Cover
Cover - shares | 9 Months Ended | |
Feb. 28, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | AEHR TEST SYSTEMS | |
Entity Central Index Key | 0001040470 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Feb. 28, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 28,338,209 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-22893 | |
Entity Incorporation State Country Code | CA | |
Entity Tax Identification Number | 94-2424084 | |
Entity Address Address Line 1 | 400 Kato Terrace | |
Entity Address City Or Town | Fremont | |
Entity Address State Or Province | CA | |
Entity Address Postal Zip Code | 94539 | |
City Area Code | 510 | |
Local Phone Number | 623-9400 | |
Entity Interactive Data Current | Yes | |
Security 12b Title | Common Stock par value of $0.01 per share | |
Trading Symbol | AEHR | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 28, 2023 | May 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 17,188 | $ 31,484 |
Short-term investments | 25,577 | 0 |
Trade and other accounts receivable, net | 11,389 | 12,859 |
Inventories | 21,619 | 15,051 |
Prepaid expenses and other current assets | 808 | 613 |
Total current assets | 76,581 | 60,007 |
Property and equipment, net | 1,281 | 1,203 |
Operating lease right-of-use assets | 6,293 | 917 |
Other assets | 241 | 201 |
Total assets | 84,396 | 62,328 |
Current liabilities: | ||
Accounts payable | 4,988 | 4,195 |
Accrued expenses | 3,489 | 3,610 |
Operating lease liabilities, short-term | 68 | 794 |
Customer deposits and deferred revenue, short-term | 843 | 2,415 |
Total current liabilities | 9,388 | 11,014 |
Operating lease liabilities, long-term | 6,324 | 212 |
Deferred revenue, long-term | 8 | 69 |
Other long-term liabilities | 42 | 44 |
Total liabilities | 15,762 | 11,339 |
Shareholders' equity: | ||
Common stock, $0.01 par value: Authorized: 75,000 shares; Issued and outstanding: 28,320 shares and 27,120 shares as of February 28, 2023 and May 31, 2022, respectively | 283 | 271 |
Additional paid-in capital | 126,930 | 117,686 |
Accumulated other comprehensive loss | (162) | (105) |
Accumulated deficit | (58,417) | (66,863) |
Total shareholders' equity | 68,634 | 50,989 |
Total liabilities and shareholders' equity | $ 84,396 | $ 62,328 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 28, 2023 | May 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 28,320,000 | 27,120,000 |
Common stock, shares outstanding | 28,320,000 | 27,120,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||
Net sales | $ 17,206 | $ 15,283 | $ 42,692 | $ 30,540 |
Cost of sales | 8,331 | 8,886 | 21,425 | 17,343 |
Gross profit | 8,875 | 6,397 | 21,267 | 13,197 |
Operating expenses: | ||||
Selling, general and administrative | 3,250 | 2,612 | 8,650 | 7,054 |
Research and development | 1,832 | 1,529 | 4,881 | 4,163 |
Total operating expenses | 5,082 | 4,141 | 13,531 | 11,217 |
Income from operations | 3,793 | 2,256 | 7,736 | 1,980 |
Interest income (expense), net | 374 | 1 | 758 | (9) |
Gain from forgiveness of PPP loan | 0 | 0 | 0 | 1,698 |
Other (expense) income, net | (18) | 10 | 1 | 68 |
Income before income tax expense | 4,149 | 2,267 | 8,495 | 3,737 |
Income tax expense | (17) | (24) | (49) | (81) |
Net income | $ 4,132 | $ 2,243 | $ 8,446 | $ 3,656 |
Earnings per share | ||||
Basic | $ 0.15 | $ 0.08 | $ 0.31 | $ 0.14 |
Diluted | $ 0.14 | $ 0.08 | $ 0.29 | $ 0.13 |
Shares used in per share calculations: | ||||
Basic | 27,893 | 26,871 | 27,571 | 25,684 |
Diluted | 29,373 | 28,854 | 29,080 | 27,510 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | ||||
Net income | $ 4,132 | $ 2,243 | $ 8,446 | $ 3,656 |
Other comprehensive (loss) income before reclassification: | ||||
Net change in unrealized loss on investments | (16) | 0 | (22) | 0 |
Net change in cumulative translation adjustments | 9 | (23) | (35) | (103) |
Other comprehensive loss, net of tax | (7) | (23) | (57) | (103) |
Comprehensive income | $ 4,125 | $ 2,220 | $ 8,389 | $ 3,553 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance, shares at May. 31, 2021 | 23,725 | ||||
Balance, amount at May. 31, 2021 | $ 11,449 | $ 237 | $ 87,553 | $ (28) | $ (76,313) |
Issuance of common stock under employee plans, shares | 1,492 | ||||
Issuance of common stock under employee plans, amount | 2,770 | $ 15 | 2,755 | 0 | 0 |
Proceeds from public offerings, net of issuance costs, shares | 1,697 | ||||
Proceeds from public offerings, net of issuance costs, amount | 24,030 | $ 17 | 24,013 | 0 | 0 |
Stock-based compensation | 2,186 | 0 | 2,186 | 0 | 0 |
Net income | 3,656 | 0 | 0 | 0 | 3,656 |
Foreign currency translation adjustment | (103) | $ 0 | 0 | (103) | 0 |
Balance, shares at Feb. 28, 2022 | 26,914 | ||||
Balance, amount at Feb. 28, 2022 | 43,988 | $ 269 | 116,507 | (131) | (72,657) |
Balance, shares at Nov. 30, 2021 | 26,835 | ||||
Balance, amount at Nov. 30, 2021 | 40,862 | $ 268 | 115,602 | (108) | (74,900) |
Issuance of common stock under employee plans, shares | 79 | ||||
Issuance of common stock under employee plans, amount | 26 | $ 1 | 25 | 0 | 0 |
Stock-based compensation | 880 | 0 | 880 | 0 | 0 |
Net income | 2,243 | 0 | 0 | 0 | 2,243 |
Foreign currency translation adjustment | (23) | $ 0 | 0 | (23) | 0 |
Balance, shares at Feb. 28, 2022 | 26,914 | ||||
Balance, amount at Feb. 28, 2022 | 43,988 | $ 269 | 116,507 | (131) | (72,657) |
Balance, shares at May. 31, 2022 | 27,120 | ||||
Balance, amount at May. 31, 2022 | 50,989 | $ 271 | 117,686 | (105) | (66,863) |
Issuance of common stock under employee plans, shares | 1,156 | ||||
Issuance of common stock under employee plans, amount | 1,965 | $ 11 | 1,954 | 0 | 0 |
Proceeds from public offerings, net of issuance costs, shares | 209 | ||||
Proceeds from public offerings, net of issuance costs, amount | 6,853 | $ 2 | 6,851 | 0 | 0 |
Stock-based compensation | 2,118 | 0 | 2,118 | 0 | 0 |
Net income | 8,446 | 0 | 0 | 0 | 8,446 |
Foreign currency translation adjustment | (35) | $ 0 | 0 | (35) | 0 |
Shares repurchased for tax withholdings on vesting of restricted stock units, shares | (165) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units, amount | (1,680) | $ (1) | (1,679) | 0 | 0 |
Net unrealized loss on investments | (22) | $ 0 | 0 | (22) | 0 |
Balance, shares at Feb. 28, 2023 | 28,320 | ||||
Balance, amount at Feb. 28, 2023 | 68,634 | $ 283 | 126,930 | (162) | (58,417) |
Balance, shares at Nov. 30, 2022 | 27,732 | ||||
Balance, amount at Nov. 30, 2022 | 56,667 | $ 277 | 119,094 | (155) | (62,549) |
Issuance of common stock under employee plans, shares | 395 | ||||
Issuance of common stock under employee plans, amount | 853 | $ 4 | 849 | 0 | 0 |
Proceeds from public offerings, net of issuance costs, shares | 209 | ||||
Proceeds from public offerings, net of issuance costs, amount | 6,853 | $ 2 | 6,851 | 0 | 0 |
Stock-based compensation | 600 | 0 | 600 | 0 | 0 |
Net income | 4,132 | 0 | 0 | 0 | 4,132 |
Foreign currency translation adjustment | 9 | $ 0 | 0 | 9 | 0 |
Shares repurchased for tax withholdings on vesting of restricted stock units, shares | (16) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units, amount | (464) | $ 0 | (464) | 0 | 0 |
Net unrealized loss on investments | (16) | $ 0 | 0 | (16) | 0 |
Balance, shares at Feb. 28, 2023 | 28,320 | ||||
Balance, amount at Feb. 28, 2023 | $ 68,634 | $ 283 | $ 126,930 | $ (162) | $ (58,417) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 8,446 | $ 3,656 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 2,095 | 2,186 |
Provision for doubtful accounts | 24 | 0 |
Depreciation and amortization | 337 | 262 |
Rent adjustment and amortization of lease incentives | 10 | (36) |
Accretion of investment discount | (305) | 0 |
Gain from forgiveness of PPP loan | 0 | (1,698) |
Changes in operating assets and liabilities: | ||
Trade and other accounts receivable | 1,414 | (3,454) |
Inventories | (6,783) | (5,449) |
Prepaid expenses and other assets | (167) | (28) |
Accounts payable | 822 | 444 |
Accrued expenses | (126) | 375 |
Customer deposits and deferred revenue | (1,633) | 5,999 |
Income taxes payable | 9 | 18 |
Net cash provided by operating activities | 4,143 | 2,275 |
Cash flows from investing activities: | ||
Purchases of investments | (33,294) | 0 |
Proceeds from maturities of investments | 8,000 | 0 |
Purchases of property and equipment | (178) | (218) |
Net cash used in investing activities | (25,472) | (218) |
Cash flows from financing activities: | ||
Line of credit repayments, net | 0 | (1,400) |
Proceeds from issuance of common stock under employee plans | 1,965 | 3,139 |
Shares repurchased for tax withholdings on vesting of restricted stock units | (1,680) | (369) |
Proceeds from issuance of common stock from public offering, net of issuance costs | 6,853 | 24,030 |
Net cash provided by financing activities | 7,138 | 25,400 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (35) | (19) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (14,226) | 27,438 |
Cash, cash equivalents and restricted cash, beginning of period(1) | 31,564 | 4,662 |
Cash, cash equivalents and restricted cash, end of period(1) | $ 17,338 | $ 32,100 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES | 9 Months Ended |
Feb. 28, 2023 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES The accompanying financial information has been prepared by Aehr Test Systems, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. 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, 2022 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 and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2022. Results for the interim periods presented herein are not necessarily indicative of results which may be reported for any other interim period or for the entire fiscal year. PRINCIPLES OF CONSOLIDATION. The condensed consolidated financial statements include the accounts of Aehr Test Systems and its subsidiaries (collectively, the "Company"). All significant intercompany balances have been eliminated in consolidation. ACCOUNTING ESTIMATES. 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 and 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. Estimates are used to account for the standalone selling prices related to revenue recognition, sales and revenue allowances, the allowance for doubtful accounts, inventory valuations, income taxes, stock-based compensation expenses, and product warranties, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ materially from those estimates. RECLASSIFICATIONS. Certain reclassifications have been made to prior year condensed consolidated financial statements to conform to the current period presentation. The reclassifications had no impact on net loss, total assets, total liabilities, or shareholders’ equity. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended May 31, 2022. There have been no significant changes in the Company’s significant accounting policies during the three and nine months ended February 28, 2023. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Feb. 28, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – 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 collectability of the reported amount. Due to a subsequent ASU in November 2019, the accounting standard will be effective for the Company beginning in the first quarter of fiscal 2024 on a modified retrospective basis. The Company does not expect a material impact of this accounting standard on its condensed consolidated financial statements. |
REVENUE
REVENUE | 9 Months Ended |
Feb. 28, 2023 | |
REVENUE | |
REVENUE | 3. REVENUE Revenue recognition 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. Performance obligations include sales of systems, contactors, spare parts, and services, as well as installation and training services included in customer contracts. A contract’s 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. 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 are recognized at a point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. The Company has elected the practical expedient to not assess whether a contract has a significant financing component as the Company’s standard payment terms are less than one year. The Company sells its products primarily through a direct sales force. In certain international markets, the Company sells its products through independent distributors. Transfer of control is evidenced upon passage of title and risk of loss to the customer unless we are required to provide additional services. Disaggregation of revenue The following tables show net sales 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. The Company’s net sales by product category are as follows (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Type of good / service: Systems $ 9,821 $ 7,172 $ 26,315 $ 14,805 Contactors 6,299 7,426 13,400 13,468 Services 1,086 685 2,977 2,267 $ 17,206 $ 15,283 $ 42,692 $ 30,540 Product lines: Wafer-level $ 16,810 $ 14,879 $ 41,532 $ 29,130 Test During Burn-In 396 404 1,160 1,410 $ 17,206 $ 15,283 $ 42,692 $ 30,540 The following presents information about the Company’s net sales in different geographic areas. Net sales are based upon ship-to location (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Geographic region: United States $ 2,343 $ 1,057 $ 7,761 $ 2,458 Asia 14,849 14,213 34,873 28,066 Europe 14 13 58 16 $ 17,206 $ 15,283 $ 42,692 $ 30,540 With the exception of the amount of service contracts and extended warranties, the Company’s product net sales are recognized at a point in time when control transfers to the customer. The following presents net sales based on timing of recognition (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 16,863 $ 14,932 $ 41,523 $ 29,492 Services transferred over time 343 351 1,169 1,048 $ 17,206 $ 15,283 $ 42,692 $ 30,540 Contract balances A receivable is recognized in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. The Company usually does not record contract assets because the Company has an unconditional right to payment upon satisfaction of the performance obligation, and therefore, a receivable is more commonly recorded than a contract asset. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the condensed consolidated balance sheets at the end of each reporting period as a component of deferred revenue. Contract liabilities as of February 28, 2023 and May 31, 2022 were $851,000 and $2,484,000, respectively. During the three and nine months ended February 28, 2023, the Company recognized $42,000 and $2,157,000, respectively, of revenues that were included in contract liabilities as of May 31, 2022. Remaining performance obligations On February 28, 2023, the Company had $90,000 of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. The Company expects to recognize approximately 24% of its remaining performance obligations as revenue in the remainder of fiscal 2023, and an additional 76% in fiscal 2024 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Costs to obtain or fulfill a contract 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’s 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’s products and their respective manufacturing process. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Feb. 28, 2023 | |
Earnings per share | |
EARNINGS PER SHARE | 4. EARNINGS PER SHARE Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, restricted shares, restricted stock units (“RSUs”), Performance RSUs (“PRSUs”) and Amended and Restated 2006 Employee Stock Purchase Plan (“ESPP”) shares) outstanding during the period using the treasury stock method. The following table presents the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Numerator: Net income $ 4,132 $ 2,243 $ 8,446 $ 3,656 Denominator for basic earnings per share: Weighted average shares outstanding 27,893 26,871 27,571 25,684 Shares used in basic earnings per share calculation 27,893 26,871 27,571 25,684 Effect of dilutive securities 1,480 1,983 1,509 1,826 Denominator for diluted earnings per share 29,373 28,854 29,080 27,510 Basic earnings per share $ 0.15 $ 0.08 $ 0.31 $ 0.14 Diluted earnings per share $ 0.14 $ 0.08 $ 0.29 $ 0.13 For the purpose of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair value of the Company’s common stock for the period, as the effect would be anti-dilutive. In the three and nine months ended February 28, 2023, stock options to purchase 15,000 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share, because the inclusion of such shares would be anti-dilutive. In the three and nine months ended February 28, 2022, stock options to purchase 11,000 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share, because the inclusion of such shares would be anti-dilutive. |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 9 Months Ended |
Feb. 28, 2023 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | 5. CASH, CASH EQUIVALENTS AND INVESTMENTS The following table summarizes the Company’s cash, cash equivalents and investments by security type as of February 28, 2023 (in thousands): Cost Gross Unrealized Loss Estimated Fair Value Cash $ 1,479 $ - $ 1,479 Cash equivalents: Money market funds 11,726 - 11,726 U.S. treasury securities 3,983 - 3,983 Total cash equivalents 15,709 - 15,709 Total cash and cash equivalents $ 17,188 $ - $ 17,188 Short-term investments: U.S. treasury securities $ 25,599 $ (22 ) $ 25,577 Long-term investments: Money market funds $ 150 - $ 150 Total cash, cash equivalents and investments $ 42,937 $ (22 ) $ 42,915 Long-term investments are included in other assets on the accompanying condensed consolidated balance sheets. Unrealized gains and temporary 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. The unrealized loss of $22,000 as of February 28, 2023 is not considered other-than-temporary, and has been in an unrealized loss position for less than a year. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Feb. 28, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s 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. The guidance establishes a fair value hierarchy based on inputs to valuation techniques that are used to measure fair value that are 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’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: Level 1 - instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 - instrument valuations are obtained from readily-available pricing sources for comparable instruments. Level 3 - instrument valuations are obtained without observable market values and require a high level of judgment to determine the fair value. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of February 28, 2023 (in thousands): Balance as of February 28, 2023 Level 1 Level 2 Level 3 Money market funds $ 11,876 $ 11,876 $ - $ - U.S. treasury securities 29,560 29,560 - - Total $ 41,436 $ 41,436 $ - $ - The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 31, 2022 (in thousands): Balance as of May 31, 2022 Level 1 Level 2 Level 3 Money market funds $ 28,609 $ 28,609 $ - $ - Included in money market funds as of February 28, 2023 and May 31, 2022 is $150,000 and $80,000 in restricted cash, respectively, representing a security deposit for the Company’s United States manufacturing and office space lease which is included in other assets in the condensed consolidated balance sheets. There were no financial liabilities measured at fair value as of February 28, 2023 and May 31, 2022. There were no transfers between Level 1 and Level 2 fair value measurements during the three and nine months ended February 28, 2023. 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. |
TRADE AND OTHER ACCOUNTS RECEIV
TRADE AND OTHER ACCOUNTS RECEIVABLE, NET | 9 Months Ended |
Feb. 28, 2023 | |
TRADE AND OTHER ACCOUNTS RECEIVABLE, NET | |
TRADE AND OTHER ACCOUNTS RECEIVABLE, NET | 7. TRADE AND OTHER ACCOUNTS RECEIVABLE, NET Trade accounts receivable represent customer trade receivables. As of February 28, 2023 and May 31, 2022, there were no allowances for doubtful accounts. Trade accounts receivable is derived from the sale of products throughout the world to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in and test service companies. Other accounts receivable represents non-customer trade related receivables that are derived from the sale of raw materials to our subcontractors. The Company’s allowance for doubtful accounts is based upon historical experience and review of trade receivables by aging category to identify specific customers with known disputes or collection issues. Uncollectible receivables are recorded as bad debt expense when all efforts to collect have been exhausted and recoveries are recognized when they are received. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Feb. 28, 2023 | |
INVENTORIES | |
INVENTORIES | 8. INVENTORIES Inventories are comprised of the following (in thousands): February 28, May 31, 2023 2022 Raw materials and sub-assemblies $ 13,906 $ 9,507 Work in process 7,147 5,461 Finished goods 566 83 $ 21,619 $ 15,051 |
PRODUCT WARRANTIES
PRODUCT WARRANTIES | 9 Months Ended |
Feb. 28, 2023 | |
PRODUCT WARRANTIES | |
PRODUCT WARRANTIES | 9. PRODUCT WARRANTIES 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’s 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’s 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. The following is a summary of changes in the Company's liability for product warranties during the three and nine months ended February 28, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Balance at the beginning of the period $ 311 $ 415 $ 410 $ 494 Accruals for warranties issued during the period 84 37 207 294 Adjustments to previously existing warranty accruals - 26 61 98 Consumption of reserves (107 ) (108 ) (390 ) (516 ) Balance at the end of the period $ 288 $ 370 $ 288 $ 370 The accrued warranty balance is included in accrued expenses on the accompanying condensed consolidated balance sheets. |
CUSTOMER DEPOSITS AND DEFERRED
CUSTOMER DEPOSITS AND DEFERRED REVENUE SHORTTERM | 9 Months Ended |
Feb. 28, 2023 | |
CUSTOMER DEPOSITS AND DEFERRED REVENUE SHORTTERM | |
CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM | 10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM Customer deposits and deferred revenue, short-term (in thousands): February 28, May 31, 2023 2022 Customer deposits $ 760 $ 2,263 Deferred revenue 83 152 $ 843 $ 2,415 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Feb. 28, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 11. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): Cumulative Translation Adjustments Unrealized Loss on Investments, Net Total Balance as of May 31, 2022 $ (105 ) $ - $ (105 ) Other comprehensive loss before reclassifications (35 ) (22 ) (57 ) Other comprehensive loss, net of tax (35 ) (22 ) (57 ) Balance as of February 28, 2023 $ (140 ) $ (22 ) $ (162 ) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Feb. 28, 2023 | |
INCOME TAXES | |
INCOME TAXES | 12. INCOME TAXES The Company is subject to U.S federal and state and foreign income taxes as a corporation. The Company’s tax provision and the resulting effective tax rate for the interim period is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The Company recorded a provision for income tax of $17,000 and $49,000 for the three and nine months ended February 28, 2023 which consisted primarily of foreign withholding taxes and foreign income taxes. The Company recorded a provision for income tax of $24,000 and $81,000 for the three and nine months ended February 28, 2022 which consisted primarily of foreign withholding taxes and foreign income taxes. The provision for federal and state income taxes was not significant due to available net operating loss and research and development credit carryforwards. Income taxes have been provided using the liability method whereby deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and net operating loss and tax credit carryforwards measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse, or the carryforwards are utilized. Valuation allowances are established when it is determined that it is more likely than not that such assets will not be realized. Since fiscal 2009, a full valuation allowance was established against all deferred tax assets, as management determined that it is more likely than not that certain deferred tax assets will not be realized. The Company will adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. The Company accounts for uncertain tax positions consistent with authoritative guidance. The guidance prescribes a “more likely than not” 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 does not expect any material change in its unrecognized tax benefits over the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income taxes. |
LEASES
LEASES | 9 Months Ended |
Feb. 28, 2023 | |
LEASES | |
LEASES | 13. LEASES 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 condensed 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 (short-term leases). 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 condensed consolidated balance sheets. The Company’s operating leases have remaining lease terms of 1 year to 8 years. 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 assets may be required for items such as initial direct costs paid or incentives received. In December 2022, the Company amended its lease agreement to extend the lease term of an existing office facility located in the United States, which is considered a lease modification not accounted for as a separate contract. The total commitments, net of tenant incentives expected to be received, under the modified lease are $8.6 million. The modified lease expires in fiscal 2031 and contains an option to further extend the lease. The lease modification resulted in an increase in the Company’s operating lease right-of-use assets and operating lease liabilities of $5.9 million each. As of February 28, 2023, the weighted-average remaining lease term for the Company’s operating leases was 7.5 years and the weighted-average discount rate was 7.5%. The Company’s operating lease cost was $256,000 and $634,000 for the three and nine months ended February 28, 2023, respectively. For the three and nine months ended February 28, 2022, operating lease cost was $191,000 and $576,000, respectively. The following table presents supplemental cash flow information related to the Company’s operating leases (in thousands): Nine Months Ended February 28, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 624 $ 612 The following table presents the maturities of the Company’s operating lease liabilities as of February 28, 2023 (in thousands): Fiscal year Operating Leases 2023 (remaining three months of 2023) $ 211 2024 608 2025 1,143 2026 1,174 2027 1,195 Thereafter 4,309 Total future minimum operating lease payments 8,640 Less: imputed interest (2,248 ) Present value of operating lease liabilities $ 6,392 |
BORROWING AND FINANCING ARRANGE
BORROWING AND FINANCING ARRANGEMENTS | 9 Months Ended |
Feb. 28, 2023 | |
BORROWING AND FINANCING ARRANGEMENTS | |
BORROWING AND FINANCING ARRANGEMENTS: | 14. BORROWING AND FINANCING ARRANGEMENTS On January 16, 2020, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). 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’s assets except intellectual property. The borrowing base is 80% of eligible accounts, as determined by SVB from the Company’s 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’s 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. On January 14, 2021, the Company entered into the First Amendment to Loan and Security Agreement (the “Amendment”) 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. On January 11, 2022, the Company entered into the Second Amendment to the Loan and Security Agreement (the “Second Amendment”) 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’s 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’s adjusted quick ratio, and (b) 3.75%, and (D) extended the maturity date to January 13, 2023. On January 10, 2023, the Company entered into the Third Amendment to the Loan and Security Agreement (the “Third Amendment”) 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. As of February 28, 2023 the Company had not drawn against the credit facility and was in compliance with all covenants related to obligations to meet reporting requirements. The balance available to borrow under the line as of February 28, 2023 was $6,949,000. There are no financial covenants in the agreement. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Feb. 28, 2023 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 15. LONG-TERM DEBT: On April 23, 2020, the Company obtained the Paycheck Protection Program Loan (the “PPP Loan”) in the aggregate amount of $1,679,000 from SVB. The PPP Loan was evidenced by a promissory note dated April 23, 2020 (the “Note”) 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. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. On June 12, 2021, the Company received confirmation from SVB that, on June 4, 2021, the Small Business Administration approved the Company’s PPP Loan forgiveness application for the entire PPP Loan balance of $1,679,000 and interest totaling $19,000, and the Company recognized a gain on loan forgiveness of $1,698,000. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Feb. 28, 2023 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 16. STOCK-BASED COMPENSATION Stock-based compensation expense consists of expenses for stock options, RSUs, PRSUs, restricted shares, performance restricted shares and ESPP 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’s 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’s employee stock options have characteristics significantly different from those of publicly traded options. For RSUs and restricted shares, stock-based compensation cost is based on the fair value of the Company’s common stock at the grant date. All of the Company’s stock-based compensation is accounted for as an equity instrument. See Note 11 in the Company’s Annual Report on Form 10-K for fiscal 2022 filed on August 26, 2022 for further information regarding the 2016 Equity Incentive Plan (the “2016 Plan”) and the ESPP. The following table summarizes the stock-based compensation expense for the three and nine months ended February 28, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Stock-based compensation in the form of stock options, RSUs, restricted shares and ESPP purchase rights, included in: Cost of sales $ 75 $ 90 $ 252 $ 248 Selling, general and administrative 359 487 1,330 1,259 Research and development 158 303 513 679 Total stock-based compensation $ 592 $ 880 $ 2,095 $ 2,186 As of February 28, 2023, there were $110,000 stock-based compensation expenses capitalized as part of inventory. As of February 28, 2022, there were no stock-based compensation expenses capitalized as part of inventory. During the three months ended February 28, 2023 and 2022, the Company recorded stock-based compensation expense related to stock options, RSUs, PRSUs, performance restricted shares and restricted shares under the 2016 Plan of $424,000 and $516,000, respectively. During the nine months ended February 28, 2023 and 2022, the Company recorded stock-based compensation expense related to stock options, RSUs and restricted shares of $1,536,000 and $1,416,000, respectively. For Performance RSUs and performance restricted shares, the Company evaluates compensation expense quarterly and recognizes expense for performance-based awards only if it determines it is probable that performance criteria for the awards will be met. As of February 28, 2023, the total compensation expense related to unvested stock-based awards under the 2016 Plan, but not yet recognized, was approximately $3,348,000, which is net of estimated forfeitures of $8,000. This expense will be amortized on a straight-line basis over a weighted average period of approximately 2.1 years. During the three months ended February 28, 2023 and 2022, the Company recorded stock-based compensation expense related to the ESPP of $168,000 and $364,000, respectively. During the nine months ended February 28, 2023 and 2022, the Company recorded stock-based compensation expense related to the ESPP of $559,000 and $770,000, respectively. As of February 28, 2023, the total compensation expense related to purchase rights under the ESPP but not yet recognized was approximately $261,000. This expense will be amortized on a straight-line basis over a weighted average period of approximately 1.0 years. Valuation Assumptions Valuation and Amortization Method. The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a single option award approach. The fair value under the single option approach is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Expected Term. The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as evidenced by changes to the terms of its stock-based awards. Volatility. Volatility is a measure of the amounts by which a financial variable such as stock price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The Company uses the historical volatility, which matches the expected term of most of the option grants, to estimate expected volatility. Volatility for each of the ESPP’s four time periods of six months, twelve months, eighteen months, and twenty-four months is calculated separately and included in the overall stock-based compensation expense recorded. Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield in effect at the time of option grant on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the stock awards including the ESPP. Fair Value. The fair values of the Company’s stock options granted to employees for the three and nine months ended February 28, 2023 and 2022, was estimated using the following weighted average assumptions in the Black-Scholes option valuation model: Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Expected term (in years) 5 5 5 6 Volatility 90 % 117 % 116 % 77 % Risk-free interest rate 3.58 % 1.56 % 3.11 % 1.03 % Weighted average grant date fair value $ 24.30 $ 9.43 $ 7.24 $ 2.56 The fair values of the ESPP purchase rights granted for the nine months ended February 28, 2023 and 2022 were estimated using the following assumptions: Nine Months Ended Nine Months Ended February 28, 2023 February 28, 2022 Expected term (in years) 0.5-2.0 0.5-2.0 Volatility 90%-203 % 101%-143 % Risk-free interest rates 3.97%-4.12 % 0.05%-0.27 % Weighted average grant date fair value $ 11.17 $ 9.57 There were no ESPP purchase rights granted to employees for the three months ended February 28, 2023 and 2022. During the nine months ended February 28, 2023 and 2022, ESPP purchase rights of 43,000 and 103,000 were granted, respectively. Total ESPP shares issued during the nine months ended February 28, 2023 and 2022 were 109,000 and 75,000 shares, respectively. There were 499,000 ESPP shares available for issuance as of February 28, 2023. The following tables summarize the Company’s stock option and RSU transactions during the three and nine months ended February 28, 2023 and shows the shares available to be issued at the end of each period (in thousands): Available Shares Balance, May 31, 2022 1,826 Options granted (103 ) RSUs granted (323 ) Options cancelled and adjusted 6 Balance, August 31, 2022 1,406 Options granted (5 ) RSUs granted (14 ) Balance, November 30, 2022 1,387 Options granted (1 ) RSUs cancelled -- Options cancelled 8 Balance, February 28, 2023 1,394 The following table summarizes the stock option transactions during the three and nine months ended February 28, 2023 (in thousands, except per share data): Outstanding Options Weighted Number Average Aggregate of Exercise Intrinsic Shares Price Value Balances, May 31, 2022 1,597 $ 2.70 $ 9,290 Options granted 103 $ 8.00 Options cancelled (6 ) $ 2.41 Options exercised (102 ) $ 2.00 Balances, August 31, 2022 1,592 $ 3.08 $ 18,287 Options granted 4 $ 21.22 Options exercised (168 ) $ 2.31 Balances, November 30, 2022 1,428 $ 3.23 $ 32,614 Options granted 1 $ 34.00 Options cancelled (8 ) $ 7.40 Options exercised (360 ) $ 2.36 Balances, February 28, 2023 1,061 $ 3.54 $ 31,629 Options fully vested and expected to vest on February 28, 2023 1,045 $ 3.53 $ 31,177 The options outstanding and exercisable on February 28, 2023 were in the following exercise price ranges (in thousands, except per share data): Options Outstanding Options Exercisable at February 28, 2023 at February 28, 2023 Range of Exercise Prices Number Outstanding Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value $ 1.34 41 4.64 $ 1.34 41 4.64 $ 1.34 $1.64-$1.86 413 3.57 $ 1.72 298 3.43 $ 1.70 $2.03-$2.40 196 2.85 $ 2.15 184 2.71 $ 2.15 $2.76-$2.93 167 4.98 $ 2.92 50 4.07 $ 2.89 $3.46-$3.93 47 1.42 $ 3.83 47 1.42 $ 3.83 $8.00-$34.00 197 6.22 $ 9.63 32 6.14 $ 10.17 $1.34-$34.00 1,061 4.10 $ 3.54 652 3.33 $ 2.46 $ 20,151 The total intrinsic value of options exercised during the three and nine months ended February 28,2023 was $10,827,000 and $14,183,000, respectively. The total intrinsic value of options exercised during the three and nine months ended February 28, 2022 was $867,000 and $11,902,000, respectively. The weighted average remaining contractual life of the options exercisable and expected to be exercisable on February 28, 2023 was 4.09 years. The weighted average remaining contractual life of the options exercisable and expected to be exercisable on February 28, 2022 was 4.04 years. The following table summarizes RSUs, PRSUs, restricted shares and performance restricted shares granted to employees and members of the Company’s Board of Directors during the three and nine months ended February 28, 2023 and 2022: Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Employees: Annual RSUs granted -- -- 151,800 120,000 Weighted average market value on the date of the grant of annual RSUs - - $ 8.03 $ 3.17 Annual restricted shares granted -- -- 7,500 -- Weighted average market value on the date of the grant of annual restricted shares - - $ 8.00 - RSUs granted in lieu of cash payment for salary reductions -- -- -- 89,000 Weighted average market value on the date of the grant of RSU in lieu of cash payment - - - $ 2.50 Maximum PRSUs to be vested if all revenue goals are achieved -- -- 80,400 270,000 Maximum Performance restricted shares to be vested if all revenue goals are achieved -- -- 23,700 -- Weighted average market value on the date of the grant of PRSUs, performance restricted shares - - $ 8.00 $ 3.41 Members of Board of Directors: RSUs granted - -- 44,000 43,000 Weighted average market value on the date of the grant of RSUs - - $ 11.35 $ 8.02 Maximum PRSUs granted to be vested if all revenue goals are achieved - - 30,000 -- Weighted average market value on the date of the grant of PRSUs -- -- $ 8.00 -- PRSUs were granted to key officers and members of Board of Directors based upon revenue target thresholds for fiscal 2023 and 2022. The following table summarizes the RSUs and PRSUs vested and unvested during the three and nine months ended February 28, 2023 and 2022: Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Net RSUs and PRSUs vested 19,000 21,000 221,000 83,000 Shares withheld to settle payroll taxes 16,000 -- 165,000 -- RSUs and PRSUs unvested 406,000 485,000 406,000 485,000 Intrinsic value of unvested RSUs and PRSUs (in thousands) $ 13,540 $ 6,596 $ 13,540 $ 6,596 |
SEGMENT AND CONCENTRATION INFOR
SEGMENT AND CONCENTRATION INFORMATION | 9 Months Ended |
Feb. 28, 2023 | |
SEGMENT AND CONCENTRATION INFORMATION | |
SEGMENT AND CONCENTRATION INFORMATION | 17. SEGMENT AND CONCENTRATION INFORMATION The Company has only one reportable segment. The information for revenue category by type, product line, geography and timing of revenue recognition, is summarized in Note “3. REVENUE.” Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in thousands): February 28, May 31, 2023 2022 United States $ 1,229 $ 1,156 Asia 50 47 Europe 2 - $ 1,281 $ 1,203 As of February 28, 2023, the operating lease right-of-use assets of $6,169,000, $76,000 and $48,000 are allocated in the United States, Asia, and Europe, respectively. As of May 31, 2022, the operating lease right-of-use assets of $822,000 and $95,000 were allocated in the United States and Asia, respectively. There were no revenues through distributors for the three and nine months ended February 28, 2023 and 2022. Sales to the Company’s five largest customers accounted for approximately 98% and 97% of its net sales in the three and nine months ended February 28, 2023, respectively. Two customers accounted for approximately 82% and 12% of the Company’s net sales in the three months ended February 28, 2023. Two customers accounted for approximately 77% and 16% of the Company’s net sales in the nine months ended February 28, 2023. Sales to the Company’s five largest customers accounted for approximately 99% and 97% of its net sales in the three and nine months ended February 28, 2022, respectively. One customer accounted for approximately 90% of the Company’s net sales in the three months ended February 28, 2022. One customer accounted for approximately 84% of the Company’s net sales in the nine months ended February 28, 2022. No other customers represented more than 10% of the Company’s net sales in the three and nine months ended February 28, 2023 and 2022. |
EQUITY
EQUITY | 9 Months Ended |
Feb. 28, 2023 | |
EQUITY | |
EQUITY | 18. EQUITY On August 25, 2021, the Board authorized Management to take actions necessary for the execution of a $75 million shelf registration, which S-3 was filed with the SEC on September 3, 2021. A Prospectus Supplement for an "At the Market" ("ATM") sale of $25 million of common stock was subsequently filed on September 17, 2021. On October 8, 2021, the Company fully executed the ATM offering by selling 1,696,729 shares at an average selling price of $14.73. 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 $25 million of common stock was subsequently filed on February 8, 2023. The Company partially executed the ATM offering by selling 208,917 shares at an average selling price of $34.78. The gross proceeds to the Company were $7.3 million, before commissions of $0.2 million and offering expenses of $0.2 million. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES (Policies) | 9 Months Ended |
Feb. 28, 2023 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES | The accompanying financial information has been prepared by Aehr Test Systems, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. 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, 2022 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 and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2022. Results for the interim periods presented herein are not necessarily indicative of results which may be reported for any other interim period or for the entire fiscal year. |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION. The condensed consolidated financial statements include the accounts of Aehr Test Systems and its subsidiaries (collectively, the "Company"). All significant intercompany balances have been eliminated in consolidation. |
ACCOUNTING ESTIMATES | ACCOUNTING ESTIMATES. 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 and 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. Estimates are used to account for the standalone selling prices related to revenue recognition, sales and revenue allowances, the allowance for doubtful accounts, inventory valuations, income taxes, stock-based compensation expenses, and product warranties, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ materially from those estimates. |
RECLASSIFICATIONS | RECLASSIFICATIONS. Certain reclassifications have been made to prior year condensed consolidated financial statements to conform to the current period presentation. The reclassifications had no impact on net loss, total assets, total liabilities, or shareholders’ equity. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended May 31, 2022. There have been no significant changes in the Company’s significant accounting policies during the three and nine months ended February 28, 2023. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Feb. 28, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – 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 collectability of the reported amount. Due to a subsequent ASU in November 2019, the accounting standard will be effective for the Company beginning in the first quarter of fiscal 2024 on a modified retrospective basis. The Company does not expect a material impact of this accounting standard on its condensed consolidated financial statements. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
REVENUE | |
Disaggregation of revenue | The Company’s net sales by product category are as follows (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Type of good / service: Systems $ 9,821 $ 7,172 $ 26,315 $ 14,805 Contactors 6,299 7,426 13,400 13,468 Services 1,086 685 2,977 2,267 $ 17,206 $ 15,283 $ 42,692 $ 30,540 Product lines: Wafer-level $ 16,810 $ 14,879 $ 41,532 $ 29,130 Test During Burn-In 396 404 1,160 1,410 $ 17,206 $ 15,283 $ 42,692 $ 30,540 The following presents information about the Company’s net sales in different geographic areas. Net sales are based upon ship-to location (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Geographic region: United States $ 2,343 $ 1,057 $ 7,761 $ 2,458 Asia 14,849 14,213 34,873 28,066 Europe 14 13 58 16 $ 17,206 $ 15,283 $ 42,692 $ 30,540 With the exception of the amount of service contracts and extended warranties, the Company’s product net sales are recognized at a point in time when control transfers to the customer. The following presents net sales based on timing of recognition (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 16,863 $ 14,932 $ 41,523 $ 29,492 Services transferred over time 343 351 1,169 1,048 $ 17,206 $ 15,283 $ 42,692 $ 30,540 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
Earnings per share | |
Earnings per share | The following table presents the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Numerator: Net income $ 4,132 $ 2,243 $ 8,446 $ 3,656 Denominator for basic earnings per share: Weighted average shares outstanding 27,893 26,871 27,571 25,684 Shares used in basic earnings per share calculation 27,893 26,871 27,571 25,684 Effect of dilutive securities 1,480 1,983 1,509 1,826 Denominator for diluted earnings per share 29,373 28,854 29,080 27,510 Basic earnings per share $ 0.15 $ 0.08 $ 0.31 $ 0.14 Diluted earnings per share $ 0.14 $ 0.08 $ 0.29 $ 0.13 |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | |
Cash, cash equivalents and investments by security type | The following table summarizes the Company’s cash, cash equivalents and investments by security type as of February 28, 2023 (in thousands): Cost Gross Unrealized Loss Estimated Fair Value Cash $ 1,479 $ - $ 1,479 Cash equivalents: Money market funds 11,726 - 11,726 U.S. treasury securities 3,983 - 3,983 Total cash equivalents 15,709 - 15,709 Total cash and cash equivalents $ 17,188 $ - $ 17,188 Short-term investments: U.S. treasury securities $ 25,599 $ (22 ) $ 25,577 Long-term investments: Money market funds $ 150 - $ 150 Total cash, cash equivalents and investments $ 42,937 $ (22 ) $ 42,915 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Fair value by hierarchy | The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of February 28, 2023 (in thousands): Balance as of February 28, 2023 Level 1 Level 2 Level 3 Money market funds $ 11,876 $ 11,876 $ - $ - U.S. treasury securities 29,560 29,560 - - Total $ 41,436 $ 41,436 $ - $ - The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 31, 2022 (in thousands): Balance as of May 31, 2022 Level 1 Level 2 Level 3 Money market funds $ 28,609 $ 28,609 $ - $ - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
INVENTORIES | |
Schedule of inventories | Inventories are comprised of the following (in thousands): February 28, May 31, 2023 2022 Raw materials and sub-assemblies $ 13,906 $ 9,507 Work in process 7,147 5,461 Finished goods 566 83 $ 21,619 $ 15,051 |
PRODUCT WARRANTIES (Tables)
PRODUCT WARRANTIES (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
PRODUCT WARRANTIES | |
Liability for product warranties | The following is a summary of changes in the Company's liability for product warranties during the three and nine months ended February 28, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Balance at the beginning of the period $ 311 $ 415 $ 410 $ 494 Accruals for warranties issued during the period 84 37 207 294 Adjustments to previously existing warranty accruals - 26 61 98 Consumption of reserves (107 ) (108 ) (390 ) (516 ) Balance at the end of the period $ 288 $ 370 $ 288 $ 370 |
CUSTOMER DEPOSITS AND DEFERRE_2
CUSTOMER DEPOSITS AND DEFERRED REVENUE SHORTTERM (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
CUSTOMER DEPOSITS AND DEFERRED REVENUE SHORTTERM | |
Schedule of Customer deposits and deferred revenue | Customer deposits and deferred revenue, short-term (in thousands): February 28, May 31, 2023 2022 Customer deposits $ 760 $ 2,263 Deferred revenue 83 152 $ 843 $ 2,415 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of Changes in the components of accumulated other comprehensive loss, net of tax | Changes in the components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): Cumulative Translation Adjustments Unrealized Loss on Investments, Net Total Balance as of May 31, 2022 $ (105 ) $ - $ (105 ) Other comprehensive loss before reclassifications (35 ) (22 ) (57 ) Other comprehensive loss, net of tax (35 ) (22 ) (57 ) Balance as of February 28, 2023 $ (140 ) $ (22 ) $ (162 ) |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
LEASES | |
Supplemental cash flow information related to leases | The following table presents supplemental cash flow information related to the Company’s operating leases (in thousands): Nine Months Ended February 28, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 624 $ 612 |
Maturity of operating lease liabilities | The following table presents the maturities of the Company’s operating lease liabilities as of February 28, 2023 (in thousands): Fiscal year Operating Leases 2023 (remaining three months of 2023) $ 211 2024 608 2025 1,143 2026 1,174 2027 1,195 Thereafter 4,309 Total future minimum operating lease payments 8,640 Less: imputed interest (2,248 ) Present value of operating lease liabilities $ 6,392 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
STOCK-BASED COMPENSATION | |
Compensation costs related to the Company's stock-based compensation | The following table summarizes the stock-based compensation expense for the three and nine months ended February 28, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Stock-based compensation in the form of stock options, RSUs, restricted shares and ESPP purchase rights, included in: Cost of sales $ 75 $ 90 $ 252 $ 248 Selling, general and administrative 359 487 1,330 1,259 Research and development 158 303 513 679 Total stock-based compensation $ 592 $ 880 $ 2,095 $ 2,186 |
Fair value assumptions for Option Valuation Model | Fair Value. The fair values of the Company’s stock options granted to employees for the three and nine months ended February 28, 2023 and 2022, was estimated using the following weighted average assumptions in the Black-Scholes option valuation model: Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Expected term (in years) 5 5 5 6 Volatility 90 % 117 % 116 % 77 % Risk-free interest rate 3.58 % 1.56 % 3.11 % 1.03 % Weighted average grant date fair value $ 24.30 $ 9.43 $ 7.24 $ 2.56 |
Fair value assumptions of the ESPP purchase rights | The fair values of the ESPP purchase rights granted for the nine months ended February 28, 2023 and 2022 were estimated using the following assumptions: Nine Months Ended Nine Months Ended February 28, 2023 February 28, 2022 Expected term (in years) 0.5-2.0 0.5-2.0 Volatility 90%-203 % 101%-143 % Risk-free interest rates 3.97%-4.12 % 0.05%-0.27 % Weighted average grant date fair value $ 11.17 $ 9.57 |
Stock option and RSU transactions | The following tables summarize the Company’s stock option and RSU transactions during the three and nine months ended February 28, 2023 and shows the shares available to be issued at the end of each period (in thousands): Available Shares Balance, May 31, 2022 1,826 Options granted (103 ) RSUs granted (323 ) Options cancelled and adjusted 6 Balance, August 31, 2022 1,406 Options granted (5 ) RSUs granted (14 ) Balance, November 30, 2022 1,387 Options granted (1 ) RSUs cancelled -- Options cancelled 8 Balance, February 28, 2023 1,394 |
Stock option transactions | The following table summarizes the stock option transactions during the three and nine months ended February 28, 2023 (in thousands, except per share data): Outstanding Options Weighted Number Average Aggregate of Exercise Intrinsic Shares Price Value Balances, May 31, 2022 1,597 $ 2.70 $ 9,290 Options granted 103 $ 8.00 Options cancelled (6 ) $ 2.41 Options exercised (102 ) $ 2.00 Balances, August 31, 2022 1,592 $ 3.08 $ 18,287 Options granted 4 $ 21.22 Options exercised (168 ) $ 2.31 Balances, November 30, 2022 1,428 $ 3.23 $ 32,614 Options granted 1 $ 34.00 Options cancelled (8 ) $ 7.40 Options exercised (360 ) $ 2.36 Balances, February 28, 2023 1,061 $ 3.54 $ 31,629 Options fully vested and expected to vest on February 28, 2023 1,045 $ 3.53 $ 31,177 |
Options outstanding | The options outstanding and exercisable on February 28, 2023 were in the following exercise price ranges (in thousands, except per share data): Options Outstanding Options Exercisable at February 28, 2023 at February 28, 2023 Range of Exercise Prices Number Outstanding Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value $ 1.34 41 4.64 $ 1.34 41 4.64 $ 1.34 $1.64-$1.86 413 3.57 $ 1.72 298 3.43 $ 1.70 $2.03-$2.40 196 2.85 $ 2.15 184 2.71 $ 2.15 $2.76-$2.93 167 4.98 $ 2.92 50 4.07 $ 2.89 $3.46-$3.93 47 1.42 $ 3.83 47 1.42 $ 3.83 $8.00-$34.00 197 6.22 $ 9.63 32 6.14 $ 10.17 $1.34-$34.00 1,061 4.10 $ 3.54 652 3.33 $ 2.46 $ 20,151 |
RSUs, PRSUs, restricted shares and performance restricted shares granted | The following table summarizes RSUs, PRSUs, restricted shares and performance restricted shares granted to employees and members of the Company’s Board of Directors during the three and nine months ended February 28, 2023 and 2022: Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Employees: Annual RSUs granted -- -- 151,800 120,000 Weighted average market value on the date of the grant of annual RSUs - - $ 8.03 $ 3.17 Annual restricted shares granted -- -- 7,500 -- Weighted average market value on the date of the grant of annual restricted shares - - $ 8.00 - RSUs granted in lieu of cash payment for salary reductions -- -- -- 89,000 Weighted average market value on the date of the grant of RSU in lieu of cash payment - - - $ 2.50 Maximum PRSUs to be vested if all revenue goals are achieved -- -- 80,400 270,000 Maximum Performance restricted shares to be vested if all revenue goals are achieved -- -- 23,700 -- Weighted average market value on the date of the grant of PRSUs, performance restricted shares - - $ 8.00 $ 3.41 Members of Board of Directors: RSUs granted - -- 44,000 43,000 Weighted average market value on the date of the grant of RSUs - - $ 11.35 $ 8.02 Maximum PRSUs granted to be vested if all revenue goals are achieved - - 30,000 -- Weighted average market value on the date of the grant of PRSUs -- -- $ 8.00 -- |
RSUs and PRSUs vested and unvested during period | The following table summarizes the RSUs and PRSUs vested and unvested during the three and nine months ended February 28, 2023 and 2022: Three Months Ended Nine Months Ended February 28, February 28, 2023 2022 2023 2022 Net RSUs and PRSUs vested 19,000 21,000 221,000 83,000 Shares withheld to settle payroll taxes 16,000 -- 165,000 -- RSUs and PRSUs unvested 406,000 485,000 406,000 485,000 Intrinsic value of unvested RSUs and PRSUs (in thousands) $ 13,540 $ 6,596 $ 13,540 $ 6,596 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Feb. 28, 2023 | |
SEGMENT INFORMATION (Tables) | |
Property and equipment by geographic region | The following table presents property and equipment information for geographic areas (in thousands): February 28, May 31, 2023 2022 United States $ 1,229 $ 1,156 Asia 50 47 Europe 2 - $ 1,281 $ 1,203 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Net Sales | $ 17,206 | $ 15,283 | $ 42,692 | $ 30,540 |
Systems | ||||
Net Sales | 9,821 | 7,172 | 26,315 | 14,805 |
Contactors | ||||
Net Sales | 6,299 | 7,426 | 13,400 | 13,468 |
Services | ||||
Net Sales | 1,086 | 685 | 2,977 | 2,267 |
Wafer-Level | ||||
Net Sales | 16,810 | 14,879 | 41,532 | 29,130 |
Test During Burn-In | ||||
Net Sales | 396 | 404 | 1,160 | 1,410 |
Type of Good / Service | ||||
Net Sales | 17,206 | 15,283 | 42,692 | 30,540 |
Product Lines | ||||
Net Sales | $ 17,206 | $ 15,283 | $ 42,692 | $ 30,540 |
REVENUE (Details 1)
REVENUE (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Net sales | $ 17,206 | $ 15,283 | $ 42,692 | $ 30,540 |
Asia | ||||
Net sales | 14,849 | 14,213 | 34,873 | 28,066 |
United States | ||||
Net sales | 2,343 | 1,057 | 7,761 | 2,458 |
Europe | ||||
Net sales | $ 14 | $ 13 | $ 58 | $ 16 |
REVENUE (Details 2)
REVENUE (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Net sales | $ 17,206 | $ 15,283 | $ 42,692 | $ 30,540 |
Products and Services Transferred at a Point in Time | ||||
Net sales | 16,863 | 14,932 | 41,523 | 29,492 |
Services Transferred over Time | ||||
Net sales | $ 343 | $ 351 | $ 1,169 | $ 1,048 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2023 | May 31, 2024 | May 31, 2023 | May 31, 2022 | |
Contract liabilities | $ 851,000 | $ 851,000 | $ 2,484,000 | ||
Recognition of contract liabilities | 42,000 | 2,157,000 | |||
Remaining performance obligations | $ 90,000 | $ 90,000 | |||
Scenario Forecast [Member] | |||||
Remaining performance obligation revenue recognition | 76% | 24% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Earnings per share | ||||
Numerator: Net income | $ 4,132 | $ 2,243 | $ 8,446 | $ 3,656 |
Denominator for basic per share: weighted average shares outstanding | 27,893 | 26,871 | 27,571 | 25,684 |
Shares used in basic earnings per share calculation | 27,893 | 26,871 | 27,571 | 25,684 |
Effect of dilutive securities | 1,480 | 1,983 | 1,509 | 1,826 |
Denominator for diluted earnings per share | 29,373 | 28,854 | 29,080 | 27,510 |
Basic earnings per share | $ 0.15 | $ 0.08 | $ 0.31 | $ 0.14 |
Diluted earnings per share | $ 0.14 | $ 0.08 | $ 0.29 | $ 0.13 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Stock Option | ||||
Options not included in the computation of diluted net income per share | 15,000 | 11,000 | 15,000 | 11,000 |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) | Feb. 28, 2023 | May 31, 2022 |
Total cash and cash equivalents | $ 17,188,000 | $ 31,484,000 |
Gross Unrealized Loss | ||
Cash equivalents: | 0 | |
Cash | 0 | |
Total cash and cash equivalents | 0 | |
Total cash, cash equivalents and investments | 22,000 | |
Cost [Member] | ||
Cash equivalents: | 15,709,000 | |
Cash | 1,479,000 | |
Total cash and cash equivalents | 17,188,000 | |
Total cash, cash equivalents and investments | 42,937,000 | |
Estimated Fair Value [Member] | ||
Cash equivalents: | 15,709,000 | |
Cash | 1,479,000 | |
Total cash and cash equivalents | 17,188,000 | |
Total cash, cash equivalents and investments | 42,915,000 | |
US Treasury Securities [Member] | Gross Unrealized Loss | ||
Cash equivalents: | 0 | |
Short-term Investments | 22,000 | |
US Treasury Securities [Member] | Cost [Member] | ||
Cash equivalents: | 3,983,000 | |
Short-term Investments | 25,599,000 | |
US Treasury Securities [Member] | Estimated Fair Value [Member] | ||
Cash equivalents: | 3,983,000 | |
Short-term Investments | 25,577,000 | |
Money Market Funds [Member] | Gross Unrealized Loss | ||
Cash equivalents: | 0 | |
Long-term investments: | 0 | |
Money Market Funds [Member] | Cost [Member] | ||
Cash equivalents: | 11,726,000 | |
Long-term investments: | 150,000 | |
Money Market Funds [Member] | Estimated Fair Value [Member] | ||
Cash equivalents: | 11,726,000 | |
Long-term investments: | $ 150,000 |
CASH, CASH EQUIVALENTS AND IN_4
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Feb. 28, 2023 | Feb. 28, 2023 | Feb. 28, 2023 | |
Unrealized loss | $ (16,000) | $ (22,000) | |
Gross Unrealized Loss | |||
Unrealized loss | $ (22,000) |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Feb. 28, 2023 | May 31, 2022 |
Money Market Funds [Member] | ||
Investment securities | $ 11,876,000 | $ 28,609,000 |
Level 1 [Member] | Money Market Funds [Member] | ||
Investment securities | 11,876,000 | 28,609,000 |
Level 1 [Member] | US Treasury Securities [Member] | ||
Investment securities | 29,560,000 | |
Level 2 [Member] | Money Market Funds [Member] | ||
Investment securities | 0 | 0 |
Level 2 [Member] | US Treasury Securities [Member] | ||
Investment securities | 0 | |
Level 3 [Member] | Money Market Funds [Member] | ||
Investment securities | 0 | $ 0 |
Level 3 [Member] | US Treasury Securities [Member] | ||
Investment securities | 0 | |
Assets [Member] | ||
Investment securities | 41,436,000 | |
Assets [Member] | Level 1 [Member] | ||
Investment securities | 41,436,000 | |
Assets [Member] | Level 2 [Member] | ||
Investment securities | 0 | |
Assets [Member] | Level 3 [Member] | ||
Investment securities | 0 | |
U.S. treasury securities [Member] | ||
Investment securities | $ 29,560,000 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | Feb. 28, 2023 | May 31, 2022 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Transfer between Level 1 and Level 2 fair value measurements | $ 0 | $ 0 |
Restricted cash | 150,000 | 80,000 |
Financial liabilities at fair value | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | May 31, 2022 |
INVENTORIES | ||
Raw materials and sub-assemblies | $ 13,906 | $ 9,507 |
Work in process | 7,147 | 5,461 |
Finished goods | 566 | 83 |
Inventories | $ 21,619 | $ 15,051 |
PRODUCT WARRANTIES (Details)
PRODUCT WARRANTIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
PRODUCT WARRANTIES | ||||
Balance at the beginning of the period | $ 311,000 | $ 415,000 | $ 410,000 | $ 494,000 |
Accruals for warranties issued during the period | 84,000 | 37,000 | 207,000 | 294,000 |
Adjustments to previously existing warranty accruals | 0 | 26,000 | 61,000 | 98,000 |
Consumption of reserves | (107,000) | (108,000) | (390,000) | (516,000) |
Balance at the End of the period | $ 288,000 | $ 370,000 | $ 288,000 | $ 370,000 |
CUSTOMER DEPOSITS AND DEFERRE_3
CUSTOMER DEPOSITS AND DEFERRED REVENUE SHORTTERM (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | May 31, 2022 |
CUSTOMER DEPOSITS AND DEFERRED REVENUE SHORTTERM | ||
Total | $ 843 | $ 2,415 |
Customer deposits | 760 | 2,263 |
Deferred revenue | $ 83 | $ 152 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
INCOME TAXES | ||||
Provision For Income Tax | $ 17,000 | $ 24,000 | $ 49,000 | $ 81,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands | 9 Months Ended |
Feb. 28, 2023 USD ($) | |
Balance at the beginning of the year | $ (105) |
Balance at the beginning of the year | (105) |
Other comprehensive loss before reclassifications | (57) |
Other comprehensive loss, net of tax | (57) |
Balance at the ending of the year | (162) |
Balance at the ending of the year | (162) |
Cumulative Translation Adjustments [Member] | |
Balance at the beginning of the year | (105) |
Other comprehensive loss before reclassifications | (35) |
Other comprehensive loss, net of tax | (35) |
Balance at the ending of the year | (140) |
Unrealized Loss on Investments Net [Member] | |
Balance at the beginning of the year | 0 |
Other comprehensive loss before reclassifications | (22) |
Other comprehensive loss, net of tax | (22) |
Balance at the ending of the year | $ (22) |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Cash paid for amounts included in measurement of operating lease liabilities: | ||
Operating cash flows for operating leases | $ 624 | $ 612 |
LEASES (Details 1)
LEASES (Details 1) $ in Thousands | Feb. 28, 2023 USD ($) |
LEASES | |
2023 (remaining three months of 2023) | $ 211 |
2024 | 608 |
2025 | 1,143 |
2026 | 1,174 |
2027 | 1,195 |
Thereafter | 4,309 |
Total future minimum operating lease payments | 8,640 |
Less: imputed interest | (2,248) |
Present value of operating lease liabilities | $ 6,392 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Operating lease, weighted-average discount rate | 7.50% | 7.50% | ||
Operating lease, weighted-average remaining lease term | 7 years 6 months | 7 years 6 months | ||
Operating lease, cost | $ 256,000 | $ 191,000 | $ 634,000 | $ 576,000 |
Increase in operating lease liabilities | $ 5,900,000 | |||
Maximum [Member] | ||||
Operating lease term | 1 year | 1 year | ||
Minimum [Member] | ||||
Operating lease term | 8 years | 8 years |
BORROWING AND FINANCING ARRAN_2
BORROWING AND FINANCING ARRANGEMENTS (Details Narrative) $ in Millions | 9 Months Ended |
Feb. 28, 2023 USD ($) | |
Original Loan and Security Agreement | |
Line of Credit, maximum borrowing | $ 4 |
Variable interest rate | the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 4.75% |
Second Amendment To Loan And Security Agreement | |
Line of Credit, maximum borrowing | $ 10 |
Variable interest rate | the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company’s 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’s adjusted quick ratio, and (b) 3.75% |
Revolving line maturity date | Jan. 13, 2023 |
First Amendment to Loan and Security Agreement | |
Revolving line maturity date | Jan. 13, 2022 |
LONGTERM DEBT (Details Narrativ
LONGTERM DEBT (Details Narrative) - Silicon Valley Bank - USD ($) | Jun. 12, 2021 | Apr. 23, 2020 |
PPP loan | $ 1,679,000 | $ 1,679,000 |
Interest rate | 1% | |
Total interest | 19,000 | |
Recognized a gain on loan forgiveness | $ 1,698,000 |
STOCKBASED COMPENSATION (Detail
STOCKBASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Total stock-based compensation | $ 592 | $ 880 | $ 2,095 | $ 2,186 |
Cost of Sales | ||||
Total stock-based compensation | 75 | 90 | 252 | 248 |
Selling, General and Administrative | ||||
Total stock-based compensation | 359 | 487 | 1,330 | 1,259 |
Research and Development | ||||
Total stock-based compensation | $ 158 | $ 303 | $ 513 | $ 679 |
STOCKBASED COMPENSATION (Deta_2
STOCKBASED COMPENSATION (Details 1) - Stock Option - $ / shares | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Expected term (in years) | 5 years | 5 years | 5 years | 6 years |
Volatility | 90% | 117% | 116% | 77% |
Risk-free interest rates | 3.58% | 1.56% | 3.11% | 1.03% |
Weighted-average grant date fair value | $ 24.30 | $ 9.43 | $ 7.24 | $ 2.56 |
STOCKBASED COMPENSATION (Deta_3
STOCKBASED COMPENSATION (Details 2) - Employee Stock Purchase Plan - $ / shares | 9 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Weighted-average grant date fair value | $ 11.17 | $ 9.57 |
Minimum [Member] | ||
Expected term years | 6 months | 6 months |
Risk free interest rate | 3.97% | 0.05% |
Volaltiliity | 90% | 101% |
Maximum [Member] | ||
Expected term years | 2 years | 2 years |
Risk free interest rate | 4.12% | 0.27% |
Volaltiliity | 203% | 143% |
STOCKBASED COMPENSATION (Deta_4
STOCKBASED COMPENSATION (Details 3) - Stock Option and RSU Transactions [Member] - shares | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | Feb. 28, 2023 | |
Available shares, beginning | 1,387,000 | 1,406,000 | 1,826,000 | 1,826,000 |
Options granted | (1,000) | (5,000) | (103,000) | |
RSUs granted | 0 | (14,000) | (323,000) | |
Options cancelled and adjusted | 8,000 | 6,000 | ||
Available shares, ending | 1,394,000 | 1,387,000 | 1,406,000 | 1,394,000 |
STOCKBASED COMPENSATION (Deta_5
STOCKBASED COMPENSATION (Details 4) - Outstanding Options Stock Option Transactions - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | |
Options outstanding, beginning (in thousands) | 1,428 | 1,592 | 1,597 |
Options granted (in thousands) | 1 | 4 | 103 |
Options cancelled (in thousands) | (8) | (6) | |
Options exercised (in thousands) | (360) | (168) | (102) |
Options outstanding, ending (in thousands) | 1,061 | 1,428 | 1,592 |
Options fully vested and expected to vest (in thousands) | 1,045 | ||
Weighted average exercise price outstanding, beginning | $ 3.23 | $ 3.08 | $ 2.70 |
Weighted average exercise price granted | 34 | 21.22 | 8 |
Weighted average exercise price cancelled | 7.40 | 2.41 | |
Weighted average exercise price exercised | 2.36 | 2.31 | 2 |
Weighted average exercise price outstanding, ending | 3.54 | $ 3.23 | $ 3.08 |
Weighted average exercise price fully vested and expected to vest | $ 3.53 | ||
Aggregate intrinsic value, beginning | $ 32,614 | $ 18,287 | $ 9,290 |
Aggregate intrinsic value, ending | 31,629 | $ 32,614 | $ 18,287 |
Aggregate intrinsic value for options fully vested and expected to vest | $ 31,177 |
STOCKBASED COMPENSATION (Deta_6
STOCKBASED COMPENSATION (Details 5) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Feb. 28, 2023 USD ($) $ / shares shares | |
$1.34 | |
Options outstanding, ending (in thousands) | shares | shares | 41 |
Weighted average remaining contractual life (Years) options outstanding | 4 years 7 months 20 days |
Weighted average exercise price outstanding, ending | $ / shares | $ / shares | $ 1.34 |
Option exercisable shares (in thousands) | shares | 41 |
Weighted average remaining contractual life (Years) options exercisable | 4 years 7 months 20 days |
Weighted average exercise price for options exercisable | $ / shares | $ / shares | $ 1.34 |
$1.64-$1.86 | |
Options outstanding, ending (in thousands) | shares | shares | 413 |
Weighted average remaining contractual life (Years) options outstanding | 3 years 6 months 25 days |
Weighted average exercise price outstanding, ending | $ / shares | $ / shares | $ 1.72 |
Option exercisable shares (in thousands) | shares | 298 |
Weighted average remaining contractual life (Years) options exercisable | 3 years 5 months 4 days |
Weighted average exercise price for options exercisable | $ / shares | $ / shares | $ 1.70 |
$2.03-$2.40 | |
Options outstanding, ending (in thousands) | shares | shares | 196 |
Weighted average remaining contractual life (Years) options outstanding | 2 years 10 months 6 days |
Weighted average exercise price outstanding, ending | $ / shares | $ / shares | $ 2.15 |
Option exercisable shares (in thousands) | shares | 184 |
Weighted average remaining contractual life (Years) options exercisable | 2 years 8 months 15 days |
Weighted average exercise price for options exercisable | $ / shares | $ / shares | $ 2.15 |
$2.76-$2.93 | |
Options outstanding, ending (in thousands) | shares | shares | 167 |
Weighted average remaining contractual life (Years) options outstanding | 4 years 11 months 23 days |
Weighted average exercise price outstanding, ending | $ / shares | $ / shares | $ 2.92 |
Option exercisable shares (in thousands) | shares | 50 |
Weighted average remaining contractual life (Years) options exercisable | 4 years 25 days |
Weighted average exercise price for options exercisable | $ / shares | $ / shares | $ 2.89 |
$3.46-$3.93 | |
Options outstanding, ending (in thousands) | shares | shares | 47 |
Weighted average remaining contractual life (Years) options outstanding | 1 year 5 months 1 day |
Weighted average exercise price outstanding, ending | $ / shares | $ / shares | $ 3.83 |
Option exercisable shares (in thousands) | shares | 47 |
Weighted average remaining contractual life (Years) options exercisable | 1 year 5 months 1 day |
Weighted average exercise price for options exercisable | $ / shares | $ / shares | $ 3.83 |
$8.00-$34.00 | |
Options outstanding, ending (in thousands) | shares | shares | 197 |
Weighted average remaining contractual life (Years) options outstanding | 6 years 2 months 19 days |
Weighted average exercise price outstanding, ending | $ / shares | $ / shares | $ 9.63 |
Option exercisable shares (in thousands) | shares | 32 |
Weighted average remaining contractual life (Years) options exercisable | 6 years 1 month 20 days |
Weighted average exercise price for options exercisable | $ / shares | $ / shares | $ 10.17 |
$1.34-$34.00 | |
Options outstanding, ending (in thousands) | shares | shares | 1,061 |
Weighted average remaining contractual life (Years) options outstanding | 4 months 3 days |
Weighted average exercise price outstanding, ending | $ / shares | $ / shares | $ 3.54 |
Option exercisable shares (in thousands) | shares | 652 |
Weighted average remaining contractual life (Years) options exercisable | 3 years 3 months 29 days |
Weighted average exercise price for options exercisable | $ / shares | $ / shares | $ 2.46 |
Aggregate intrinsic value for options exercisable | | $ | $ 20,151 |
STOCKBASED COMPENSATION (Deta_7
STOCKBASED COMPENSATION (Details 6) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Employees Member | ||||
Annual RSUs granted | 0 | 151,800 | 120,000 | |
Weighted average market value on the date of the grant of annual RSUs | $ 0 | $ 0 | $ 8.03 | $ 3.17 |
Annual restricted shares granted | 0 | 7,500 | 0 | |
Weighted average market value on the date of the grant of annual restricted shares | 0 | $ 0 | $ 8 | $ 0 |
RSUs granted in lieu of cash payment for salary reductions | 0 | 0 | 89,000 | |
Weighted average market value on the date of the grant of RSU in lieu of cash payment | $ 0 | $ 0 | $ 0 | $ 2.50 |
PRSUs granted based on revenue target thresholds maximum | 0 | 80,400 | 270,000 | |
Performance restricted shares granted based on revenue target thresholds maximum | 0 | 0 | 23,700 | 0 |
Weighted average market value on the date of the grant of PRSUs, performance restricted shares | $ 0 | $ 0 | $ 8 | $ 3.41 |
Board Of Directors | ||||
Annual RSUs granted | 0 | 0 | 44,000 | 43,000 |
Weighted average market value on the date of the grant of annual RSUs | $ 0 | $ 11.35 | $ 8.02 | |
PRSUs granted based on revenue target thresholds maximum | 30,000 | |||
Weighted average market value on the date of the grant of PRSUs | $ 0 | $ 0 | $ 8 | $ 0 |
STOCKBASED COMPENSATION (Deta_8
STOCKBASED COMPENSATION (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
STOCKBASED COMPENSATION (Details) | ||||
Net RSUs and PRSUs vested | 19,000 | 21,000 | 221,000 | 83,000 |
Shares withheld to settle payroll taxes | 16,000 | 0 | 165,000 | 0 |
RSUs and PRSUs unvested | 406,000 | 485,000 | 406,000 | 485,000 |
Intrinsic value of unvested RSUs and PRSUs (in thousands) | $ 13,540 | $ 6,596 | $ 13,540 | $ 6,596 |
STOCKBASED COMPENSATION (Deta_9
STOCKBASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Total intrinsic values of options exercised | $ 10,827,000 | $ 867,000 | $ 14,183,000 | $ 11,902,000 |
Stock Based Compensation Costs Capitalized As part of inventory | 110,000 | |||
Weighted average remaining contractual life of the options exercisable and expected to be exercisable | 4 years 1 month 2 days | 4 years 14 days | ||
2016 Equity Incentive Plan | ||||
Unrecognized stock-based compensation | $ 3,348,000 | $ 3,348,000 | ||
Weighted average period for recognition of costs | 2 years 1 month 6 days | |||
Stock Option and RSU | ||||
Stock-based compensation expense related to stock options and RSUs | $ 424,000 | 516,000 | $ 1,536,000 | $ 1,416,000 |
Employee Stock Purchase Plan | ||||
ESPP purchase right granted | 43,000 | 103,000 | ||
ESPP share issued | 109,000 | 75,000 | ||
Unrecognized stock-based compensation | $ 261,000 | $ 261,000 | ||
Weighted average period for recognition of costs | 1 year | |||
ESPP shares available for issuance | 499,000 | 499,000 | ||
Stock-based compensation related to the ESPP | $ 168,000 | $ 364,000 | $ 559,000 | $ 770,000 |
Estimated forfeitures of unvested stock based awards, amount | $ 8,000 | $ 8,000 |
SEGMENT AND CONCENTRATION INF_2
SEGMENT AND CONCENTRATION INFORMATION (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | May 31, 2022 |
Property and equipment, net | $ 1,281 | $ 1,203 |
Asia | ||
Property and equipment, net | 50 | 47 |
United States | ||
Property and equipment, net | 1,229 | 1,156 |
Europe | ||
Property and equipment, net | $ 2 | $ 0 |
SEGMENT AND CONCENTRATION INF_3
SEGMENT AND CONCENTRATION INFORMATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | May 31, 2022 | |
Operating lease right-of-use assets | $ 6,293,000 | $ 6,293,000 | $ 917,000 | ||
United States [Member] | |||||
Operating lease right-of-use assets | 6,169,000 | 6,169,000 | 822,000 | ||
Asia [Member] | |||||
Operating lease right-of-use assets | $ 76,000 | $ 76,000 | $ 95,000 | ||
Five Largest Customers [Member] | |||||
Customers accounted for 10% or more of total revenues | 98% | 99% | 97% | 97% | |
Customer A [Member] | |||||
Customers accounted for 10% or more of total revenues | 12% | 90% | 16% | 84% | |
Customers B [Member] | |||||
Customers accounted for 10% or more of total revenues | 82% | 77% | |||
Europe | |||||
Operating lease right-of-use assets | $ 48,000 | $ 48,000 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | Feb. 08, 2023 | Oct. 08, 2021 | Aug. 25, 2021 |
EQUITY | |||
Sale of common stock price per share | $ 34.78 | $ 14.73 | |
Sale of common stock shares | 208,917 | 1,696,729 | |
Gross proceeds | $ 7.3 | $ 25 | |
Commission fees | 0.2 | 0.7 | |
Offering expenses | $ 0.2 | $ 0.3 | |
Shelf registration amount | $ 75 |