Cover
Cover - shares | 3 Months Ended | |
Aug. 31, 2023 | Oct. 09, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | AEHR TEST SYSTEMS | |
Entity Central Index Key | 0001040470 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Aug. 31, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Entity Common Stock Shares Outstanding | 28,799,313 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-22893 | |
Entity Incorporation State Country Code | CA | |
Entity Tax Identification Number | 94-2424084 | |
Entity Address Address Line 1 | 400 Kato Terrace | |
Entity Address City Or Town | Fremont | |
Entity Address State Or Province | CA | |
Entity Address Postal Zip Code | 94539 | |
City Area Code | 510 | |
Local Phone Number | 623-9400 | |
Security 12b Title | Common Stock par value of $0.01 per share | |
Trading Symbol | AEHR | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2023 | May 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 50,955 | $ 30,054 |
Short-term investments | 0 | 17,853 |
Accounts receivable, net | 13,161 | 16,594 |
Inventories | 31,557 | 23,908 |
Prepaid expenses and other current assets | 540 | 621 |
Total current assets | 96,213 | 89,030 |
Property and equipment, net | 3,083 | 2,759 |
Operating lease right-of-use assets, net | 5,951 | 6,123 |
Other non-current assets | 222 | 231 |
Total assets | 105,469 | 98,143 |
Current liabilities: | ||
Accounts payable | 8,328 | 9,206 |
Accrued expenses | 4,536 | 4,143 |
Operating lease liabilities, short-term | 275 | 137 |
Deferred revenue, short-term | 6,114 | 2,822 |
Total current liabilities | 19,253 | 16,308 |
Operating lease liabilities, long-term | 5,997 | 6,163 |
Deferred revenue, long-term | 33 | 31 |
Other long-term liabilities | 41 | 41 |
Total liabilities | 25,324 | 22,543 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value: Authorized: 10,000 shares; Issued and outstanding: none | 0 | 0 |
Common stock, $0.01 par value: Authorized: 75,000 shares; Issued and outstanding: 28,763 shares and 28,539 shares at August 31, 2023 and May 31, 2023, respectively | 288 | 285 |
Additional paid-in-capital | 127,630 | 127,776 |
Accumulated other comprehensive loss | (141) | (155) |
Accumulated deficit | (47,632) | (52,306) |
Total shareholders' equity | 80,145 | 75,600 |
Total liabilities and shareholders' equity | $ 105,469 | $ 98,143 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Aug. 31, 2023 | May 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 28,763,000 | 28,539,000 |
Common stock, shares outstanding | 28,763,000 | 28,539,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Revenue: | ||
Total revenue | $ 20,624 | $ 10,671 |
Cost of revenue: | ||
Total cost of revenue | 10,643 | 6,190 |
Gross profit | 9,981 | 4,481 |
Operating expenses: | ||
Research and development | 2,457 | 1,498 |
Selling, general and administrative | 3,409 | 2,525 |
Total operating expenses | 5,866 | 4,023 |
Income from operations | 4,115 | 458 |
Interest income, net | 581 | 121 |
Other income (expense), net | (6) | 24 |
Income before provision for income taxes | 4,690 | 603 |
Provision for income taxes | 16 | 14 |
Net income | $ 4,674 | $ 589 |
Net income per share: | ||
Basic | $ 0.16 | $ 0.02 |
Diluted | $ 0.16 | $ 0.02 |
Shares used in per share calculations: | ||
Basic | 28,649 | 27,242 |
Diluted | 29,632 | 28,788 |
Product [Member] | ||
Revenue: | ||
Total revenue | $ 19,357 | $ 9,588 |
Cost of revenue: | ||
Total cost of revenue | 9,919 | 5,349 |
Service [Member] | ||
Revenue: | ||
Total revenue | 1,267 | 1,083 |
Cost of revenue: | ||
Total cost of revenue | $ 724 | $ 841 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||
Net income | $ 4,674 | $ 589 |
Other comprehensive income (loss), net of tax: | ||
Net change in cumulative translation adjustment | (3) | (45) |
Net change in unrealized loss on investments | 17 | 0 |
Comprehensive income | $ 4,688 | $ 544 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated other comprehensive loss | Retained Earnings (Accumulated Deficit) |
Balance, shares at May. 31, 2022 | 27,120 | ||||
Balance, amount at May. 31, 2022 | $ 50,989 | $ 271 | $ 117,686 | $ (105) | $ (66,863) |
Issuance of common stock under employee plans, shares | 422 | ||||
Issuance of common stock under employee plans, amount | 455 | $ 4 | 451 | 0 | 0 |
Shares repurchased for tax withholdings on vesting of restricted stock units, shares | (147) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units, amount | (1,179) | $ (1) | (1,178) | 0 | 0 |
Stock-based compensation | 709 | 0 | 709 | 0 | 0 |
Net income | 589 | 0 | 0 | 0 | 589 |
Foreign currency translation adjustment | (45) | $ 0 | 0 | (45) | 0 |
Balance, shares at Aug. 31, 2022 | 27,395 | ||||
Balance, amount at Aug. 31, 2022 | 51,518 | $ 274 | 117,668 | (150) | (66,274) |
Balance, shares at May. 31, 2023 | 28,539 | ||||
Balance, amount at May. 31, 2023 | 75,600 | $ 285 | 127,776 | (155) | (52,306) |
Issuance of common stock under employee plans, shares | 247 | ||||
Issuance of common stock under employee plans, amount | 318 | $ 3 | 315 | 0 | 0 |
Shares repurchased for tax withholdings on vesting of restricted stock units, shares | (23) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units, amount | (1,012) | $ 0 | (1,012) | 0 | 0 |
Stock-based compensation | 551 | 0 | 551 | 0 | 0 |
Net income | 4,674 | 0 | 0 | 0 | 4,674 |
Foreign currency translation adjustment | (3) | 0 | 0 | (3) | 0 |
Net unrealized gains on investments | 17 | $ 0 | 0 | 17 | 0 |
Balance, shares at Aug. 31, 2023 | 28,763 | ||||
Balance, amount at Aug. 31, 2023 | $ 80,145 | $ 288 | $ 127,630 | $ (141) | $ (47,632) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 4,674 | $ 589 |
Stock-based compensation expense | 522 | 710 |
Depreciation and amortization | 138 | 104 |
Accretion of investment discount | (130) | 0 |
Non-cash lease expenses | 172 | 177 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,437 | 7,648 |
Inventories | (7,704) | (2,323) |
Prepaid expenses and other current assets | 90 | (210) |
Accounts payable | (939) | (769) |
Accrued expenses | 355 | (1,130) |
Deferred revenue | 3,294 | 855 |
Operating lease liabilities | (28) | (192) |
Income taxes payable | 20 | 2 |
Net cash provided by operating activities | 3,901 | 5,461 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (284) | (84) |
Proceeds from maturities of investments | 18,000 | 0 |
Net cash provided by (used in) investing activities | 17,716 | (84) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee plans | 318 | 455 |
Shares repurchased for tax withholdings on vesting of restricted stock units, amount | (1,012) | (1,179) |
Net cash used in financing activities | (694) | (724) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (22) | 10 |
Net increase in cash, cash equivalents and restricted cash | 20,901 | 4,663 |
Cash, cash equivalents and restricted cash, beginning of period (1) | 30,204 | 31,564 |
Cash, cash equivalents and restricted cash, end of period (1) | $ 51,105 | $ 36,227 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Aug. 31, 2023 | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization Basis of Presentation – Principles of Consolidation – Critical Accounting Policies and use of Estimates Reclassifications - Concentration of Credit Risk Three Months Ended August 31, 2023 2022 Customer A 88.0 % 67.3 % Customer B * 22.9 % The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: August 31, May 31, 2023 2023 Customer A 74.0 % 81.6 % Customer C 18.0 % 16.5 % Recent Accounting Pronouncements — $0 Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a significant impact on its Condensed Consolidated Financial Statements. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Aug. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 2. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value of Measurements — Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 — Unobservable inputs that are supported by little or no market activities. The following table represents the Company’s assets measured at fair value on a recurring basis as of August 31, 2023, and the basis for that measurement: Balance as of (In thousands) August 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 48,975 $ 48,975 $ - $ - Total $ 48,975 $ 48,975 $ - $ - The following table represents the Company’s assets measured at fair value on a recurring basis as of May 31, 2023, and the basis for that measurement: Balance as of May 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 27,022 $ 27,022 $ - $ - U. S. treasury securities 17,853 17,853 Total $ 44,875 $ 44,875 $ - $ - Included in money market funds as of August 31, 2023 and May 31, 2023 is $150,000 restricted cash representing a security deposit for the Company’s United States manufacturing and office space lease. There were no financial liabilities measured at fair value as of August 31, 2023 and May 31, 2023. There were no transfers between Level 1 and Level 2 fair value measurements during the three months ended August 31, 2023. The carrying amounts of financial instruments, including cash equivalents, accounts receivable, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities. The following table summarizes the Company’s cash, cash equivalents and investments by security type as of August 31, 2023 and May 31, 2023, respectively: Balances as of August 31, 2023 Gross Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 2,130 $ - $ 2,130 Cash equivalents: Money market funds $ 48,825 $ - $ 48,825 Total cash and cash equivalents $ 50,955 $ - $ 50,955 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 51,105 $ - $ 51,105 Gross Balances as of May 31, 2023 Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 3,182 $ - $ 3,182 Cash equivalents: Money market funds $ 26,872 $ - $ 26,872 Total cash and cash equivalents $ 30,054 $ - $ 30,054 Short term investments: U. S. treasury securities $ 17,870 $ (17 ) $ 17,853 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 48,074 $ (17 ) $ 48,057 Long-term investments are included in other assets on the accompanying condensed consolidated balance sheets. Unrealized gains and temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive loss, net of any related tax effect. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to results of operations. |
BALANCE SHEET INFORMATION
BALANCE SHEET INFORMATION | 12 Months Ended |
May 31, 2023 | |
BALANCE SHEET INFORMATION | |
BALANCE SHEET INFORMATION | 3. BALANCE SHEET INFORMATION Inventories Inventories consisted of the following: August 31, May 31, (In thousands) 2023 2023 Raw materials and sub-assemblies $ 19,422 $ 15,953 Work in process 9,617 5,764 Finished goods 2,518 2,191 $ 31,557 $ 23,908 Property and equipment Property and equipment, net consisted of the following: Useful life August 31, May 31, (In thousands) (In years) 2023 2023 Leasehold improvements * $ 1,325 $ 1,310 Machinery and equipment 3 - 6 5,787 5,445 Test equipment 4 - 6 3,083 2,998 Furniture and fixtures 2 - 6 725 706 10,920 10,459 Less: accumulated depreciation and amortization (7,837 ) (7,700 ) $ 3,083 $ 2,759 * Lesser of estimated useful life or lease term. Product warranties The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The standard warranty period is one year for systems and ninety days for parts and service. The following is a summary of changes in the Company's liability for product warranties during the three months ended August 31, 2023 and 2022: Three Months Ended August 31, (In thousands) 2023 2022 Balance at the beginning of the period $ 267 $ 410 Accruals for warranties issued during the period 65 118 Adjustments to previously existing warrany accruals - 61 Consumption of reserves (100 ) (165 ) Balance at the end of the period $ 232 $ 424 The accrued warranty balance is included in accrued expenses on the accompanying Condensed Consolidated Balance Sheets. Deferred revenue Deferred revenue, short-term consisted of the following: August 31, May 31, (In thousands) 2023 2023 Customer deposits $ 2,008 $ 2,690 Deferred revenue 4,106 132 $ 6,114 $ 2,822 |
INCOME TAX
INCOME TAX | 3 Months Ended |
Aug. 31, 2023 | |
INCOME TAX | |
INCOME TAXES | 4. INCOME TAX The Company is subject to U.S federal and state and foreign income taxes as a corporation. The Company’s tax provision and the resulting effective tax rate for the interim period is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The Company recorded a provision for income taxes of $16,000 and $14,000 for the three months ended August 31, 2023 and 2022, respectively, which consisted primarily of foreign withholding taxes and foreign 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 was more likely than not that certain deferred tax assets would not be realized. The Company continues to reassess the need for a valuation allowance on a quarterly basis. 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 recognizes interest and penalties related to unrecognized tax benefits as a component of income taxes. |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 3 Months Ended |
Aug. 31, 2023 | |
BORROWING ARRANGEMENTS | |
BORROWING ARRANGEMENTS | 5. BORROWING ARRANGEMENTS On January 16, 2020, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). Pursuant to the Loan Agreement, the Company may borrow up to (a) the lesser of (i) the revolving line of $4.0 million or (ii) the amount available under the borrowing base under a revolving line of credit which is collateralized by all the Company’s assets except intellectual property. The borrowing base is 80% of eligible accounts, as determined by SVB from the Company’s most recent borrowing base statement; provided, however, SVB has the right to decrease the foregoing percentage in its good faith business judgment to mitigate the impact of certain events or conditions, which may adversely affect the collateral or its value. Subject to an event of default, the principal amount outstanding under the revolving line of credit will accrue interest at a floating per annum rate equal to the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 4.75%. Interest is payable monthly on the last calendar day of each month and the outstanding principal amount, the unpaid interest and all other obligations are due on the maturity date, which is 364 days from the effective date of January 13, 2020. On January 14, 2021, the Company entered into the First Amendment to Loan and Security Agreement (the “Amendment”) with SVB. The Amendment, among other things, extended the Revolving Line Maturity Date to July 14, 2021; provided, however, that if the Company achieved specified operating metrics on a consolidated basis on or prior to May 31, 2021 the Amended Revolving Line Maturity Date would be extended to January 13, 2022. On January 11, 2022, the Company entered into the Second Amendment to the Loan and Security Agreement (the “Second Amendment”) with SVB. The Second Amendment, among other things, (A) increased the available amount of the line up to the lesser of (i) $10 million or (ii) the available amount under the borrowing base, under a revolving line of credit, (B) allowed for borrowing up to $3 million of the available balance based upon eligible customer purchase orders, (C) reduced the interest rate for account advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.25%, reduces the interest rate for purchase order advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.5%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.75%, and (D) extended the maturity date to January 13, 2023. On January 10, 2023, the Company entered into the Third Amendment to the Loan and Security Agreement (the “Third Amendment”) with SVB. The Third Amendment, among other things, extends the Revolving Line Maturity Date to January 13, 2024, provided, however, that (i) if the Company submits a fiscal year 2024 plan of record that is generally acceptable to SVB, and (ii) the minimum net liquidity at the end of November 30, 2023 is at least $20.0 million, the Amended Revolving Line Maturity Date would be extended to January 13, 2025. As of August 31, 2023, the Company had not drawn against the credit facility and was in compliance with all covenants related to obligations to meet reporting requirements. The balance available to borrow under the line as of August 31, 2023 was $5,396,000. There are no financial covenants in the agreement. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Aug. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES Commitments As of August 31, 2023 and May 31, 2023, the Company had restricted money market funds of $150,000, held by a financial institution, representing a security deposit for its United States manufacturing and office space lease. This amount is included in other assets on the Condensed Consolidated Balance Sheets. Purchase Obligations The Company has purchase obligations to certain suppliers. In some cases, the products the Company purchases are unique and have provisions against cancellation of the order. Contingencies The Company may, from time to time, be involved in legal proceedings arising in the ordinary course of business. While there can be no assurances as to the ultimate outcome of any litigation involving the Company, management does not believe any pending legal proceedings will result in judgment or settlement that will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. In the normal course of business to facilitate sales of its products, the Company indemnifies other parties, including customers, with respect to certain matters, for example, including against losses arising from a breach of representations or covenants, or from intellectual property infringement or other claims. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors, and the Company’s bylaws contain similar indemnification obligations to the Company’s agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, payments made by the Company under these agreements have not had a material impact on the Company’s operating results, financial position or cash flow. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 3 Months Ended |
Aug. 31, 2023 | |
SHAREHOLDERS EQUITY | |
SHAREHOLDERS EQUITY | 7. SHAREHOLDERS’ EQUITY On August 25, 2021, the Board of Directors authorized management to take actions necessary for the execution of a $75 million shelf registration. A Registration Statement on Form S-3 was filed with the SEC on September 3, 2021. A Prospectus Supplement for an "At the Market" ("ATM") sale of $25 million of common stock was subsequently filed on September 17, 2021. On October 8, 2021, the Company executed the ATM offering by selling 1,696,729 shares of common stock at an average selling price of $14.73 per share. The gross proceeds to the Company were $25.0 million, before commission fees of $0.7 million and offering expenses of $0.3 million. Another Prospectus Supplement for an ATM sale of $25 million of common stock was subsequently filed on February 8, 2023. The Company partially executed the ATM offering by selling 208,917 shares of common stock at an average selling price of $34.78 per share. The gross proceeds to the Company were $7.3 million, before commissions of $0.2 million and offering expenses of $0.2 million. As of August 31, 2023, the remaining amount of the ATM offering was $17.7 million. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Aug. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 8. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): Cumulative Unrealized loss (In thousands) translation adjustment on investments, net Total Balance as of May 31, 2023 $ (138 ) $ (17 ) $ (155 ) Other comprehensive income (loss) before reclassifications (3 ) 17 14 Balance as of August 31, 2023 $ (141 ) $ - $ (141 ) |
REVENUE
REVENUE | 3 Months Ended |
Aug. 31, 2023 | |
REVENUE | |
REVENUE | 9. REVENUE Revenue recognition The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Performance obligations include sales of systems, contactors, spare parts, and services, as well as installation and training services included in customer contracts. A contract’s transaction price is allocated to each distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return privileges, except for defective products during the warranty period. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to historical discounting trends for products and services and pricing practices in different geographies. Revenue for systems and spares are recognized at a point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. The Company has elected the practical expedient to not assess whether a contract has a significant financing component as the Company’s standard payment terms are less than one year. The Company sells its products primarily through a direct sales force. In certain international markets, the Company sells its products through independent distributors. Transfer of control is evidenced upon passage of title and risk of loss to the customer unless we are required to provide additional services. Disaggregation of revenue The following presents information about the Company’s net revenues in different geographic areas, which are based upon ship-to locations, and by product category: Three Months Ended August 31, (In thousands) 2023 2022 Asia $ 19,231 $ 7,808 United States 789 2,863 Europe 604 - $ 20,624 $ 10,671 Three Months Ended August 31, (In thousands) 2023 2022 Systems $ 8,093 $ 9,094 Contactors 11,264 494 Services 1,267 1,083 $ 20,624 $ 10,671 With the exception of the amount of service contracts and extended warranties, the Company’s product net revenues are recognized at a point in time when control transfers to the customer. The following presents net revenues based on timing of recognition: Three Months Ended August 31, (In thousands) 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 20,011 $ 10,254 Services transferred over time 613 417 $ 20,624 $ 10,671 Contract balances A receivable is recognized in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. The Company usually does not record contract assets because the Company has an unconditional right to payment upon satisfaction of the performance obligation, and therefore, a receivable is more commonly recorded than a contract asset. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Condensed Consolidated Balance Sheets at the end of each reporting period as a component of deferred revenue. Contract liabilities as of August 31, 2023 and May 31, 2023 were $6.1 million and $2.9 million, respectively. During the three months ended August 31, 2023, the Company recognized $0.7 million of revenues that were included in contract liabilities as of May 31, 2023. Remaining performance obligations On August 31, 2023, the Company had $0.1 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. The Company expects to recognize approximately 72% of its remaining performance obligations as revenue in the remainder of fiscal 2024, and an additional 28% in fiscal 2025 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Costs to obtain or fulfill a contract The Company generally expenses sales commissions when incurred as a component of selling, general and administrative expenses as the amortization period is typically less than one year. Additionally, the majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventory and fixed assets, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of the Company’s products and their respective manufacturing process. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Aug. 31, 2023 | |
SHAREHOLDERS EQUITY | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION Stock-based compensation expense consists of expenses for stock options, restricted stock units (“RSUs”), performance RSUs, or PRSUs, restricted shares, performance restricted shares and employee stock purchase plan, or ESPP, purchase rights. Stock-based compensation expense for stock options and ESPP purchase rights is measured at each grant date, based on the fair value of the award using the Black-Scholes option valuation model, and is recognized as expense over the employee’s requisite service period. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. The Company’s employee stock options have characteristics significantly different from those of publicly traded options. For RSUs, PRSUs, restricted shares and performance restricted shares, stock-based compensation expense is based on the fair value of the Company’s common stock at the grant date and is recognized as expense over the employee’s requisite service period. All of the Company’s stock-based compensation is accounted for as equity instruments. See Note 13 in the Company’s Annual Report on Form 10-K for fiscal 2023 filed on August 28, 2023 for further information regarding the 2016 Equity Incentive Plan (the “2016 Plan”) and the ESPP. The following table summarizes the stock-based compensation expense for the three months ended August 31, 2023 and 2022: Three Months Ended August 31, (In thousands) 2023 2022 Cost of sales $ 63 $ 91 Research and development 153 154 Selling, general and administrative 306 465 $ 522 $ 710 There were $149,000 and $120,000 in stock-based compensation expense capitalized as part of inventory as of August 31, 2023 and as of May 31, 2023, respectively. There were no options granted during the three months ended August 31, 2023. There were no ESPP purchase rights granted during the three months ended August 31, 2023 and 2022. Nonvested restricted stock units activity during the three months ended August 31, 2023, was as follows: Weighted Average Grant Date Fair Shares Value (in thousands) Per Share Unvested May 31, 2023 345 $ 6.40 Granted - Vested (77 ) 7.16 Forfeited (52 ) 5.79 Unvested August 31, 2023 216 $ 6.27 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Aug. 31, 2023 | |
Net income per share: | |
NET INCOME PER SHARE | 11. NET INCOME PER SHARE Basic net income per share is determined using the weighted average number of common shares outstanding during the period. Diluted net income per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, unvested RSUs, and ESPP shares) outstanding during the period using the treasury stock method. The following table presents the computation of basic and diluted net income per share: Three Months Ended August 31, (In thousands, except per share data) 2023 2022 Numerator: Net income $ 4,674 $ 589 Denominator: Basic weighted average shares outstanding 28,649 27,242 Dilutive effect of common equivalent shares outstanding 983 1,546 Diluted weighted average shares outstanding 29,632 28,788 Net income per share - Basic $ 0.16 $ 0.02 Net income per share - Diluted $ 0.16 $ 0.02 For the purpose of computing diluted net income 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 2,000 and 152,000 shares of common stock were outstanding as of August 31, 2023 and 2022, respectively, but were not included in the computation of diluted net income per share, because the inclusion of such shares would be anti-dilutive. |
SEGMENT AND CONCENTRATION INFOR
SEGMENT AND CONCENTRATION INFORMATION | 3 Months Ended |
Aug. 31, 2023 | |
SEGMENT AND CONCENTRATION INFORMATION | |
SEGMENT AND CONCENTRATION INFORMATION | 12. SEGMENT AND CONCENTRATION INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in one operating segment. Long-lived assets, net by geographic area are as follows: August 31, May 31, (In thousands) 2023 2023 United States $ 3,041 $ 2,713 International 42 46 Total long-lived assets, net $ 3,083 $ 2,759 |
ORGANIZATION AND SIGNIFICANT _2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Aug. 31, 2023 | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Organization | Organization |
Principles of Consolidation | Principles of Consolidation – |
Basis of Presentation | Basis of Presentation – |
Critical Accounting Policies and use of Estimates | Critical Accounting Policies and use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk Three Months Ended August 31, 2023 2022 Customer A 88.0 % 67.3 % Customer B * 22.9 % The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: August 31, May 31, 2023 2023 Customer A 74.0 % 81.6 % Customer C 18.0 % 16.5 % |
Reclassifications | Reclassifications - |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — $0 Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a significant impact on its Condensed Consolidated Financial Statements. |
ORGANIZATION AND SIGNIFICANT _3
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of financial instruments | Three Months Ended August 31, 2023 2022 Customer A 88.0 % 67.3 % Customer B * 22.9 % August 31, May 31, 2023 2023 Customer A 74.0 % 81.6 % Customer C 18.0 % 16.5 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Cash, cash equivalents and investments by security type | Balances as of August 31, 2023 Gross Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 2,130 $ - $ 2,130 Cash equivalents: Money market funds $ 48,825 $ - $ 48,825 Total cash and cash equivalents $ 50,955 $ - $ 50,955 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 51,105 $ - $ 51,105 Gross Balances as of May 31, 2023 Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 3,182 $ - $ 3,182 Cash equivalents: Money market funds $ 26,872 $ - $ 26,872 Total cash and cash equivalents $ 30,054 $ - $ 30,054 Short term investments: U. S. treasury securities $ 17,870 $ (17 ) $ 17,853 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 48,074 $ (17 ) $ 48,057 |
Fair value by hierarchy | Balance as of (In thousands) August 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 48,975 $ 48,975 $ - $ - Total $ 48,975 $ 48,975 $ - $ - Balance as of May 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 27,022 $ 27,022 $ - $ - U. S. treasury securities 17,853 17,853 Total $ 44,875 $ 44,875 $ - $ - |
BALANCE SHEET INFORMATION (Tabl
BALANCE SHEET INFORMATION (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
BALANCE SHEET INFORMATION | |
Inventories | August 31, May 31, (In thousands) 2023 2023 Raw materials and sub-assemblies $ 19,422 $ 15,953 Work in process 9,617 5,764 Finished goods 2,518 2,191 $ 31,557 $ 23,908 |
Property and equipment, net | Useful life August 31, May 31, (In thousands) (In years) 2023 2023 Leasehold improvements * $ 1,325 $ 1,310 Machinery and equipment 3 - 6 5,787 5,445 Test equipment 4 - 6 3,083 2,998 Furniture and fixtures 2 - 6 725 706 10,920 10,459 Less: accumulated depreciation and amortization (7,837 ) (7,700 ) $ 3,083 $ 2,759 |
Liability for product warranties | Three Months Ended August 31, (In thousands) 2023 2022 Balance at the beginning of the period $ 267 $ 410 Accruals for warranties issued during the period 65 118 Adjustments to previously existing warrany accruals - 61 Consumption of reserves (100 ) (165 ) Balance at the end of the period $ 232 $ 424 |
Customer deposits and deferred revenue, short-term | August 31, May 31, (In thousands) 2023 2023 Customer deposits $ 2,008 $ 2,690 Deferred revenue 4,106 132 $ 6,114 $ 2,822 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of Changes in the components of accumulated other comprehensive loss, net of tax | Cumulative Unrealized loss (In thousands) translation adjustment on investments, net Total Balance as of May 31, 2023 $ (138 ) $ (17 ) $ (155 ) Other comprehensive income (loss) before reclassifications (3 ) 17 14 Balance as of August 31, 2023 $ (141 ) $ - $ (141 ) |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
REVENUE | |
Disaggregation of revenue | Three Months Ended August 31, (In thousands) 2023 2022 Asia $ 19,231 $ 7,808 United States 789 2,863 Europe 604 - $ 20,624 $ 10,671 Three Months Ended August 31, (In thousands) 2023 2022 Systems $ 8,093 $ 9,094 Contactors 11,264 494 Services 1,267 1,083 $ 20,624 $ 10,671 Three Months Ended August 31, (In thousands) 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 20,011 $ 10,254 Services transferred over time 613 417 $ 20,624 $ 10,671 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
SHAREHOLDERS EQUITY | |
Compensation costs related to the Company's stock-based compensation | Three Months Ended August 31, (In thousands) 2023 2022 Cost of sales $ 63 $ 91 Research and development 153 154 Selling, general and administrative 306 465 $ 522 $ 710 |
Nonvested RSU activity | Weighted Average Grant Date Fair Shares Value (in thousands) Per Share Unvested May 31, 2023 345 $ 6.40 Granted - Vested (77 ) 7.16 Forfeited (52 ) 5.79 Unvested August 31, 2023 216 $ 6.27 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Net income per share: | |
Net income earnings per share | Three Months Ended August 31, (In thousands, except per share data) 2023 2022 Numerator: Net income $ 4,674 $ 589 Denominator: Basic weighted average shares outstanding 28,649 27,242 Dilutive effect of common equivalent shares outstanding 983 1,546 Diluted weighted average shares outstanding 29,632 28,788 Net income per share - Basic $ 0.16 $ 0.02 Net income per share - Diluted $ 0.16 $ 0.02 |
SEGMENT AND CONCENTRATION INF_2
SEGMENT AND CONCENTRATION INFORMATION (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
SEGMENT AND CONCENTRATION INFORMATION | |
Property and equipment by geographic region | August 31, May 31, (In thousands) 2023 2023 United States $ 3,041 $ 2,713 International 42 46 Total long-lived assets, net $ 3,083 $ 2,759 |
ORGANIZATION AND SIGNIFICANT _4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | May 31, 2023 | |
Customer A | Accounts Receivable | |||
Concentration of Credit Risk | 74% | 81.60% | |
Customer A | Revenue | |||
Concentration of Credit Risk | 88% | 67.30% | |
Customer C | Accounts Receivable | |||
Concentration of Credit Risk | 18% | 16.50% | |
Customer B | Revenue | |||
Concentration of Credit Risk | 22.90% |
ORGANIZATION AND SIGNIFICANT _5
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | May 31, 2023 | |
Allowance for credit losses | $ 0 | $ 0 |
Revenue [Member] | ||
Concentration risk | 10% |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | May 31, 2023 |
Assets [Member] | ||
Investment securities | $ 48,975 | $ 44,875 |
U.S. treasury securities | ||
Investment securities | 17,853 | |
Level 1 [Member] | Assets [Member] | ||
Investment securities | 48,975 | 44,875 |
Level 2 [Member] | Assets [Member] | ||
Investment securities | 0 | 0 |
Level 3 [Member] | Assets [Member] | ||
Investment securities | 0 | 0 |
Money Market Funds | ||
Investment securities | 48,975 | 27,022 |
Money Market Funds | Level 1 [Member] | ||
Investment securities | 48,975 | 27,022 |
Money Market Funds | Level 2 [Member] | ||
Investment securities | 0 | 0 |
Money Market Funds | Level 3 [Member] | ||
Investment securities | $ 0 | 0 |
US Treasury Securities | Level 1 [Member] | ||
Investment securities | $ 17,853 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands | Aug. 31, 2023 | May 31, 2023 |
Total cash and cash equivalents | $ 50,955 | $ 30,054 |
Short-term Investments | 0 | 17,853 |
Short-term Investments | 0 | (17,853) |
Cost [Member] | ||
Cash | 2,130 | 3,182 |
Total cash and cash equivalents | 50,955 | 30,054 |
Total cash, cash equivalents and investments | 51,105 | 48,074 |
Total cash, cash equivalents and investments | (51,105) | (48,074) |
Cost [Member] | Money Market Funds | ||
Cash equivalents | 48,825 | 26,872 |
Long-term investments | 150 | 150 |
Cost [Member] | U S Treasury Securities [Member] | ||
Short-term Investments | 17,870 | |
Short-term Investments | (17,870) | |
Gross Unrealized Loss | ||
Cash | 0 | 0 |
Total cash and cash equivalents | 0 | 0 |
Total cash, cash equivalents and investments | 0 | 17 |
Total cash, cash equivalents and investments | 0 | (17) |
Gross Unrealized Loss | Money Market Funds | ||
Cash equivalents | 0 | 0 |
Long-term investments | 0 | 0 |
Gross Unrealized Loss | U S Treasury Securities [Member] | ||
Short-term Investments | 17 | |
Short-term Investments | (17) | |
Estimated Fair Value [Member] | ||
Cash | 2,130 | 3,182 |
Total cash and cash equivalents | 50,955 | 30,054 |
Total cash, cash equivalents and investments | 51,105 | 48,057 |
Total cash, cash equivalents and investments | (51,105) | (48,057) |
Estimated Fair Value [Member] | Money Market Funds | ||
Cash equivalents | 48,825 | 26,872 |
Long-term investments | $ 150 | 150 |
Estimated Fair Value [Member] | U S Treasury Securities [Member] | ||
Short-term Investments | 17,853 | |
Short-term Investments | $ (17,853) |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | May 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Transfer between Level 1 and Level 2 fair value measurements | $ 0 | |
Restricted cash | 150,000 | $ 150,000 |
Financial liabilities at fair value | $ 0 | $ 0 |
BALANCE SHEET INFORMATION (Deta
BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | May 31, 2023 |
BALANCE SHEET INFORMATION | ||
Raw materials and sub-assemblies | $ 19,422 | $ 15,953 |
Work in process | 9,617 | 5,764 |
Finished goods | 2,518 | 2,191 |
Inventories | $ 31,557 | $ 23,908 |
BALANCE SHEET INFORMATION (De_2
BALANCE SHEET INFORMATION (Details 1) - USD ($) $ in Thousands | Aug. 31, 2023 | May 31, 2023 |
BALANCE SHEET INFORMATION | ||
Leasehold improvements | $ 1,325 | $ 1,310 |
Furniture and fixtures | 725 | 706 |
Machinery and equipment | 5,787 | 5,445 |
Test equipment | 3,083 | 2,998 |
Property and equipment, gross | 10,920 | 10,459 |
Less: Accumulated depreciation and amortization | (7,837) | (7,700) |
Property and equipment, net | $ 3,083 | $ 2,759 |
BALANCE SHEET INFORMATION (De_3
BALANCE SHEET INFORMATION (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
BALANCE SHEET INFORMATION | ||
Balance at the beginning of the period | $ 267 | $ 410 |
Accruals for warranties issued during the period | 65 | 118 |
Adjustments to previously existing warranty accruals | 0 | 61 |
Consumption of reserves | (100) | (165) |
Balance at the End of the period | $ 232 | $ 424 |
BALANCE SHEET INFORMATION (De_4
BALANCE SHEET INFORMATION (Details 3) - USD ($) $ in Thousands | Aug. 31, 2023 | May 31, 2023 |
BALANCE SHEET INFORMATION | ||
Customer deposits | $ 2,008 | $ 2,690 |
Deferred revenue | 4,106 | 132 |
Deferred revenue, short-term | $ 6,114 | $ 2,822 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
INCOME TAX | ||
Provision for income taxes | $ 16 | $ 14 |
BORROWING ARRANGEMENTS (Details
BORROWING ARRANGEMENTS (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Nov. 30, 2023 | |
Original Loan and Security Agreement | ||
Line of Credit, maximum borrowing | $ 4,000,000 | |
Balance available to borrow under the line of credit | $ 5,396,000 | |
Variable interest rate | the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 4.75% | |
Second Amendment To Loan And Security Agreement | ||
Line of Credit, maximum borrowing | $ 10,000,000 | |
Variable interest rate | the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.25%, reduces the interest rate for purchase order advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.5%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.75% | |
Revolving line maturity date | Jan. 13, 2023 | |
First Amendment to Loan and Security Agreement | ||
Revolving line maturity date | Jan. 13, 2022 | |
Third Amendment to Loan and Security Agreement | ||
Revolving line maturity date | Jan. 13, 2025 | |
Third Amendment to Loan and Security Agreement | Subsequent Event | ||
Minimum liquidity net | $ 20,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
COMMITMENTS AND CONTINGENCIES | ||
Restricted cash | $ 150,000 | $ 150,000 |
SHAREHOLDERS EQUITY (Details Na
SHAREHOLDERS EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | Feb. 08, 2023 | Oct. 08, 2021 | Aug. 31, 2023 | Aug. 25, 2021 |
SHAREHOLDERS EQUITY | ||||
Sale of common stock price per share | $ 34.78 | $ 14.73 | ||
Sale of common stock shares | 208,917 | 1,696,729 | ||
Gross proceeds | $ 7.3 | $ 25 | ||
Commission fees | 0.2 | 0.7 | ||
Offering expenses | $ 0.2 | $ 0.3 | ||
Remaining amount of the ATM offering | $ 17.7 | |||
Shelf registration amount | $ 75 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands | 3 Months Ended |
Aug. 31, 2023 USD ($) | |
Balance at the beginning of the year | $ (155) |
Other comprehensive loss before reclassifications | 14 |
Balance at the ending of the year | (141) |
Unrealized Loss on Investments Net [Member] | |
Balance at the beginning of the year | (17) |
Other comprehensive loss before reclassifications | 17 |
Balance at the ending of the year | 0 |
Cumulative Translation Adjustments [Member] | |
Balance at the beginning of the year | (138) |
Other comprehensive loss before reclassifications | (3) |
Balance at the ending of the year | $ (141) |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Net sales | $ 20,624 | $ 10,671 |
United States [Member] | ||
Net sales | 789 | 2,863 |
Asia | ||
Net sales | 19,231 | 7,808 |
Europe | ||
Net sales | $ 604 | $ 0 |
REVENUE (Details 1)
REVENUE (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Net sales | $ 20,624 | $ 10,671 |
Systems [Member] | ||
Net sales | 8,093 | 9,094 |
Services [Member] | ||
Net sales | 1,267 | 1,083 |
Contactors [Member] | ||
Net sales | $ 11,264 | $ 494 |
REVENUE (Details 2)
REVENUE (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Net sales | $ 20,624 | $ 10,671 |
Products And Services Transferred At A Point In Time [Member] | ||
Net sales | 20,011 | 10,254 |
Services Transferred over Time [Member] | ||
Net sales | $ 613 | $ 417 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2025 | Aug. 31, 2024 | May 31, 2023 | |
Contract liabilities | $ 6.1 | $ 2.9 | ||
Recognition of contract liabilities | 0.7 | |||
Remaining performance obligations | $ 0.1 | |||
Scenario Forecast [Member] | Subsequent Event | ||||
Remaining performance obligation revenue recognition | 72% | 28% |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Stock-based compensation | $ 522 | $ 710 |
Cost of Sales | ||
Total stock-based compensation | 63 | 91 |
Selling, General and Administrative | ||
Total stock-based compensation | 153 | 154 |
Research and Development | ||
Total stock-based compensation | $ 306 | $ 465 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 1) - Nonvested RSU Activty shares in Thousands | 3 Months Ended |
Aug. 31, 2023 $ / shares shares | |
Unvested May 31, 2023, beginning (in thousands) | shares | 345 |
Shares, Vested (in thousands) | shares | (77) |
Shares, Forfeited (in thousands) | shares | (52) |
Unvested August 31, 2023, ending (in thousands) | shares | 216 |
Weighted Average Grant Date Fair Value Per Share, beginning | $ / shares | $ 6.40 |
Vested | $ / shares | 7.16 |
Forfeited | $ / shares | 5.79 |
Weighted Average Grant Date Fair Value Per Share, Ending | $ / shares | $ 6.27 |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
SHAREHOLDERS EQUITY | ||
Stock-based compensation expense capitalized | $ 149,000 | $ 120,000 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Net income per share: | ||
Net income | $ 4,674 | $ 589 |
Denominator: Weighted average shares outstanding | 28,649 | 27,242 |
Dilutive effect of common equivalent shares outstanding | 983 | 1,546 |
Denominator: Diluted weighted average shares outstanding | 29,632 | 28,788 |
Basic net income (loss) per share | $ 0.16 | $ 0.02 |
Diluted net income (loss) per share | $ 0.16 | $ 0.02 |
NET INCOME PER SHARE (Details N
NET INCOME PER SHARE (Details Narrative) - shares | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Stock Option | ||
Options not included in the computation of diluted net income per share | 2,000 | 152,000 |
SEGMENT AND CONCENTRATION INF_3
SEGMENT AND CONCENTRATION INFORMATION (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | May 31, 2023 |
Property and equipment, net | $ 3,083 | $ 2,759 |
United States [Member] | ||
Property and equipment, net | 3,041 | 2,713 |
International | ||
Property and equipment, net | $ 42 | $ 46 |