Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Feb. 28, 2015 | Mar. 31, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | AEHR TEST SYSTEMS | |
Entity Central Index Key | 1040470 | |
Document Type | 10-Q | |
Document Period End Date | 28-Feb-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -26 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 12,709,054 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2015 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Feb. 28, 2015 | 31-May-14 | |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and cash equivalents | $2,274 | $1,809 | [1] |
Accounts receivable, net | 597 | 3,390 | [1] |
Inventories | 6,854 | 6,148 | [1] |
Prepaid expenses and other | 428 | 326 | [1] |
Total current assets | 10,153 | 11,673 | [1] |
Property and equipment, net | 502 | 474 | [1] |
Other assets | 94 | 78 | [1] |
Total assets | 10,749 | 12,225 | [1] |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Line of credit | 115 | 777 | [1] |
Accounts payable | 1,631 | 1,892 | [1] |
Accrued expenses | 1,375 | 1,390 | [1] |
Customer deposits and deferred revenue | 1,712 | 1,058 | [1] |
Total current liabilities | 4,833 | 5,117 | [1] |
Income taxes payable | 8 | 71 | [1] |
Deferred rent, net of current portion | 0 | 8 | [1] |
Total liabilities | 4,841 | 5,196 | [1] |
Aehr Test Systems shareholders' equity: | |||
Common stock, $0.01 par value: Authorized: 75,000 shares: Issued and outstanding: 12,695 shares and 11,203 shares at February 28, 2015 and May 31, 2014, respectively | 127 | 112 | [1] |
Additional paid-in capital | 55,976 | 52,142 | [1] |
Accumulated other comprehensive income | 2,262 | 2,488 | [1] |
Accumulated deficit | -52,439 | -47,692 | [1] |
Total Aehr Test Systems shareholders' equity | 5,926 | 7,050 | [1] |
Noncontrolling interest | -18 | -21 | [1] |
Total shareholders' equity | 5,908 | 7,029 | [1] |
Total liabilities and shareholders' equity | $10,749 | $12,225 | [1] |
[1] | The condensed consolidated balance sheet at May 31, 2014 has been derived from the audited consolidated financial statements at that date. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Feb. 28, 2015 | 31-May-14 |
In Thousands, except Per Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets Parenthetical | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 12,695 | 11,203 |
Common stock, shares outstanding | 12,695 | 11,203 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Income Statement [Abstract] | ||||
Net sales | $2,027 | $5,612 | $8,200 | $14,314 |
Cost of sales | 1,175 | 2,742 | 5,044 | 7,006 |
Gross profit | 852 | 2,870 | 3,156 | 7,308 |
Operating expenses: | ||||
Selling, general and administrative | 1,584 | 1,701 | 4,944 | 4,638 |
Research and development | 1,031 | 907 | 3,095 | 2,386 |
Total operating expenses | 2,615 | 2,608 | 8,039 | 7,024 |
(Loss) income from operations | -1,763 | 262 | -4,883 | 284 |
Interest expense | -7 | -7 | -29 | -21 |
Other income (expense), net | 110 | -21 | 201 | -85 |
(Loss) income before income tax (expense) benefit | -1,660 | 234 | -4,711 | 178 |
Income tax (expense) benefit | -66 | -22 | -36 | 5 |
Net (loss) income | -1,726 | 212 | -4,747 | 183 |
Less: Net income attributable to the noncontrolling interest | 0 | 0 | 0 | 0 |
Net (loss) income attributable to Aehr Test Systems common shareholders | ($1,726) | $212 | ($4,747) | $183 |
Net (loss) income per share - basic | ($0.14) | $0.02 | ($0.40) | $0.02 |
Net (loss) income per share - diluted | ($0.14) | $0.02 | ($0.40) | $0.02 |
Shares used in per share calculations - Basic | 12,677 | 10,982 | 11,931 | 10,807 |
Shares used in per share calculations - Diluted | 12,677 | 12,277 | 11,931 | 11,583 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | ($1,726) | $212 | ($4,747) | $183 |
Other comprehensive (loss) income , net of tax: Net change in cumulative translation adjustment | -111 | 14 | -223 | 59 |
Total comprehensive (loss) income | -1,837 | 226 | -4,970 | 242 |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 0 | 0 | 3 | -1 |
Comprehensive (loss) income, attributable to Aehr Test Systems | ($1,837) | $226 | ($4,973) | $243 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | |
Cash flows from operating activities: | |||
Net (loss) income | ($4,747) | $183 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||
Stock-based compensation expense | 693 | 625 | |
(Recovery of) provision for doubtful accounts | -44 | 13 | |
Gain on disposal of fixed asset | 0 | -41 | |
Depreciation and amortization | 98 | 119 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,584 | -685 | |
Inventories | -706 | -546 | |
Prepaid expenses and other | -129 | -123 | |
Accounts payable | 6 | 1,075 | |
Accrued expenses | -71 | 8 | |
Customer deposits and deferred revenue | 663 | -691 | |
Income taxes payable | 21 | -35 | |
Deferred rent | -8 | -71 | |
Net cash used in operating activities | -1,640 | -169 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | -106 | -154 | |
Proceeds from sales of property and equipment | 0 | 50 | |
Net cash used in investing activities | -106 | -104 | |
Cash flows from financing activities: | |||
Line of credit repayments, net | -662 | -695 | |
Proceeds from issuance of common stock under private placement, net of issuance costs | 2,574 | 0 | |
Proceeds from issuance of common stock under employee plans | 553 | 502 | |
Net cash provided by (used in) financing activities | 2,465 | -193 | |
Effect of exchange rates on cash | -254 | -12 | |
Net increase (decrease) in cash and cash equivalents | 465 | -478 | |
Cash and cash equivalents, beginning of period | 1,809 | [1] | 2,324 |
Cash and cash equivalents, end of period | 2,274 | 1,846 | |
Supplemental disclosure of non-cash flow information | |||
Net change in capitalized share-based compensation | $29 | $0 | |
[1] | The condensed consolidated balance sheet at May 31, 2014 has been derived from the audited consolidated financial statements at that date. |
1_BASIS_OF_PRESENTATION
1. BASIS OF PRESENTATION | 9 Months Ended |
Feb. 28, 2015 | |
Disclosure Text Block [Abstract] | |
1. BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION |
The accompanying financial information has been prepared by Aehr Test Systems, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. | |
In the opinion of management, the unaudited condensed consolidated financial statements for the interim periods presented have been prepared on a basis consistent with the May 31, 2014 audited consolidated financial statements and reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated financial position and results of operations as of and for such periods indicated. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2014. Results for the interim periods presented herein are not necessarily indicative of results which may be reported for any other interim period or for the entire fiscal year. | |
PRINCIPLES OF CONSOLIDATION. The condensed consolidated financial statements include the accounts of Aehr Test Systems and its subsidiaries (collectively, the "Company," "we," "us," and "our"). All significant intercompany balances have been eliminated in consolidation. For the majority owned subsidiary, Aehr Test Systems Japan, we reflected the noncontrolling interest of the portion we do not own on our Consolidated Balance Sheets in Shareholders’ Equity and in the Consolidated Statements of Operations. | |
ACCOUNTING ESTIMATES. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used to account for revenue adjustments, the allowance for doubtful accounts, inventory reserves, income taxes, stock-based compensation expenses, and product warranties, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates. | |
SIGNIFICANT ACCOUNTING POLICIES. The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended May 31, 2014. There have been no changes in our significant accounting policies during the nine months ended February 28, 2015. |
2_STOCKBASED_COMPENSATION
2. STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||
2. STOCK-BASED COMPENSATION | 2. STOCK-BASED COMPENSATION | |||||||||||||||||||||||||||
Stock-based compensation expense consists of expenses for stock options and employee stock purchase plan, or ESPP, shares. Stock-based compensation cost is measured at each grant date, based on the fair value of the award using the Black-Scholes option valuation model, and is recognized as expense over the employee’s requisite service period. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. The Company’s employee stock options have characteristics significantly different from those of publicly traded options. All of the Company’s stock-based compensation is accounted for as an equity instrument. See Notes 10 and 11 in the Company’s Annual Report on Form 10-K for fiscal 2014 filed on August 28, 2014 for further information regarding the stock option plan and the ESPP. | ||||||||||||||||||||||||||||
The following table summarizes compensation costs related to the Company’s stock-based compensation for the three and nine months ended February 28, 2015 and 2014 (in thousands): | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Stock-based compensation in the form of employee stock options and ESPP shares, included in: | ||||||||||||||||||||||||||||
Cost of sales | $ | 17 | $ | 10 | $ | 47 | $ | 33 | ||||||||||||||||||||
Selling, general and administrative | 148 | 184 | 508 | 471 | ||||||||||||||||||||||||
Research and development | 54 | 41 | 138 | 121 | ||||||||||||||||||||||||
Total stock-based compensation | $ | 219 | $ | 235 | $ | 693 | $ | 625 | ||||||||||||||||||||
As of February 28, 2015, stock-based compensation costs of $53,000 were capitalized as part of inventory. There were no stock-based compensation costs capitalized as part of inventory at February 28, 2014. | ||||||||||||||||||||||||||||
During the three months ended February 28, 2015 and 2014, the Company recorded stock-based compensation related to stock options of $183,000 and $205,000, respectively. During the nine months ended February 28, 2015 and 2014, the Company recorded stock-based compensation related to stock options of $589,000 and $533,000, respectively. | ||||||||||||||||||||||||||||
As of February 28, 2015, the total unrecognized stock-based compensation cost related to unvested stock-based awards under the Company’s 1996 Stock Option Plan and 2006 Equity Incentive Plan was approximately $1,540,000, which is net of estimated forfeitures of $4,000. This cost will be amortized over the remaining service period of the underlying options. The weighted average service period is approximately 2.7 years. | ||||||||||||||||||||||||||||
During the three months ended February 28, 2015 and 2014, the Company recorded stock-based compensation related to the ESPP of $37,000 and $30,000, respectively. During the nine months ended February 28, 2015 and 2014, the Company recorded stock-based compensation related to the ESPP of $104,000 and $92,000, respectively. | ||||||||||||||||||||||||||||
As of February 28, 2015, the total compensation cost related to options to purchase the Company’s common stock under the ESPP but not yet recognized was approximately $111,000. This cost will be amortized on a straight-line basis over a weighted average service period of approximately 1.2 years. | ||||||||||||||||||||||||||||
Valuation Assumptions | ||||||||||||||||||||||||||||
Valuation and Amortization Method. The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a single option award approach. The fair value under the single option approach is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. | ||||||||||||||||||||||||||||
Expected Term. The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as evidenced by changes to the terms of its stock-based awards. | ||||||||||||||||||||||||||||
Expected Volatility. Volatility is a measure of the amounts by which a financial variable such as stock price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The Company uses the historical volatility for the past four or five years, which matches the expected term of most of the option grants, to estimate expected volatility. Volatility for each of the ESPP’s four time periods of six months, twelve months, eighteen months, and twenty-four months is calculated separately and included in the overall stock-based compensation cost recorded. | ||||||||||||||||||||||||||||
Dividends. The Company has never paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes option valuation model. | ||||||||||||||||||||||||||||
Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield in effect at the time of option grant on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the stock awards including the ESPP. | ||||||||||||||||||||||||||||
Estimated Forfeitures. When estimating forfeitures, the Company considers voluntary termination behavior as well as analysis of actual option forfeitures. | ||||||||||||||||||||||||||||
Fair Value. The fair value of the Company’s stock options granted to employees for the three months ended February 28, 2015, and the nine months ended February 28, 2015 and 2014 were estimated using the following weighted average assumptions in the Black-Scholes option valuation model: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||||||||||||||
Option plan shares | ||||||||||||||||||||||||||||
Expected term (in years) | 4 | 4 | 4 | |||||||||||||||||||||||||
Volatility | 0.9 | 0.91 | 0.95 | |||||||||||||||||||||||||
Expected dividend | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||
Risk-free interest rates | 1.16 | % | 1.25 | % | 1.4 | % | ||||||||||||||||||||||
Estimated forfeiture rate | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||||
Weighted average grant date fair value | $ | 1.62 | $ | 1.64 | $ | 1.03 | ||||||||||||||||||||||
There were no options granted during the three months ended February 28, 2014. | ||||||||||||||||||||||||||||
The fair values of the ESPP purchase rights granted for the nine months ended February 28, 2015 and 2014 were estimated using the following weighted-average assumptions: | ||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
February 28, | ||||||||||||||||||||||||||||
Employee stock purchase plan purchase rights | 2015 | 2014 | ||||||||||||||||||||||||||
Expected term (in years) | 0.5-2.0 | 0.5-2.0 | ||||||||||||||||||||||||||
Volatility | 0.55-0.83 | 0.86-1.00 | ||||||||||||||||||||||||||
Expected dividend | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Risk-free interest rates | 0.04%-0.53 | % | 0.04%-0.33 | % | ||||||||||||||||||||||||
Estimated forfeiture rate | 0 | % | 0 | % | ||||||||||||||||||||||||
Weighted average grant date fair value | $ | 1.47 | $ | 1.34 | ||||||||||||||||||||||||
There were no ESPP purchase rights granted during the three months ended February 28, 2015 and 2014. During the nine months ended February 28, 2015 and 2014, ESPP purchase rights of 170,000 and 163,000 shares, respectively, were granted. There were no ESPP shares issued during the three months ended February 28, 2015 and 2014. Total ESPP shares issued during the nine months ended February 28, 2015 and 2014 were 43,000 shares and 75,000 shares, respectively. As of February 28, 2015 there were 311,000 ESPP shares available for issuance. | ||||||||||||||||||||||||||||
The following table summarizes the stock option transactions during the three and nine months ended February 28, 2015 (in thousands, except per share data): | ||||||||||||||||||||||||||||
Outstanding Options | ||||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Number | Average | Aggregate | ||||||||||||||||||||||||||
Available | of | Exercise | Intrinsic | |||||||||||||||||||||||||
Shares | Shares | Price | Value | |||||||||||||||||||||||||
Balances, May 31, 2014 | 1,145 | 3,002 | $ | 1.31 | $ | 2,913 | ||||||||||||||||||||||
Options granted | (625 | ) | 625 | $ | 2.65 | |||||||||||||||||||||||
Options terminated | 9 | (9 | ) | $ | 1.27 | |||||||||||||||||||||||
Options exercised | -- | (295 | ) | $ | 1.07 | |||||||||||||||||||||||
Balances, August 31, 2014 | 529 | 3,323 | $ | 1.59 | $ | 3,277 | ||||||||||||||||||||||
Additional shares reserved | 860 | -- | ||||||||||||||||||||||||||
Options granted | (140 | ) | 140 | $ | 2.06 | |||||||||||||||||||||||
Options terminated | 10 | (10 | ) | $ | 1.74 | |||||||||||||||||||||||
Options exercised | -- | (35 | ) | $ | 1.62 | |||||||||||||||||||||||
Balances, November 30, 2014 | 1,259 | 3,418 | $ | 1.61 | $ | 3,657 | ||||||||||||||||||||||
Options granted | (35 | ) | 35 | $ | 2.54 | |||||||||||||||||||||||
Options terminated | 24 | (24 | ) | $ | 2.06 | |||||||||||||||||||||||
Options exercised | -- | (27 | ) | $ | 1.56 | |||||||||||||||||||||||
Balances, February 28, 2015 | 1,248 | 3,402 | $ | 1.61 | $ | 3,534 | ||||||||||||||||||||||
Options fully vested and expected to vest at February 28, 2015 | 3,334 | $ | 1.61 | $ | 3,463 | |||||||||||||||||||||||
Options exercisable at February 28, 2015 | 2,098 | $ | 1.43 | $ | 2,551 | |||||||||||||||||||||||
The options outstanding and exercisable at February 28, 2015 were in the following exercise price ranges (in thousands, except per share data): | ||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
at February 28, 2015 | at February 28, 2015 | |||||||||||||||||||||||||||
Range of Exercise | Number Outstanding Shares | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number Exercisable Shares | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||||||||
Prices | ||||||||||||||||||||||||||||
$0.59-$0.97 | 680 | 4.1 | $ | 0.7 | 586 | 4.14 | $ | 0.72 | ||||||||||||||||||||
$1.09-$1.40 | 1,311 | 4.23 | $ | 1.28 | 807 | 3.86 | $ | 1.28 | ||||||||||||||||||||
$1.73-$2.06 | 512 | 3.25 | $ | 1.91 | 409 | 2.55 | $ | 1.92 | ||||||||||||||||||||
$2.15-$2.71 | 899 | 5.96 | $ | 2.62 | 296 | 4.96 | $ | 2.56 | ||||||||||||||||||||
$0.59-$2.71 | 3,402 | 4.51 | $ | 1.61 | 2,098 | 3.84 | $ | 1.43 | $ | $2,551 | ||||||||||||||||||
The total intrinsic value of options exercised during the three and nine months ended February 28, 2015 was $30,000 and $466,000, respectively. The total intrinsic value of options exercised during the three and nine months ended February 28, 2014 was $162,000 and $315,000, respectively. The weighted average remaining contractual life of the options exercisable and expected to be exercisable at February 28, 2015 was 4.51 years. | ||||||||||||||||||||||||||||
3_EARNINGS_PER_SHARE
3. EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
3. EARNINGS PER SHARE | 3. EARNINGS PER SHARE | ||||||||||||||||
Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, and employee stock purchase plan shares) outstanding during the period using the treasury stock method. | |||||||||||||||||
The following table presents the computation of basic and diluted net (loss) income per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Numerator: Net (loss) income | $ | (1,726 | ) | $ | 212 | $ | (4,747 | ) | $ | 183 | |||||||
Denominator for basic net (loss) income per share: | |||||||||||||||||
Weighted-average shares outstanding | 12,677 | 10,982 | 11,931 | 10,807 | |||||||||||||
Shares used in basic net (loss) income per share calculation | 12,677 | 10,982 | 11,931 | 10,807 | |||||||||||||
Effect of dilutive securities | -- | 1,295 | -- | 776 | |||||||||||||
Denominator for diluted net (loss) income per share | 12,677 | 12,277 | 11,931 | 11,583 | |||||||||||||
Basic net (loss) income per share | $ | (0.14 | ) | $ | 0.02 | $ | (0.40 | ) | $ | 0.02 | |||||||
Diluted net (loss) income per share | $ | (0.14 | ) | $ | 0.02 | $ | (0.40 | ) | $ | 0.02 | |||||||
For the purpose of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair value of the Company’s common stock for the period, as the effect would be anti-dilutive. Stock options to purchase 3,402,000 shares of common stock and ESPP rights to purchase 175,000 ESPP shares were outstanding for the three months ending February 28, 2015, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. Stock options to purchase 3,381,000 shares of common stock and ESPP rights to purchase 160,000 ESPP shares were outstanding for the nine months ending February 28, 2015, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. In the three and nine months ended February 28, 2015, potential common shares have not been included in the calculation of diluted net loss per share as the effect would be anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for these periods are the same. Stock options to purchase 192,000 shares of common stock and ESPP rights to purchase 177,000 ESPP shares were outstanding for the three months ending February 28, 2014, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. Stock options to purchase 370,000 shares of common stock and ESPP rights to purchase 177,000 ESPP shares were outstanding for the nine months ending February 28, 2014, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. |
4_FAIR_VALUE_OF_FINANCIAL_INST
4. FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
4. FAIR VALUE OF FINANCIAL INSTRUMENTS | 4. FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
The Company’s financial instruments are measured at fair value consistent with authoritative guidance. This authoritative guidance defines fair value, establishes a framework for using fair value to measure assets and liabilities, and disclosures required related to fair value measurements. | |||||||||||||||||
The guidance establishes a fair value hierarchy based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: | |||||||||||||||||
Level 1 - instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. | |||||||||||||||||
Level 2 - instrument valuations are obtained from readily-available pricing sources for comparable instruments. | |||||||||||||||||
Level 3 - instrument valuations are obtained without observable market values and require a high level of judgment to determine the fair value. | |||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of February 28, 2015 (in thousands): | |||||||||||||||||
Balance as of | |||||||||||||||||
February 28, | |||||||||||||||||
2015 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 500 | $ | 500 | $ | -- | $ | -- | |||||||||
Certificate of deposit | 50 | -- | 50 | -- | |||||||||||||
Assets | $ | 550 | $ | 500 | $ | 50 | $ | -- | |||||||||
Liabilities | $ | -- | $ | -- | $ | -- | $ | -- | |||||||||
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2014 (in thousands): | |||||||||||||||||
Balance as of | |||||||||||||||||
31-May-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 477 | $ | 477 | $ | -- | $ | -- | |||||||||
Certificate of deposit | 50 | -- | 50 | -- | |||||||||||||
Assets | $ | 527 | $ | 477 | $ | 50 | $ | -- | |||||||||
Liabilities | $ | -- | $ | -- | $ | -- | $ | -- | |||||||||
There were no transfers between Level 1 and Level 2 fair value measurements during the three and nine months ended February 28, 2015 and 2014. | |||||||||||||||||
Financial instruments include cash, cash equivalents, receivables, accounts payable and certain other accrued liabilities. The fair value of cash, cash equivalents, receivables, accounts payable and certain other accrued liabilities are valued at their carrying value, which approximates fair value due to their short maturities. | |||||||||||||||||
The Company has, at times, invested in debt and equity of private companies, and may do so again in the future, as part of its business strategy. |
5_ACCOUNTS_RECEIVABLE_NET
5. ACCOUNTS RECEIVABLE, NET | 9 Months Ended |
Feb. 28, 2015 | |
Accounts Receivable, Net, Current [Abstract] | |
5. ACCOUNTS RECEIVABLE | 5. ACCOUNTS RECEIVABLE, NET |
Accounts receivable represents customer trade receivables and is presented net of allowances for doubtful accounts of $7,000 at February 28, 2015 and $51,000 at May 31, 2014. Accounts receivable are derived from the sale of products throughout the world to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in and test service companies. The Company’s allowance for doubtful accounts is based upon historical experience and review of trade receivables by aging category to identify specific customers with known disputes or collection issues. Uncollectible receivables are recorded as bad debt expense when all efforts to collect have been exhausted and recoveries are recognized when they are received. |
6_INVENTORIES
6. INVENTORIES | 9 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
6. INVENTORIES | 6. INVENTORIES | ||||||||
Inventories are comprised of the following (in thousands): | |||||||||
February 28, | May 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials and sub-assemblies | $ | 3,627 | $ | 3,348 | |||||
Work in process | 3,099 | 2,585 | |||||||
Finished goods | 128 | 215 | |||||||
$ | 6,854 | $ | 6,148 |
7_SEGMENT_INFORMATION
7. SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
7. SEGMENT INFORMATION | 7. SEGMENT INFORMATION | ||||||||||||||||
The Company operates in one reportable segment: the design, manufacture and marketing of advanced test and burn-in products to the semiconductor manufacturing industry. | |||||||||||||||||
The following presents information about the Company’s operations in different geographic areas. Net sales are based upon ship-to location (in thousands). | |||||||||||||||||
United | |||||||||||||||||
States | Asia | Europe | Total | ||||||||||||||
Three months ended February 28, 2015: | |||||||||||||||||
Net sales | $ | 684 | $ | 979 | $ | 364 | $ | 2,027 | |||||||||
Property and equipment, net | 455 | 35 | 12 | 502 | |||||||||||||
Nine months ended February 28, 2015: | |||||||||||||||||
Net sales | $ | 3,054 | $ | 3,845 | $ | 1,301 | $ | 8,200 | |||||||||
Property and equipment, net | 455 | 35 | 12 | 502 | |||||||||||||
Three months ended February 28, 2014: | |||||||||||||||||
Net sales | $ | 2,863 | $ | 1,039 | $ | 1,710 | $ | 5,612 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
Nine months ended February 28, 2014: | |||||||||||||||||
Net sales | $ | 7,082 | $ | 4,963 | $ | 2,269 | $ | 14,314 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
The Company’s Japanese and German subsidiaries primarily comprise the foreign operations. Substantially all of the sales of the subsidiaries are made to unaffiliated Japanese or European customers. Net sales from outside the United States include those of Aehr Test Systems Japan K.K. and Aehr Test Systems GmbH. | |||||||||||||||||
Sales to the Company’s five largest customers accounted for approximately 82% and 87% of its net sales in the three and nine months ended February 28, 2015, respectively. One customer accounted for approximately 60% of the Company’s net sales in the three months ended February 28, 2015. Three customers accounted for approximately 47%, 12% and 10% of the Company’s net sales in the nine months ended February 28, 2015. Sales to the Company’s five largest customers accounted for approximately 95% and 94% of its net sales in the three and nine months ended February 28, 2014, respectively. Four customers accounted for approximately 36%, 28%, 19% and 11% of the Company’s net sales in the three months ended February 28, 2014. Two customers accounted for approximately 46% and 33% of the Company’s net sales in the nine months ended February 28, 2014. No other customers represented more than 10% of the Company’s net sales for either fiscal 2015 or fiscal 2014. |
8_PRODUCT_WARRANTIES
8. PRODUCT WARRANTIES | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||
8. PRODUCT WARRANTIES | 8. PRODUCT WARRANTIES | ||||||||||||||||
The Company provides for the estimated cost of product warranties at the time the products are shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. | |||||||||||||||||
The standard warranty period is ninety days for parts and service and one year for systems. | |||||||||||||||||
Following is a summary of changes in the Company's liability for product warranties during the three and nine months ended February 28, 2015 and 2014 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Balance at the beginning of the period | $ | 149 | $ | 208 | $ | 223 | $ | 222 | |||||||||
Accruals for warranties issued during the period | 47 | 34 | 145 | 188 | |||||||||||||
Settlement made during the period (in cash or in kind) | (34 | ) | (46 | ) | (206 | ) | (214 | ) | |||||||||
Balance at the end of the period | $ | 162 | $ | 196 | $ | 162 | $ | 196 | |||||||||
The accrued warranty balance is included in accrued expenses on the accompanying condensed consolidated balance sheets. |
9_INCOME_TAXES
9. INCOME TAXES | 9 Months Ended |
Feb. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
9. INCOME TAXES | 9. INCOME TAXES |
Income taxes have been provided using the liability method whereby deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and net operating loss and tax credit carryforwards measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse or the carryforwards are utilized. Valuation allowances are established when it is determined that it is more likely than not that such assets will not be realized. | |
Since fiscal 2009, a full valuation allowance was established against all deferred tax assets as management determined that it is more likely than not that certain deferred tax assets will not be realized. | |
The Company accounts for uncertain tax positions consistent with authoritative guidance. The guidance prescribes a “more likely than not” recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company does not expect any material change in its unrecognized tax benefits over the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income taxes. | |
Although the Company files U.S. federal, various state, and foreign tax returns, the Company’s only major tax jurisdictions are the United States, California, Germany and Japan. Tax years 1996 - 2014 remain subject to examination by the appropriate governmental agencies due to tax loss carryovers from those years. |
10_CUSTOMER_DEPOSITS_AND_DEFER
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE | 9 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Customer Deposits And Deferred Revenue | |||||||||
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE | 10. CUSTOMER DEPOSITS AND DEFERRED REVENUE | ||||||||
Customer deposits and deferred revenue (in thousands): | |||||||||
February 28, | May 31, | ||||||||
2015 | 2014 | ||||||||
Customer deposits | $ | 546 | $ | 871 | |||||
Deferred revenue | 1,166 | 187 | |||||||
$ | 1,712 | $ | 1,058 |
11_LINE_OF_CREDIT
11. LINE OF CREDIT | 9 Months Ended |
Feb. 28, 2015 | |
Line of Credit Facility [Abstract] | |
11. LINE OF CREDIT | 11. LINE OF CREDIT |
On August 25, 2011, the Company entered into a working capital credit facility agreement allowing the Company to borrow up to $1.5 million based upon qualified accounts receivable, and export-related inventory. On May 29, 2012, the credit agreement was amended to increase the borrowing limit to $2.0 million. On September 11, 2012, the Company entered into the second amendment to the Loan and Security Agreement to increase the borrowing limit under the credit facility from $2.0 million to $2.5 million. On August 21, 2013, the Company entered into the Third Amendment to Loan and Security Agreement to extend the term of the agreement to August 22, 2014. Under the terms of the amendment to the line of credit, the lender will also have a security interest in the Company’s intellectual property. On August 22, 2014, the Company entered into the Fourth Amendment to Loan and Security Agreement to extend the term of the agreement to August 21, 2015. The line of credit is collateralized by all of the Company’s assets. Each account receivable financed by the lender will bear an annual interest rate or finance charge equal to the greater of the lender's prime rate less 0.5%, or 3.50%, if the Company meets certain borrowing base requirements. If the Company does not meet the borrowing base requirements, each account receivable financed by the lender will bear an annual interest rate or finance charge equal to the greater of the lender's prime rate plus 0.75%, or 4.75%. The applicable interest is calculated based on the full amount of the account receivable and export-related inventory provided as collateral for the actual amounts borrowed. Depending on the composition of the collateral items, whether or not the Company meets certain borrowing base requirements and the relative cash position of the Company, the equivalent annual interest rate applied to the actual loan balances may vary from 3.89% to 8.94%, assuming that the bank’s prime rate is 4.00% or less. At February 28, 2015, the weighted average interest rate on the outstanding loan balance was 4.188%. The average loan balance for the three and nine months ending February 28, 2015 was $397,000 and $649,000, respectively. At February 28, 2015, the Company had drawn $115,000 against the credit facility. The balance available to borrow under the line at February 28, 2015 was $78,000. The Company was in compliance with all covenants at February 28, 2015. | |
On April 10, 2015 the Company entered into a Convertible Note Purchase and Credit Facility Agreement with QVT Fund LP and Quintessence Fund L.P., resulting in the termination of the working capital credit agreement. See Note 14, “SUBSEQUENT EVENT,” for a description of the Convertible Note Purchase and Credit Facility Agreement. | |
12_SALES_OF_EQUITY_SECURITIES
12. SALES OF EQUITY SECURITIES | 9 Months Ended |
Feb. 28, 2015 | |
Proceeds from Issuance or Sale of Equity [Abstract] | |
12. SALES OF EQUITY SECURITIES | 12. SALES OF EQUITY SECURITIES |
During the second quarter of fiscal 2015, the Company sold 1,065,029 shares of its common stock in a private placement transaction with certain directors and officers of the Company and other accredited investors. The private placement resulted in net proceeds to the Company of $2,574,000 and closed on November 26, 2014. |
13_RECENT_ACCOUNTING_PRONOUNCE
13. RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Feb. 28, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
13. RECENT ACCOUNTING PRONOUNCEMENTS | 13. RECENT ACCOUNTING PRONOUNCEMENTS |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from contracts with customers, a new standard on revenue recognition. The new standard will supersede existing revenue recognition guidance and apply to all entities that enter into contracts to provide goods or services to customers. The guidance also addresses the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as real estate, and property and equipment. The new standard will become effective for us beginning with the first quarter of fiscal 2017 and can be adopted either retrospectively to each reporting period presented or as a cumulative effect adjustment as of the date of adoption. We are currently evaluating the impact of adopting this new guidance on our consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Going Concern. This standard requires management to evaluate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern and whether or not it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the financial statements are issued. The new standard will apply to all entities and will be effective for us in the fiscal year 2017, with early adoption permitted. The adoption of this update is not expected to have a material effect on the Company’s consolidated financial statements or disclosures. |
14_SUBSEQUENT_EVENT
14. SUBSEQUENT EVENT | 9 Months Ended |
Feb. 28, 2015 | |
Subsequent Events [Abstract] | |
14. SUBSEQUENT EVENT | 14. SUBSEQUENT EVENT |
On April 10, 2015, Aehr Test Systems the “Company”) entered into a Convertible Note Purchase and Credit Facility Agreement (the “Purchase Agreement”) with QVT Fund LP and Quintessence Fund L.P. (the “Purchasers”) providing for (a) the Company’s sale to the Purchasers of $4,110,000 in aggregate principal amount of 9.0% Convertible Secured Notes due 2017 (the “Convertible Notes”) and (b) a secured revolving loan facility (the “Credit Facility”) in an aggregate principal amount of up to $2,000,000. This agreement resulted in the termination of the working capital credit facility agreement discussed in Note 11, “LINE OF CREDIT.” | |
The Convertible Notes bear interest at an annual rate of 9.0% and will mature on April 10, 2017 unless repurchased or converted prior to that date. Interest is payable quarterly on March 1, June 1, September 1 and December 1 of each year. The Company may not redeem the Convertible Notes prior to maturity. | |
The initial conversion price for the Convertible Notes is $2.65 per share of the Company’s common stock and is subject to adjustment upon the occurrence of certain specified events (as adjusted, the “Conversion Price”). Holders may convert all or any part of the principal amount of their Convertible Notes in integrals of $10,000 at any time prior to the maturity date. Upon conversion, the Company will deliver shares of its common stock to the holder of Convertible Notes electing such conversion. | |
Advances under the Credit Facility will bear interest at an annual rate of 5%. Each advance under the Credit Facility and any accrued and unpaid interest thereon must be repaid within 90 days from the date on which such advance is made. Unless paid in full at maturity, amounts owing under the credit facility may be converted by the holder into Convertible Notes. Advances under the Credit Facility may be prepaid without any prepayment premium or penalty and may be reborrowed (unless converted into Convertible Notes). | |
The Company’s obligations under the Purchase Agreement, Convertible Notes and the Credit Facility are secured by substantially all of the assets of the Company. | |
1_BASIS_OF_PRESENTATION_Polici
1. BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
The accompanying financial information has been prepared by Aehr Test Systems, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. | |
In the opinion of management, the unaudited condensed consolidated financial statements for the interim periods presented have been prepared on a basis consistent with the May 31, 2014 audited consolidated financial statements and reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated financial position and results of operations as of and for such periods indicated. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2014. Results for the interim periods presented herein are not necessarily indicative of results which may be reported for any other interim period or for the entire fiscal year. | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION. The condensed consolidated financial statements include the accounts of Aehr Test Systems and its subsidiaries (collectively, the "Company," "we," "us," and "our"). All significant intercompany balances have been eliminated in consolidation. For the majority owned subsidiary, Aehr Test Systems Japan, we reflected the noncontrolling interest of the portion we do not own on our Consolidated Balance Sheets in Shareholders’ Equity and in the Consolidated Statements of Operations. |
ACCOUNTING ESTIMATES | ACCOUNTING ESTIMATES. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used to account for revenue adjustments, the allowance for doubtful accounts, inventory reserves, income taxes, stock-based compensation expenses, and product warranties, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates. |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES. The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended May 31, 2014. There have been no changes in our significant accounting policies during the nine months ended February 28, 2015. |
2_STOCKBASED_COMPENSATION_Tabl
2. STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||
Compensation costs related to the Company's stock-based compensation | The following table summarizes compensation costs related to the Company’s stock-based compensation for the three and nine months ended February 28, 2015 and 2014 (in thousands): | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Stock-based compensation in the form of employee stock options and ESPP shares, included in: | ||||||||||||||||||||||||||||
Cost of sales | $ | 17 | $ | 10 | $ | 47 | $ | 33 | ||||||||||||||||||||
Selling, general and administrative | 148 | 184 | 508 | 471 | ||||||||||||||||||||||||
Research and development | 54 | 41 | 138 | 121 | ||||||||||||||||||||||||
Total stock-based compensation | $ | 219 | $ | 235 | $ | 693 | $ | 625 | ||||||||||||||||||||
Assumptions for Options Valuation Model | Fair Value. The fair value of the Company’s stock options granted to employees for the three months ended February 28, 2015, and the nine months ended February 28, 2015 and 2014 were estimated using the following weighted average assumptions in the Black-Scholes option valuation model: | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||||||||||||||
Option plan shares | ||||||||||||||||||||||||||||
Expected term (in years) | 4 | 4 | 4 | |||||||||||||||||||||||||
Volatility | 0.9 | 0.91 | 0.95 | |||||||||||||||||||||||||
Expected dividend | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||
Risk-free interest rates | 1.16 | % | 1.25 | % | 1.4 | % | ||||||||||||||||||||||
Estimated forfeiture rate | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||||
Weighted average grant date fair value | $ | 1.62 | $ | 1.64 | $ | 1.03 | ||||||||||||||||||||||
There were no options granted during the three months ended February 28, 2014. | ||||||||||||||||||||||||||||
Fair values of the ESPP shares | The fair values of the ESPP purchase rights granted for the nine months ended February 28, 2015 and 2014 were estimated using the following weighted-average assumptions: | |||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
February 28, | ||||||||||||||||||||||||||||
Employee stock purchase plan purchase rights | 2015 | 2014 | ||||||||||||||||||||||||||
Expected term (in years) | 0.5-2.0 | 0.5-2.0 | ||||||||||||||||||||||||||
Volatility | 0.55-0.83 | 0.86-1.00 | ||||||||||||||||||||||||||
Expected dividend | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Risk-free interest rates | 0.04%-0.53 | % | 0.04%-0.33 | % | ||||||||||||||||||||||||
Estimated forfeiture rate | 0 | % | 0 | % | ||||||||||||||||||||||||
Weighted average grant date fair value | $ | 1.47 | $ | 1.34 | ||||||||||||||||||||||||
There were no ESPP purchase rights granted during the three months ended February 28, 2015 and 2014. | ||||||||||||||||||||||||||||
Stock option transactions | The following table summarizes the stock option transactions during the three and nine months ended February 28, 2015 (in thousands, except per share data): | |||||||||||||||||||||||||||
Outstanding Options | ||||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Number | Average | Aggregate | ||||||||||||||||||||||||||
Available | of | Exercise | Intrinsic | |||||||||||||||||||||||||
Shares | Shares | Price | Value | |||||||||||||||||||||||||
Balances, May 31, 2014 | 1,145 | 3,002 | $ | 1.31 | $ | 2,913 | ||||||||||||||||||||||
Options granted | (625 | ) | 625 | $ | 2.65 | |||||||||||||||||||||||
Options terminated | 9 | (9 | ) | $ | 1.27 | |||||||||||||||||||||||
Options exercised | -- | (295 | ) | $ | 1.07 | |||||||||||||||||||||||
Balances, August 31, 2014 | 529 | 3,323 | $ | 1.59 | $ | 3,277 | ||||||||||||||||||||||
Additional shares reserved | 860 | -- | ||||||||||||||||||||||||||
Options granted | (140 | ) | 140 | $ | 2.06 | |||||||||||||||||||||||
Options terminated | 10 | (10 | ) | $ | 1.74 | |||||||||||||||||||||||
Options exercised | -- | (35 | ) | $ | 1.62 | |||||||||||||||||||||||
Balances, November 30, 2014 | 1,259 | 3,418 | $ | 1.61 | $ | 3,657 | ||||||||||||||||||||||
Options granted | (35 | ) | 35 | $ | 2.54 | |||||||||||||||||||||||
Options terminated | 24 | (24 | ) | $ | 2.06 | |||||||||||||||||||||||
Options exercised | -- | (27 | ) | $ | 1.56 | |||||||||||||||||||||||
Balances, February 28, 2015 | 1,248 | 3,402 | $ | 1.61 | $ | 3,534 | ||||||||||||||||||||||
Options fully vested and expected to vest at February 28, 2015 | 3,334 | $ | 1.61 | $ | 3,463 | |||||||||||||||||||||||
Options exercisable at February 28, 2015 | 2,098 | $ | 1.43 | $ | 2,551 | |||||||||||||||||||||||
Options Outstanding | The options outstanding and exercisable at February 28, 2015 were in the following exercise price ranges (in thousands, except per share data): | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
at February 28, 2015 | at February 28, 2015 | |||||||||||||||||||||||||||
Range of Exercise | Number Outstanding Shares | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number Exercisable Shares | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||||||||
Prices | ||||||||||||||||||||||||||||
$0.59-$0.97 | 680 | 4.1 | $ | 0.7 | 586 | 4.14 | $ | 0.72 | ||||||||||||||||||||
$1.09-$1.40 | 1,311 | 4.23 | $ | 1.28 | 807 | 3.86 | $ | 1.28 | ||||||||||||||||||||
$1.73-$2.06 | 512 | 3.25 | $ | 1.91 | 409 | 2.55 | $ | 1.92 | ||||||||||||||||||||
$2.15-$2.71 | 899 | 5.96 | $ | 2.62 | 296 | 4.96 | $ | 2.56 | ||||||||||||||||||||
$0.59-$2.71 | 3,402 | 4.51 | $ | 1.61 | 2,098 | 3.84 | $ | 1.43 | $ | $2,551 | ||||||||||||||||||
3_EARNINGS_PER_SHARE_Tables
3. EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
EARNINGS PER SHARE | The following table presents the computation of basic and diluted net (loss) income per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Numerator: Net (loss) income | $ | (1,726 | ) | $ | 212 | $ | (4,747 | ) | $ | 183 | |||||||
Denominator for basic net (loss) income per share: | |||||||||||||||||
Weighted-average shares outstanding | 12,677 | 10,982 | 11,931 | 10,807 | |||||||||||||
Shares used in basic net (loss) income per share calculation | 12,677 | 10,982 | 11,931 | 10,807 | |||||||||||||
Effect of dilutive securities | -- | 1,295 | -- | 776 | |||||||||||||
Denominator for diluted net (loss) income per share | 12,677 | 12,277 | 11,931 | 11,583 | |||||||||||||
Basic net (loss) income per share | $ | (0.14 | ) | $ | 0.02 | $ | (0.40 | ) | $ | 0.02 | |||||||
Diluted net (loss) income per share | $ | (0.14 | ) | $ | 0.02 | $ | (0.40 | ) | $ | 0.02 |
4_FAIR_VALUE_OF_FINANCIAL_INST1
4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value by Hierarchy | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of February 28, 2015 (in thousands): | ||||||||||||||||
Balance as of | |||||||||||||||||
February 28, | |||||||||||||||||
2015 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 500 | $ | 500 | $ | -- | $ | -- | |||||||||
Certificate of deposit | 50 | -- | 50 | -- | |||||||||||||
Assets | $ | 550 | $ | 500 | $ | 50 | $ | -- | |||||||||
Liabilities | $ | -- | $ | -- | $ | -- | $ | -- | |||||||||
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2014 (in thousands): | |||||||||||||||||
Balance as of | |||||||||||||||||
31-May-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 477 | $ | 477 | $ | -- | $ | -- | |||||||||
Certificate of deposit | 50 | -- | 50 | -- | |||||||||||||
Assets | $ | 527 | $ | 477 | $ | 50 | $ | -- | |||||||||
Liabilities | $ | -- | $ | -- | $ | -- | $ | -- | |||||||||
6_INVENTORIES_Tables
6. INVENTORIES (Tables) | 9 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories are comprised of the following (in thousands): | ||||||||
February 28, | May 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials and sub-assemblies | $ | 3,627 | $ | 3,348 | |||||
Work in process | 3,099 | 2,585 | |||||||
Finished goods | 128 | 215 | |||||||
$ | 6,854 | $ | 6,148 | ||||||
7_SEGMENT_INFORMATION_Tables
7. SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Company's operations in different geographic areas | The following presents information about the Company’s operations in different geographic areas. Net sales are based upon ship-to location (in thousands). | ||||||||||||||||
United | |||||||||||||||||
States | Asia | Europe | Total | ||||||||||||||
Three months ended February 28, 2015: | |||||||||||||||||
Net sales | $ | 684 | $ | 979 | $ | 364 | $ | 2,027 | |||||||||
Property and equipment, net | 455 | 35 | 12 | 502 | |||||||||||||
Nine months ended February 28, 2015: | |||||||||||||||||
Net sales | $ | 3,054 | $ | 3,845 | $ | 1,301 | $ | 8,200 | |||||||||
Property and equipment, net | 455 | 35 | 12 | 502 | |||||||||||||
Three months ended February 28, 2014: | |||||||||||||||||
Net sales | $ | 2,863 | $ | 1,039 | $ | 1,710 | $ | 5,612 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
Nine months ended February 28, 2014: | |||||||||||||||||
Net sales | $ | 7,082 | $ | 4,963 | $ | 2,269 | $ | 14,314 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
8_PRODUCT_WARRANTIES_Tables
8. PRODUCT WARRANTIES (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||
Liability for product warranties | Following is a summary of changes in the Company's liability for product warranties during the three and nine months ended February 28, 2015 and 2014 (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Balance at the beginning of the period | $ | 149 | $ | 208 | $ | 223 | $ | 222 | |||||||||
Accruals for warranties issued during the period | 47 | 34 | 145 | 188 | |||||||||||||
Settlement made during the period (in cash or in kind) | (34 | ) | (46 | ) | (206 | ) | (214 | ) | |||||||||
Balance at the end of the period | $ | 162 | $ | 196 | $ | 162 | $ | 196 |
10_CUSTOMER_DEPOSITS_AND_DEFER1
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE (Tables) | 9 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Customer Deposits And Deferred Revenue Tables | |||||||||
Customer deposits and deferred revenue | Customer deposits and deferred revenue (in thousands): | ||||||||
February 28, | May 31, | ||||||||
2015 | 2014 | ||||||||
Customer deposits | $ | 546 | $ | 871 | |||||
Deferred revenue | 1,166 | 187 | |||||||
$ | 1,712 | $ | 1,058 | ||||||
2_STOCKBASED_COMPENSATION_Comp
2. STOCK-BASED COMPENSATION - Compensation costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ||||
Total stock-based compensation | $219 | $235 | $693 | $625 |
Cost of Sales | ||||
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ||||
Total stock-based compensation | 17 | 10 | 47 | 33 |
Selling, General and Administrative | ||||
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ||||
Total stock-based compensation | 148 | 184 | 508 | 471 |
Research and Development | ||||
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ||||
Total stock-based compensation | $54 | $41 | $138 | $121 |
2_STOCKBASED_COMPENSATION_Opti
2. STOCK-BASED COMPENSATION - Options (Details 1) (Stock Options, USD $) | 3 Months Ended | 9 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2014 | |
Stock Options | |||
Expected term (in years) | 4 years | 4 years | 4 years |
Volatility | 90.00% | 91.00% | 95.00% |
Expected dividend | $0 | $0 | $0 |
Risk-free interest rates | 1.16% | 1.25% | 1.40% |
Estimated forfeiture rate | 0.25% | 0.25% | 0.25% |
Weighted average grant date fair value | $1.62 | $1.64 | $1.03 |
2_STOCKBASED_COMPENSATION_Fair
2. STOCK-BASED COMPENSATION - Fair values of the ESPP shares (Details 2) (Employee Stock Purchase Plan, USD $) | 9 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Volatility, Minimum | 55.00% | 86.00% |
Volatility, Maximum | 83.00% | 100.00% |
Expected dividend | $0 | $0 |
Risk-free interest rates, Minimum | 0.04% | 0.04% |
Risk-free interest rates, Maximum | 0.53% | 0.33% |
Estimated forfeiture rate | 0.00% | 0.00% |
Weighted average grant date fair value | $1.47 | $1.34 |
Minimum | ||
Expected term (in years) | 6 months | 6 months |
Maximum | ||
Expected term (in years) | 2 years | 2 years |
2_STOCKBASED_COMPENSATION_Opti1
2. STOCK-BASED COMPENSATION - Option Activity (Details 3) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 |
Number of Options Outstanding, Ending (in thousands) | 3,402 | ||
Weighted Average Exercise Price Outstanding, Ending | $1.61 | ||
Options exercisable shares, ending (in thousands) | 2,098 | ||
Weighted Average Exercise Price for Options exercisable, ending | $1.43 | ||
Aggregate Intrinsic Value for Options exercisable, ending | $2,551 | ||
Stock Options | |||
Available Shares, Beginning (in thousands) | 1,259 | 529 | 1,145 |
Options granted (in thousands) | -35 | -140 | -625 |
Options terminated (in thousands) | 24 | 10 | 9 |
Additional shares reserved (in thousands) | 860 | ||
Available Shares, Ending (in thousands) | 1,248 | 1,259 | 529 |
Options Outstanding, Beginning (in thousands) | 3,418 | 3,323 | 3,002 |
Options Granted (in thousands) | 35 | 140 | 625 |
Options terminated (in thousands) | -24 | -10 | -9 |
Options exercised (in thousands) | -27 | -35 | -295 |
Number of Options Outstanding, Ending (in thousands) | 3,402 | 3,418 | 3,323 |
Weighted Average Exercise Price Outstanding, Beginning | $1.61 | $1.59 | $1.31 |
Weighted Average Exercise Price Granted | $2.54 | $2.06 | $2.65 |
Weighted Average Exercise Price Terminated | $2.06 | $1.74 | $1.27 |
Weighted Average Exercise Price Exercised | $1.56 | $1.62 | $1.07 |
Weighted Average Exercise Price Outstanding, Ending | $1.61 | $1.61 | $1.59 |
Aggregate Intrinsic Value, beginning balance | 3,657 | 3,277 | 2,913 |
Aggregate Intrinsic Value, ending balance | 3,534 | 3,657 | 3,277 |
Options fully vested and expected to vest, ending (in thousands) | 3,334 | ||
Options exercisable shares, ending (in thousands) | 2,098 | ||
Weighted Average Exercise Price for Options fully vested and expected to vest, ending | $1.61 | ||
Weighted Average Exercise Price for Options exercisable, ending | $1.43 | ||
Aggregate Intrinsic Value for Options fully vested and expected to vest, ending | 3,463 | ||
Aggregate Intrinsic Value for Options exercisable, ending | $2,551 |
2_STOCKBASED_COMPENSATION_Opti2
2. STOCK-BASED COMPENSATION - Options outstanding and exercisable (Details 4) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 |
Range Exercise Prices Options Outstanding Minimum | $0.59 |
Range Exercise Prices Options Outstanding Maximum | $2.71 |
Number of Options Outstanding, Ending (in thousands) | 3,402 |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | 4 years 6 months 3 days |
Weighted Average Exercise Price Outstanding, Ending | $1.61 |
Options exercisable shares, ending (in thousands) | 2,098 |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | 3 years 10 months 2 days |
Weighted Average Exercise Price for Options exercisable, ending | $1.43 |
Aggregate Intrinsic Value for Options exercisable, ending | $2,551 |
Options Price Range A | |
Range Exercise Prices Options Outstanding Minimum | $0.59 |
Range Exercise Prices Options Outstanding Maximum | $0.97 |
Number of Options Outstanding, Ending (in thousands) | 680 |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | 4 years 1 month 6 days |
Weighted Average Exercise Price Outstanding, Ending | $0.70 |
Options exercisable shares, ending (in thousands) | 586 |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | 4 years 1 month 20 days |
Weighted Average Exercise Price for Options exercisable, ending | $0.72 |
Options Price Range B | |
Range Exercise Prices Options Outstanding Minimum | $1.09 |
Range Exercise Prices Options Outstanding Maximum | $1.40 |
Number of Options Outstanding, Ending (in thousands) | 1,311 |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | 4 years 2 months 23 days |
Weighted Average Exercise Price Outstanding, Ending | $1.28 |
Options exercisable shares, ending (in thousands) | 807 |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | 3 years 10 months 10 days |
Weighted Average Exercise Price for Options exercisable, ending | $1.28 |
Options Price Range C | |
Range Exercise Prices Options Outstanding Minimum | $1.73 |
Range Exercise Prices Options Outstanding Maximum | $2.06 |
Number of Options Outstanding, Ending (in thousands) | 512 |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | 3 years 3 months |
Weighted Average Exercise Price Outstanding, Ending | $1.91 |
Options exercisable shares, ending (in thousands) | 409 |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | 2 years 6 months 18 days |
Weighted Average Exercise Price for Options exercisable, ending | $1.92 |
Options Price Range D | |
Range Exercise Prices Options Outstanding Minimum | $2.15 |
Range Exercise Prices Options Outstanding Maximum | $2.71 |
Number of Options Outstanding, Ending (in thousands) | 899 |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | 5 years 11 months 16 days |
Weighted Average Exercise Price Outstanding, Ending | $2.62 |
Options exercisable shares, ending (in thousands) | 296 |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | 4 years 11 months 16 days |
Weighted Average Exercise Price for Options exercisable, ending | $2.56 |
2_STOCKBASED_COMPENSATION_Deta
2. STOCK-BASED COMPENSATION (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Stock-based compensation costs capitalized as part of inventory | $53 | $0 | $53 | $0 |
Stock-based compensation expense related to stock options | 183 | 205 | 589 | 533 |
Intrinsic value of options exercised | 30 | 162 | 466 | 315 |
Weighted average remaining contractual life of the options exercisable and expected to be exercisable | 4 years 6 months 4 days | |||
Employee Stock Purchase Plan | ||||
Stock-based compensation related to the ESPP | 37 | 30 | 104 | 92 |
Compensation cost related to options to purchase the Company's common stock under the ESPP but not yet recognized | 111 | 111 | ||
Weighted average period for recognition of costs | 1 year 2 months 12 days | |||
ESPP purchase rights granted | 0 | 0 | 170,000 | 163,000 |
ESPP shares issued | 0 | 0 | 43,000 | 75,000 |
ESPP shares available for issuance | 311,000 | 311,000 | ||
1996 Stock Option Plan and 2006 Equity Incentive Plan | ||||
Unrecognized stock-based compensation | 1,540 | 1,540 | ||
Estimated forfeitures of unvested stock based awards, amount | $4 | $4 | ||
Weighted average period for recognition of costs | 2 years 8 months 12 days |
3_EARNINGS_PER_SHARE_Details
3. EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Earnings Per Share [Abstract] | ||||
Numerator: Net (loss) income | ($1,726) | $212 | ($4,747) | $183 |
Denominator for basic net (loss) income per share: Weighted average shares outstanding (in thousands) | 12,677 | 10,982 | 11,931 | 10,807 |
Shares used in basic net (loss) income per share calculation (in thousands) | 12,677 | 10,982 | 11,931 | 10,807 |
Effect of dilutive securities (in thousands) | 0 | 1,295 | 0 | 776 |
Denominator for diluted net (loss) income per share (in thousands) | 12,677 | 12,277 | 11,931 | 11,583 |
Basic net (loss) income per share | ($0.14) | $0.02 | ($0.40) | $0.02 |
Diluted net (loss) income per share | ($0.14) | $0.02 | ($0.40) | $0.02 |
3_EARNINGS_PER_SHARE_Details_N
3. EARNINGS PER SHARE (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | |
Employee Stock Purchase Plan | ||||
Options not included in the computation of diluted net loss per share (in thousands) | 175 | 177 | 160 | 177 |
Stock Options | ||||
Options not included in the computation of diluted net loss per share (in thousands) | 3,402 | 192 | 3,381 | 370 |
4_FAIR_VALUE_OF_FINANCIAL_INST2
4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Feb. 28, 2015 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Money market funds | $500 | $477 |
Certificate of deposit | 50 | 50 |
Assets | 550 | 527 |
Liabilities | 0 | 0 |
Level 1 | ||
Money market funds | 500 | 477 |
Certificate of deposit | 0 | 0 |
Assets | 500 | 477 |
Liabilities | 0 | 0 |
Level 2 | ||
Money market funds | 0 | 0 |
Certificate of deposit | 50 | 50 |
Assets | 50 | 50 |
Liabilities | 0 | 0 |
Level 3 | ||
Money market funds | 0 | 0 |
Certificate of deposit | 0 | 0 |
Assets | 0 | 0 |
Liabilities | $0 | $0 |
5_ACCOUNTS_RECEIVABLE_NET_Deta
5. ACCOUNTS RECEIVABLE NET (Details Narrative) (USD $) | Feb. 28, 2015 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net, Current [Abstract] | ||
Allowance for doubtful accounts customer trade receivables | $7 | $51 |
6_INVENTORIES_Details
6. INVENTORIES (Details) (USD $) | Feb. 28, 2015 | 31-May-14 | |
In Thousands, unless otherwise specified | |||
Inventory, Net [Abstract] | |||
Raw materials and sub-assemblies | $3,627 | $3,348 | |
Work-in-process | 3,099 | 2,585 | |
Finished goods | 128 | 215 | |
Inventory | $6,854 | $6,148 | [1] |
[1] | The condensed consolidated balance sheet at May 31, 2014 has been derived from the audited consolidated financial statements at that date. |
7_SEGMENT_INFORMATION_Details
7. SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | 31-May-14 | |
Net sales | $2,027 | $5,612 | $8,200 | $14,314 | ||
Property and equipment, net | 502 | 311 | 502 | 311 | 474 | [1] |
US | ||||||
Net sales | 684 | 2,863 | 3,054 | 7,082 | ||
Property and equipment, net | 455 | 268 | 455 | 268 | ||
Asia | ||||||
Net sales | 979 | 1,039 | 3,845 | 4,963 | ||
Property and equipment, net | 35 | 42 | 35 | 42 | ||
Europe | ||||||
Net sales | 364 | 1,710 | 1,301 | 2,269 | ||
Property and equipment, net | $12 | $1 | $12 | $1 | ||
[1] | The condensed consolidated balance sheet at May 31, 2014 has been derived from the audited consolidated financial statements at that date. |
7_SEGMENT_INFORMATION_Details_
7, SEGMENT INFORMATION (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | |
Sales to the Company's five largest customers percentage of net sales | 82.00% | 95.00% | 87.00% | 94.00% |
Customer A | ||||
Customers accounted for 10% or more of total revenues | 60.00% | |||
Customer B | ||||
Customers accounted for 10% or more of total revenues | 47.00% | |||
Customer C | ||||
Customers accounted for 10% or more of total revenues | 12.00% | |||
Customer D | ||||
Customers accounted for 10% or more of total revenues | 10.00% | |||
Customer E | ||||
Customers accounted for 10% or more of total revenues | 36.00% | |||
Customer F | ||||
Customers accounted for 10% or more of total revenues | 28.00% | |||
Customer G | ||||
Customers accounted for 10% or more of total revenues | 19.00% | |||
Customer H | ||||
Customers accounted for 10% or more of total revenues | 11.00% | |||
Customer I | ||||
Customers accounted for 10% or more of total revenues | 46.00% | |||
Customer J | ||||
Customers accounted for 10% or more of total revenues | 33.00% |
8_PRODUCT_WARRANTIES_Details
8. PRODUCT WARRANTIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at the beginning of the period | $149 | $208 | $223 | $222 |
Accruals for warranties issued during the period | 47 | 34 | 145 | 188 |
Settlement made during the period (in cash or in kind) | -34 | -46 | -206 | -214 |
Balance at the end of the period | $162 | $196 | $162 | $196 |
10_CUSTOMER_DEPOSITS_AND_DEFER2
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE (Details) (USD $) | Feb. 28, 2015 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Customer Deposits And Deferred Revenue Details | ||
Customer deposits | $546 | $871 |
Deferred revenue | 1,166 | 187 |
Total | $1,712 | $1,058 |
11_LINE_OF_CREDIT_Details_Narr
11. LINE OF CREDIT (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2015 | 31-May-14 | |
Line of Credit Facility [Abstract] | ||||
Line of credit, maximum borrowing capacity | $2,500 | $2,500 | ||
Line of credit facility, amount borrowed | 115 | 115 | 777 | [1] |
Balance available to borrow under the line of credit | 78 | 78 | ||
Weighted average interest rate | 4.19% | 4.19% | ||
Average loan balance | $397 | $649 | ||
Compliance with covenants | The Company was in compliance with all covenants at February 28, 2015. | |||
[1] | The condensed consolidated balance sheet at May 31, 2014 has been derived from the audited consolidated financial statements at that date. |
12_SALES_OF_EQUITY_SECURITIES_
12. SALES OF EQUITY SECURITIES (Details Narrative) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Proceeds from Issuance or Sale of Equity [Abstract] | ||
Proceeds from issuance of common stock under private placement, net of issuance costs | $2,574 | $0 |
Number of shares sold in private placement | 1,065,029 |
14_SUBSEQUENT_EVENT_Details_Na
14. SUBSEQUENT EVENT (Details Narrative) (USD $) | 1 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 10, 2015 | Feb. 28, 2015 |
Secured revolving loan facility | $2,500 | |
Subsequent event | ||
Convertible Secured Notes | 4,110 | |
Secured revolving loan facility | $2,000 | |
Date for latest conversion | 10-Apr-17 | |
Conversion price | $2.65 | |
Interest rate for convertible debt | 9.00% | |
Conversion feature | $10,000 | |
Rate description | 5% |