Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of April ~~7, 2020,~~6, 2021, there were outstanding ~~11,038,235~~11,110,735 shares of Common Stock, $0.05 par value and 2,096,919 shares of Class B Common Stock, $0.05 par value, which are convertible into Common Stock of the registrant on a share for share basis.

	Unaudited		Audited		Unaudited		Audited
	February 29, 2020		June 1, 2019		February 27, 2021		May 30, 2020
Assets
Current assets:
Cash and cash equivalents	$	30,875	$	42,019	$	38,407	$	30,535
Accounts receivable, less allowance of $194 and $339, respectively		23,074		24,296
Accounts receivable, less allowance of $270 and $334, respectively						21,880		20,197
Inventories, net		56,677		53,232		59,425		57,492
Prepaid expenses and other assets		2,910		3,067		2,334		2,442
Investments - current		13,000		8,000		9,000		16,000
Total current assets		126,536		130,614		131,046		126,666
Non-current assets:
Property, plant and equipment, net		17,999		19,111		17,098		17,674
Intangible assets, net		2,572		2,763		2,330		2,505
Lease ROU asset		3,727		—		2,971		3,419
Non-current deferred income taxes		574		529		522		456
Total non-current assets		24,872		22,403		22,921		24,054
Total assets	$	151,408	$	153,017	$	153,967	$	150,720
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	14,675	$	16,943	$	15,572	$	17,372
Accrued liabilities		11,002		11,273		14,846		10,324
Lease liability current		1,566		—		1,239		1,485
Total current liabilities		27,243		28,216		31,657		29,181
Non-current liabilities:
Non-current deferred income tax liabilities		314		212		173		161
Lease liability non-current		2,204		—		1,629		1,941
Other non-current liabilities		742		832		923		777
Total non-current liabilities		3,260		1,044		2,725		2,879
Total liabilities		30,503		29,260		34,382		32,060
Stockholders’ equity
Common stock, $0.05 par value; issued and outstanding 11,038 shares at February 29, 2020 and 10,957 shares at June 1, 2019		552		547
Class B common stock, convertible, $0.05 par value; issued and outstanding 2,097 shares at February 29, 2020 and June 1, 2019		105		105
Preferred stock, $1.00 par value, no shares issued		—		—
Common stock, $0.05 par value; issued and outstanding 11,111 shares on February 27, 2021 and 11,038 shares on May 30, 2020						556		552
Class B common stock, convertible, $0.05 par value; issued and outstanding 2,097 shares on February 27, 2021 and May 30, 2020						105		105
Preferred stock, $1.00 par value, 0 shares issued						—		—
Additional paid-in-capital		61,593		61,012		62,274		61,749
Common stock in treasury, at cost, no shares at February 29, 2020 and June 1, 2019		—		—
Retained earnings		56,819		59,703		52,194		54,764
Accumulated other comprehensive income		1,836		2,390		4,456		1,490
Total stockholders’ equity		120,905		123,757		119,585		118,660
Total liabilities and stockholders’ equity	$	151,408	$	153,017	$	153,967	$	150,720

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	February 29, 2020			March 2, 2019			February 29, 2020			March 2, 2019			February 27, 2021			February 29, 2020			February 27, 2021			February 29, 2020
Statements of Comprehensive Loss
Statements of Comprehensive Income (Loss)
Net sales	$	38,249		$	39,018		$	118,536		$	124,489		$	45,235		$	38,249		$	126,465		$	118,536
Cost of sales		25,579			26,719			80,235			85,266			29,469			25,579			83,997			80,235
Gross profit		12,670			12,299			38,301			39,223			15,766			12,670			42,468			38,301
Selling, general and administrative expenses		12,659			13,097			38,667			39,621			15,457			12,659			41,924			38,667
Loss on disposal of assets		—			—			1			—
(Gain) loss on disposal of assets														(6	)		—			(6	)		1
Operating income (loss)		11			(798	)		(367	)		(398	)		315			11			550			(367	)
Other expense (income):
Investment/interest income		(97	)		(155	)		(340	)		(402	)		(15	)		(97	)		(48	)		(340	)
Foreign exchange loss		28			130			117			205			65			28			650			117
Other, net		(8	)		—			(24	)		(4	)		(25	)		(8	)		(61	)		(24	)
Total other income		(77	)		(25	)		(247	)		(201	)
Total other expense (income)														25			(77	)		541			(247	)
Income (loss) before income taxes		88			(773	)		(120	)		(197	)		290			88			9			(120	)
Income tax provision		181			305			438			754			62			181			239			438
Net loss		(93	)		(1,078	)		(558	)		(951	)
Foreign currency translation (loss) gain, net of tax		(60	)		541			(554	)		(1,240	)
Comprehensive loss	$	(153	)	$	(537	)	$	(1,112	)	$	(2,191	)
Net loss per share
Net income (loss)														228			(93	)		(230	)		(558	)
Foreign currency translation gain (loss), net of tax														353			(60	)		2,966			(554	)
Comprehensive income (loss)													$	581		$	(153	)	$	2,736		$	(1,112	)
Net income (loss) per share
Common shares - Basic	$	(0.01	)	$	(0.08	)	$	(0.04	)	$	(0.07	)	$	0.02		$	(0.01	)	$	(0.02	)	$	(0.04	)
Class B common shares - Basic	$	(0.01	)	$	(0.08	)	$	(0.04	)	$	(0.07	)	$	0.02		$	(0.01	)	$	(0.02	)	$	(0.04	)
Common shares - Diluted	$	(0.01	)	$	(0.08	)	$	(0.04	)	$	(0.07	)	$	0.02		$	(0.01	)	$	(0.02	)	$	(0.04	)
Class B common shares - Diluted	$	(0.01	)	$	(0.08	)	$	(0.04	)	$	(0.07	)	$	0.02		$	(0.01	)	$	(0.02	)	$	(0.04	)
Weighted average number of shares:
Common shares – Basic		11,038			10,953			11,022			10,911			11,111			11,038			11,097			11,022
Class B common shares – Basic		2,097			2,097			2,097			2,108			2,097			2,097			2,097			2,097
Common shares – Diluted		11,038			10,953			11,022			10,911			11,183			11,038			11,097			11,022
Class B common shares – Diluted		2,097			2,097			2,097			2,108			2,097			2,097			2,097			2,097
Dividends per common share	$	0.060		$	0.060		$	0.180		$	0.180		$	0.060		$	0.060		$	0.180		$	0.180
Dividends per Class B common share	$	0.054		$	0.054		$	0.162		$	0.162		$	0.054		$	0.054		$	0.162		$	0.162

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	February 29, 2020			March 2, 2019			February 29, 2020			March 2, 2019			February 27, 2021			February 29, 2020			February 27, 2021			February 29, 2020
Operating activities:
Net loss	$	(93	)	$	(1,078	)	$	(558	)	$	(951	)
Adjustments to reconcile net loss to cash used in operating activities:
Net income (loss)													$	228		$	(93	)	$	(230	)	$	(558	)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization		856			794			2,514			2,350			849			856			2,595			2,514
Inventory provisions		221			203			502			568			265			221			717			502
Loss on disposal of assets		—			—			1			—
(Gain) loss on disposal of assets														(6	)		—			(6	)		1
Share-based compensation expense		157			176			527			571			150			157			529			527
Deferred income taxes		76			113			51			268			3			76			(50	)		51
Change in assets and liabilities:
Accounts receivable		(760	)		(478	)		1,066			(576	)		(837	)		(760	)		(1,004	)		1,066
Inventories		(754	)		(1,484	)		(4,173	)		(3,315	)		133			(754	)		(875	)		(4,173	)
Prepaid expenses and other assets		(56	)		614			146			332			428			(56	)		156			146
Accounts payable		(726	)		(1,561	)		(2,091	)		(5,442	)		496			(726	)		(2,027	)		(2,091	)
Accrued liabilities		152			309			(238	)		880			873			152			4,285			(238	)
Other		2			(86	)		(107	)		88			216			2			(222	)		(107	)
Net cash used in operating activities		(925	)		(2,478	)		(2,360	)		(5,227	)
Net cash provided by (used in) operating activities														2,798			(925	)		3,868			(2,360	)
Investing activities:
Capital expenditures		(430	)		(974	)		(1,244	)		(3,166	)		(555	)		(430	)		(1,835	)		(1,244	)
Proceeds from maturity of investments		—			2,300			8,000			2,300			—			—			16,000			8,000
Purchases of investments		—			(12,500	)		(13,000	)		(17,800	)		—			—			(9,000	)		(13,000	)
Net cash used in investing activities		(430	)		(11,174	)		(6,244	)		(18,666	)
Net cash (used in) provided by investing activities														(555	)		(430	)		5,165			(6,244	)
Financing activities:
Proceeds from issuance of common stock		—			16			59			219			—			—			—			59
Cash dividends paid		(776	)		(771	)		(2,326	)		(2,305	)		(780	)		(776	)		(2,340	)		(2,326	)
Payment of financing lease principal		(46	)		—			(121	)		—			(45	)		(46	)		(136	)		(121	)
Net cash used in financing activities		(822	)		(755	)		(2,388	)		(2,086	)		(825	)		(822	)		(2,476	)		(2,388	)
Effect of exchange rate changes on cash and cash equivalents		(2	)		417			(152	)		(617	)		(34	)		(2	)		1,315			(152	)
Decrease in cash and cash equivalents		(2,179	)		(13,990	)		(11,144	)		(26,596	)
Increase (decrease) in cash and cash equivalents														1,384			(2,179	)		7,872			(11,144	)
Cash and cash equivalents at beginning of period		33,054			47,859			42,019			60,465			37,023			33,054			30,535			42,019
Cash and cash equivalents at end of period	$	30,875		$	33,869		$	30,875		$	33,869		$	38,407		$	30,875		$	38,407		$	30,875

Common

Class B
Common

Par
Value

Additional
Paid In
Capital

Common
Stock in
Treasury

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Total

Balance June 1, 2019:

10,957

2,097

$
652

$
61,012

$
—

$
59,703

$
2,390

$
123,757

Comprehensive loss

Net loss

—

—

—

—

—

(558
)

—

(558
)
Foreign currency translation

—

—

—

—

—

—

(554
)

(554
)
Share-based compensation:

Restricted stock

—

—

—

335

—

—

—

335

Stock options

—

—

—

192

—

—

—

192

Common stock:

Options exercised

10

—

1

58

—

—

—

59

Restricted stock issuance

71

—

4

(4
)

—

—

—

—

Dividends paid to:

Common ($0.180 per share)

—

—

—

—

—

(1,986
)

—

(1,986
)
Class B ($0.162 per share)

—

—

—

—

—

(340
)

—

(340
)
Balance February 29, 2020:

11,038

2,097

$
657

$
61,593

$
—

$
56,819

$
1,836

$
120,905

Balance November 30, 2019:

11,038

2,097

$
657

$
61,436

$
—

$
57,688

$
1,896

$
121,677

Comprehensive loss

Net loss

—

—

—

—

—

(93
)

—

(93
)
Foreign currency translation

—

—

—

—

—

—

(60
)

(60
)
Share-based compensation:

Restricted stock

—

—

—

121

—

—

—

121

Stock options

—

—

—

36

—

—

—

36

Common stock:

Options exercised

—

—

—

—

—

—

—

—

Restricted stock issuance

—

—

—

—

—

—

—

—

Dividends paid to:

Common ($0.06 per share)

—

—

—

—

—

(662
)

—

(662
)
Class B ($0.054 per share)

—

—

—

—

—

(114
)

—

(114
)
Balance February 29, 2020:

11,038

2,097

$
657

$
61,593

$
—

$
56,819

$
1,836

$
120,905

	Common		Class B Common			Par Value		Additional Paid In Capital			Common Stock in Treasury		Retained Earnings			Accumulated Other Comprehensive Income			Total			Common		Class B Common		Par Value		Additional Paid In Capital			Retained Earnings			Accumulated Other Comprehensive Income		Total
Balance June 2, 2018:		10,806		2,137		$	647	$	60,061		$	—	$	70,107		$	4,366		$	135,181
Comprehensive loss
Balance May 30, 2020:																							11,038		2,097	$	657	$	61,749		$	54,764		$	1,490	$	118,660
Comprehensive income
Net loss		—		—			—		—			—		(951	)		—			(951	)		—		—		—		—			(230	)		—		(230	)
Foreign currency translation		—		—			—		—			—		—			(1,240	)		(1,240	)		—		—		—		—			—			2,966		2,966
Share-based compensation:
Restricted stock		—		—			—		226			—		—			—			226			—		—		—		371			—			—		371
Stock options		—		—			—		345			—		—			—			345			—		—		—		158			—			—		158
Common stock:
Options exercised		40		—			2		217			—		—			—			219
Restricted stock issuance		70		—			3		(3	)		—		—			—			—			73		—		4		(4	)		—			—		—
Converted Class B to common		40		(40	)		—		—			—		—			—			—
Dividends paid to:
Common ($0.180 per share)		—		—			—		—			—		(1,963	)		—			(1,963	)		—		—		—		—			(2,000	)		—		(2,000	)
Class B ($0.162 per share)		—		—			—		—			—		(342	)		—			(342	)		—		—		—		—			(340	)		—		(340	)
Balance March 2, 2019:		10,956		2,097		$	652	$	60,846		$	—	$	66,851		$	3,126		$	131,475
Balance February 27, 2021:																							11,111		2,097	$	661	$	62,274		$	52,194		$	4,456	$	119,585

Balance December 1, 2018:		10,953		2,097		$	652	$	60,654		$	—	$	68,700		$	2,585		$	132,591
Comprehensive loss
Net loss		—		—			—		—			—		(1,078	)		—			(1,078	)
Balance November 28, 2020:																							11,111		2,097	$	661	$	62,124		$	52,746		$	4,103	$	119,634
Comprehensive income
Net income																							—		—		—		—			228			—		228
Foreign currency translation		—		—			—		—			—		—			541			541			—		—		—		—			—			353		353
Share-based compensation:
Restricted stock		—		—			—		90			—		—			—			90			—		—		—		112			—			—		112
Stock options		—		—			—		86			—		—			—			86			—		—		—		38			—			—		38
Common stock:
Options exercised		3		—			—		16			—		—			—			16
Restricted stock issuance		—		—			—		—			—		—			—			—
Converted Class B to common		—		—			—		—			—		—			—			—
Dividends paid to:
Common ($0.06 per share)		—		—			—		—			—		(657	)		—			(657	)
Common ($0.060 per share)																							—		—		—		—			(667	)		—		(667	)
Class B ($0.054 per share)		—		—			—		—			—		(114	)		—			(114	)		—		—		—		—			(113	)		—		(113	)
Balance March 2, 2019:		10,956		2,097		$	652	$	60,846		$	—	$	66,851		$	3,126		$	131,475
Balance February 27, 2021:																							11,111		2,097	$	661	$	62,274		$	52,194		$	4,456	$	119,585

	Common		Class B Common		Par Value		Additional Paid In Capital			Retained Earnings			Accumulated Other Comprehensive Income			Total
Balance June 1, 2019:		10,957		2,097	$	652	$	61,012		$	59,703		$	2,390		$	123,757
Comprehensive loss
Net loss		—		—		—		—			(558	)		—			(558	)
Foreign currency translation		—		—		—		—			—			(554	)		(554	)
Share-based compensation:
Restricted stock		—		—		—		335			—			—			335
Stock options		—		—		—		192			—			—			192
Common stock:
Options exercised		10		—		1		58			—			—			59
Restricted stock issuance		71		—		4		(4	)		—			—			—
Dividends paid to:
Common ($0.180 per share)		—		—		—		—			(1,986	)		—			(1,986	)
Class B ($0.162 per share)		—		—		—		—			(340	)		—			(340	)
Balance February 29, 2020:		11,038		2,097	$	657	$	61,593		$	56,819		$	1,836		$	120,905

Balance November 30, 2019:		11,038		2,097	$	657	$	61,436		$	57,688		$	1,896		$	121,677
Comprehensive (loss) income
Net loss		—		—		—		—			(93	)		—			(93	)
Foreign currency translation		—		—		—		—			—			(60	)		(60	)
Share-based compensation:
Restricted stock		—		—		—		121			—			—			121
Stock options		—		—		—		36			—			—			36
Common stock:
Options exercised		—		—		—		—			—			—			—
Restricted stock issuance		—		—		—		—			—			—			—
Dividends paid to:
Common ($0.060 per share)		—		—		—		—			(662	)		—			(662	)
Class B ($0.054 per share)		—		—		—		—			(114	)		—			(114	)
Balance February 29, 2020:		11,038		2,097	$	657	$	61,593		$	56,819		$	1,836		$	120,905

Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high value flat panel detector solutions, replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair through its global infrastructure.

Our products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as display devices in a variety of industrial, commercial, medical and communication applications.

We have ~~three~~3 operating and reportable segments, which we define as follows:

Power and Microwave Technologies Group (“PMT”) combines our core engineered solutions capabilities, power grid and microwave tube business with new disruptive RF, Wireless and ~~disruptive power~~Power technologies. As a designer, manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in 5G, alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment.

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, ~~all-in-ones,~~All-In-One computers, specialized cabinet finishes, ~~and~~ application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms.

Healthcare manufactures, repairs, refurbishes and distributes high value replacement parts and equipment for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include ~~Diagnostic Imaging~~diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI coils, cold heads and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we ~~believe we can~~ help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery.

We currently have operations in the following major geographic regions: North America, Asia/Pacific, Europe and Latin America.

The accompanying unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements.

Our fiscal quarter ends on the Saturday nearest the end of the quarter-ending month. The third quarter of fiscal ~~2020~~2021 and fiscal ~~2019~~2020 both contained 13 weeks. The first nine months of fiscal ~~2020~~2021 and fiscal ~~2019~~2020 both contained 39 weeks.

In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results of interim periods have been made. All inter-company transactions and balances have been eliminated. The unaudited consolidated financial statements presented herein include the accounts of our wholly owned subsidiaries. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of our operations for the three and nine months ended February ~~29, 2020~~27, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending May ~~30, 2020.~~29, 2021.

The financial information contained in this report should be read in conjunction with our Annual Report on Form 10-K for the ~~fiscal~~ year ended ~~June 1, 2019,~~May 30, 2020, that we filed on August ~~5, 2019.~~3, 2020.

Inventories, net: Our consolidated inventories were stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately ~~$50.9~~$53.4 million of finished goods, $3.2 million of raw materials and $2.8 million of work-in-progress as of February 27, 2021, as compared to approximately $51.8 million of finished goods, $3.6 million of raw materials and ~~$2.2~~$2.1 million of work-in-progress as of ~~February 29, 2020, as compared to approximately $47.2 million of finished goods, $4.2 million of raw materials and $1.8 million of work-in-progress as of June 1, 2019.~~May 30, 2020.

At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs. Provisions for obsolete or slow moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the exiting of certain markets and assumptions about future demand and market conditions. If future demand changes in the industry, or market conditions differ from management’s estimates, additional provisions may be necessary. Inventory reserves were approximately ~~$4.9~~$5.9 million as of February ~~29, 2020~~27, 2021 and ~~$4.6~~$5.4 million as of ~~June 1, 2019.~~May 30, 2020.

Revenue Recognition: ~~Our product sales are~~Revenue is recognized ~~as revenue upon shipment,~~ when control of the promised goods is transferred to our customers, which is simultaneous with the title ~~passes~~transferring to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. Generally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks.

The Company also sells products that are manufactured or assembled in our manufacturing facility. These products are either built to the customer’s prints/designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold in addition to the product.

The Company recognizes services revenue when ~~delivery~~repair, installation or training is performed. The services we provide are relatively short in duration and typically completed in one to two weeks. Therefore, at each reporting date, the amount of unbilled work performed is insignificant. The services revenue has ~~occurred or services have been rendered~~consistently accounted for less than 5% of the Company’s total revenues and ~~when collectability~~ is ~~reasonably assured.~~ expected to continue at that level.

We also record ~~estimated~~ discounts taken and estimated returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell.

~~In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”),~~ ~~Revenue from Contracts with Customers~~, which amends guidance for revenue recognition. ASU 2014-09 is principles based guidance that can be applied to all contracts with customers, enhancing comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance details the steps entities should apply to achieve the core principle. In August 2015, the FASB issued an amendment to defer the effective date for all entities by one year. For public entities, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. Companies have the option of using either a full or modified retrospective approach in applying this standard. During fiscal 2016 and 2017, the FASB issued four additional updates which further clarify the guidance provided in ASU 2014-09.

Effective June 3, 2018, the Company adopted the standard using the modified retrospective method to all contracts. As a result, financial information for the reporting period beginning June 3, 2018 was reported under the new standard, while comparative financial information has not been adjusted and continues to be reported in accordance with the previous standard. The adoption of this standard did not impact the timing of revenue recognition for our customer sales. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements.

Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency.

Intangible Assets: Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with our acquisitions.

Income Taxes: We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards.

Accrued Liabilities: Accrued liabilities consisted of the following (in thousands):

	February 29, 2020		June 1, 2019		February 27, 2021		May 30, 2020
Compensation and payroll taxes	$	3,406	$	2,846	$	5,137	$	3,469
Accrued severance		439		520		664		650
Professional fees		604		471		565		471
Deferred revenue		1,916		2,260		2,743		1,671
Legal settlement						1,600		—
Other accrued expenses		4,637		5,176		4,137		4,063
Accrued Liabilities	$	11,002	$	11,273	$	14,846	$	10,324

~~Richardson~~The Company has a number of defined revenue streams across our reportable segments. For each of these revenue streams, all products are typically sold directly by the Company to the end customer. Distribution is the Company’s largest revenue stream. The distribution business does not include a separate service bundled with the product sold or sold on top of the product. Distribution typically includes products purchased from our suppliers, stocked in our warehouses and then sold to our customers. Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. Generally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks.

The Company also sells products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold in addition to the product.

The Company recognizes services revenue when the repair, installation or training is performed. ~~Based on our analysis of services revenue, ASU 2014-09 has an immaterial impact on the timing, amount or characterization of services revenue recognized by the Company.~~ The services we provide are relatively short in duration and typically completed in one to two weeks. Therefore, at each reporting date, the amount of unbilled work performed is insignificant. The services revenue has consistently accounted for less than 5% of the Company’s total revenues and is expected to continue at that level.

A contract is an agreement between two or more parties that creates enforceable rights and obligations. A revenue contract exists for us once a customer purchase order is received, reviewed and accepted. Prior to accepting a customer purchase order, we review the credit worthiness of the customer. Purchase orders are deemed to meet the collectability criterion once the customer’s credit is approved. Contract assets arise when the Company transfers a good or performs a service in advance of receiving consideration from the customer and contract liabilities arise when the Company receives consideration from its customer in advance of performance.

Contract Liabilities: Contract liabilities and revenue recognized were as follows (in thousands):

The Company receives advance payments or deposits from our customers before revenue is recognized, resulting in contract liabilities. Contract liabilities are included in accrued liabilities in the consolidated balance sheets.

Performance obligations and satisfaction of performance obligation in the contract

Each accepted purchase order identifies a distinct good or service as the performance obligation. The goods are generally standard products we purchased from a supplier and stocked on our shelves. They can also be customized products purchased from a supplier or products that are customized or have value added to them in-house prior to shipping to the customer. Our contracts for customized products generally include termination provisions if a customer cancels its order. However, we recognize revenue at a point in time because the termination provisions do not require, upon cancelation, the customer to pay fees that are commensurate with the work performed. Each purchase order explicitly states the goods or service that we promise to transfer to the customer. The promises to the customer are limited only to those goods or service. The performance obligation is our promise to deliver both goods that were produced by the Company and resale of goods that we purchase from our suppliers. Our shipping and handling activities for destination shipments are performed prior to the customer obtaining control. As such, they are not a separate promised service. For shipping point, ~~Richardson~~the Company is making the election under ASC 606-10-25-18B toaccount for shipping and handling as activities to fulfill the promise to transfer the goods. The goods we provide to our customers are distinct in that our customers benefit from the goods we sell them through use in their own processes. Our customers are generally not resellers, but rather businesses that incorporate our products into their processes from which they generate an economic benefit. The goods are also distinct in that each item sold to the customer is clearly identified on both the purchase order and resulting invoice. Each product we sell benefits the customer independently of the other products. Each item on each purchase order from the customer can be used by the customer unrelated to any other products we provide to the customer.

The transaction price for each product is the amount invoiced to the customer. Each product on a purchase order is a separate performance obligation with an observable standalone selling price. The transaction price is a fixed price per unit, except for the variable consideration. The Company elects to exclude sales tax from the transaction price. With the exception of sale with right of return, variable consideration has been identified only in the form of customer early payment discounts, which are immaterial to the Company’s financial statements. ~~Although~~As there is not a material impact on our financial statements, we will continue to account for customer discounts when they are taken by the customer and address further if they grow.

We recognize revenue when title transfers to the customer, at the shipping point for FOB shipping contracts and at the customer’s delivery location for FOB destination contracts. We believe that the transfer of title best represents when the customer obtains control of the goods. Prior to that date, we do not have right to payment, and the significant risks and rewards remain with us. The significant risks and rewards of ownership of the inventory transfer simultaneously with the transfer of title. The customer’s acceptance of the goods is based on objective measurements, not subjective.

Our return policy is available to customers in our terms and conditions found on our website www.rell.com. The policy varies by business unit. The Company allows returns with prior written authorization and we allow returns within 10 days of shipment for replacement parts.

The Company maintains a reserve for returns based on historical trends that covers all contracts and revenue streamsusing the expected value method because we have a large number of contracts with similar characteristics, which is considered variable consideration. The reserve for returns creates a refund liability on our balance sheet as a contra Trade Accounts Receivable as well as an asset in inventory. We value the inventory at cost due to there being minimal or no costs to the Company as we generally require the customer to pay freight and we typically do not have costs associated with activities such as relabeling or repackaging.

The reserve is considered immaterial at each balance sheet date for further consideration. Returns for defective product are typically covered by our supplier’s warranty, thus, returns for defective product are not factored into our reserve.

We offer warranties for the limited number of specific products we manufacture. Our warranty terms generally range from one to three years. We estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product sale. Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated warranty reserve. With respect to new products, estimates are based generally on knowledge of the products and warranty ~~experience, if a sufficient history exists.~~experience. See Note 7, Warranties, for further information regarding the impact of ~~warranties concerning ASU 2014-09.~~warranties.

Principal versus agent guidance was considered for customized products that are provided by our suppliers versus manufactured by the Company. ~~Richardson~~The Company acts as the principal as we are responsible for satisfying the performance obligation. We have primary responsibility for fulfilling the contract, we have inventory risk prior to delivery to our customer, we establish prices, our consideration is not in the form of a commission and we bear the credit risk. The Company recognizes revenue in the gross amount of consideration.

See Note 11, Segment Reporting, for a disaggregation of revenue by reportable segment and geographic region, which represents how our chief operating decision maker reviews information internally to evaluate our financial performance and to make resource allocation and other decisions for the Company.

Intangible assets are initially recorded at their fair market values determined by quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives and are tested for impairment when events or changes in circumstances occur that indicate possible impairment.

Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with our acquisitions. Intangible assets subject to amortization were as follows (in thousands):

	February 29, 2020		June 1, 2019		February 27, 2021		May 30, 2020
Gross Amounts:
Trade Name	$	659	$	659	$	659	$	659
Customer Relationships⁽¹⁾		3,398		3,394		3,420		3,388
Non-compete Agreements		177		177		177		177
Technology		230		230		230		230
Total Gross Amounts	$	4,464	$	4,460	$	4,486	$	4,454
Accumulated Amortization:
Trade Name	$	659	$	659	$	659	$	659
Customer Relationships		955		796		1,189		1,000
Non-compete Agreements		155		139		177		176
Technology		123		103		131		114
Total Accumulated Amortization	$	1,892	$	1,697	$	2,156	$	1,949
Net Intangible Assets	$	2,572	$	2,763	$	2,330	$	2,505

The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands):

Fiscal Year	Amortization Expense		Amortization Expense
Remaining 2020	$	64
2021		245
Remaining 2021			$	62
2022		252		253
2023		245		246
2024		232		232
2025				220
Thereafter		1,534		1,317
Total amortization expense	$	2,572	$	2,330

The weighted average number of years of amortization expense remaining is ~~13.9~~13 years.

As of February ~~29, 2020,~~27, 2021, we had ~~$13.0~~$9.0 million invested in a CD which matures in less than twelve months. The fair value of the investment was equal to the face value of the CD.

As of ~~June 1, 2019,~~May 30, 2020, we had ~~$8.0~~$16.0 million invested in CDs which mature in less than twelve months. The fair value of these investments was equal to the face value of the CDs.

We offer warranties for the limited number of specific products we manufacture. Our warranty terms generally range from one to three years.

We estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product sale. We record expense related to our warranty obligations as cost of sales in our consolidated statements of comprehensive ~~loss.~~income (loss). Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated warranty obligation. With respect to new products, estimates are based generally on knowledge of the products and warranty experience, if a sufficient history exists.

Warranty reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience and other available evidence. Warranty reserves were approximately $0.5 million as of February 27, 2021 and $0.5 million as of ~~February 29, 2020 and $0.3 million as of June 1, 2019.~~May 30, 2020.

~~In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”),~~ ~~Leases~~ ~~(“Topic 842”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset~~The Company leases real and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognitionpersonal property in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital andnormal course of business under various operating leases ~~existing at, or entered into after, the beginning~~and financing leases. The Company has two types of operating leases: leases for facility space and leases for automobiles. Most of the ~~earliest comparative period presented in~~leased facility space is for sales and general office use. Automobile leases are used throughout the ~~financial statements, with certain practical expedients available.~~

ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.Company. The Company elects the practical expedients (which must be elected as a package and applied consistently to all of our leases) for which we will not reassess: (1) whether any expired or existing contracts are or contains leases, (2) the lease classification for any expired or existing leases and (3) the initial indirect costs for any existing leases. We have also elected the practical expedient to combine lease and non-lease components for all of our leases. We have adopted an accounting policy to not apply the requirements of Topic 842 to leases with a term of 12 months or less, which the Company has within our facility leases. Short-term leases will be reassessed if events occur that disqualify them from short-term status.

The new standard was effective for the Company on June 2, 2019. The FASB issued ASU 2018-11, targeted improvements to Topic 842, which includes an option to not restate comparative periods in transition and elect to use the effective date of Topic 842 as the date of initial application of transition. We adopted the new standard applying the new transition method allowed under ASU 2018-11. As a result of adopting Topic 842, at February 29, 2020, we recognized operating right-of-use assets of $3.3 million, financing right-of-use assets of $0.4 million, operating lease liabilities of $3.4 million and financing lease ~~liabilities of $0.4 million. Existing deferred rent of $0.1 million was recorded as an offset to~~is for our gross operating lease right-of-use assets. Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company is reasonably certain it will renew the lease. The standard did not have a material impact on our results of operations or cash flows.computer servers.

The gross amounts of assets and liabilities related to both operating and financing leases ~~at February 29, 2020~~ were as follows (in thousands):

Lease Type	Amount		February 27, 2021		May 30, 2020
Operating lease ROU asset	$	3,303	$	2,640	$	3,018
Financing lease ROU asset		424		331		401
Total Lease ROU asset	$	3,727	$	2,971	$	3,419

Operating lease liability current	$	1,412	$	1,078	$	1,329
Financing lease liability current		154		161		156
Total lease liability current	$	1,566	$	1,239	$	1,485

Operating lease liability non-current	$	1,998	$	1,599	$	1,778
Financing lease liability non-current		206		30		163
Total lease liability non-current	$	2,204	$	1,629	$	1,941

Lease Type	Classification	Three Months Ended February 29, 2020		Nine Months Ended February 29, 2020
							Three Months Ended
							February 27, 2021		February 29, 2020
Consolidated operating lease expense	Operating expenses	$	481	$	1,427	Operating expenses	$	484	$	481

Consolidated financing lease amortization	Operating expenses		23		39	Operating expenses		23		23
Consolidated financing lease interest	Interest expense		4		18	Interest expense		2		4
Consolidated financing lease expense			27		57			25		27

Net lease cost		$	508	$	1,484		$	509	$	508

~~The Company recorded $0.4 million and $1.3 million of lease expense in the third quarter and first nine months of fiscal 2019, respectively.~~

~~The approximate future minimum lease payments under operating and financing leases at February 29, 2020 were as follows~~ ~~(in thousands)~~:

The approximate future minimum lease payments under operating and financing leases at ~~June 1, 2019~~February 27, 2021 were as follows (in thousands):

Fiscal Year ~~(1)~~	Operating Leases		Operating Leases		Financing Leases		Total
2020	$	1,586
2021		1,367
Remaining 2021			$	386	$	45	$	431
2022		509		973		151		1,124
2023		340		691		—		691
2024		289		454		—		454
2025				230		—		230
Thereafter		234		126		—		126
Total lease payments				2,860		196		3,056
Less imputed interest				183		5		188
Net minimum lease payments			$	2,677	$	191	$	2,868

The weighted average remaining lease terms and interest rates of leases held by the Company as of February ~~29, 2020~~27, 2021 were as follows:

Lease Type

Weighted Average Remaining Lease Term in Years

Weighted Average Interest Rate

Weighted Average Remaining

Lease Term in Years

Weighted Average Interest Rate

Operating leases

3.4

4.6%

2.8

4.6%

Financing leases

2.1

4.6%

1.1

4.6%

The cash outflows of the leasing activity of the Company as lessee for the nine months ending February ~~29, 2020~~27, 2021 were as follows (in thousands):

Cash Flow Source

Classification

Amount

Classification

Amount

Operating cash flows from operating leases

Operating activities

621

Operating activities

430

Operating cash flows from financing leases

Operating activities

108

Operating activities

127

Finance cash flows from financing leases

Financing activities

121

Financing activities

136

We recorded an income tax provision of ~~$0.4~~$0.2 million and ~~$0.8~~$0.4 million for the first nine months of fiscal ~~2020~~2021 and the first nine months of fiscal ~~2019,~~2020, respectively. The ~~effective~~ income tax ~~rate during~~provision reflected a provision for foreign income taxes, which was lower than in the prior year’s first nine months, ~~of fiscal 2020 was a~~and 0 U.S. tax ~~provision of (365.1)% as compared~~benefit due to a tax provision of (383.3)% during the first nine months of fiscal 2019. The difference in rate during the first nine months of fiscal 2020 as compared to the first nine months of fiscal 2019 reflects changes in our geographical distribution of income (loss). The (365.1)% effective income tax rate differs from the federal statutory rate of 21% as a result of our geographical distribution of income (loss) and the movement of the valuation allowance recorded against ~~our U.S. state and federal~~the net ~~deferred tax assets.~~operating loss.

In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal ~~2009~~2015 are closed for examination under the statute of limitation for U.S. federal, U.S. state and local or non-U.S. tax jurisdictions. We are currently under examination in Thailand (fiscal 2008 through 2011). Our primary foreign tax jurisdictions are Germany and the Netherlands. We have tax years open in Germany beginning in fiscal 2015 and the Netherlands beginning in fiscal ~~2012. Germany is currently under audit for fiscal years 2015 through~~ 2018.

We have historically determined that certain undistributed earnings of our foreign subsidiaries, to the extent of cash available, will be repatriated to the U.S. The deferred tax liability on the outside basis difference is now primarily withholding tax on future dividend distributions. We have provided a deferred tax liability ~~totaling $0.3~~of less than $0.1 million as of both February ~~29,~~27, 2021 and as of May 30, 2020. ~~As of June 1, 2019, the deferred tax liability totaled $0.2 million.~~

As of February ~~29,~~27, 2021 and as of May 30, 2020, our worldwide liability for uncertain tax positions related to continuing operations was $0.1 million, excluding interest and ~~penalties as compared to $0.1 million liabilities for uncertain tax positions as of June 1, 2019. There was no change in recorded uncertain tax positions during the first nine months of fiscal 2020.~~penalties. We record penalties and interest related to uncertain tax positions in the income tax expense line item within the consolidated statements of comprehensive ~~loss.~~income (loss).

The valuation allowance against the net deferred tax assets that will more likely than not be realized was ~~$12.0~~$12.4 million as of February ~~29, 2020.~~27, 2021. The valuation allowance against the net deferred tax assets was ~~$11.7~~$12.3 million as of ~~June 1, 2019~~May 30, 2020 as no material additional domestic federal and state net deferred tax assets were generated during the ~~third quarter~~first nine months of fiscal ~~2020~~2021 from losses in the U.S. jurisdiction. A full valuation allowance on the U.S. and state deferred tax assets will be maintained until sufficient positive evidence related to sources of future taxable income exists to support a reversal of the valuation allowance. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.

We have authorized 17,000,000 shares of common stock and 3,000,000 shares of Class B common stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends.

In accordance with ASC 260-10, Earnings Per Share (“ASC 260”), our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive ~~loss~~income (loss) were based on the following amounts (in thousands, except per share amounts):

	Three Months Ended												Three Months Ended
	February 29, 2020						March 2, 2019						February 27, 2021						February 29, 2020
	Basic			Diluted			Basic			Diluted			Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Net loss	$	(93	)	$	(93	)	$	(1,078	)	$	(1,078	)
Net income (loss)													$	228		$	228		$	(93	)	$	(93	)
Less dividends:
Common stock		662			662			657			657			667			667			662			662
Class B common stock		114			114			114			114			113			113			114			114
Undistributed losses	$	(869	)	$	(869	)	$	(1,849	)	$	(1,849	)	$	(552	)	$	(552	)	$	(869	)	$	(869	)
Common stock undistributed losses	$	(742	)	$	(742	)	$	(1,577	)	$	(1,577	)	$	(472	)	$	(472	)	$	(742	)	$	(742	)
Class B common stock undistributed losses		(127	)		(127	)		(272	)		(272	)		(80	)		(80	)		(127	)		(127	)
Total undistributed losses	$	(869	)	$	(869	)	$	(1,849	)	$	(1,849	)	$	(552	)	$	(552	)	$	(869	)	$	(869	)
Denominator for Basic and Diluted EPS:
Common stock weighted average shares		11,038			11,038			10,953			10,953			11,111			11,111			11,038			11,038
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,097			2,097			2,097			2,097
Class B common stock weighted average shares and shares under if-converted method for diluted EPS														2,097			2,097			2,097			2,097
Effect of dilutive securities
Dilutive stock options					—						—						72						—
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					13,135						13,050						13,280						13,135
Net loss per share:
Net income (loss) per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.08	)	$	(0.08	)	$	0.02		$	0.02		$	(0.01	)	$	(0.01	)
Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.08	)	$	(0.08	)	$	0.02		$	0.02		$	(0.01	)	$	(0.01	)

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal 2020 ~~and fiscal 2019~~ were ~~1,000 and 1,084, respectively.~~1,000.

	Nine Months Ended												Nine Months Ended
	February 29, 2020						March 2, 2019						February 27, 2021						February 29, 2020
	Basic			Diluted			Basic			Diluted			Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Net loss	$	(558	)	$	(558	)	$	(951	)	$	(951	)	$	(230	)	$	(230	)	$	(558	)	$	(558	)
Less dividends:
Common stock		1,986			1,986			1,963			1,963			2,000			2,000			1,986			1,986
Class B common stock		340			340			342			342			340			340			340			340
Undistributed losses	$	(2,884	)	$	(2,884	)	$	(3,256	)	$	(3,256	)	$	(2,570	)	$	(2,570	)	$	(2,884	)	$	(2,884	)
Common stock undistributed losses	$	(2,462	)	$	(2,462	)	$	(2,774	)	$	(2,774	)	$	(2,196	)	$	(2,196	)	$	(2,462	)	$	(2,462	)
Class B common stock undistributed losses		(422	)		(422	)		(482	)		(482	)		(374	)		(374	)		(422	)		(422	)
Total undistributed losses	$	(2,884	)	$	(2,884	)	$	(3,256	)	$	(3,256	)	$	(2,570	)	$	(2,570	)	$	(2,884	)	$	(2,884	)
Denominator for Basic and Diluted EPS:
Common stock weighted average shares		11,022			11,022			10,911			10,911			11,097			11,097			11,022			11,022
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,097			2,097			2,108			2,108
Class B common stock weighted average shares and shares under if-converted method for diluted EPS														2,097			2,097			2,097			2,097
Effect of dilutive securities
Dilutive stock options					—						—						—						—
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					13,119						13,019						13,194						13,119
Net loss per share:
Net income (loss) per share:
Common stock	$	(0.04	)	$	(0.04	)	$	(0.07	)	$	(0.07	)	$	(0.02	)	$	(0.02	)	$	(0.04	)	$	(0.04	)
Class B common stock	$	(0.04	)	$	(0.04	)	$	(0.07	)	$	(0.07	)	$	(0.02	)	$	(0.02	)	$	(0.04	)	$	(0.04	)

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of fiscal ~~2020~~2021 and fiscal ~~2019~~2020 were ~~943~~1,300 and ~~918,~~943, respectively.

In accordance with ASC 280-10, Segment Reporting, we have identified ~~three~~3 reportable segments as follows:

PMT combines our core engineered solutions capabilities, power grid and microwave tube business with new disruptive RF, Wireless and ~~disruptive power~~Power technologies. As a designer, manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in 5G, alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment.

The CEO, who is the chief operating decision maker, evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	February 29, 2020		March 2, 2019		February 29, 2020		March 2, 2019		February 27, 2021		February 29, 2020		February 27, 2021		February 29, 2020
PMT
Net Sales	$	28,988	$	29,725	$	89,158	$	96,822	$	35,237	$	28,988	$	98,418	$	89,158
Gross Profit		9,519		9,406		28,547		30,520		12,308		9,519		33,530		28,547
Canvys
Net Sales	$	7,200	$	6,954	$	22,333	$	20,625	$	7,078	$	7,200	$	20,491	$	22,333
Gross Profit		2,362		2,281		7,268		6,726		2,493		2,362		7,156		7,268
Healthcare
Net Sales	$	2,061	$	2,339	$	7,045	$	7,042	$	2,920	$	2,061	$	7,556	$	7,045
Gross Profit		789		612		2,486		1,977		965		789		1,782		2,486

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	February 29, 2020			March 2, 2019			February 29, 2020			March 2, 2019			February 27, 2021			February 29, 2020			February 27, 2021			February 29, 2020
Net Sales
North America	$	15,935		$	14,665		$	48,475		$	48,513		$	19,654		$	15,935		$	53,513		$	48,475
Asia/Pacific		6,812			8,007			24,612			26,069			9,821			6,812			28,970			24,612
Europe		12,438			13,612			38,572			41,761			13,285			12,438			37,277			38,572
Latin America		3,057			2,702			6,894			8,075			2,446			3,057			6,591			6,894
Other (1)		7			32			(17	)		71			29			7			114			(17	)
Total	$	38,249		$	39,018		$	118,536		$	124,489		$	45,235		$	38,249		$	126,465		$	118,536
Gross Profit
North America	$	6,552		$	5,577		$	18,656		$	18,682		$	8,081		$	6,552		$	21,099		$	18,656
Asia/Pacific		2,261			2,482			7,910			8,188			3,517			2,261			9,592			7,910
Europe		4,011			4,403			12,157			13,141			4,356			4,011			12,153			12,157
Latin America		994			990			2,338			3,011			896			994			2,345			2,338
Other (1)		(1,148	)		(1,153	)		(2,760	)		(3,799	)		(1,084	)		(1,148	)		(2,721	)		(2,760	)
Total	$	12,670		$	12,299		$	38,301		$	39,223		$	15,766		$	12,670		$	42,468		$	38,301

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts.

On October 15, 2018, Varex Imaging Corporation (“Varex”) filed its original Complaint (Case No. 1:18-cv-06911) against Richardson Electronics Ltd. (“Richardson”) in the Northern District of Illinois, which was subsequently amended on November 27, 2018. Varex alleged counts of infringement of U.S. Patent Nos. 6,456,692 and 6,519,317. Subsequently, on October 24, 2018, Varexfiled a motion for preliminary injunction to stop the sale of Richardson’s ALTA750^TM product. Richardson filed an opposition to the preliminary injunction. In January 2019, the Court took evidence on the preliminary injunction issue. On September 30, 2019, the Court ~~soundly~~ denied Varex’s Motion for Preliminary Injunction. On August 6, 2020, Varex amended its Complaint to add claims of trade secret misappropriation and Richardson ~~believes~~moved to dismiss that Amended Complaint on September 9, 2020. On April 2, 2021,as part of an overall settlement where Richardson did not admit liability but wanted to move forward, Richardson agreed to pay Varex $1.6 million to settle this matter, which is recorded in selling, general and administrative expenses within the ~~lawsuit~~Consolidated Statements of Comprehensive Income (Loss).

In March 2020, the WHO classified the COVID-19 outbreak as a ~~loss is not probable or estimable~~pandemic based on the ~~information~~rapid increase in global exposure. Thereafter, most U.S. states imposed “shelter in place” directives on their populations to stem the spread of COVID-19. Of specific interest to the Company, shelter in place directives were imposed in the states of Illinois, Massachusetts and South Carolina.

The shelter in place directives generally required the closure of businesses that did not provide essential functions. The Company was considered a critical supplier of products to healthcare and critical infrastructure businesses. Several of our largest customers mandated that we continue to supply parts so as not to disrupt the supply chain and their ability to serve critical industries. As such, the Company qualified as an “Essential Business”. Essential Businesses were allowed to continue to operate during shelter in place directives. We continued our manufacturing and distribution operations even when a shelter in place directive was issued. We limited the number of people in any one of our facilities by requiring only employees who could not perform their work remotely to physically work in a Company US-based facility. The Company advised all other employees that could perform their job functions remotely to do so. As such, the Company’s operations remained operational.

The impact of the COVID-19 outbreak continues to evolve. As such, the full magnitude that the pandemic will have on the Company’s financial condition, liquidity and future results of operations is uncertain. Management is actively monitoring the global situation on its financial condition, liquidity, operations, suppliers, industry and workforce. As the spread of COVID-19 continues, our ability to meet customer demands for products may be impaired or, similarly, our customers may experience adverse business consequences due to COVID-19. Reduced demand for products or impaired ability to meet customer demand (including disruptions at our transportation service providers or vendors) could have a material adverse effect on our business, operations and financial performance. There was a decline in PMT sales during the ~~time~~first three months of fiscal 2021, a decline in Healthcare sales during the first six months of fiscal 2021 and a decline in Canvys sales during the first nine months of fiscal 2021. The majority of these declines in sales were related to the COVID-19 global pandemic. While we had some COVID-19 related component delays impacting new product development schedules, we did not experience a major interruption in our supply chain. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not presently able to fully estimate the effects of COVID-19 on its results of operations, financial ~~statements were issued.~~condition or liquidity for fiscal year 2021.

On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security (“CARES”) Act to provide certain relief as a result of the COVID-19 outbreak. The CARES Act includes provisions relating to refundable payroll tax credits, deferral of employer-side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, increased limitations on qualified charitable contributions and technical corrections to tax depreciation methods for qualified improvement property. As of February 27, 2021, the Company deferred $0.9 million of employer-side social security tax payments.The Company has estimated and recorded the overall effects of the CARES Act and does not anticipate a material change.

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists; therefore, an entity is required to develop its own assumptions.

As of February ~~29, 2020,~~27, 2021, we held an investment that was required to be measured at fair value on a recurring basis. Our investment consisted of a CD where face value was equal to fair value.

~~Investment~~Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of February ~~29,~~27, 2021 and May 30, 2020 ~~was~~were as follows (in thousands):

On June 15, 2015, the Company entered into a lease agreement for the IMES facility with LDL, LLC. The Executive Vice President of IMES, Lee A. McIntyre III (former owner of IMES), has an ownership interest in LDL, LLC. The lease agreement provides for monthly payments over five years with total future minimum lease payments of ~~$0.8~~$0.7 million. Rental expense related to this lease amounted to $0.1 million for the nine months ended February ~~29, 2020~~27, 2021 and for the nine months ended March 2, 2019. The Company shall be entitled to extend the term of the lease for a period of an additional five years by notifying the landlord in writing of its intention to do so within six months of the expiration of the initial term. The Company has extended the lease term for an additional five years, terminating on June 15, 2025.

On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic based on the rapid increase in global exposure.

~~The full impact of the COVID-19 outbreak continues to evolve subsequent to the quarter ended~~ February 29, 2020 and as of the date these unaudited consolidated financial statements are issued. As such, the full magnitude that the pandemic will have on the Company’s financial condition, liquidity and future results of operations is uncertain. Management is actively monitoring the global situation on its financial condition, liquidity, operations, suppliers, industry and workforce. As the spread of COVID-19 continues, our ability to meet customer demands for products may be impaired or, similarly, our customers may experience adverse business consequences due to COVID-19. Reduced demand for products or impaired ability to meet customer demand (including as a result of disruptions at our transportation service providers or vendors) could have a material adverse effect on our business, operations and financial performance. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not presently able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition or liquidity for fiscal year 2020.

On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide certain relief as a result of the COVID-19 outbreak. The Company is currently evaluating how these provisions in the CARES Act will impact its financial position, results of operations and cash flows.

Certain statements in this report may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. The terms “may,” “should,” “could,” “anticipate,” “believe,” “continues,” “estimate,” “expect,” “intend,” “objective,” “plan,” “potential,” “project” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on management’s current expectations, intentions or beliefs and are subject to a number of factors, assumptions and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause or contribute to such differences or that might otherwise impact the business include the risk factors set forth in Item 1A of this quarterly report on Form 10Q for the quarter ended February ~~29, 2020~~27, 2021, as well as our Annual Report on Form 10-K filed on August ~~5, 2019.~~3, 2020. We undertake no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements contained herein whether as a result of new information, future events or otherwise.

In addition, while we do, from time to time, communicate with securities analysts, it is against our policy to disclose to them any material non-public information or other confidential commercial information. Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not our responsibility.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to assist the reader in better understanding our business, results of operations, financial condition, changes in financial condition, critical accounting policies and estimates and significant developments. MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying notes appearing elsewhere in this filing. This section is organized as follows:

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, ~~all-in-ones,~~All-In-One computers, specialized cabinet finishes, ~~and~~ application specific software packages and certification services. Our volume commitments are lower than the large display manufacturers, making us the ideal choice for companies with very specific design requirements. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms.

We currently have operations in the following major geographic regions: North America, Asia/Pacific, Europe and Latin America.

Net sales by segment and percent change during the third quarter and first nine months of fiscal ~~2020~~2021 and fiscal ~~2019~~2020 were as follows (in thousands):

Net Sales	Three Months Ended				FY20 vs. FY19			Three Months Ended				FY21 vs. FY20
	February 29, 2020		March 2, 2019		% Change			February 27, 2021		February 29, 2020		% Change
PMT	$	28,988	$	29,725		-2.5	%	$	35,237	$	28,988		21.6	%
Canvys		7,200		6,954		3.5	%		7,078		7,200		-1.7	%
Healthcare		2,061		2,339		-11.9	%		2,920		2,061		41.7	%
Total	$	38,249	$	39,018		-2.0	%	$	45,235	$	38,249		18.3	%

	Nine Months Ended				FY20 vs. FY19			Nine Months Ended				FY21 vs. FY20
	February 29, 2020		March 2, 2019		% Change			February 27, 2021		February 29, 2020		% Change
PMT	$	89,158	$	96,822		-7.9	%	$	98,418	$	89,158		10.4	%
Canvys		22,333		20,625		8.3	%		20,491		22,333		-8.2	%
Healthcare		7,045		7,042		0.0	%		7,556		7,045		7.3	%
Total	$	118,536	$	124,489		-4.8	%	$	126,465	$	118,536		6.7	%

During the third quarter of fiscal ~~2020,~~2021, consolidated net sales ~~decreased 2.0%~~increased 18.3% compared to the third quarter of fiscal ~~2019.~~2020. Sales for PMT ~~decreased 2.5%~~increased 21.6%, sales for Canvys ~~increased 3.5%~~decreased 1.7% and sales for Healthcare ~~decreased 11.9%~~increased 41.7%. The ~~decrease~~increase in PMT was mainly due to ~~economic softness~~strong growth from our Power and Microwave new technology partners in various applications including Power Management and 5G infrastructure and increased revenue from our Semiconductor Wafer Fabrication customers buying engineered solutions. We also had growth in various Electron Device product lines. The decrease in Canvys was primarily due to continuing struggles in the ~~power grid tube business and~~European market related to the ~~effect of the coronavirus~~COVID-19 impact on ~~approximately 5% of our quarter’s shipments,~~demand for equipment partially offset by ~~growth from our power conversion and RF and microwave components. The increase~~strong sales in ~~Canvys was due to increased customer demand in its~~the North American market. The ~~decrease~~increase in Healthcare was primarily due to ~~lower equipment and non-core parts sales, partially offset by an~~a significant increase in ~~CT tube sales.~~demand for the ALTA 750D^TM tubes coupled with increased equipment sales in Latin America.

During the first nine months of fiscal ~~2020,~~2021, consolidated net sales ~~decreased 4.8%~~increased 6.7% compared to the first nine months of fiscal ~~2019.~~2020. Sales for PMT ~~decreased 7.9%~~increased 10.4%, sales for Canvys ~~increased 8.3%~~decreased 8.2% and sales for Healthcare ~~were flat.~~increased 7.3%. The ~~decrease~~increase in PMT was mainly due to ~~economic softness~~strong growth in ~~the power grid tube business~~bookings and ~~a slow ramp up in sales in the semiconductor wafer fab equipment business, partially offset by growth~~billings from our ~~power conversion~~Power Management and RF and microwave ~~components.~~components with continued growth in the Semiconductor Wafer Fab market. We also had growth in various Electron Device product lines. The decrease in Canvys was primarily due to continuing struggles in the European market related to the COVID-19 impact on demand for equipment partially offset by strong sales in the North American market. The increase in ~~Canvys~~Healthcare was due to ~~increased customer~~an increase in demand ~~in its North American market.~~for the ALTA 750D^TM tubes.

Gross profit by segment and percent of net sales for the third quarter and first nine months of fiscal ~~2020~~2021 and fiscal ~~2019~~2020 were as follows (in thousands):

Gross Profit	Three Months Ended										Three Months Ended
	February 29, 2020		% of Net Sales			March 2, 2019		% of Net Sales			February 27, 2021		% of Net Sales			February 29, 2020		% of Net Sales
PMT	$	9,519		32.8	%	$	9,406		31.6	%	$	12,308		34.9	%	$	9,519		32.8	%
Canvys		2,362		32.8	%		2,281		32.8	%		2,493		35.2	%		2,362		32.8	%
Healthcare		789		38.3	%		612		26.2	%		965		33.0	%		789		38.3	%
Total	$	12,670		33.1	%	$	12,299		31.5	%	$	15,766		34.9	%	$	12,670		33.1	%

	Nine Months Ended										Nine Months Ended
	February 29, 2020		% of Net Sales			March 2, 2019		% of Net Sales			February 27, 2021		% of Net Sales			February 29, 2020		% of Net Sales
PMT	$	28,547		32.0	%	$	30,520		31.5	%	$	33,530		34.1	%	$	28,547		32.0	%
Canvys		7,268		32.5	%		6,726		32.6	%		7,156		34.9	%		7,268		32.5	%
Healthcare		2,486		35.3	%		1,977		28.1	%		1,782		23.6	%		2,486		35.3	%
Total	$	38,301		32.3	%	$	39,223		31.5	%	$	42,468		33.6	%	$	38,301		32.3	%

Gross profit reflects the distribution and manufacturing product margin less manufacturing variances, inventory obsolescence charges, customer returns, scrap and cycle count adjustments, engineering costs and other provisions.

Consolidated gross profit increased to $15.8 million during the third quarter of fiscal 2021 compared to $12.7 million during the third quarter of fiscal ~~2020 compared to $12.3 million during the third quarter of fiscal 2019.~~2020. Consolidated gross margin as a percentage of net sales increased to 34.9% during the third quarter of fiscal 2021 from 33.1% during the third quarter of fiscal 2020, ~~from 31.5% during the third quarter of fiscal 2019,~~ primarily due to favorable product mix ~~and improved manufacturing efficiencies~~ in both PMT and Canvys, partially offset by product mix in Healthcare.

Consolidated gross profit ~~decreased~~increased to $42.5 million during the first nine months of fiscal 2021 compared to $38.3 million during the first nine months of fiscal ~~2020 compared to $39.2 million during the first nine months of fiscal 2019.~~2020. Consolidated gross margin as a percentage of net sales increased to 33.6% during the first nine months of fiscal 2021 from 32.3% during the first nine months of fiscal 2020, ~~from 31.5% during the first nine months of fiscal 2019,~~ primarily due to improved manufacturing efficiencies in PMT and favorable product mix in ~~Healthcare and improved manufacturing efficiencies in~~ both PMT and ~~Healthcare.~~Canvys. These increases were partially offset by under absorbed manufacturing expenses in Healthcare during the first half of fiscal 2021.

PMT net sales ~~decreased 2.5%~~increased 21.6% to $35.2 million during the third quarter of fiscal 2021 from $29.0 million during the third quarter of fiscal ~~2020 from $29.7 million during the third quarter of fiscal 2019.~~2020. The ~~decrease~~increase was mainly due to ~~economic softness in the power grid tube business and the effect of the coronavirus on approximately 5% of our quarter’s shipments, partially offset by~~strong growth from our ~~power conversion~~Power and RFMicrowave new technology partners in various applications including Power Management and ~~microwave components.~~5G infrastructure and increased revenue from our Semiconductor Wafer Fabrication customers buying engineered solutions. We also had growth in various Electron Device product lines. Gross margin as a percentage of net sales increased to 34.9% during the third quarter of fiscal 2021 as compared to 32.8% during the third quarter of fiscal 2020 primarily due to favorable product mix.

PMT net sales increased 10.4% to $98.4 million during the first nine months of fiscal 2021 from $89.2 million during the first nine months of fiscal 2020. The increase was mainly due to strong growth in bookings and billings from our Power Management and RF and microwave components with continued growth in the Semiconductor Wafer Fab market. We also had growth in various Electron Device product lines. Gross margin as a percentage of net sales increased to 34.1% during the first nine months of fiscal 2021 as compared to ~~31.6%~~32.0% during the ~~third quarter~~first nine months of fiscal ~~2019 primarily~~2020 due to favorable product mix and improved manufacturing efficiencies.

PMT net sales decreased 7.9% to $89.2 million during the first nine months of fiscal 2020 from $96.8 million during the first nine months of fiscal 2019. The decrease was mainly due to economic softness in the power grid tube business and a slow ramp up in sales in the semiconductor wafer fab equipment business, partially offset by growth from our power conversion and RF and microwave components. Gross margin as a percentage of net sales increased to 32.0% during the first nine months of fiscal 2020 as compared to 31.5% during the first nine months of fiscal 2019 due to improved manufacturing efficiencies.

Canvys net sales ~~increased 3.5%~~decreased 1.7% to $7.1 million during the third quarter of fiscal 2021 from $7.2 million during the third quarter of fiscal 2020 ~~from $6.9 million during the third quarter of fiscal 2019~~primarily due to ~~increased customer~~continuing struggles in the European market related to the COVID-19 impact on demand for equipment partially offset by strong sales in ~~its~~the North American market. Gross margin as a percentage of net sales ~~was~~increased to 35.2% during the third quarter of fiscal 2021 from 32.8% during the third quarter of fiscal 2020 ~~the same as during the third quarter of fiscal 2019.~~due to favorable product mix.

Canvys net sales ~~increased 8.3%~~decreased 8.2% to $20.5 million during the first nine months of fiscal 2021 from $22.3 million during the first nine months of fiscal 2020 ~~from $20.6 million during the first nine months of fiscal 2019~~ primarily due to ~~increased customer~~continuing struggles in the European market related to the COVID-19 impact on demand for equipment partially offset by strong sales in ~~its~~the North American market. Gross margin as a percentage of net sales ~~decreased slightly~~increased to 34.9% during the first nine months of fiscal 2021 as compared to 32.5% during the first nine months of fiscal 2020 ~~as compared~~due to ~~32.6% during the first nine months of fiscal 2019.~~favorable product mix and foreign currency change impact.

Healthcare net sales ~~decreased 11.9%~~increased 41.7% to $2.9 million during the third quarter of fiscal 2021 from $2.1 million during the third quarter of fiscal ~~2020 from $2.3 million during the third quarter of fiscal 2019~~2020. The increase in sales was primarily due to ~~lower equipment and non-core parts sales, partially offset by an~~a significant increase in ~~CT tube sales. Gross margin as a percentage of net sales~~demand for the ALTA 750D^TM tubes coupled with increased ~~to 38.3% during the third quarter of fiscal 2020 as compared to 26.2% during the third quarter of fiscal 2019 due to favorable product mix and improved manufacturing efficiencies.~~

~~Healthcare net sales were $7.0 million during the first nine months of fiscal 2020, the same as during the first nine months of fiscal 2019 due to higher CT tube sales offset by a decrease in~~ equipment sales in Latin America. Gross margin as a percentage of net sales decreased to 33.0% during the third quarter of fiscal 2021 as compared to 38.3% during the third quarter of fiscal 2020 primarily due to product mix.

Healthcare net sales increased 7.3% to $7.6 million during the first nine months of fiscal 2021 from $7.0 million during the first nine months of fiscal 2020 due to an increase in demand for the ALTA 750D^TM tubes. Gross margin as a percentage of net sales decreased to 23.6% during the first nine months of fiscal 2021 as compared to 35.3% during the first nine months of fiscal 2020 ~~as compared~~due to ~~28.1% during~~under absorbed manufacturing expenses in the first ~~nine months~~half of fiscal 2021.

On October 15, 2018, Varex Imaging Corporation (“Varex”) filed its original Complaint (Case No. 1:18-cv-06911) against Richardson Electronics Ltd. (“Richardson”) in the Northern District of Illinois, which was subsequently amended on November 27, 2018. Varex alleged counts of infringement of U.S. Patent Nos. 6,456,692 and 6,519,317. Subsequently, on October 24, 2018, Varexfiled a motion for preliminary injunction to stop the sale of Richardson’s ALTA750^TM product. Richardson filed an opposition to the preliminary injunction. In January 2019, ~~due~~the Court took evidence on the preliminary injunction issue. On September 30, 2019, the Court denied Varex’s Motion for Preliminary Injunction. On August 6, 2020, Varex amended its Complaint to ~~favorable product mix~~add claims of trade secret misappropriation and ~~improved manufacturing efficiencies.~~Richardson moved to dismiss that Amended Complaint on September 9, 2020. On April 2, 2021, as part of an overall settlement where Richardson did not admit liability but wanted to move forward, Richardson agreed to pay Varex $1.6 million to settle this matter, which is recorded in selling, general and administrative expenses within the Consolidated Statements of Comprehensive Income (Loss).

Selling, general and administrative expenses ~~decreased~~increased to ~~$12.7~~$15.5 million during the third quarter of fiscal ~~2020~~2021 from ~~$13.1~~$12.7 million in the third quarter of fiscal ~~2019, primarily due to lower severance,~~2020. This increase included the $1.6 million legal settlement. The increase also resulted from higher employee compensation expense and ~~professional services expenses,~~legal fees, partially offset by ~~higher research and development expenses for Healthcare.~~lower travel expenses.

Selling, general and administrative expenses ~~decreased~~increased to ~~$38.7~~$41.9 million during the first nine months of fiscal ~~2020~~2021 from ~~$39.6~~$38.7 million in the first nine months of fiscal ~~2019,~~2020. This increase included the $1.6 million legal settlement. The remainder of the increase was primarily due to ~~lower severance,~~higher employee compensation expense and legal ~~and professional services expenses,~~fees, partially offset by ~~higher research~~lower travel and ~~development expenses for Healthcare.~~consulting expenses.

Other income/expense was ~~income of $0.1 million during the third quarter of fiscal 2020, compared to income~~expense of less than $0.1 million during the third quarter of fiscal ~~2019.~~2021, compared to income of $0.1 million during the third quarter of fiscal 2020. Other income/expense during the third quarter of fiscal 2020 included $0.1 million of investment/interest income. ~~Other income/expense during the third quarter of fiscal 2019 included $0.1 million of investment/interest income offset by $0.1 million of foreign exchange losses.~~ Our foreign exchange gains and losses are primarily due to the translation of U.S. dollars held in non-U.S. entities. We currently do not utilize derivative instruments to manage our exposure to foreign currency.

Other income/expense was ~~income~~expense of ~~$0.2~~$0.5 million during the first nine months of fiscal ~~2020,~~2021, compared to income of $0.2 million during the first nine months of fiscal ~~2019.~~2020. Other income/expense during the first nine months of fiscal 2021 included $0.6 million of foreign exchange losses partially offset by less than $0.1 million of investment/interest income. Other income/expense during the first nine months of fiscal 2020 included $0.3 million of investment/interest income partially offset by $0.1 million of foreign exchange losses. ~~Other~~

The income ~~during~~tax provision was $0.1 million for the ~~first nine months~~third quarter of fiscal ~~2019 included $0.4 million of investment/interest income partially offset by~~2021 as compared to $0.2 million for the third quarter of fiscal 2020. The income tax provision reflected a provision for foreign ~~exchange losses.~~

~~Income Tax Provision~~income taxes, which was lower than in the prior year’s third quarter, and the offset of a U.S. tax provision against the valuation allowance.

We recorded an income tax provision of ~~$0.4~~$0.2 million and ~~$0.8~~$0.4 million for the first nine months of fiscal ~~2020~~2021 and the first nine months of fiscal ~~2019,~~2020, respectively. The ~~effective~~ income tax ~~rate during~~provision reflected a provision for foreign income taxes, which was lower than in the prior year’s first nine months, ~~of fiscal 2020 was a~~and no U.S. tax ~~provision of (365.1)% as compared~~benefit due to a tax provision of (383.3)% during the first nine months of fiscal 2019. The difference in rate during the first nine months of fiscal 2020 as compared to the first nine months of fiscal 2019 reflects changes in our geographical distribution of income (loss). The (365.1)% effective income tax rate differs from the federal statutory rate of 21% as a result of our geographical distribution of income (loss) and the movement of the valuation allowance recorded against ~~our U.S. state and federal~~the net ~~deferred tax assets.~~operating loss.

Net ~~loss~~income during the third quarter of fiscal ~~2020~~2021 was ~~$0.1~~$0.2 million, or ~~($0.01)~~$0.02 per diluted common share and ~~($0.01)~~$0.02 per Class B diluted common share as compared to net loss of ~~$1.1~~$0.1 million during the third quarter of fiscal ~~2019~~2020 or ($~~0.08)~~0.01) per diluted common share and ($~~0.08)~~0.01) per Class B diluted common share.

Net loss during the first nine months of fiscal ~~2020~~2021 was ~~$0.6~~$0.2 million or ($~~0.04)~~0.02) per diluted common share and ($~~0.04)~~0.02) per Class B diluted common share as compared to net loss of ~~$1.0~~$0.6 million during the first nine months of fiscal ~~2019~~2020 or ($~~0.07)~~0.04) per diluted common share and ($~~0.07)~~0.04) per Class B diluted common share.

Our operations and cash needs have been primarily financed through cash on hand and investments.

Cash and cash equivalents were ~~$30.9~~$38.4 million at February ~~29, 2020.~~27, 2021. Investments included a CD classified as short-term investment of ~~$13.0~~$9.0 million. Total cash and ~~investment was $43.9~~investments were $47.4 million at February ~~29, 2020.~~27, 2021. Cash, cash equivalents and ~~investment~~investments at February ~~29, 2020~~27, 2021 consisted of ~~$27.7~~$30.5 million in North America, ~~$10.2~~$8.3 million in Europe, ~~$0.8~~$1.0 million in Latin America and ~~$5.2~~$7.6 million in Asia/Pacific. We repatriated ~~$4.4~~a total of $0.7 million ~~total cash from our entities in Germany and~~to the ~~Netherlands in the second quarter of fiscal 2020 and $1.5 million from our entity in Japan~~United States in the third quarter of fiscal ~~2020. A total of $7.5~~2021, which included $0.5 million ~~was repatriated to the United States~~from our entity in ~~the first nine months of fiscal 2020~~Korea and $0.2 million from ~~several of~~ our ~~foreign entities, which includes the amounts mentioned above~~entity in ~~the second and third quarters of fiscal 2020.~~Italy. Although the Tax Cuts and Jobs Act generally eliminated federal income tax on future cash repatriation to the United States, cash repatriation may be subject to state and local taxes, withholding or similar taxes. See Note 9 “Income Taxes” of the notes to our consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended ~~June 1, 2019,~~May 30, 2020, filed ~~with the SEC on~~ August ~~5, 2019,~~3, 2020 for further information.

Cash, cash equivalents and investments were ~~$50.0~~$46.5 million at ~~June 1, 2019.~~May 30, 2020. Cash, cash equivalents and investments at ~~June 1, 2019,~~May 30, 2020, consisted of ~~$21.5~~$30.6 million in North America, ~~$17.8~~$8.3 million in Europe, $0.9 million in Latin America and ~~$9.8~~$6.7 million in Asia/Pacific. We repatriated ~~$2.3~~a total of $8.5 million ~~total cash from our entities in Japan and Korea~~to the United States in fiscal ~~2019 and $5.9~~2020 from several of our foreign entities. This amount includes $4.4 million ~~total cash~~ from our entities in Germany and ~~France~~the Netherlands in the second quarter of fiscal ~~2019.~~2020, $1.5 million from our entity in Japan in the third quarter of fiscal 2020 and $1.0 million from our entity in Italy in the fourth quarter of fiscal 2020.

WeThe Company continues to monitor the impact of the COVID-19 outbreak on its supply chain, manufacturing and distribution operations, customers and employees, as well as the U.S. economy in general. However, due to the uncertainty as to when governmental restrictions on business will be fully lifted, the impact thereof, and the duration and widespread nature of the COVID-19 outbreak, the Company cannot currently predict the long-term impact on its operations and financial results. The uncertainties associated with the COVID-19 outbreak include potential adverse effects on the overall economy, the Company’s supply chain, transportation services, employees and customers. The COVID-19 outbreak could adversely affect the Company’s revenues, earnings, liquidity and cash flows and may require significant actions in response, including expense reductions. Conditions surrounding COVID-19 change rapidly and additional impacts of which the Company is not currently aware may arise. Based on past performance and current expectations, we believe that the existing sources of liquidity, including current cash and investments, will provide sufficient resources to meet known capital requirements and working capital needs through the next twelve months.

The cash ~~used in~~provided by (used in) operating activities primarily resulted from net ~~loss~~income (loss) adjusted for non-cash items and changes in our operating assets and liabilities.

Operating activities provided $3.9 million of cash during the first nine months of fiscal 2021. We had a net loss of $0.2 million during the first nine months of fiscal 2021, which included non-cash stock-based compensation expense of $0.5 million associated with the issuance of stock option and restricted stock awards, $0.7 million for inventory reserve provisions and depreciation and amortization expense of $2.6 million associated with our property and equipment as well as amortization of our intangible assets. Changes in our operating assets and liabilities resulted in cash provided of $0.3 million during the first nine months of fiscal 2021, net of foreign currency exchange gains and losses, included an increase in accrued liabilities of $4.3 million, partially offset by a decrease of $2.0 million in accounts payable, an increase in accounts receivable of $1.0 million and an increase in inventory of $0.9 million. The increase in accrued liabilities was mainly due to a legal settlement and timing of employee compensation and payroll tax payments as well as the timing of other payments. The decrease in our accounts payable was due to timing of payments for some of our larger vendors for both inventory and services. The increase in accounts receivable was primarily due to the sales increase in fiscal 2021. The majority of the inventory increase was to support the electron tube and RF and microwave components business.

Operating activities used $2.4 million of cash during the first nine months of fiscal 2020. We had a net loss of $0.6 million during the first nine months of fiscal 2020, which included non-cash stock-based compensation expense of $0.5 million associated with the issuance of stock option and restricted stock awards, $0.5 million for inventory reserve provisions and depreciation and amortization expense of $2.5 million associated with our property and equipment as well as amortization of our intangible assets. Changes in our operating assets and liabilities resulted in a use of cash of $5.4 million during the first nine months of fiscal 2020, net of foreign currency exchange gains and losses, included an increase in inventory of $4.2 million, a decrease of $2.1 million in accounts payable and a decrease in accrued liabilities of $0.2 million partially offset by a decrease in accounts receivable of $1.1 million. The decrease in our accounts payable was due to timing of payments for some of our larger vendors for both inventory and services. The majority of the inventory increase was to support the continued growth of our electron tube and RF and Power Technologies groups.

Operating activities used $5.2 million of cash during the first nine months of fiscal 2019. We had net loss of $1.0 million during the first nine months of fiscal 2019, which included non-cash stock-based compensation expense of $0.6 million associated with the issuance of stock option and restricted stock awards, $0.6 million for inventory reserve provisions and depreciation and amortization expense of $2.4 million associated with our property and equipment as well as amortization of our intangible assets. Changes in our operating assets and liabilities resulted in a use of cash of $8.0 million during the first nine months of fiscal 2019, net of foreign currency exchange gains and losses, included a decrease of $5.4 million in accounts payable, an increase in inventory of $3.3 million, an increase in accounts receivable of $0.6 million partially offset by an increase in accrued liabilities of $0.9 million and a decrease of $0.3 million in prepaid expenses and other assets. The decrease in our accounts payable was due to timing of payments for some of our larger vendors for both inventory and services. The inventory increase was primarily due to growth in supplying replacement systems and parts to the Healthcare market as well as an increase in components for the production of the ALTA 750^TM ~~CT Tube.~~

The cash flow ~~used in~~provided by (used in) investing activities consisted primarily of purchases of investments and capital expenditures partially offset by proceeds from the maturities of investments.

Cash provided by investing activities of $5.2 million during the first nine months of fiscal 2021 included proceeds from the maturities of investments of $16.0 million, partially offset by purchases of investments of $9.0 million and $1.8 million in capital expenditures. Capital expenditures related primarily to capital used for our Healthcare business and our IT system.

Cash used in investing activities of $6.2 million during the first nine months of fiscal 2020 included purchases of investments of $13.0 million and $1.2 million in capital expenditures, partially offset by proceeds from the maturities of investments of $8.0 million. Capital expenditures related primarily to capital used for our IT system, Healthcare and LaFox manufacturing businesses.

Cash used in investing activities of $18.7 million during the first nine months of fiscal 2019 included $17.8 million from purchases of investments and $3.2 million in capital expenditures partially offset by proceeds from the maturities of investments of $2.3 million. Capital expenditures relates primarily to our Healthcare growth initiatives, a new air conditioner unit for the global headquarters, investments in our LaFox manufacturing operation and capital used for our IT system.

Our purchases of investments consisted of CDs. Purchasing of future investments may vary from period to period due to interest and foreign currency exchange rates.

The cash flow used in financing activities consisted primarily of cash dividends paid.

Cash used in financing activities of $2.5 million during the first nine months of fiscal 2021 primarily resulted from cash used to pay dividends.

Cash used in financing activities of $2.4 million during the first nine months of fiscal 2020 primarily resulted from cash used to pay dividends.

Cash used in financing activities of $2.1 million during the first nine months of fiscal 2019 resulted from $2.3 million of cash used to pay dividends partially offset by $0.2 million of proceeds from the issuance of common stock from stock option exercises.

All future payments of dividends are at the discretion of the Board of Directors. Dividend payments will depend on earnings, capital requirements, operating conditions and such other factors that the Board may deem relevant.

We are exposed to many different market risks with the various industries we serve. The primary financial risk we are exposed to is foreign currency exchange, as certain operations, assets and liabilities of ours are denominated in foreign currencies. We manage these risks through normal operating and financing activities.

The interpretation and analysis of these disclosures should not be considered in isolation since such variances in exchange rates would likely influence other economic factors. Such factors, which are not readily quantifiable, would likely also affect our operations. Additional disclosure regarding various market risks are set forth in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended ~~June 1, 2019,~~May 30, 2020, filed August ~~5, 2019.~~3, 2020.

Management of the Company, with the participation of the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of February ~~29, 2020.~~27, 2021.

Disclosure controls and procedures are intended to provide reasonable assurance that information required to be disclosed in the Company’s Exchange Act reports is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

There were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the third quarter of fiscal ~~2020~~2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

On October 15, 2018, Varex Imaging Corporation (“Varex”) filed its original Complaint (Case No. 1:18-cv-06911) against Richardson Electronics Ltd. (“Richardson”) in the Northern District of Illinois, which was subsequently amended on November 27, 2018. Varex alleged counts of infringement of U.S. Patent Nos. 6,456,692 and 6,519,317. Subsequently, on October 24, 2018, Varexfiled a motion for preliminary injunction to stop the sale of Richardson’s ALTA750^TM product. Richardson filed an opposition to the preliminary injunction. In January 2019, the Court took evidence on the preliminary injunction issue. On September 30, 2019, the Court ~~soundly~~ denied Varex’s Motion for Preliminary Injunction. On August 6, 2020, Varex amended its Complaint to add claims of trade secret misappropriation and Richardson ~~believes~~moved to dismiss that Amended Complaint on September 9, 2020. On April 2, 2021, as part of an overall settlement where Richardson did not admit liability but wanted to move forward, Richardson agreed to pay Varex $1.6 million to settle this matter which is recorded in selling, general and administrative expenses within the ~~lawsuit to be without merit and a loss is not probable or estimable based on the information at the time the financial statements were issued.~~Consolidated Statements of Comprehensive Income (Loss).

~~The Company's operations and financial results are subject~~There have been no material changes to various risks and uncertainties, including those described in Part I, Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended June 1, 2019, filed August 5, 2019. The following supplements and updates the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended ~~June 1, 2019.~~

~~Major disruptions to our logistics capability or to the operations of our key vendors or customers could have a material adverse impact on our operations.~~

We operate our global logistics services through specialized and centralized distribution centers. We depend on third party transportation service providers for the delivery of products to our customers. A major interruption or disruption in service at any of our distribution centers, or a disruption at the operations of any of our significant vendors or customers, for any reason, including reasons beyond our control (such as natural disasters, pandemics (such as the outbreak of a novel strain of coronavirus, now known as COVID-19), work stoppages, power loss, cyber attacks, incidents of terrorism or other significant disruptions of services from our third party providers) could cause cancellations or delays in a significant number of shipments to customers and, as a result, could have a severe impact on our business, operations and financial performance.

In December 2019, an outbreak of COVID-19 virus originated in Wuhan, China, and has since spread to a number of other countries, including the United States. The outbreak and actions taken by the Chinese government resulted in travel restrictions and extended shutdowns of certain businesses in the region. As a result, we experienced cancellations and delays in shipments to our customers in China as well as receiving shipments from our vendors in China during our third quarter of fiscal 2020. On JanuaryMay 30, 2020, the World Health Organization (“WHO”) announced a global health emergency and the risks to the international community as the virus spreads globally. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in global exposure. In response, the governments of many countries, states, cities and other geographic regions (including areas in which we have operations) have taken preventative or protective actions, such as imposing restrictions on business operations and requiring individuals to stay at home. As the spread of the COVID-19 outbreak continues, our ability to meet customer demands for products may be impaired or, similarly, our customers may experience adverse business consequences due to COVID-19. A resulting reduced demand for products or impaired ability to meet customer demand (including as a result of disruptions at our transportation service providers or vendors) could cause a material adverse effect on our business, operations and financial performance. This is a very dynamic situation and we cannot at this time predict the extent to which the COVID-19 outbreak may impact our future results.filed August 3, 2020.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, $0.05 Par Value		RELL		NASDAQ Global Select Market

		Page

Part I.	Financial Information

Item 1.	Financial Statements	2
	Consolidated Balance Sheets	2
	Unaudited Consolidated Statements of Comprehensive ~~Loss~~Income (Loss)	3
	Unaudited Consolidated Statements of Cash Flows	4
	Unaudited Consolidated Statement of Stockholders’ Equity	5
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2425
Item 4.	Controls and Procedures	25

Part II.	Other Information

Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 5.	Other Information	26
Item 6.	Exhibits	27
Exhibit Index		27
Signatures		28

Exhibit Number		Description

3.1		Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Annex III of the Proxy Statement dated August 22, 2014).

3.2		Amended and Restated By-Laws of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 15, 2017).

31.1		Certification of Edward J. Richardson pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Robert J. Ben pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32		Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following financial information from our Quarterly Report on Form 10-Q for the third quarter of fiscal ~~2020,~~2021, filed with the SEC on April ~~9, 2020,~~8, 2021, formatted in Inline Extensible Business Reporting Language ~~(XBRL)~~(iXBRL): (i) the Consolidated Balance Sheets, (ii) the Unaudited Consolidated Statements of Comprehensive ~~Loss,~~Income (Loss), (iii) the Unaudited Consolidated Statements of Cash Flows, (iv) the Unaudited Consolidated Statement of Stockholders’ Equity and (v) Notes to Unaudited Consolidated Financial Statements.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

	RICHARDSON ELECTRONICS, LTD.

Date: April ~~9, 2020~~8, 2021	By:	/s/ Robert J. Ben
		Robert J. Ben Chief Financial Officer and Chief Accounting Officer (on behalf of the Registrant and as Principal Financial Officer)

Large Accelerated Filer	☐	Accelerated Filer	☒
Non-Accelerated Filer	☐	Smaller Reporting Company	☒
Emerging Growth Company	☐

	Level 1
February 27, 2021
CD	$	9,000
Total	$	9,000
May 30, 2020
CDs	$	16,000
Total	$	16,000

		~~Level 1~~
CD			~~13,000~~