goods | \u00a0 | \u00a0 | 4,623 | \u00a0 | \u00a0 | \u00a0 | 1,467 | \u00a0 |
\u00a0 | \u00a0 | $ | 43,776 | \u00a0 | \u00a0 | $ | 37,470 | \u00a0 |
\u00a0
Property and equipment
\u00a0
Property and equipment, net\u00a0consisted of the following:
\u00a0
\u00a0 | \u00a0 | Useful life | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | (in years) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| Leasehold improvements | \u00a0 | * | \u00a0 | $ | 2,699 | \u00a0 | \u00a0 | $ | 1,588 | \u00a0 |
| Machinery and equipment | \u00a0 | 3 - 5 | \u00a0 | \u00a0 | 4,718 | \u00a0 | \u00a0 | \u00a0 | 4,528 | \u00a0 |
| Test equipment | \u00a0 | 4 - 5 | \u00a0 | \u00a0 | 1,965 | \u00a0 | \u00a0 | \u00a0 | 1,928 | \u00a0 |
| Furniture and fixtures | \u00a0 | 2 - 5 | \u00a0 | \u00a0 | 198 | \u00a0 | \u00a0 | \u00a0 | 175 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 9,580 | \u00a0 | \u00a0 | \u00a0 | 8,219 | \u00a0 |
| Less: accumulated depreciation | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (5,274 | ) | \u00a0 | \u00a0 | (4,966 | ) |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | $ | 4,306 | \u00a0 | \u00a0 | $ | 3,253 | \u00a0 |
\u00a0
* Lesser of estimated useful life or lease term.
Depreciation expense was $0.2 million and $0.4 million for the three and six months ended November 29, 2024, respectively. Depreciation expense was $0.1 million and $0.3 million for the three and six months ended November 30, 2023, respectively.
\u00a0
Product warranties
\u00a0
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.
\u00a0
The following is a summary of changes in the Company's liability for product warranties during the three and six months ended November 29, 2024 and November 30, 2023:
\u00a0
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Balance at the beginning of the period | \u00a0 | $ | 219 | \u00a0 | \u00a0 | $ | 232 | \u00a0 | \u00a0 | $ | 234 | \u00a0 | \u00a0 | $ | 267 | \u00a0 |
| Accruals for warranties issued during the period | \u00a0 | \u00a0 | 130 | \u00a0 | \u00a0 | \u00a0 | 162 | \u00a0 | \u00a0 | \u00a0 | 308 | \u00a0 | \u00a0 | \u00a0 | 227 | \u00a0 |
| Warranties acquired through business combination | \u00a0 | \u00a0 | 144 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 144 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
| Consumption of reserves | \u00a0 | \u00a0 | (135 | ) | \u00a0 | \u00a0 | (173 | ) | \u00a0 | \u00a0 | (328 | ) | \u00a0 | \u00a0 | (273 | ) |
| Balance at the end of the period | \u00a0 | $ | 358 | \u00a0 | \u00a0 | $ | 221 | \u00a0 | \u00a0 | $ | 358 | \u00a0 | \u00a0 | $ | 221 | \u00a0 |
\u00a0
The accrued warranty balance is included in accrued expenses on the accompanying Condensed Consolidated Balance Sheets.
\u00a0
Deferred revenue
\u00a0
Deferred revenue, short-term\u00a0consisted of the following:
\u00a0
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| Customer deposits | \u00a0 | $ | 511 | \u00a0 | \u00a0 | $ | 1,248 | \u00a0 |
| Deferred revenue | \u00a0 | \u00a0 | 102 | \u00a0 | \u00a0 | \u00a0 | 97 | \u00a0 |
\u00a0 | \u00a0 | $ | 613 | \u00a0 | \u00a0 | $ | 1,345 | \u00a0 |
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| Raw materials and sub-assemblies | \u00a0 | $ | 25,200 | \u00a0 | \u00a0 | $ | 22,410 | \u00a0 |
| Work in process | \u00a0 | \u00a0 | 13,953 | \u00a0 | \u00a0 | \u00a0 | 13,593 | \u00a0 |
| Finished goods | \u00a0 | \u00a0 | 4,623 | \u00a0 | \u00a0 | \u00a0 | 1,467 | \u00a0 |
\u00a0 | \u00a0 | $ | 43,776 | \u00a0 | \u00a0 | $ | 37,470 | \u00a0 |
\u00a0 | \u00a0 | Useful life | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | (in years) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| Leasehold improvements | \u00a0 | * | \u00a0 | $ | 2,699 | \u00a0 | \u00a0 | $ | 1,588 | \u00a0 |
| Machinery and equipment | \u00a0 | 3 - 5 | \u00a0 | \u00a0 | 4,718 | \u00a0 | \u00a0 | \u00a0 | 4,528 | \u00a0 |
| Test equipment | \u00a0 | 4 - 5 | \u00a0 | \u00a0 | 1,965 | \u00a0 | \u00a0 | \u00a0 | 1,928 | \u00a0 |
| Furniture and fixtures | \u00a0 | 2 - 5 | \u00a0 | \u00a0 | 198 | \u00a0 | \u00a0 | \u00a0 | 175 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 9,580 | \u00a0 | \u00a0 | \u00a0 | 8,219 | \u00a0 |
| Less: accumulated depreciation | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (5,274 | ) | \u00a0 | \u00a0 | (4,966 | ) |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | $ | 4,306 | \u00a0 | \u00a0 | $ | 3,253 | \u00a0 |
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Balance at the beginning of the period | \u00a0 | $ | 219 | \u00a0 | \u00a0 | $ | 232 | \u00a0 | \u00a0 | $ | 234 | \u00a0 | \u00a0 | $ | 267 | \u00a0 |
| Accruals for warranties issued during the period | \u00a0 | \u00a0 | 130 | \u00a0 | \u00a0 | \u00a0 | 162 | \u00a0 | \u00a0 | \u00a0 | 308 | \u00a0 | \u00a0 | \u00a0 | 227 | \u00a0 |
| Warranties acquired through business combination | \u00a0 | \u00a0 | 144 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 144 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
| Consumption of reserves | \u00a0 | \u00a0 | (135 | ) | \u00a0 | \u00a0 | (173 | ) | \u00a0 | \u00a0 | (328 | ) | \u00a0 | \u00a0 | (273 | ) |
| Balance at the end of the period | \u00a0 | $ | 358 | \u00a0 | \u00a0 | $ | 221 | \u00a0 | \u00a0 | $ | 358 | \u00a0 | \u00a0 | $ | 221 | \u00a0 |
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| Customer deposits | \u00a0 | $ | 511 | \u00a0 | \u00a0 | $ | 1,248 | \u00a0 |
| Deferred revenue | \u00a0 | \u00a0 | 102 | \u00a0 | \u00a0 | \u00a0 | 97 | \u00a0 |
\u00a0 | \u00a0 | $ | 613 | \u00a0 | \u00a0 | $ | 1,345 | \u00a0 |
5. GOODWILL AND PURCHASED INTANGIBLE ASSETS
\u00a0
Goodwill
\u00a0
The Company's goodwill activity during the six months ended November 29, 2024 was as follows:
\u00a0
(In thousands) | \u00a0 | Total | \u00a0 | |
Balance as of May 31, 2024 | \u00a0 | $ | - | \u00a0 |
Addition due to business combination | \u00a0 | \u00a0 | 10,742 | \u00a0 |
Balance as of November 29, 2024 | \u00a0 | $ | 10,742 | \u00a0 |
\u00a0
There were no impairments to goodwill during the three and six months ended November 29, 2024.
Purchased Intangible Assets
\u00a0
The Company\u2019s purchased intangible assets, net, were as follows:
\u00a0
\u00a0 | \u00a0 | November 29, 2024 | \u00a0 | |||||||||
(In thousands) | \u00a0 | \u00a0 | \u00a0 | Accumulated | \u00a0 | \u00a0 | \u00a0 | |||||
Finite-lived intangible assets: | \u00a0 | Gross | \u00a0 | \u00a0 | Amortization | \u00a0 | \u00a0 | Net | \u00a0 | |||
| Developed technology | \u00a0 | $ | 9,130 | \u00a0 | \u00a0 | $ | (254 | ) | \u00a0 | $ | 8,876 | \u00a0 |
| Trade names | \u00a0 | \u00a0 | 1,050 | \u00a0 | \u00a0 | \u00a0 | (35 | ) | \u00a0 | \u00a0 | 1,015 | \u00a0 |
| Customer relationships | \u00a0 | \u00a0 | 810 | \u00a0 | \u00a0 | \u00a0 | (25 | ) | \u00a0 | \u00a0 | 785 | \u00a0 |
| Non-compete agreements and others | \u00a0 | \u00a0 | 1,010 | \u00a0 | \u00a0 | \u00a0 | (174 | ) | \u00a0 | \u00a0 | 836 | \u00a0 |
| Total | \u00a0 | $ | 12,000 | \u00a0 | \u00a0 | $ | (488 | ) | \u00a0 | $ | 11,512 | \u00a0 |
\u00a0
Amortization expense related to purchased intangible assets with finite lives was $0.3 million and $0.5 million for the three and six months ended November 29, 2024, respectively.
\u00a0
As of November 29, 2024, the estimated future amortization expense of purchased intangible assets with finite lives is as follows:
\u00a0
| (In thousands) | \u00a0 | Amount | \u00a0 | |
Remainder of 2025 | \u00a0 | $ | 731 | \u00a0 |
2026 | \u00a0 | \u00a0 | 1,229 | \u00a0 |
2027 | \u00a0 | \u00a0 | 1,183 | \u00a0 |
2028 | \u00a0 | \u00a0 | 980 | \u00a0 |
2029 | \u00a0 | \u00a0 | 940 | \u00a0 |
Thereafter | \u00a0 | \u00a0 | 6,449 | \u00a0 |
| Total | \u00a0 | $ | 11,512 | \u00a0 |
\u00a0
There were no impairment charges related to purchased intangible assets for the three and six months ended November 29, 2024.
"}]},{"name":"rpt:f-595","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfGoodwillTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"(In thousands) | \u00a0 | Total | \u00a0 | |
Balance as of May 31, 2024 | \u00a0 | $ | - | \u00a0 |
Addition due to business combination | \u00a0 | \u00a0 | 10,742 | \u00a0 |
Balance as of November 29, 2024 | \u00a0 | $ | 10,742 | \u00a0 |
\u00a0 | \u00a0 | November 29, 2024 | \u00a0 | |||||||||
(In thousands) | \u00a0 | \u00a0 | \u00a0 | Accumulated | \u00a0 | \u00a0 | \u00a0 | |||||
Finite-lived intangible assets: | \u00a0 | Gross | \u00a0 | \u00a0 | Amortization | \u00a0 | \u00a0 | Net | \u00a0 | |||
| Developed technology | \u00a0 | $ | 9,130 | \u00a0 | \u00a0 | $ | (254 | ) | \u00a0 | $ | 8,876 | \u00a0 |
| Trade names | \u00a0 | \u00a0 | 1,050 | \u00a0 | \u00a0 | \u00a0 | (35 | ) | \u00a0 | \u00a0 | 1,015 | \u00a0 |
| Customer relationships | \u00a0 | \u00a0 | 810 | \u00a0 | \u00a0 | \u00a0 | (25 | ) | \u00a0 | \u00a0 | 785 | \u00a0 |
| Non-compete agreements and others | \u00a0 | \u00a0 | 1,010 | \u00a0 | \u00a0 | \u00a0 | (174 | ) | \u00a0 | \u00a0 | 836 | \u00a0 |
| Total | \u00a0 | $ | 12,000 | \u00a0 | \u00a0 | $ | (488 | ) | \u00a0 | $ | 11,512 | \u00a0 |
| (In thousands) | \u00a0 | Amount | \u00a0 | |
Remainder of 2025 | \u00a0 | $ | 731 | \u00a0 |
2026 | \u00a0 | \u00a0 | 1,229 | \u00a0 |
2027 | \u00a0 | \u00a0 | 1,183 | \u00a0 |
2028 | \u00a0 | \u00a0 | 980 | \u00a0 |
2029 | \u00a0 | \u00a0 | 940 | \u00a0 |
Thereafter | \u00a0 | \u00a0 | 6,449 | \u00a0 |
| Total | \u00a0 | $ | 11,512 | \u00a0 |
6. INCOME TAXES
\u00a0
The following table provides details of income taxes:
\u00a0
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
| \u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Income (loss) before income tax expense (benefit) | \u00a0 | $ | (1,245 | ) | \u00a0 | $ | 6,109 | \u00a0 | \u00a0 | $ | (431 | ) | \u00a0 | $ | 10,799 | \u00a0 |
| Income tax expense (benefit) | \u00a0 | \u00a0 | (217 | ) | \u00a0 | \u00a0 | 20 | \u00a0 | \u00a0 | \u00a0 | (63 | ) | \u00a0 | \u00a0 | 36 | \u00a0 |
| Effective tax rate | \u00a0 | \u00a0 | 17.4 | % | \u00a0 | \u00a0 | 0.3 | % | \u00a0 | \u00a0 | 14.6 | % | \u00a0 | \u00a0 | 0.3 | % |
\u00a0
The Company\u2019s effective tax rate varies from the U.S. federal statutory rate of 21% primarily due to the research and development credits available to apply against federal and California income and the tax expense from stock-based compensation.
\u00a0
The determination of income taxes for the three and six months ended November 29, 2024 and November 30, 2023, respectively, was based on the Company\u2019s estimated annual effective tax rate. For the three and six months ended November 29, 2024, the Company recognized a tax benefit due to quarter-to-date and year-to-date losses in the U.S.. Tax expense for the three and six months ended November 30, 2023 was primarily due to profitable foreign subsidiaries. Provision for income taxes for the three and six months ended November 30, 2023 did not included tax expense related to U.S. operations due to a valuation allowance. The Company maintained a full valuation allowance on all the U.S. net deferred tax assets 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. A significant income tax benefit of $21.9 million was recognized due to release of a valuation allowance in the fourth quarter of fiscal 2024.
\u00a0
The Company accounts for uncertain tax positions consistent with authoritative guidance. The guidance prescribes a \u201cmore likely than not\u201d recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income taxes.
"}]},{"name":"rpt:f-626","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
| \u00a0(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Income (loss) before income tax expense (benefit) | \u00a0 | $ | (1,245 | ) | \u00a0 | $ | 6,109 | \u00a0 | \u00a0 | $ | (431 | ) | \u00a0 | $ | 10,799 | \u00a0 |
| Income tax expense (benefit) | \u00a0 | \u00a0 | (217 | ) | \u00a0 | \u00a0 | 20 | \u00a0 | \u00a0 | \u00a0 | (63 | ) | \u00a0 | \u00a0 | 36 | \u00a0 |
| Effective tax rate | \u00a0 | \u00a0 | 17.4 | % | \u00a0 | \u00a0 | 0.3 | % | \u00a0 | \u00a0 | 14.6 | % | \u00a0 | \u00a0 | 0.3 | % |
7. COMMITMENTS AND CONTINGENCIES
\u00a0
Purchase Obligations
\u00a0
The Company has purchase obligations to certain suppliers. In some cases, the products the Company purchases are unique and have provisions against cancellation of the order.
\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
On December 3, 2024, a shareholder class action lawsuit captioned Lucid Alternative Fund, LP v. Aehr Test Systems, Inc. was filed in the United States District Court for the Northern District of California against the Company. The lawsuit alleges, in part, that the Company and certain of its executives made materially false and misleading statements regarding the Company\u2019s earnings guidance and other financial projections for 2024. The lawsuit seeks unspecified monetary damages and purports to represent purchasers of the Company\u2019s securities between January 9, 2024 and March 24, 2024. Additionally, a shareholder derivative complaint was filed, alleging breaches of fiduciary duties and other misconduct by certain directors and officers of the Company. The Company believes the claims are meritless and intends to vigorously defend its position. Given the procedural posture and the nature of the case, including that the pending proceeding is in the early stages, that alleged damages have not been specified, that uncertainty exists as to the likelihood of a class or classes being certified or the ultimate size of any class or classes if certified, and that there are significant factual and legal issues to be resolved, the Company is unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from this matter.
\u00a0
On October 18, 2024, the Company filed a complaint with the China Suzhou Intermediate Court to protect\u00a0its intellectual property rights in China against Suzhou Semight Instruments Co., Ltd. (\u201cSemight\u201d) and its related entities and/or distributors, alleging infringement of the Company\u2019s two patents related to wafer burn-in systems and wafer reliability test systems. The Company is seeking injunctive relief, claiming that Semight\u2019s actions have infringed upon its intellectual property rights and caused substantial harm to its business. The Company believes its claims are valid and is vigorously pursuing its legal remedies. At this stage, the outcome of the litigation is uncertain, and the Company is unable to predict the likelihood of success or estimate the potential financial impact, if any, on its condensed consolidated financial statements. The Company has also incurred and expects to continue to incur legal expenses related to this matter. On December 19, 2024,\u00a0Semight filed a\u00a0petition for acceptance of request for invalidation to the aforementioned Chinese patents with the Department of National Intellectual Properties in Beijing.
\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 results, financial position or cash flow.
"}]},{"name":"rpt:f-642","factDimensions":{"xbrl:concept":"us-gaap:StockholdersEquityNoteDisclosureTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"8. SHAREHOLDERS\u2019 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 an \"At the Market\" (\"ATM\") sale of up to $25 million of common stock 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 $25.0 million, before commission fees of $0.7 million and offering expenses of $0.3 million. Another Prospectus Supplement for an ATM sale of up to $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 2021 registration statement expired in September 2024.
\u00a0
On October 15, 2024, the Board of Directors authorized management to execute a new $100 million shelf registration, and a Registration Statement on Form S-3 was filed with the SEC. Additionally, a Prospectus Supplement for an ATM offering of up to $40 million of common stock was filed. No proceeds were raised from the ATM during the three and six months ended November 29, 2024. The remaining amount of the ATM offering was $40 million as of November 29, 2024.
"}]},{"name":"rpt:f-643","factDimensions":{"xbrl:concept":"aehr:GrossProceedsFromOtherEquity","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-644","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-645","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-646","factDimensions":{"xbrl:concept":"aehr:GrossProceedsFromOtherEquity","xbrl:period":"2023-02-01T00:00:00/2023-02-09T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"25000000.0","decimals":-5}]},{"name":"rpt:f-647","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-648","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-649","factDimensions":{"xbrl:concept":"aehr:GrossProceedsFromOtherEquity","xbrl:period":"2023-02-01T00:00:00/2023-03-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD","us-gaap:SubsidiarySaleOfStockAxis":"aehr:AtmMember"},"factValues":[{"value":"25000000","decimals":-6}]},{"name":"rpt:f-650","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-651","factDimensions":{"xbrl:concept":"us-gaap:SaleOfStockPricePerShare","xbrl:period":"2023-03-01T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD/xbrla:shares"},"factValues":[{"value":"34.78"}]},{"name":"rpt:f-652","factDimensions":{"xbrl:concept":"aehr:GrossProceedsFromOtherEquity","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-653","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-654","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-655","factDimensions":{"xbrl:concept":"aehr:ShelfRegistrationAmount","xbrl:period":"2024-10-16T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"100000000","decimals":-6}]},{"name":"rpt:f-656","factDimensions":{"xbrl:concept":"aehr:OutstandingAmounTofATMOffering","xbrl:period":"2024-11-30T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"40000000","decimals":-6}]},{"name":"rpt:f-657","factDimensions":{"xbrl:concept":"aehr:ProspectusSupplementAmount","xbrl:period":"2024-10-30T00:00:00","xbrl:entity":"cik:0001040470","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"40000000","decimals":-6}]},{"name":"rpt:f-658","factDimensions":{"xbrl:concept":"us-gaap:RevenueFromContractWithCustomerTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"9. REVENUE
\u00a0
Revenue recognition
\u00a0
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, contactors, spare parts, 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.
\u00a0
Disaggregation of revenue
\u00a0
The following presents information about the Company\u2019s net revenues in different geographic areas, which are based upon ship-to locations, and by product category:
\u00a0
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Asia | \u00a0 | $ | 9,825 | \u00a0 | \u00a0 | $ | 18,922 | \u00a0 | \u00a0 | $ | 22,403 | \u00a0 | \u00a0 | $ | 38,153 | \u00a0 |
| United States | \u00a0 | \u00a0 | 3,462 | \u00a0 | \u00a0 | \u00a0 | 676 | \u00a0 | \u00a0 | \u00a0 | 3,984 | \u00a0 | \u00a0 | \u00a0 | 1,465 | \u00a0 |
| Europe | \u00a0 | \u00a0 | 166 | \u00a0 | \u00a0 | \u00a0 | 1,833 | \u00a0 | \u00a0 | \u00a0 | 185 | \u00a0 | \u00a0 | \u00a0 | 2,437 | \u00a0 |
\u00a0 | \u00a0 | $ | 13,453 | \u00a0 | \u00a0 | $ | 21,431 | \u00a0 | \u00a0 | $ | 26,572 | \u00a0 | \u00a0 | $ | 42,055 | \u00a0 |
\u00a0
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Systems | \u00a0 | $ | 3,410 | \u00a0 | \u00a0 | $ | 10,685 | \u00a0 | \u00a0 | $ | 3,470 | \u00a0 | \u00a0 | $ | 18,779 | \u00a0 |
| Contactors | \u00a0 | \u00a0 | 8,575 | \u00a0 | \u00a0 | \u00a0 | 9,152 | \u00a0 | \u00a0 | \u00a0 | 20,669 | \u00a0 | \u00a0 | \u00a0 | 20,415 | \u00a0 |
| Services | \u00a0 | \u00a0 | 1,468 | \u00a0 | \u00a0 | \u00a0 | 1,594 | \u00a0 | \u00a0 | \u00a0 | 2,433 | \u00a0 | \u00a0 | \u00a0 | 2,861 | \u00a0 |
\u00a0 | \u00a0 | $ | 13,453 | \u00a0 | \u00a0 | $ | 21,431 | \u00a0 | \u00a0 | $ | 26,572 | \u00a0 | \u00a0 | $ | 42,055 | \u00a0 |
With the exception of the amount of service contracts and extended warranties, the Company\u2019s product net revenues are recognized at a point in time when control transfers to the customer. The following presents net revenues based on timing of recognition:
\u00a0
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
Timing of revenue recognition: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||
| Products and services transferred at a point in time | \u00a0 | $ | 13,231 | \u00a0 | \u00a0 | $ | 20,974 | \u00a0 | \u00a0 | $ | 26,148 | \u00a0 | \u00a0 | $ | 40,985 | \u00a0 |
| Services transferred over time | \u00a0 | \u00a0 | 222 | \u00a0 | \u00a0 | \u00a0 | 457 | \u00a0 | \u00a0 | \u00a0 | 424 | \u00a0 | \u00a0 | \u00a0 | 1,070 | \u00a0 |
\u00a0 | \u00a0 | $ | 13,453 | \u00a0 | \u00a0 | $ | 21,431 | \u00a0 | \u00a0 | $ | 26,572 | \u00a0 | \u00a0 | $ | 42,055 | \u00a0 |
\u00a0
Contract balances
\u00a0
Accounts receivable are recognized in the period the Company delivers goods or provides services and 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 November 29, 2024 and May 31, 2024, unbilled receivables were $0.2 million and $0.2 million, respectively, and were included in prepaid expenses and other current assets on the accompanying Condensed Consolidated Balance Sheets.
\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 November 29, 2024 and May 31, 2024 were $0.7 million and $1.4 million, respectively, and were included in deferred revenue, short-term and deferred revenue, long-term on the accompanying Condensed Consolidated Balance Sheets. During the three and six months ended November 29, 2024, the Company recognized $0.06 million and $1.1 million in revenue, respectively, which were included in contract liabilities as of May 31, 2024.\u00a0
\u00a0
Remaining performance obligations
\u00a0
As of November 29, 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 other remaining performance obligations, as they have original durations of one year or less and 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 expenses 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-659","factDimensions":{"xbrl:concept":"us-gaap:DisaggregationOfRevenueTableTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Asia | \u00a0 | $ | 9,825 | \u00a0 | \u00a0 | $ | 18,922 | \u00a0 | \u00a0 | $ | 22,403 | \u00a0 | \u00a0 | $ | 38,153 | \u00a0 |
| United States | \u00a0 | \u00a0 | 3,462 | \u00a0 | \u00a0 | \u00a0 | 676 | \u00a0 | \u00a0 | \u00a0 | 3,984 | \u00a0 | \u00a0 | \u00a0 | 1,465 | \u00a0 |
| Europe | \u00a0 | \u00a0 | 166 | \u00a0 | \u00a0 | \u00a0 | 1,833 | \u00a0 | \u00a0 | \u00a0 | 185 | \u00a0 | \u00a0 | \u00a0 | 2,437 | \u00a0 |
\u00a0 | \u00a0 | $ | 13,453 | \u00a0 | \u00a0 | $ | 21,431 | \u00a0 | \u00a0 | $ | 26,572 | \u00a0 | \u00a0 | $ | 42,055 | \u00a0 |
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Systems | \u00a0 | $ | 3,410 | \u00a0 | \u00a0 | $ | 10,685 | \u00a0 | \u00a0 | $ | 3,470 | \u00a0 | \u00a0 | $ | 18,779 | \u00a0 |
| Contactors | \u00a0 | \u00a0 | 8,575 | \u00a0 | \u00a0 | \u00a0 | 9,152 | \u00a0 | \u00a0 | \u00a0 | 20,669 | \u00a0 | \u00a0 | \u00a0 | 20,415 | \u00a0 |
| Services | \u00a0 | \u00a0 | 1,468 | \u00a0 | \u00a0 | \u00a0 | 1,594 | \u00a0 | \u00a0 | \u00a0 | 2,433 | \u00a0 | \u00a0 | \u00a0 | 2,861 | \u00a0 |
\u00a0 | \u00a0 | $ | 13,453 | \u00a0 | \u00a0 | $ | 21,431 | \u00a0 | \u00a0 | $ | 26,572 | \u00a0 | \u00a0 | $ | 42,055 | \u00a0 |
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
Timing of revenue recognition: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||
| Products and services transferred at a point in time | \u00a0 | $ | 13,231 | \u00a0 | \u00a0 | $ | 20,974 | \u00a0 | \u00a0 | $ | 26,148 | \u00a0 | \u00a0 | $ | 40,985 | \u00a0 |
| Services transferred over time | \u00a0 | \u00a0 | 222 | \u00a0 | \u00a0 | \u00a0 | 457 | \u00a0 | \u00a0 | \u00a0 | 424 | \u00a0 | \u00a0 | \u00a0 | 1,070 | \u00a0 |
\u00a0 | \u00a0 | $ | 13,453 | \u00a0 | \u00a0 | $ | 21,431 | \u00a0 | \u00a0 | $ | 26,572 | \u00a0 | \u00a0 | $ | 42,055 | \u00a0 |
10. STOCK-BASED COMPENSATION
\u00a0
Stock-based compensation expense consists of expenses for stock options, restricted stock units (\u201cRSUs\u201d), performance RSUs (\u201cPRSUs\u201d), restricted shares, performance restricted shares and employee stock purchase plan (\u201cESPP\u201d) purchase rights. Stock-based compensation expense 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. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. The Company\u2019s employee stock options have characteristics significantly different from those of publicly traded options. 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 equity instruments. See Note 11 in the Company\u2019s Annual Report on Form 10-K for fiscal 2024 filed on July 30, 2024 for further information regarding the equity incentive plans and the ESPP.
The following table summarizes the stock-based compensation expense for the three and six months ended November 29, 2024 and November 30, 2023:
\u00a0
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Cost of sales | \u00a0 | $ | 69 | \u00a0 | \u00a0 | $ | 101 | \u00a0 | \u00a0 | $ | 162 | \u00a0 | \u00a0 | $ | 164 | \u00a0 |
| Research and development | \u00a0 | \u00a0 | 278 | \u00a0 | \u00a0 | \u00a0 | 139 | \u00a0 | \u00a0 | \u00a0 | 486 | \u00a0 | \u00a0 | \u00a0 | 292 | \u00a0 |
| Selling, general and administrative | \u00a0 | \u00a0 | 728 | \u00a0 | \u00a0 | \u00a0 | 398 | \u00a0 | \u00a0 | \u00a0 | 1,297 | \u00a0 | \u00a0 | \u00a0 | 704 | \u00a0 |
\u00a0 | \u00a0 | $ | 1,075 | \u00a0 | \u00a0 | $ | 638 | \u00a0 | \u00a0 | $ | 1,945 | \u00a0 | \u00a0 | $ | 1,160 | \u00a0 |
\u00a0
Stock-based compensation expense totaling $0.5 million and $0.3 million was capitalized as part of inventory as of November 29, 2024 and May 31, 2024, respectively.
\u00a0
The Company\u2019s nonvested RSU, PRSU and restricted shares activities during the six months ended November 29, 2024 were as follows:
\u00a0
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Weighted | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Average Grant | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | Date Fair | \u00a0 | |||
\u00a0 | \u00a0 | Shares | \u00a0 | \u00a0 | Value | \u00a0 | ||
\u00a0 | \u00a0 | (in thousands) | \u00a0 | \u00a0 | Per Share | \u00a0 | ||
Unvested, May 31, 2024 | \u00a0 | \u00a0 | 294 | \u00a0 | \u00a0 | $ | 20.08 | \u00a0 |
| Granted (1) | \u00a0 | \u00a0 | 555 | \u00a0 | \u00a0 | \u00a0 | 15.23 | \u00a0 |
| Vested | \u00a0 | \u00a0 | (32 | ) | \u00a0 | \u00a0 | 12.42 | \u00a0 |
| Forfeited | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
| Unvested, August 30, 2024 | \u00a0 | \u00a0 | 817 | \u00a0 | \u00a0 | $ | 17.09 | \u00a0 |
| Granted (1) | \u00a0 | \u00a0 | 10 | \u00a0 | \u00a0 | \u00a0 | 13.01 | \u00a0 |
| Vested | \u00a0 | \u00a0 | (47 | ) | \u00a0 | \u00a0 | 15.33 | \u00a0 |
| Forfeited | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
| Unvested, November 29, 2024 | \u00a0 | \u00a0 | 780 | \u00a0 | \u00a0 | $ | 17.14 | \u00a0 |
\u00a0
(1) | Includes 262,000 performance-based awards, of which 80,000 performance-based awards have target achievement goals whereby the grantee can earn up to 200% of the original award (up to 161,000 shares) if the maximum target goals are met. The remaining awards are earned at 100% if the target goals are achieved |
\u00a0
There were no options granted during the three and six months ended November 29, 2024 and November 30, 2023.
\u00a0
During the six months ended November 29, 2024 and November 30, 2023, the Company issued 41,000 and 24,000 shares, respectively, under the ESPP. As of November 29, 2024 and November 30, 2023, ESPP shares of 285,000 and 373,000, respectively, were available for issuance.
"}]},{"name":"rpt:f-711","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock","xbrl:period":"2024-06-01T00:00:00/2024-11-30T00:00:00","xbrl:entity":"cik:0001040470"},"factValues":[{"value":"\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Cost of sales | \u00a0 | $ | 69 | \u00a0 | \u00a0 | $ | 101 | \u00a0 | \u00a0 | $ | 162 | \u00a0 | \u00a0 | $ | 164 | \u00a0 |
| Research and development | \u00a0 | \u00a0 | 278 | \u00a0 | \u00a0 | \u00a0 | 139 | \u00a0 | \u00a0 | \u00a0 | 486 | \u00a0 | \u00a0 | \u00a0 | 292 | \u00a0 |
| Selling, general and administrative | \u00a0 | \u00a0 | 728 | \u00a0 | \u00a0 | \u00a0 | 398 | \u00a0 | \u00a0 | \u00a0 | 1,297 | \u00a0 | \u00a0 | \u00a0 | 704 | \u00a0 |
\u00a0 | \u00a0 | $ | 1,075 | \u00a0 | \u00a0 | $ | 638 | \u00a0 | \u00a0 | $ | 1,945 | \u00a0 | \u00a0 | $ | 1,160 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Weighted | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Average Grant | \u00a0 | ||
\u00a0 | \u00a0 | \u00a0 | \u00a0 | Date Fair | \u00a0 | |||
\u00a0 | \u00a0 | Shares | \u00a0 | \u00a0 | Value | \u00a0 | ||
\u00a0 | \u00a0 | (in thousands) | \u00a0 | \u00a0 | Per Share | \u00a0 | ||
Unvested, May 31, 2024 | \u00a0 | \u00a0 | 294 | \u00a0 | \u00a0 | $ | 20.08 | \u00a0 |
| Granted (1) | \u00a0 | \u00a0 | 555 | \u00a0 | \u00a0 | \u00a0 | 15.23 | \u00a0 |
| Vested | \u00a0 | \u00a0 | (32 | ) | \u00a0 | \u00a0 | 12.42 | \u00a0 |
| Forfeited | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
| Unvested, August 30, 2024 | \u00a0 | \u00a0 | 817 | \u00a0 | \u00a0 | $ | 17.09 | \u00a0 |
| Granted (1) | \u00a0 | \u00a0 | 10 | \u00a0 | \u00a0 | \u00a0 | 13.01 | \u00a0 |
| Vested | \u00a0 | \u00a0 | (47 | ) | \u00a0 | \u00a0 | 15.33 | \u00a0 |
| Forfeited | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 |
| Unvested, November 29, 2024 | \u00a0 | \u00a0 | 780 | \u00a0 | \u00a0 | $ | 17.14 | \u00a0 |
11. NET INCOME (LOSS) PER SHARE
\u00a0
Basic net income (loss) per share is determined using the weighted average number of common shares outstanding during the period. Diluted net income (loss) 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 (loss) per share:\u00a0
\u00a0
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands, except per share data) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Numerator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||
| Net income (loss) | \u00a0 | $ | (1,028 | ) | \u00a0 | $ | 6,089 | \u00a0 | \u00a0 | $ | (368 | ) | \u00a0 | $ | 10,763 | \u00a0 |
| Denominator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Basic weighted average shares outstanding | \u00a0 | \u00a0 | 29,659 | \u00a0 | \u00a0 | \u00a0 | 28,801 | \u00a0 | \u00a0 | \u00a0 | 29,383 | \u00a0 | \u00a0 | \u00a0 | 28,725 | \u00a0 |
| Dilutive effect of common equivalent shares outstanding | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 968 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 975 | \u00a0 |
| Diluted weighted average shares outstanding | \u00a0 | \u00a0 | 29,659 | \u00a0 | \u00a0 | \u00a0 | 29,769 | \u00a0 | \u00a0 | \u00a0 | 29,383 | \u00a0 | \u00a0 | \u00a0 | 29,700 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Net income (loss) per share - Basic | \u00a0 | $ | (0.03 | ) | \u00a0 | $ | 0.21 | \u00a0 | \u00a0 | $ | (0.01 | ) | \u00a0 | $ | 0.37 | \u00a0 |
| Net income (loss) per share - Diluted | \u00a0 | $ | (0.03 | ) | \u00a0 | $ | 0.20 | \u00a0 | \u00a0 | $ | (0.01 | ) | \u00a0 | $ | 0.36 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Antidilutive employee share-based awards, excluded | \u00a0 | \u00a0 | 1,747 | \u00a0 | \u00a0 | \u00a0 | 9 | \u00a0 | \u00a0 | \u00a0 | 1,622 | \u00a0 | \u00a0 | \u00a0 | 4 | \u00a0 |
\u00a0 | \u00a0 | Three Months Ended | \u00a0 | \u00a0 | Six Months Ended | \u00a0 | ||||||||||
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | November 30, | \u00a0 | ||||
(In thousands, except per share data) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | \u00a0 | 2024 | \u00a0 | \u00a0 | 2023 | \u00a0 | ||||
| Numerator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||
| Net income (loss) | \u00a0 | $ | (1,028 | ) | \u00a0 | $ | 6,089 | \u00a0 | \u00a0 | $ | (368 | ) | \u00a0 | $ | 10,763 | \u00a0 |
| Denominator: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Basic weighted average shares outstanding | \u00a0 | \u00a0 | 29,659 | \u00a0 | \u00a0 | \u00a0 | 28,801 | \u00a0 | \u00a0 | \u00a0 | 29,383 | \u00a0 | \u00a0 | \u00a0 | 28,725 | \u00a0 |
| Dilutive effect of common equivalent shares outstanding | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 968 | \u00a0 | \u00a0 | \u00a0 | - | \u00a0 | \u00a0 | \u00a0 | 975 | \u00a0 |
| Diluted weighted average shares outstanding | \u00a0 | \u00a0 | 29,659 | \u00a0 | \u00a0 | \u00a0 | 29,769 | \u00a0 | \u00a0 | \u00a0 | 29,383 | \u00a0 | \u00a0 | \u00a0 | 29,700 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Net income (loss) per share - Basic | \u00a0 | $ | (0.03 | ) | \u00a0 | $ | 0.21 | \u00a0 | \u00a0 | $ | (0.01 | ) | \u00a0 | $ | 0.37 | \u00a0 |
| Net income (loss) per share - Diluted | \u00a0 | $ | (0.03 | ) | \u00a0 | $ | 0.20 | \u00a0 | \u00a0 | $ | (0.01 | ) | \u00a0 | $ | 0.36 | \u00a0 |
\u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Antidilutive employee share-based awards, excluded | \u00a0 | \u00a0 | 1,747 | \u00a0 | \u00a0 | \u00a0 | 9 | \u00a0 | \u00a0 | \u00a0 | 1,622 | \u00a0 | \u00a0 | \u00a0 | 4 | \u00a0 |
12. SEGMENT AND CONCENTRATION INFORMATION
\u00a0
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance.
\u00a0
The Company\u2019s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in one operating segment.
\u00a0
Property and equipment, net by geographic area are as follows:
\u00a0
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| United States | \u00a0 | $ | 4,206 | \u00a0 | \u00a0 | $ | 3,128 | \u00a0 |
| International | \u00a0 | \u00a0 | 100 | \u00a0 | \u00a0 | \u00a0 | 125 | \u00a0 |
| Total long-lived assets, net | \u00a0 | $ | 4,306 | \u00a0 | \u00a0 | $ | 3,253 | \u00a0 |
\u00a0 | \u00a0 | November 29, | \u00a0 | \u00a0 | May 31, | \u00a0 | ||
(In thousands) | \u00a0 | 2024 | \u00a0 | \u00a0 | 2024 | \u00a0 | ||
| United States | \u00a0 | $ | 4,206 | \u00a0 | \u00a0 | $ | 3,128 | \u00a0 |
| International | \u00a0 | \u00a0 | 100 | \u00a0 | \u00a0 | \u00a0 | 125 | \u00a0 |
| Total long-lived assets, net | \u00a0 | $ | 4,306 | \u00a0 | \u00a0 | $ | 3,253 | \u00a0 |