Aehr Test Systems (AEHR) 10-K 30 Jul 24 2024 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	May 31, 2024	Jul. 15, 2024	Nov. 30, 2023
Cover [Abstract]
Entity Registrant Name	AEHR TEST SYSTEMS
Entity Central Index Key	0001040470
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	May 31, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		29,007,409
Entity Public Float			$ 630,123,470
Document Annual 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
Icfr Auditor Attestation Flag	false
Auditor Name	BPM LLP
Auditor Location	San Jose, California
Auditor Firm Id	207
Local Phone Number	623-9400
Security 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	AEHR
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
Current assets:
Cash and cash equivalents	$ 49,159	$ 30,054
Short-term investments	0	17,853
Accounts receivable	9,796	16,594
Inventories	37,470	23,908
Prepaid expenses and other current assets	1,423	621
Total current assets	97,848	89,030
Property and equipment, net	3,253	2,759
Operating lease right-of-use assets, net	5,734	6,123
Deferred tax assets, net	20,773	0
Other non-current assets	304	231
Total assets	127,912	98,143
Current liabilities:
Accounts payable	5,332	9,206
Accrued expenses	3,366	4,143
Operating lease liabilities, short-term	465	137
Deferred revenue, short-term	1,345	2,822
Total current liabilities	10,508	16,308
Operating lease liabilities, long-term	5,732	6,163
Deferred revenue, long-term	41	31
Other long-term liabilities	38	41
Total liabilities	16,319	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: 28,995 shares and 28,539 shares at May 31, 2024 and 2023, respectively	289	285
Additional paid-in-capital	130,612	127,776
Accumulated other comprehensive loss	(158)	(155)
Accumulated deficit	(19,150)	(52,306)
Total shareholders' equity	111,593	75,600
Total liabilities and shareholders' equity	$ 127,912	$ 98,143

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	May 31, 2024	May 31, 2023
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	28,995,000	28,539,000
Common stock, shares outstanding	28,995,000	28,539,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Revenues
Total revenue	$ 66,218	$ 64,961	$ 50,829
Cost of revenue
Total cost of revenue	33,675	32,215	27,164
Gross profit	32,543	32,746	23,665
Operating expenses:
Research and development	8,719	7,134	5,818
Selling, general and administrative	13,746	12,237	10,047
Total operating expenses	22,465	19,371	15,865
Income from operations	10,078	13,375	7,800
Interest income, net	2,388	1,245	13
Other income (expense), net	(8)	(3)	30
Gain from forgiveness of PPP loan	0	0	1,698
Income before income tax expense (benefit)	12,458	14,617	9,541
Income tax expense (benefit)	(20,698)	60	91
Net income	$ 33,156	$ 14,557	$ 9,450
Net income per share:
Basic	$ 1.15	$ 0.52	$ 0.36
Diluted	$ 1.12	$ 0.50	$ 0.34
Shares used in per share calculations:
Basic	28,818	27,785	26,014
Diluted	29,617	29,215	27,774
Product [Member]
Revenues
Total revenue	$ 61,729	$ 60,717	$ 47,871
Cost of revenue
Total cost of revenue	31,093	29,759	25,664
Service [Member]
Revenues
Total revenue	4,489	4,244	2,958
Cost of revenue
Total cost of revenue	$ 2,582	$ 2,456	$ 1,500

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 33,156	$ 14,557	$ 9,450
Other comprehensive income (loss), net of tax:
Net change in cumulative translation adjustment	(20)	(33)	(77)
Net change in unrealized gain (loss) on investments	17	(17)	0
Comprehensive income	$ 33,153	$ 14,507	$ 9,373

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 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, 2021		23,725
Balance, amount at May. 31, 2021	$ 11,449	$ 237	$ 87,553	$ (28)	$ (76,313)
Issuance of common stock under employee plans, shares		1,760
Issuance of common stock under employee plans, amount	3,560	$ 17	3,543	0	0
Proceeds from public offerings, net of issuance cost, shares		1,697
Proceeds from public offerings, net of issuance cost, amount	24,030	$ 17	24,013	0	0
Shares repurchased for tax withholdings on vesting of restricted stock units, shares		62
Shares repurchased for tax withholdings on vesting of restricted stock units, amount	(429)	$ 0	(429)	0	0
Stock-based compensation	3,006	0	3,006	0	0
Net income	9,450	0	0	0	9,450
Foreign currency translation adjustment	(77)	$ 0	0	(77)	0
Balance, shares at May. 31, 2022		27,120
Balance, amount at May. 31, 2022	50,989	$ 271	117,686	(105)	(66,863)
Issuance of common stock under employee plans, shares		1,388
Issuance of common stock under employee plans, amount	2,562	$ 13	2,549	0	0
Proceeds from public offerings, net of issuance cost, shares		209
Proceeds from public offerings, net of issuance cost, amount	6,820	$ 2	6,818	0	0
Shares repurchased for tax withholdings on vesting of restricted stock units, shares		178
Shares repurchased for tax withholdings on vesting of restricted stock units, amount	(2,060)	$ (1)	(2,059)	0	0
Stock-based compensation	2,782	0	2,782	0	0
Net income	14,557	0	0	0	14,557
Foreign currency translation adjustment	(33)	0	0	(33)	0
Net unrealized loss on investments	(17)	$ 0	0	(17)	0
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		501
Issuance of common stock under employee plans, amount	1,807	$ 4	1,803	0	0
Shares repurchased for tax withholdings on vesting of restricted stock units, shares		45
Shares repurchased for tax withholdings on vesting of restricted stock units, amount	(1,596)	$ 0	(1,596)	0	0
Stock-based compensation	2,701	0	2,701	0	0
Net income	33,156	0	0	0	33,156
Foreign currency translation adjustment	(20)	0	0	(20)	0
Net unrealized loss on investments	17	0	0	17	0
Issuance cost of common stock offering	(72)	$ 0	(72)	0	0
Balance, shares at May. 31, 2024		28,995
Balance, amount at May. 31, 2024	$ 111,593	$ 289	$ 130,612	$ (158)	$ (19,150)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Cash flows from operating activities:
Net income	$ 33,156	$ 14,557	$ 9,450
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	2,518	2,748	3,006
Depreciation and amortization	657	450	356
Deferred income taxes	(20,773)	0	0
Accretion of investment discount	(130)	(576)	0
Amortization of operating lease right-of-use assets	706	649	689
Provision for credit losses	0	24	0
Gain from forgiveness of PPP loan	0	0	(1,698)
Changes in operating assets and liabilities:
Accounts receivable	6,790	(3,788)	(7,834)
Inventories	(13,732)	(9,469)	(6,674)
Prepaid expenses and other current assets	(875)	28	(71)
Accounts payable	(3,891)	5,044	1,356
Accrued expenses	(792)	528	1,464
Deferred revenue	(1,469)	369	2,196
Operating lease liabilities	(423)	(561)	(738)
Income taxes payable	14	8	6
Net cash provided by operating activities	1,756	10,011	1,508
Cash flows from investing activities:
Proceeds from maturities of investments	18,000	16,000	0
Purchases of investments	0	(33,294)	0
Purchases of property and equipment	(749)	(1,362)	(416)
Net cash provided by (used in) investing activities	17,251	(18,656)	(416)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee plans	1,807	2,562	3,560
Shares repurchased for tax withholdings on vesting of restricted stock units, amount	(1,596)	(2,060)	(429)
Proceeds from issuance of common stock, net of issuance costs	(72)	6,820	24,030
Line of credit repayments, net	0	0	(1,400)
Net cash provided by financing activities	139	7,322	25,761
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(41)	(37)	49
Net increase (decrease) in cash, cash equivalents and restricted cash	19,105	(1,360)	26,902
Cash, cash equivalents and restricted cash, beginning of year (1)	30,204	31,564	4,662
Cash, cash equivalents and restricted cash, end of year (1)	49,309	30,204	31,564
Supplemental cash flow information:
Income taxes paid	90	21	4
Interest paid	0	15	12
Supplemental disclosure of non-cash flow information:
Net transfer of equipment between inventory and property and equipment	$ 357	$ 646	$ 472

ORGANIZATION AND SIGNIFICANT AC

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	May 31, 2024
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization Aehr Test Systems (the “Company”) was incorporated in California in May 1977 and primarily designs, engineers and manufactures test and burn-in equipment used in the semiconductor industry. The Company’s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact parallel test and burn-in systems, the WaferPak full wafer contactor, the DiePak Carrier, the WaferPak Aligner, the DiePak Autoloader, and test fixtures. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned foreign subsidiaries. Intercompany accounts and transactions have been eliminated. Foreign Currency Translation and Transactions Assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. Dollars from their functional currencies using the exchange rate in effect at the balance sheet date. Additionally, revenues and expenses are translated using exchange rates approximating average rates prevailing during the fiscal year. Translation adjustments that arise from translating their financial statements from their local currencies to U.S. Dollar are accumulated and reflected as a separate component of shareholders’ equity. Transaction gains and losses that arise from exchange rate changes denominated in currencies other than the local currency are included in the consolidated statements of operations as incurred. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Actual results could differ from those estimates. Significant estimates in the Company’s consolidated financial statements include revenue recognition, inventory valuation and accounting for income taxes. Cash and Cash Equivalents Cash equivalents consist of money market instruments purchased with an original maturity of three months or less. These investments are reported at fair value. Accounts Receivable and Allowance for Credit Losses 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. Accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains an allowance for credit losses for expected uncollectible accounts receivable and assess collectibility by reviewing accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when specific customers with known disputes or collectibility issues are identified. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to the Company, may require the Company to further adjust its estimates of the recoverability of accounts receivable. The credit losses recognized on accounts receivable during the years ended May 31, 2024, 2023 and 2022 were not significant and management has determined that no allowance for credit losses was required as of May 31, 2024 and 2023. Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalents are generally deposited with major financial institutions in the United States, Philippines, Germany and Taiwan. The Company invests its excess cash in money market funds and U.S. Treasury securities. The Company’s cash and investment balances held at banks and brokerage firms may at time exceed federally insured levels. The Company has not experienced any material losses on its money market funds or short-term cash deposits. The Company performs credit evaluations of its customers’ financial condition and generally requires no collateral. The Company had revenues from individual customers in excess of 10% of total revenues as follows: Year Ended May 31 2024 2023 2022 Customer A 67.3 % 78.8 % 81.8 % Customer B 16.7 % * * Customer C * 10.4 % * * Amount was less than 10% of total revenue The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: May 31, 2024 2023 Customer A 49.9 % 81.6 % Customer B 16.5 % 16.5 % Customer C 12.3 % * * Amount was less than 10% of total gross accounts receivable Inventories Inventories include material, labor and overhead, and are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Net realizable value is the estimated selling prices in the ordinary course of business, less costs of completion, disposal and transportation. Provisions for excess, obsolete and unusable inventories are made after management’s evaluation of future demand and market conditions. If actual future demand or market conditions become less favorable than those projected by management, additional adjustment for excess or obsolete inventory may be required, and would be reflected in cost of sales in the period the revision is made. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Leasehold improvements are amortized over the lesser of their estimated useful lives or the term of the related lease. Furniture and fixtures, machinery and equipment, and test equipment are depreciated on a straight-line basis over their estimated useful lives. The ranges of estimated useful lives are generally as follows: Furniture and fixtures 2 to 5 years Machinery and equipment 3 to 5 years Test equipment 4 to 5 years Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. Such an impairment charge would be measured as the excess of the carrying value of the asset over its fair value. Warranty Reserves 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. 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, WaferPak 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 is recognized at a point in time, which is generally upon shipment or delivery and evidenced by transfer of title and risk of loss to the customer. Revenue from services is recognized over time as the customer receives the benefit over the contractual period of generally one year or less. 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. Shipping And Handling Costs Amounts billed to customers for shipping and handling of products are included in revenue. Costs incurred related to shipping and handling of products are included in cost of revenue. Stock-based Compensation Expense Stock-based compensation expense consists of expenses for stock options, restricted stock units (“RSUs”), performance RSUs (“PRSUs”), and an employee stock purchase plan (“ESPP”). Stock-based compensation cost 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. 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 an equity instrument. Income Taxes The Company accounts for income taxes in accordance with the authoritative guidance, which requires income tax effects for changes in tax laws to be recognized in the period in which the law is enacted. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryforwards. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted for the effect of a change in tax rates, laws, or status when the change is enacted. During the year ended May 31, 2024, the Company concluded that its deferred tax assets are more likely than not to become realizable, and as such, the Company reversed all $21.9 million of its existing valuation allowance. The conclusion that a valuation allowance was no longer needed was based on three years of cumulative pre-tax income, current year utilization of federal and state net operating losses, combined with estimates of future years' pre-tax income that are sufficient to realize the remaining deferred tax assets. The amount of the deferred tax asset considered realizable can change if estimates of future taxable income change or if objective negative and positive evidence change. As of May 31, 2023, the Company maintained a full valuation allowance against its deferred tax assets. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the consolidated financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Comprehensive Income (Loss) Comprehensive income (loss) generally represents all changes in shareholders’ equity except those resulting from investments or contributions by shareholders. Unrealized gains and losses from available-for-sale securities and on foreign currency translation adjustments are included in the Company’s components of comprehensive income (loss), which are excluded from net income. Comprehensive income (loss) is included in the consolidated statements of comprehensive income. Reclassifications Certain reclassifications have been made to the previous year consolidated financial statements to conform to the current period presentation. The reclassifications had no impact on net income, total assets, total liabilities, or shareholders’ equity. Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company adopted this update beginning in the first quarter of its fiscal year ended May 31, 2024 on a modified retrospective basis and the adoption had no material impact on the consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Improvements to Reportable Segment Disclosures: In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. The Company is currently evaluating the effect of this pronouncement on its disclosures. Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures.

CASH CASH EQUIVALENTS AND INVES

CASH CASH EQUIVALENTS AND INVESTMENTS	12 Months Ended
	May 31, 2024
CASH CASH EQUIVALENTS AND INVESTMENTS
CASH, CASH EQUIVALENTS AND INVESTMENTS	2. CASH, CASH EQUIVALENTS AND INVESTMENTS The following table summarizes the Company’s cash, cash equivalents and investments by security type as of May 31, 2024: Gross Balances as of May 31, 2024 Unrealized Estimated (In thousands) Cost Gain (Loss) Fair Value Cash $ 5,029 $ - $ 5,029 Cash equivalents: Money market funds $ 44,130 $ - $ 44,130 Total cash and cash equivalents $ 49,159 $ - $ 49,159 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 49,309 $ - $ 49,309 The following table summarizes the Company’s cash, cash equivalents and investments by security type as of May 31, 2023: 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 non-current assets on the accompanying consolidated balance sheets. Unrealized gains and 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.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	May 31, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	3. 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 is 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 - 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 summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 31, 2024: Balance as of (In thousands) May 31, 2024 Level 1 Level 2 Level 3 Money market funds $ 44,280 $ 44,280 $ - $ - Total $ 44,280 $ 44,280 $ - $ - The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 31, 2023: Balance as of (In thousands) 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 May 31, 2024 and 2023 was $0.2 million restricted cash, representing a security deposit for the Company’s United States manufacturing and office space lease which is included in other non-current assets in the consolidated balance sheets. There were no financial liabilities measured at fair value as of May 31, 2024 and 2023. There were no transfers between Level 1 and Level 2 fair value measurements during the fiscal years ended May 31, 2024 and 2023. The carrying amounts of financial instruments including cash equivalents, accounts receivables, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities.

BALANCE SHEET INFORMATION

BALANCE SHEET INFORMATION	12 Months Ended
	May 31, 2024
BALANCE SHEET INFORMATION
BALANCE SHEET INFORMATION	4. BALANCE SHEET INFORMATION Inventories consisted of the following: May 31, (In thousands) 2024 2023 Raw materials and sub-assemblies $ 22,410 $ 15,953 Work in process 13,593 5,764 Finished goods 1,467 2,191 $ 37,470 $ 23,908 Property and equipment, net consisted of the following: May 31, (In thousands) 2024 2023 Leasehold improvements $ 1,588 $ 1,310 Machinery and equipment 4,528 5,445 Test equipment 1,928 2,998 Furniture and fixtures 175 706 8,219 10,459 Less: accumulated depreciation and amortization (4,966 ) (7,700 ) $ 3,253 $ 2,759 Depreciation expense was $0.7 million, $0.5 million, and $0.4 million for fiscal 2024, 2023, and 2022, respectively. Accrued expenses consisted of the following: May 31, (In thousands) 2024 2023 Commissions and bonuses $ 1,290 $ 1,728 Payroll related 1,202 1,491 Professional services 503 520 Other 371 404 $ 3,366 $ 4,143 Changes in the Company’s warranty reserve were as follows: May 31, (In thousands) 2024 2023 Balance at the beginning of the period $ 267 $ 410 Accruals for warranties issued during the period 511 420 Adjustments to previously existing warranty accruals - 61 Consumption of reserves (544 ) (624 ) Balance at the end of the period $ 234 $ 267 The accrued warranty balance is included in accrued expenses on the consolidated balance sheets. Deferred revenue, short-term consisted of the following: May 31, (In thousands) 2024 2023 Customer deposits $ 1,248 $ 2,690 Deferred revenue 97 132 $ 1,345 $ 2,822

INCOME TAXES

INCOME TAXES	12 Months Ended
	May 31, 2024
INCOME TAXES
INCOME TAXES	5. INCOME TAXES Domestic and foreign components of income before income tax expense (benefit) are as follows: Year Ended May 31, (In thousands) 2024 2023 2022 Domestic $ 12,355 $ 14,541 $ 9,416 Foreign 103 76 125 $ 12,458 $ 14,617 $ 9,541 The income tax expense (benefit) consists of the following: Year Ended May 31, (In thousands) 2024 2023 2022 Federal income taxes: Current $ 6 $ 28 $ 59 Deferred (14,377 ) - - State income taxes: Current 14 - 5 Deferred (6,396 ) - - Foreign income taxes: Current 55 32 27 Deferred - - - $ (20,698 ) $ 60 $ 91 The Company’s effective tax rate differs from the U.S. federal statutory tax rate, as follows: Year Ended May 31, (In thousands) 2024 2023 2022 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax effect (51.1 ) - 0.1 Foreign rate differential 0.2 0.7 0.3 Stock-based compensation (8.4 ) (9.1 ) (11.0 ) Research and development credit (1.5 ) (2.3 ) (1.3 ) Change in valuation allowance (126.0 ) (9.3 ) (4.7 ) PPP Loan - - (3.7 ) Other (0.3 ) (0.6 ) 0.4 Effective tax rate (166.1 )% 0.4 % 1.1 % The components of the net deferred tax assets and liabilities are as follows: May 31, (In thousands) 2024 2023 Deferred tax assets: Net operating losses $ 9,344 $ 11,964 Lease liability 1,310 1,335 Credit carryforwards 6,739 6,235 Inventory reserves 1,070 938 Reserves and accruals 855 1,200 Capitalized research and development 2,645 1,187 Other 23 297 Less: valuation allowance - (21,859 ) 21,986 1,297 Deferred tax liabilities: Operating lease right-of-use assets (1,213 ) (1,297 ) Net deferred tax assets $ 20,773 $ - The valuation allowance decreased by $21.9 million during fiscal 2024, $1.1 million during fiscal 2023, and $0.3 million during fiscal 2022. As of May 31, 2023, the Company maintained a valuation allowance on all the U.S. net deferred tax assets as it was determined that it was more likely than not that the Company would not recognize the benefits of these assets. The Company continued to record a valuation allowance through the first nine months of fiscal 2024. In the fourth quarter of fiscal 2024, the Company concluded that the valuation allowance related to the U.S. federal and state deferred tax assets was no longer required due to existence of sufficient positive evidence to support that it is more likely than not that its deferred tax assets are realizable. At May 31, 2024 and 2023, the Company has federal net operating loss carryforwards of approximately $34.6 million and $47.0 million respectively, to reduce future taxable income. A portion of the federal net operating losses will begin to expire in 2033. Federal net operating losses of $14.4 million will carryforward indefinitely and would be subject to an 80% taxable income limitation in the year utilized. At May 31, 2024 and 2023, the Company has state net operating loss carryforwards of $29.8 million and $30.2 million respectively, to reduce future taxable income. The state net operating loss carryforwards will begin to expire in 2028. At May 31, 2024 and 2023, the Company has federal research and development credit carryforwards of approximately $3.3 million and $2.9 million, respectively, to offset future tax liability. The federal credit carryforwards began to expire in 2022. At May 31, 2024 and 2023, the Company has state research and development credit carryforwards of approximately $7.1 million and $6.6 million respectively, to offset future tax liability. The state credit carryforwards are not subject to expiration. The Company also has alternative minimum tax credit carryforwards of $30 thousand for state purposes. The credits may be used to offset regular tax and do not expire. Sections 382 and 383 of the Internal Revenue Code limit the annual use of NOL carryforwards and tax credit carryforwards, respectively, following an ownership change. NOL carryforwards may be subject to annual limitations under Section 382 (or comparable provisions of state law) if certain changes in ownership of our company were to occur. In general, an ownership change occurs for the purposes of Section 382 if there is a more than 50% change in ownership of a company by 5% shareholders over a 3-year testing period. During the year ended May 31, 2024, we completed a Section 382 study and determined that there is no limitation on the Company’s ability to utilize its NOLs under Section 382. The Company has made no provision for U.S. income taxes on undistributed earnings of certain foreign subsidiaries because it is the Company’s intention to permanently reinvest such earnings in its foreign subsidiaries. If such earnings were distributed, the Company would be subject to additional U.S. income tax expense. The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available. The aggregate changes in the balance of gross unrecognized tax benefits are as follows: (In thousands) Balance at May 31, 2021 $ 1,928 Increases related to prior year tax positions 12 Increases related to current year tax positions 78 Balance at May 31, 2022 2,018 Increases related to prior year tax positions 90 Increases related to current year tax positions 168 Balance at May 31, 2023 2,276 Increases related to prior year tax positions 35 Decreases related to prior year tax positions (28 ) Increases related to current year tax positions 233 Decreases related to current year tax positions (32 ) Balance at May 31, 2024 $ 2,484 As of May 31, 2024 and 2023, the total amount of unrecognized tax benefits was approximately $2.5 million and $2.3 million, respectively. The unrecognized tax benefit of $2.5 million would impact the effective tax rate, if recognized. The Company had zero accrued interest and accrued penalties related to unrecognized tax benefit as of May 31, 2024. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months. The Company policy is to recognize interest and penalties in income tax expense. The Company’s federal and state income tax returns are subject to possible examination by the taxing authorities until the expiration of the related statutes of limitations on those tax returns. In general, the federal income tax returns have a three-year statute of limitations, and the state income tax returns have a four-year statute of limitations. The Company’s foreign income tax returns are also subject to examination by the foreign tax authorities with the longest statute of limitations period of four-year. The Company is not currently under audit with the Internal Revenue Service, or any foreign, state or local jurisdictions, nor has it been notified of any other potential future income tax audit.

LEASES

LEASES	12 Months Ended
	May 31, 2024
LEASES
LEASES	6. LEASES The Company leases its manufacturing and office space under operating leases. The principal administrative and production facility is located in Fremont, California, in a 51,289 square foot building. The Company entered into a non-cancelable operating lease agreement for its United States manufacturing and office facility, which was amended in December 2022 to extend the lease term to September 2030. The total commitments, net of tenant incentives of up to $0.3 million expected to be received by December 2024, under the modified lease are $8.6 million. The modified lease contains an option to further extend the lease for five years. The lease modification resulted in an increase in the Company’s operating lease right-of-use assets and operating lease liabilities of $5.9 million each in December 2022. The Company leases a 492 square foot sales and support office in Utting, Germany. The lease, which began on February 1, 1992 and expires on January 31, 2025, contains an automatic twelve months renewal. The Company leases a facility in the Philippines located in a 6,458 square foot building in Clark Freeport Zone, Pampanga. The lease, amended in 2023, began on November 1, 2023 and expires on June 30, 2029 with an option to renew for another three or five years at the prevailing market rate. Under the lease agreements, the Company is responsible for payments of utilities, taxes and insurance. The Company has only operating leases for real estate including corporate offices, warehouse space and certain equipment. A lease with an initial term of 12 months or less is generally not recorded on the consolidated balance sheets, unless the arrangement includes an option to purchase the underlying asset, or renew the arrangement that the Company is reasonably certain to exercise. The Company recognizes lease expense on a straight-line basis over the lease term for short-term leases that the Company does not record on its consolidated balance sheets. The Company’s operating leases have remaining lease terms of one year to six years. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of the arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. As of May 31, 2024, the weighted average remaining lease term for the Company’s operating leases was 6.2 years and the weighted average discount rate was 7.58%. The Company’s operating lease cost was $1.2 million, $0.9 million, and $0.8 million for the years ended May 31, 2024, 2023, and 2022, respectively. The following table presents supplemental cash flow information related to the Company’s operating leases: Year Ended May 31, (In thousands) 2024 2023 2022 Operating cash flows paid for operating leases $ 916 $ 835 $ 813 Right-of-use assets obtained in exchange for operating leases liabilities $ 318 $ 5,855 $ - The following table presents the maturities of the Company’s operating lease liabilities as of May 31, 2024: (In thousands) Fiscal year Operating Leases 2025 $ 921 2026 1,244 2027 1,284 2028 1,316 2029 1,361 Thereafter 1,798 Total future minimum operating lease payments 7,924 Less: imputed interest (1,727 ) Present value of operating lease liabilities $ 6,197

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	12 Months Ended
	May 31, 2024
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS	7. BORROWING ARRANGEMENTS Payroll Protection Program Loan On April 23, 2020, the Company obtained a Payroll Protection Program loan (“PPP Loan”) in the aggregate amount of $1.7 million from Silicon Valley Bank (“SVB”). The PPP Loan was evidenced by a promissory note dated April 23, 2020 (the “Note”) that matured on April 23, 2022 and bore interest at a rate of 1% per annum, payable monthly commencing on November 23, 2020. The PPP Loan proceeds were used for payroll, health care benefits, rent and utilities. Under the terms of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), PPP Loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP Loan. On June 12, 2021, the Company received confirmation from SVB that on June 4, 2021, the Small Business Administration approved the Company’s PPP Loan forgiveness application for the entire PPP Loan balance of $1.7 million and interest totaling $20 thousand, and the Company recognized a gain on loan forgiveness of $1.7 million. SVB Credit Facility The Company terminated the revolving line as described below on January 4, 2024. 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.

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
	May 31, 2024
RETIREMENT PLAN
RETIREMENT PLAN	8. RETIREMENT PLAN Employee Savings and Retirement Plan The Company maintains a defined contribution savings plan (the “401(k) Plan”) to provide retirement income to all qualified employees of the Company. The 401(k) Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. The 401(k) Plan is funded by voluntary pre-tax contributions from employees. Contributions are invested, as directed by the participant, in investment funds available under the 401(k) Plan. The Company is not required to make, and did not make, any contributions to the 401(k) Plan during the fiscal years ended May 31, 2024, 2023 and 2022.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	May 31, 2024
Commitments and contingencies (Note 9)
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Commitment Purchase obligations consist of non-cancelable significant contractual obligations. As of May 31, 2024, the Company’s unconditional purchase obligations, which have a remaining term in excess of 12 months, are not material. 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.

EQUITY

EQUITY	12 Months Ended
	May 31, 2024
EQUITY
EQUITY	10. 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 sales of $25 million of common stock pursuant to an "At the Market" ("ATM") offering program was subsequently filed on September 17, 2021. The Company sold 1,696,729 shares of common stock at an average selling price of $14.73 per share between September and October 2021. The gross proceeds to the Company were $25 million, before commission fees of $0.7 million and offering expenses of $0.3 million. Another Prospectus Supplement for an ATM sales of $25 million of common stock was subsequently filed on February 8, 2023. The Company sold 208,917 shares of common stock at an average selling price of $34.78 per share in February 2023. The gross proceeds to the Company during the quarter ended February 28, 2023 were $7.3 million, before commissions of $0.2 million and offering expenses of $0.2 million. The Company did not sell any shares under the ATM during the year ended May 31, 2024. As of May 31, 2024, the remaining amount of the ATM offering was $17.7 million.

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	12 Months Ended
	May 31, 2024
EMPLOYEE STOCK PLANS
EMPLOYEE STOCK PLANS	11. EMPLOYEE STOCK PLANS 2023 Equity Incentive Plan On October 23, 2023, the shareholders of the Company approved the 2023 Equity Incentive Plan (the "2023 Plan") to replace the Company’s 2016 Equity Incentive Plan (the “2016 Plan”) and reserved a total of 1,500,000 shares of common stock under the 2023 Plan. The 2023 Plan permits grants to employees of share-based awards, including stock options, RSUs, PRSUs, restricted shares, performance restricted shares. Full value awards, which are equity awards other than options, stock appreciation rights or other awards that are based solely on an increase in value of the shares following the grant date, when granted or forfeited will be counted as the same number of common stock shares added or deducted to the remaining available shares for issuance under the 2023 Plan. 2016 Equity Incentive Plan In October 2016, the Company’s 2016 Plan was approved by the Company’s shareholders. The 2016 Plan replaced the 2006 Equity Incentive Plan and would continue in effect until 2026. The exercise price of each stock option equals the market value of the Company's common stock on the date of grant. Options typically vest over four years, subject to the grantee’s continued service with the Company through the scheduled vesting date, and expire in seven years from the grant date. A total of 4,848,000 shares of common stock have been reserved for issuance under the Company’s 2016 Plan. Full value awards, which are equity awards other than options, stock appreciation rights or other awards that are based solely on an increase in value of the shares following the grant date, when granted or forfeited will be counted as two times the number of shares added or deducted to the remaining available shares for issuance under the 2016 Plan. The following table summarizes the total stock-based compensation expense for the fiscal years ended May 31, 2024, 2023, and 2022: Year Ended May 31, (In thousands, except per share data) 2024 2023 2022 Cost of sales $ 330 $ 331 $ 234 Research and development 639 706 968 Selling, general and administrative 1,549 1,711 1,721 Net effect on net income $ 2,518 $ 2,748 $ 2,923 Effect on earnings per share: Basic $ 0.09 $ 0.10 $ 0.11 Diluted $ 0.09 $ 0.09 $ 0.11 As of May 31, 2024 and 2023, stock-based compensation totaling $0.3 million and $0.1 million, respectively, was capitalized as part of inventory. The following table presents the combined stock activities and the total number of shares available for grant under the Company’s equity incentive plans: (in thousands) Available Shares for Grant Balance, May 31, 2021 573 Additional shares reserved under the 2016 Plan 1,414 Options granted (303 ) RSUs granted (1,044 ) RSUs cancelled 20 Shares withheld for taxes and not issued (30 ) Options terminated 105 Balance, May 31, 2022 735 Options granted (110 ) RSUs granted (674 ) RSUs cancelled 60 Options terminated 16 Balance, May 31, 2023 27 Shares reserved under the 2023 Plan 1,500 Shares retired under the 2016 Plan (95 ) Options granted (4 ) RSUs granted (221 ) RSUs cancelled 144 Options terminated 12 Balance, May 31, 2024 1,363 Restricted Stock Units, Performance Restricted Stock Units and Restricted Stock Awards The Company’s nonvested RSU, PRSU and restricted stock awards granted to employees and members of the Company’s Board of Directors for the fiscal year ended May 31, 2024 were as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Per Share (In Years) (in thousands) Unvested, May 31, 2023 345 $ 6.40 2.35 $ 11,392 Granted (1) 205 31.36 Vested (170 ) 9.31 Forfeited (86 ) 13.63 Unvested, May 31, 2024 294 $ 20.08 2.29 $ 3,381 (1) Includes 88,000 performance-based awards. The number of shares subject to performance-based conditions represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. During fiscal 2024, the Company recorded stock-based compensation related to RSUs, PRSUs, performance restricted shares and restricted shares of $1.3 million. As of May 31, 2024, the total unrecognized compensation expense related to unvested RSU, PRSU and restricted shares was $3.9 million. This expense will be amortized on a straight-line basis over a weighted average period of approximately 2.29 years. Stock Options The following table summarized the stock option transactions during fiscal 2024: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregated Intrinsic Value (in thousands) Per Share (In Years) (in thousands) Balances, May 31, 2023 961 $ 3.67 4.02 $ 28,211 Options granted 4 49.21 Options terminated (12 ) 3.78 Options exercised (251 ) 2.51 Balances, May 31, 2024 702 $ 4.37 3.26 $ 5,322 Options exercisable, May 31, 2024 536 $ 3.26 2.83 $ 4,512 Options exercisable and expected to vest 701 $ 4.37 3.26 $ 5,320 The fair value of the Company’s stock options granted to employees was estimated on the date of grant using the Black-Scholes model and the straight-line attribution approach with the following weighted average assumptions: Year Ended May 31, 2024 2023 2022 Expected term (in years) 5 5-6 5-6 Volatility 93 % 86 % 88 % Risk-free interest rates 4.34 % 3.12 % 1.50 % Weighted average grant date fair value $ 36.02 $ 6.29 $ 4.01 The total intrinsic values of options exercised were $9.5 million, $17.1 million, and $12.5 million during fiscal 2024, 2023, and 2022, respectively. During fiscal 2024, the Company recorded stock-based compensation related to its stock options of $0.4 million. As of May 31, 2024, the Company had $0.9 million of total unrecognized compensation expense related to unvested stock options granted and outstanding which is expected to be recognized over a weighted average remaining period of 3.26 years. Employee Stock Purchase Plan The ESPP permits employees to purchase common stock at a discount through payroll withholdings at certain specified dates (purchase period) within a defined offering period. The purchase price is 85.0% of the fair market value of the common stock at the end of the purchase period and is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. For the fiscal years ended May 31, 2024, 2023, and 2022, approximately 72,000, 211,000, and 178,000 shares of common stock, were issued under the ESPP. As of May 31, 2024, 326,000 shares remain available for issuance under the ESPP. The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes model with the following weighted-average assumptions: Year Ended May 31, 2024 2023 2022 Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0 Volatility 70% – 94 % 91% – 203 % 101% – 272 % Risk-free interest rates 4.72%–5.53 % 3.97%–4.94 % 0.05%–2.44 % Weighted average grant date fair value $ 6.30 $ 13.60 $ 9.68 During fiscal 2024, 2023, and 2022, the Company recorded stock-based compensation related to its ESPP of $0.8 million, $0.8 million, and $0.9 million, respectively. As of May 31, 2024, the total unrecognized compensation expense related to purchase rights under the ESPP was $1.1 million. This expense will be amortized on a straight-line basis over a weighted average period of approximately 1.2 years. Employee Stock Ownership Plan The Company has a non-contributory, trusteed employee stock ownership plan or Employee Stock Ownership Plan (“ESOP”) for full-time and part-time employees. The Company can contribute either shares of the Company’s stock or cash to the ESOP. During the fiscal years ended May 31, 2024, 2023 and 2022, the Company contributed 9,085, 29,832 and 26,666 shares to the ESOP. As a result, the Company recognized stock-based compensation expense totaling $0.3 million, $0.3 million and $0.3 million during the fiscal years ended May 31, 2024, 2023 and 2022, respectively. Shares held in the ESOP are included in the net income per share calculation.

REVENUE

REVENUE	12 Months Ended
	May 31, 2024
REVENUE
REVENUE	12. REVENUE Disaggregation of Revenue The following tables show revenues by major product categories. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flow are substantially similar. The Company’s revenues by product category are as follows: Year Ended May 31 (In thousands) 2024 2023 2022 Systems $ 24,169 $ 38,844 $ 25,224 Contactors 37,560 21,873 22,647 Services 4,489 4,244 2,958 $ 66,218 $ 64,961 $ 50,829 The following presents information about the Company’s operations in different geographic areas. Net revenues are based on ship-to locations: Year Ended May 31 (In thousands) 2024 2023 2022 Asia $ 58,076 $ 55,609 $ 45,700 United States 3,532 9,289 5,110 Europe 4,610 63 19 $ 66,218 $ 64,961 $ 50,829 With the exception of the amount of service contracts and extended warranties, the Company’s product category revenues are recognized at point in time when control transfers to customers. The following presents revenue based on timing of recognition: Year Ended May 31 (In thousands) 2024 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 64,590 $ 63,531 $ 49,441 Services transferred over time 1,628 1,430 1,388 $ 66,218 $ 64,961 $ 50,829 Contract Balances Accounts receivable are recognized in the period the Company delivers goods and provides services or when the Company’s right to consideration is unconditional. Contract assets include unbilled receivables which represent revenues that are earned in advance of scheduled billings to customers. These amounts are primarily related to product sales where transfer of control has occurred but the Company has not yet invoiced. As of May 31, 2024, unbilled receivables were $0.2 million and were included in prepaid expenses and other current assets on the accompanying consolidated balance sheets. Contract assets were not significant as of May 31, 2023. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities as of May 31, 2024 and May 31, 2023 were $1.4 million and $2.9 million, respectively, and were included in deferred revenue, short-term and deferred revenue, long-term on the accompanying consolidated balance sheets. During the fiscal years ended May 31, 2024 and 2023, the Company recognized $2.8 million and $2.2 million, respectively, of revenues that were included in contract liabilities as of May 31, 2023 and 2022, respectively. Remaining Performance Obligations As of May 31, 2024, the remaining performance obligations, exclusive of customer deposits, which were comprised of deferred service contracts and extended warranty contracts not yet delivered, are not material. The foregoing excludes the value of the remaining performance obligations that have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Costs to Obtain or Fulfill a Contract The Company generally expenses sales commissions when incurred as a component of selling, general and administrative expense as the amortization period is typically less than one year. Additionally, the majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventory and fixed assets, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of the Company’s products and their respective manufacturing process.

NET INCOME PER SHARE

NET INCOME PER SHARE	12 Months Ended
	May 31, 2024
Net income per share:
NET INCOME PER SHARE	13. 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 hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options, and vesting of outstanding RSUs and ESPP shares) during the period using the treasury stock method. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on net income per share. The following table presents the computation of basic and diluted net income per share: Year Ended May 31 (In thousands, except per share data) 2024 2023 2022 Numerator: Net income $ 33,156 $ 14,557 $ 9,450 Denominator: Basic weighted average shares outstanding 28,818 27,785 26,014 Dilutive effect of common equivalent shares outstanding 799 1,430 1,760 Diluted weighted average shares outstanding 29,617 29,215 27,774 Net income per share - Basic $ 1.15 $ 0.52 $ 0.36 Net income per share - Diluted $ 1.12 $ 0.50 $ 0.34 Antidilutive employee share-based awards, excluded 351 5 64

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	12 Months Ended
	May 31, 2024
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS	14. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the components of accumulated other comprehensive loss, net of tax, were as follows: Cumulative Unrealized loss (In thousands) translation adjustment on investments, net Total Balance as of May 31, 2022 $ (105 ) $ - $ (105 ) Other comprehensive loss before reclassifications (33 ) (17 ) (50 ) Balance as of May 31, 2023 (138 ) (17 ) (155 ) Other comprehensive income (loss) before reclassifications (20 ) 17 (3 ) Balance as of May 31, 2024 $ (158 ) $ - $ (158 )

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	May 31, 2024
SEGMENT INFORMATION
SEGMENT INFORMATION	15. SEGMENT INFORMATION The Company has only one reportable segment. The information for revenue category by type, geography and timing of revenue recognition, is summarized in Note 12, “Revenue.” Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas: May 31, (In thousands) 2024 2023 United States $ 3,128 $ 2,713 International 125 46 Total long-lived assets, net $ 3,253 $ 2,759 As of May 31, 2024, the operating lease right-of-use assets of $5.4 million and $0.3 million were allocated in the United States and international locations, respectively. As of May 31, 2023, operating lease right-of-use assets of $6.0 million and $0.2 million were allocated in the United States and international locations, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	May 31, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS On July 15, 2024, the Company entered into a Stock Purchase Agreement to acquire all the outstanding shares of Incal Technology, Inc. (“acquiree”), a California corporation based in Fremont, California and specializing in packaged part reliability/burn-in test solutions. The acquisition aligns with the Company’s strategic objective to expand its market presence and diversify its product offering. Under the terms of the agreement, the Company will acquire all of the outstanding capital stock of the acquiree for a purchase price of $21.0 million, consisting of $14.0 million in cash and issuance of $7.0 million in shares of the Company’s common stock, subject to certain post-closing adjustments with respect to working capital. The acquisition is expected to close within the first quarter of fiscal year 2025, subject to customary closing conditions.

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	May 31, 2024
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization	Aehr Test Systems (the “Company”) was incorporated in California in May 1977 and primarily designs, engineers and manufactures test and burn-in equipment used in the semiconductor industry. The Company’s principal products are the FOX-XP, FOX-NP, and FOX-CP wafer contact parallel test and burn-in systems, the WaferPak full wafer contactor, the DiePak Carrier, the WaferPak Aligner, the DiePak Autoloader, and test fixtures.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company and its wholly-owned foreign subsidiaries. Intercompany accounts and transactions have been eliminated.
Foreign Currency Translation and Transactions	Assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. Dollars from their functional currencies using the exchange rate in effect at the balance sheet date. Additionally, revenues and expenses are translated using exchange rates approximating average rates prevailing during the fiscal year. Translation adjustments that arise from translating their financial statements from their local currencies to U.S. Dollar are accumulated and reflected as a separate component of shareholders’ equity. Transaction gains and losses that arise from exchange rate changes denominated in currencies other than the local currency are included in the consolidated statements of operations as incurred.
Use of Estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Actual results could differ from those estimates. Significant estimates in the Company’s consolidated financial statements include revenue recognition, inventory valuation and accounting for income taxes.
Cash and Cash Equivalents	Cash equivalents consist of money market instruments purchased with an original maturity of three months or less. These investments are reported at fair value.
Accounts Receivable and Allowance for Credit Losses	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. Accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains an allowance for credit losses for expected uncollectible accounts receivable and assess collectibility by reviewing accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when specific customers with known disputes or collectibility issues are identified. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to the Company, may require the Company to further adjust its estimates of the recoverability of accounts receivable. The credit losses recognized on accounts receivable during the years ended May 31, 2024, 2023 and 2022 were not significant and management has determined that no allowance for credit losses was required as of May 31, 2024 and 2023.
Concentration of Credit Risk	Financial instruments which subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalents are generally deposited with major financial institutions in the United States, Philippines, Germany and Taiwan. The Company invests its excess cash in money market funds and U.S. Treasury securities. The Company’s cash and investment balances held at banks and brokerage firms may at time exceed federally insured levels. The Company has not experienced any material losses on its money market funds or short-term cash deposits. The Company performs credit evaluations of its customers’ financial condition and generally requires no collateral. The Company had revenues from individual customers in excess of 10% of total revenues as follows: Year Ended May 31 2024 2023 2022 Customer A 67.3 % 78.8 % 81.8 % Customer B 16.7 % * * Customer C * 10.4 % * * Amount was less than 10% of total revenue The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: May 31, 2024 2023 Customer A 49.9 % 81.6 % Customer B 16.5 % 16.5 % Customer C 12.3 % * * Amount was less than 10% of total gross accounts receivable
Inventories	Inventories include material, labor and overhead, and are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Net realizable value is the estimated selling prices in the ordinary course of business, less costs of completion, disposal and transportation. Provisions for excess, obsolete and unusable inventories are made after management’s evaluation of future demand and market conditions. If actual future demand or market conditions become less favorable than those projected by management, additional adjustment for excess or obsolete inventory may be required, and would be reflected in cost of sales in the period the revision is made.
Property and Equipment	Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized, while repairs and maintenance are expensed as incurred. Leasehold improvements are amortized over the lesser of their estimated useful lives or the term of the related lease. Furniture and fixtures, machinery and equipment, and test equipment are depreciated on a straight-line basis over their estimated useful lives. The ranges of estimated useful lives are generally as follows: Furniture and fixtures 2 to 5 years Machinery and equipment 3 to 5 years Test equipment 4 to 5 years
Long-Lived Assets	The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. Such an impairment charge would be measured as the excess of the carrying value of the asset over its fair value.
Warranty Reserves	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.
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, WaferPak 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 is recognized at a point in time, which is generally upon shipment or delivery and evidenced by transfer of title and risk of loss to the customer. Revenue from services is recognized over time as the customer receives the benefit over the contractual period of generally one year or less. 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.
Shipping And Handling Costs	Amounts billed to customers for shipping and handling of products are included in revenue. Costs incurred related to shipping and handling of products are included in cost of revenue.
Stock-based Compensation Expense	Stock-based compensation expense consists of expenses for stock options, restricted stock units (“RSUs”), performance RSUs (“PRSUs”), and an employee stock purchase plan (“ESPP”). Stock-based compensation cost 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. 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 an equity instrument.
Income Taxes	The Company accounts for income taxes in accordance with the authoritative guidance, which requires income tax effects for changes in tax laws to be recognized in the period in which the law is enacted. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryforwards. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted for the effect of a change in tax rates, laws, or status when the change is enacted. During the year ended May 31, 2024, the Company concluded that its deferred tax assets are more likely than not to become realizable, and as such, the Company reversed all $21.9 million of its existing valuation allowance. The conclusion that a valuation allowance was no longer needed was based on three years of cumulative pre-tax income, current year utilization of federal and state net operating losses, combined with estimates of future years' pre-tax income that are sufficient to realize the remaining deferred tax assets. The amount of the deferred tax asset considered realizable can change if estimates of future taxable income change or if objective negative and positive evidence change. As of May 31, 2023, the Company maintained a full valuation allowance against its deferred tax assets. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the consolidated financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
Comprehensive Income (Loss)	Comprehensive income (loss) generally represents all changes in shareholders’ equity except those resulting from investments or contributions by shareholders. Unrealized gains and losses from available-for-sale securities and on foreign currency translation adjustments are included in the Company’s components of comprehensive income (loss), which are excluded from net income. Comprehensive income (loss) is included in the consolidated statements of comprehensive income.
Reclassifications	Certain reclassifications have been made to the previous year consolidated financial statements to conform to the current period presentation. The reclassifications had no impact on net income, total assets, total liabilities, or shareholders’ equity.
Accounting Standards Adopted	In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company adopted this update beginning in the first quarter of its fiscal year ended May 31, 2024 on a modified retrospective basis and the adoption had no material impact on the consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted	Improvements to Reportable Segment Disclosures: In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. The Company is currently evaluating the effect of this pronouncement on its disclosures. Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures.

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	May 31, 2024
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Revenue from major customers	Year Ended May 31 2024 2023 2022 Customer A 67.3 % 78.8 % 81.8 % Customer B 16.7 % * * Customer C * 10.4 % *
Accounts receivable from major customers	May 31, 2024 2023 Customer A 49.9 % 81.6 % Customer B 16.5 % 16.5 % Customer C 12.3 % *
Useful life for property and equipment	Furniture and fixtures 2 to 5 years Machinery and equipment 3 to 5 years Test equipment 4 to 5 years

CASH CASH EQUIVALENTS AND INV_2

CASH CASH EQUIVALENTS AND INVESTMENTS (Tables)	12 Months Ended
	May 31, 2024
CASH CASH EQUIVALENTS AND INVESTMENTS
Cash, cash equivalents and investments by security type	Gross Balances as of May 31, 2024 Unrealized Estimated (In thousands) Cost Gain (Loss) Fair Value Cash $ 5,029 $ - $ 5,029 Cash equivalents: Money market funds $ 44,130 $ - $ 44,130 Total cash and cash equivalents $ 49,159 $ - $ 49,159 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 49,309 $ - $ 49,309 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 OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	May 31, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value of assets and liabilities	Balance as of (In thousands) May 31, 2024 Level 1 Level 2 Level 3 Money market funds $ 44,280 $ 44,280 $ - $ - Total $ 44,280 $ 44,280 $ - $ - Balance as of (In thousands) 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)	12 Months Ended
	May 31, 2024
BALANCE SHEET INFORMATION
Inventories	May 31, (In thousands) 2024 2023 Raw materials and sub-assemblies $ 22,410 $ 15,953 Work in process 13,593 5,764 Finished goods 1,467 2,191 $ 37,470 $ 23,908
Property and equipment, net	May 31, (In thousands) 2024 2023 Leasehold improvements $ 1,588 $ 1,310 Machinery and equipment 4,528 5,445 Test equipment 1,928 2,998 Furniture and fixtures 175 706 8,219 10,459 Less: accumulated depreciation and amortization (4,966 ) (7,700 ) $ 3,253 $ 2,759
Accrued expenses	May 31, (In thousands) 2024 2023 Commissions and bonuses $ 1,290 $ 1,728 Payroll related 1,202 1,491 Professional services 503 520 Other 371 404 $ 3,366 $ 4,143
Warranty reserve	May 31, (In thousands) 2024 2023 Balance at the beginning of the period $ 267 $ 410 Accruals for warranties issued during the period 511 420 Adjustments to previously existing warranty accruals - 61 Consumption of reserves (544 ) (624 ) Balance at the end of the period $ 234 $ 267
Customer deposits and deferred revenue, short-term	May 31, (In thousands) 2024 2023 Customer deposits $ 1,248 $ 2,690 Deferred revenue 97 132 $ 1,345 $ 2,822

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	May 31, 2024
INCOME TAXES
Domestic and foreign components of loss before income tax (expense) benefit	Year Ended May 31, (In thousands) 2024 2023 2022 Domestic $ 12,355 $ 14,541 $ 9,416 Foreign 103 76 125 $ 12,458 $ 14,617 $ 9,541
Income tax (expense) benefit	Year Ended May 31, (In thousands) 2024 2023 2022 Federal income taxes: Current $ 6 $ 28 $ 59 Deferred (14,377 ) - - State income taxes: Current 14 - 5 Deferred (6,396 ) - - Foreign income taxes: Current 55 32 27 Deferred - - - $ (20,698 ) $ 60 $ 91
Income tax reconciliation	Year Ended May 31, (In thousands) 2024 2023 2022 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax effect (51.1 ) - 0.1 Foreign rate differential 0.2 0.7 0.3 Stock-based compensation (8.4 ) (9.1 ) (11.0 ) Research and development credit (1.5 ) (2.3 ) (1.3 ) Change in valuation allowance (126.0 ) (9.3 ) (4.7 ) PPP Loan - - (3.7 ) Other (0.3 ) (0.6 ) 0.4 Effective tax rate (166.1 )% 0.4 % 1.1 %
Net deferred tax assets and liabilities	May 31, (In thousands) 2024 2023 Deferred tax assets: Net operating losses $ 9,344 $ 11,964 Lease liability 1,310 1,335 Credit carryforwards 6,739 6,235 Inventory reserves 1,070 938 Reserves and accruals 855 1,200 Capitalized research and development 2,645 1,187 Other 23 297 Less: valuation allowance - (21,859 ) 21,986 1,297 Deferred tax liabilities: Operating lease right-of-use assets (1,213 ) (1,297 ) Net deferred tax assets $ 20,773 $ -
Unrecognized tax benefits	(In thousands) Balance at May 31, 2021 $ 1,928 Increases related to prior year tax positions 12 Increases related to current year tax positions 78 Balance at May 31, 2022 2,018 Increases related to prior year tax positions 90 Increases related to current year tax positions 168 Balance at May 31, 2023 2,276 Increases related to prior year tax positions 35 Decreases related to prior year tax positions (28 ) Increases related to current year tax positions 233 Decreases related to current year tax positions (32 ) Balance at May 31, 2024 $ 2,484

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	May 31, 2024
LEASES
Supplemental cash flow information related to leases	Year Ended May 31, (In thousands) 2024 2023 2022 Operating cash flows paid for operating leases $ 916 $ 835 $ 813 Right-of-use assets obtained in exchange for operating leases liabilities $ 318 $ 5,855 $ -
Maturity of operating lease liabilities	(In thousands) Fiscal year Operating Leases 2025 $ 921 2026 1,244 2027 1,284 2028 1,316 2029 1,361 Thereafter 1,798 Total future minimum operating lease payments 7,924 Less: imputed interest (1,727 ) Present value of operating lease liabilities $ 6,197

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	12 Months Ended
	May 31, 2024
EMPLOYEE STOCK PLANS
Compensation costs related to the Company's stock-based compensation	Year Ended May 31, (In thousands, except per share data) 2024 2023 2022 Cost of sales $ 330 $ 331 $ 234 Research and development 639 706 968 Selling, general and administrative 1,549 1,711 1,721 Net effect on net income $ 2,518 $ 2,748 $ 2,923 Effect on earnings per share: Basic $ 0.09 $ 0.10 $ 0.11 Diluted $ 0.09 $ 0.09 $ 0.11
Stock option and RSU transactions	(in thousands) Available Shares for Grant Balance, May 31, 2021 573 Additional shares reserved under the 2016 Plan 1,414 Options granted (303 ) RSUs granted (1,044 ) RSUs cancelled 20 Shares withheld for taxes and not issued (30 ) Options terminated 105 Balance, May 31, 2022 735 Options granted (110 ) RSUs granted (674 ) RSUs cancelled 60 Options terminated 16 Balance, May 31, 2023 27 Shares reserved under the 2023 Plan 1,500 Shares retired under the 2016 Plan (95 ) Options granted (4 ) RSUs granted (221 ) RSUs cancelled 144 Options terminated 12 Balance, May 31, 2024 1,363
Stock option transactions	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregated Intrinsic Value (in thousands) Per Share (In Years) (in thousands) Balances, May 31, 2023 961 $ 3.67 4.02 $ 28,211 Options granted 4 49.21 Options terminated (12 ) 3.78 Options exercised (251 ) 2.51 Balances, May 31, 2024 702 $ 4.37 3.26 $ 5,322 Options exercisable, May 31, 2024 536 $ 3.26 2.83 $ 4,512 Options exercisable and expected to vest 701 $ 4.37 3.26 $ 5,320
RSUs, PRSUs, restricted shares and performance restricted shares granted	Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Per Share (In Years) (in thousands) Unvested, May 31, 2023 345 $ 6.40 2.35 $ 11,392 Granted (1) 205 31.36 Vested (170 ) 9.31 Forfeited (86 ) 13.63 Unvested, May 31, 2024 294 $ 20.08 2.29 $ 3,381
Fair value assumptions for Option Valuation Model	Year Ended May 31, 2024 2023 2022 Expected term (in years) 5 5-6 5-6 Volatility 93 % 86 % 88 % Risk-free interest rates 4.34 % 3.12 % 1.50 % Weighted average grant date fair value $ 36.02 $ 6.29 $ 4.01
Fair value assumption of the ESPP Purchase Rights	Year Ended May 31, 2024 2023 2022 Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0 Volatility 70% – 94 % 91% – 203 % 101% – 272 % Risk-free interest rates 4.72%–5.53 % 3.97%–4.94 % 0.05%–2.44 % Weighted average grant date fair value $ 6.30 $ 13.60 $ 9.68

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	May 31, 2024
REVENUE
Disaggregation of revenue	Year Ended May 31 (In thousands) 2024 2023 2022 Systems $ 24,169 $ 38,844 $ 25,224 Contactors 37,560 21,873 22,647 Services 4,489 4,244 2,958 $ 66,218 $ 64,961 $ 50,829 Year Ended May 31 (In thousands) 2024 2023 2022 Asia $ 58,076 $ 55,609 $ 45,700 United States 3,532 9,289 5,110 Europe 4,610 63 19 $ 66,218 $ 64,961 $ 50,829 Year Ended May 31 (In thousands) 2024 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 64,590 $ 63,531 $ 49,441 Services transferred over time 1,628 1,430 1,388 $ 66,218 $ 64,961 $ 50,829

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	12 Months Ended
	May 31, 2024
Net income per share:
Earnings per share	Year Ended May 31 (In thousands, except per share data) 2024 2023 2022 Numerator: Net income $ 33,156 $ 14,557 $ 9,450 Denominator: Basic weighted average shares outstanding 28,818 27,785 26,014 Dilutive effect of common equivalent shares outstanding 799 1,430 1,760 Diluted weighted average shares outstanding 29,617 29,215 27,774 Net income per share - Basic $ 1.15 $ 0.52 $ 0.36 Net income per share - Diluted $ 1.12 $ 0.50 $ 0.34 Antidilutive employee share-based awards, excluded 351 5 64

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	May 31, 2024
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, 2022 $ (105 ) $ - $ (105 ) Other comprehensive loss before reclassifications (33 ) (17 ) (50 ) Balance as of May 31, 2023 (138 ) (17 ) (155 ) Other comprehensive income (loss) before reclassifications (20 ) 17 (3 ) Balance as of May 31, 2024 $ (158 ) $ - $ (158 )

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	May 31, 2024
SEGMENT INFORMATION
Property and equipment by geographic region	May 31, (In thousands) 2024 2023 United States $ 3,128 $ 2,713 International 125 46 Total long-lived assets, net $ 3,253 $ 2,759

ORGANIZATION AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Accounts Receivable | Customer One
Concentration risk	49.90%	81.60%
Accounts Receivable | Customer Two
Concentration risk	16.50%	16.50%
Accounts Receivable | Customer Three
Concentration risk	12.30%
Net Sales | Customer One
Concentration risk	67.30%	78.80%	81.80%
Net Sales | Customer Two
Concentration risk	16.70%
Net Sales | Customer Three
Concentration risk		10.40%

ORGANIZATION AND SUMMARY OF S_4

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	12 Months Ended
	May 31, 2024
Minimum | Furniture and Fixtures
Useful life	2 years
Minimum | Machinery and Equipment
Useful life	3 years
Minimum | Test equipment
Useful life	5 years
Maximum | Furniture and Fixtures
Useful life	5 years
Maximum | Machinery and Equipment
Useful life	5 years
Maximum | Test equipment
Useful life	4 years

CASH CASH EQUIVALENTS AND INV_3

CASH CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
Total cash and cash equivalents	$ 49,159	$ 30,054
Short-term Investments	0	17,853
Cost [Member]
Cash	5,029	3,182
Total cash and cash equivalents	49,159	30,054
Total cash, cash equivalents and investments	49,309	48,074
Estimated Fair Value [Member]
Cash	5,029	3,182
Total cash and cash equivalents	49,159	30,054
Total cash, cash equivalents and investments	49,309	48,057
Gross Unrealized Loss
Cash	0	0
Total cash and cash equivalents	0	0
Total cash, cash equivalents and investments	0	17
Money Market Funds | Cost [Member]
Cash equivalents	44,130	26,872
Long-term investments	150	150
Money Market Funds | Estimated Fair Value [Member]
Cash equivalents	44,130	26,872
Long-term investments	150	150
Money Market Funds | Gross Unrealized Loss
Cash equivalents	0	0
Long-term investments	$ 0	0
U S Treasury Securities [Member] | Cost [Member]
Short-term Investments		17,870
U S Treasury Securities [Member] | Estimated Fair Value [Member]
Short-term Investments		17,853
U S Treasury Securities [Member] | Gross Unrealized Loss
Short-term Investments		$ 17

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
Assets [Member]
Investment securities	$ 44,280	$ 44,875
US Treasury Securities
Investment securities		17,853
Money Market Funds
Investment securities	44,280	27,022
Level 2 [Member] | Assets [Member]
Investment securities	0	0
Level 2 [Member] | US Treasury Securities
Investment securities		0
Level 2 [Member] | Money Market Funds
Investment securities	0	0
Level 3 [Member] | Assets [Member]
Investment securities	0	0
Level 3 [Member] | US Treasury Securities
Investment securities		0
Level 3 [Member] | Money Market Funds
Investment securities	0	0
Level 1 [Member] | Assets [Member]
Investment securities	44,280	44,875
Level 1 [Member] | US Treasury Securities
Investment securities		17,853
Level 1 [Member] | Money Market Funds
Investment securities	$ 44,280	$ 27,022

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)	May 31, 2024	May 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Restricted cash	$ 200,000	$ 200,000

BALANCE SHEET INFORMATION (Deta

BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
BALANCE SHEET INFORMATION
Raw materials and sub-assemblies	$ 22,410	$ 15,953
Work in process	13,593	5,764
Finished goods	1,467	2,191
Inventories	$ 37,470	$ 23,908

BALANCE SHEET INFORMATION (De_2

BALANCE SHEET INFORMATION (Details 1) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
BALANCE SHEET INFORMATION
Leasehold improvements	$ 1,588	$ 1,310
Machinery and equipment	4,528	5,445
Test equipment	1,928	2,998
Furniture and fixtures	175	706
Property and equipment, gross	8,219	10,459
Less: Accumulated depreciation and amortization	(4,966)	(7,700)
Property and equipment, net	$ 3,253	$ 2,759

BALANCE SHEET INFORMATION (De_3

BALANCE SHEET INFORMATION (Details 2) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
BALANCE SHEET INFORMATION
Commissions and bonuses	$ 1,290	$ 1,728
Payroll related	1,202	1,491
Professional services	503	520
Other	371	404
Accrued expenses	$ 3,366	$ 4,143

BALANCE SHEET INFORMATION (De_4

BALANCE SHEET INFORMATION (Details 3) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023
BALANCE SHEET INFORMATION
Balance at the Beginning of the period	$ 267	$ 410
Accruals for warranties issued during the period	511	420
Adjustments to previously existing warranty accruals	0	61
Consumption of reserves	(544)	(624)
Balance at the End of the period	$ 234	$ 267

BALANCE SHEET INFORMATION (De_5

BALANCE SHEET INFORMATION (Details 4) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
BALANCE SHEET INFORMATION
Customer deposits	$ 1,248	$ 2,690
Deferred revenue	97	132
Customer deposits and deferred revenue	$ 1,345	$ 2,822

BALANCE SHEET INFORMATION (De_6

BALANCE SHEET INFORMATION (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
BALANCE SHEET INFORMATION
Depreciation expense	$ 0.7	$ 0.5	$ 0.4

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
INCOME TAXES
Domestic	$ 12,355	$ 14,541	$ 9,416
Foreign	103	76	125
Income (loss) before income tax (expense) benefit	$ 12,458	$ 14,617	$ 9,541

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Federal income taxes:
Current	$ 6	$ 28	$ 59
Deferred	(14,377)	0	0
State income taxes:
Current	14	0	5
Deferred	(6,396)	0	0
Foreign income taxes:
Current	55	32	27
Deferred	0	0	0
Income tax (expense) benefit	$ (20,698)	$ 60	$ 91

INCOME TAXES (Details 2)

INCOME TAXES (Details 2)	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
INCOME TAXES
U.S. federal statutory tax rate	21%	21%	21%
State taxes, net of federal tax effect	(51.10%)	0%	0.10%
Foreign rate differential	0.20%	0.70%	0.30%
Stock-based compensation	(8.40%)	(9.10%)	(11.00%)
Research and development credit	(1.50%)	(2.30%)	(1.30%)
Change in valuation allowance	(126.00%)	(9.30%)	(4.70%)
PPP Loan	0%	0%	(3.70%)
Other	(0.30%)	(0.60%)	0.40%
Effective tax rate	(166.10%)	0.40%	1.10%

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
Deferred tax assets:
Net operating losses	$ 9,344	$ 11,964
Lease liability	1,310	1,335
Credit carryforwards	6,739	6,235
Inventory reserves	1,070	938
Reserves and accruals	855	1,200
Capitalized research and development	2,645	1,187
Other	23	297
Less: Valuation allowance	0	(21,859)
Deferred tax assets	21,986	1,297
Deferred tax liabilities:
Operating lease right-of-use assets	(1,213)	(1,297)
Net deferred tax assets (liabilities)	$ 20,773	$ 0

INCOME TAXES (Details 4)

INCOME TAXES (Details 4) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
INCOME TAXES
Unrecognized tax benefit, beginning	$ 2,276	$ 2,018	$ 1,928
Increases related to prior year tax positions	35	90	12
Decreases related to prior year tax positions	(28)
Increases related to current year tax positions	233	168	78
Decreases related to current year tax positions	(32)
Unrecognized tax benefit, ending	$ 2,484	$ 2,276	$ 2,018

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Valuation allowance	$ (21,900)	$ (1,100)	$ (300)
Unrecognized tax benefit	2,484	2,276	$ 2,018	$ 1,928
Federal
Net operating loss carryforward	(34,600)	(47,000)
Research and development tax credit carryforwards	3,300	2,900
Alternative minimum tax credit carryforwards		14,400
State
Net operating loss carryforward	(29,800)	(30,200)
Research and development tax credit carryforwards	$ 7,100	6,600
Alternative minimum tax credit carryforwards		$ 30

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Cash paid for amounts included in measurement of operating lease liabilities:
Operating cash flows for operating leases	$ 916	$ 835	$ 813
Right of use assets obtained in exchange for operating leases liabilities	$ 318	$ 5,855	$ 0

LEASES (Details 1)

LEASES (Details 1) $ in Thousands	May 31, 2024 USD ($)
LEASES
2025	$ 921
2026	1,244
2027	1,284
2028	1,316
2029	1,361
Thereafter	1,798
Total future minimum operating lease payments	7,924
Less: imputed interest	(1,727)
Present value of operating lease liabilities	$ 6,197

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
LEASES
Operating lease, weighted-average discount rate	7.58%
Operating lease, weighted-average remaining lease term	6 years 2 months 12 days
Operating lease, cost	$ 1.2	$ 0.9	$ 0.8
Description related to operating lease agreement for US manufacturing and office facility	Company entered into a non-cancelable operating lease agreement for its United States manufacturing and office facility, which was amended in December 2022 to extend the lease term to September 2030. The total commitments, net of tenant incentives of up to $0.3 million expected to be received by December 2024, under the modified lease are $8.6 million. The modified lease contains an option to further extend the lease for five years. The lease modification resulted in an increase in the Company’s operating lease right-of-use assets and operating lease liabilities of $5.9 million each in December 2022

BORROWING ARRANGEMENTS (Details

BORROWING ARRANGEMENTS (Details Narrative) $ in Thousands	12 Months Ended
	May 31, 2024 USD ($)
Original Loan and Security Agreement
Line of Credit, maximum borrowing	$ 4,000
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
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%
Revolving line maturity date	Jan. 13, 2023
First Amendment to Loan and Security Agreement
Line of Credit, maximum borrowing	$ 1,700
Variable interest rate	The PPP Loan was evidenced by a promissory note dated April 23, 2020 (the “Note”) that matured on April 23, 2022 and bore interest at a rate of 1% per annum
Revolving line maturity date	Jan. 13, 2022
Loan balance	$ 1,700
Loan forgiveness	1,700
Interest totaling	$ 20
Third Amendment to Loan and Security Agreement
Revolving line maturity date	Jan. 13, 2025
Minimum liquidity net	$ 20,000

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended
	Oct. 10, 2021	Feb. 28, 2023	Sep. 17, 2021	May 31, 2023	Aug. 25, 2021
EQUITY
Sale of common stock price per share			$ 14.73	$ 34.78
Sale of common stock shares		208,917	1,696,729
Gross proceeds	$ 25	$ 7.3	$ 25
Commission fees		0.2	0.7
Offering expenses		$ 0.2	$ 0.3
Shelf registration amount					$ 75
Remaining amount of the ATM offering				$ 17.7

EMPLOYEE STOCK PLANS (Details)

EMPLOYEE STOCK PLANS (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Net effect on net income	$ 2,518	$ 2,748	$ 2,923
Effect on net loss per share, basic	$ 0.09	$ 0.10	$ 0.11
Effect on net loss per share, diluted	$ 0.09	$ 0.09	$ 0.11
Cost of Sales
Total stock-based compensation	$ 330	$ 331	$ 234
Selling, General and Administrative
Total stock-based compensation	1,549	1,711	1,721
Research and Development
Total stock-based compensation	$ 639	$ 706	$ 968

EMPLOYEE STOCK PLANS (Details 1

EMPLOYEE STOCK PLANS (Details 1) - Stock Option and RSU Transactions - shares shares in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Available shares, beginning	27	735	573
Shares reserved under the Plan	1,500		1,414
Shares retired under the 2016 Plan	(95)
Options granted	(4)	(110)	(303)
RSUs granted	(221)	(674)	(1,044)
RSUs cancelled	144	60	20
Shares withheld for tax and not issued			(30)
Options terminated	12	16	105
Available shares, ending	1,363	27	735

EMPLOYEE STOCK PLANS (Details 2

EMPLOYEE STOCK PLANS (Details 2) - RSU, PRSU and Restricted stock awards Member $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	May 31, 2024 USD ($) $ / shares shares
Granted (1) | shares	205
Vested | shares	(170)
Forfeited | shares	(86)
Unvested shares, Ending balance | shares	294
Unvested shares, Beginning balance | shares	345
Weighted average grant date fair value per share, Beginning balance | $ / shares	$ 6.40
Weighted average grant date fair value per share, granted | $ / shares	31.36
Weighted average grant date fair value per share, vested | $ / shares	9.31
Weighted average grant date fair value per share, forfeited | $ / shares	13.63
Weighted average grant date fair value per share, Ending balance | $ / shares	$ 20.08
Weighted Average Remaining Contractual Term, Beginning balance	2 years 4 months 6 days
Weighted Average Remaining Contractual Term, Ending balance	2 years 3 months 14 days
Aggregate Intrinsic Value, Beginning balance | $	$ 11,392
Aggregate Intrinsic Value, Ending balance | $	$ 3,381

EMPLOYEE STOCK PLANS (Details 3

EMPLOYEE STOCK PLANS (Details 3) - Outstanding Options Stock Option Transactions $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	May 31, 2024 USD ($) $ / shares shares
Options outstanding, beginning (in thousands) | shares	961
Options granted (in thousands) | shares	4
Options terminated (in thousands) | shares	(12)
Options exercised (in thousands) | shares	(251)
Options outstanding, ending (in thousands) | shares	702
Options exercisable | shares	536
Options exercisable and expected to vest, | shares	701
Weighted average exercise price outstanding, beginning | $ / shares	$ 3.67
Weighted average exercise price granted | $ / shares	49.21
Weighted average exercise price terminated | $ / shares	3.78
Weighted average exercise price exercised | $ / shares	2.51
Weighted average exercise price outstanding, ending | $ / shares	4.37
Weighted average exercise price, Options exercisable | $ / shares	3.26
Weighted average exercise price, Options exercisable and expected to vest | $ / shares	$ 4.37
Weighted average remaining contractual term, Beginning alance	4 years 7 days
Weighted average remaining contractual term, Ending balance	3 years 3 months 3 days
Weighted average remaining contractual term, Options exercisable	2 years 9 months 29 days
Weighted average remaining contractual term, Options exercisable and expected to vest	3 years 3 months 3 days
Aggregate intrinsic value, beginning | $	$ 28,211
Aggregate intrinsic value, ending | $	5,322
Aggregated intrinsic value, Options exercisable | $	4,512
Aggregated intrinsic value, Options exercisable and expected to vest | $	$ 5,320

EMPLOYEE STOCK PLANS (Details 4

EMPLOYEE STOCK PLANS (Details 4) - Stock Option - $ / shares	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Expected term (in years)	5 years
Volatility	93%	86%	88%
Risk-free interest rates	4.34%	3.12%	1.50%
Weighted-average grant date fair value	$ 36.02	$ 6.29	$ 4.01
Minimum
Expected term (in years)		5 years	5 years
Maximum
Expected term (in years)		6 years	6 years

EMPLOYEE STOCK PLANS (Details 5

EMPLOYEE STOCK PLANS (Details 5) - Employee Stock Purchase Plan - $ / shares	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Weighted-average grant date fair value	$ 6.30	$ 13.60	$ 9
Minimum
Expected term (in years)	6 months	6 months	6 months
Volatility	70%	91%	101%
Risk-free interest rates	4.72%	3.97%	0.05%
Maximum
Expected term (in years)	2 years	2 years	2 years
Volatility	94%	203%	272%
Risk-free interest rates	5.53%	4.94%	2.44%

EMPLOYEE STOCK PLANS (Details N

EMPLOYEE STOCK PLANS (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022	Oct. 23, 2023
Total intrinsic values of options exercised	$ 9.5	$ 17.1	$ 12.5
Stock based compensation expenses	0.3	0.1
Employee Stock Purchase Plan
Stock based compensation expenses	0.8	0.8	0.9
Unrecognized stock-based compensation	$ 1.1
Common stock reserved for issuance	326,000
Weighted average period for recognition of costs	1 year 2 months 12 days
Stock-based compensation related to the ESOP	$ 0.3	$ 0.3	$ 0.3
ESPP shares issued	72,000	211,000	178,000
Contributed share ESOP	9,085	29,832	26,666
RSU, PRSU and Restricted stock awards Member
Stock based compensation expenses	$ 1.3
Weighted Average Remaining Contractual Term	2 years 3 months 14 days
Performance-based awards	88,000
Unrecognized stock-based compensation	$ 3.9
Stock Option
Stock based compensation expenses	$ 0.4
Weighted average remaining contractual term	3 years 3 months 3 days
RSUs cancelled (in thousands)	0
Unrecognized stock-based compensation	$ 0.9
2016 Equity Incentive Plan
Common stock reserved for issuance	4,848,000
2023 Equity Incentive Plan
Common stock reserved for issuance				1,500,000

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Net sales	$ 66,218	$ 64,961	$ 50,829
Systems [Member]
Net sales	24,169	38,844	25,224
Contactors [Member]
Net sales	37,560	21,873	22,647
Services [Member]
Net sales	$ 4,489	$ 4,244	$ 2,958

REVENUE (Details 1)

REVENUE (Details 1) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Net sales	$ 66,218	$ 64,961	$ 50,829
Europe
Net sales	4,610	63	19
Asia
Net sales	58,076	55,609	45,700
United States
Net sales	$ 3,532	$ 9,289	$ 5,110

REVENUE (Details 2)

REVENUE (Details 2) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Net sales	$ 66,218	$ 64,961	$ 50,829
Products And Services Transferred At A Point In Time [Member]
Net sales	64,590	63,531	49,441
Services Transferred over Time [Member]
Net sales	$ 1,628	$ 1,430	$ 1,388

REVENUE (Details Narrative)

REVENUE (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	May 31, 2024	May 31, 2023
REVENUE
Contract liabilities	$ 1.4	$ 2.9
Contract assets	0.2
Recognition of contract liabilities	$ 2.8	$ 2.2

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2022
Net income per share:
Net income	$ 33,156	$ 14,557	$ 9,450
Denominator: Weighted average shares outstanding	28,818	27,785	26,014
Dilutive effect of common equivalent shares outstanding	799	1,430	1,760
Denominator: Diluted weighted average shares outstanding	29,617	29,215	27,774
Basic net income (loss) per share	$ 1.15	$ 0.52	$ 0.36
Diluted net income (loss) per share	$ 1.12	$ 0.50	$ 0.34
Antidilutive employee share-based award shares, excluded	351	5	64

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2024	May 31, 2023
Balance at the beginning of the year	$ (155)	$ (105)
Other comprehensive loss before reclassifications	(3)	(50)
Balance at the ending of the year	(158)	(155)
Unrealized Loss on Investments Net [Member]
Balance at the beginning of the year	(17)	0
Other comprehensive loss before reclassifications	17	(17)
Balance at the ending of the year	0	(17)
Cumulative Translation Adjustments [Member]
Balance at the beginning of the year	(138)	(105)
Other comprehensive loss before reclassifications	(20)	(33)
Balance at the ending of the year	$ (158)	$ (138)

SEGMENT AND CONCENTRATION INFOR

SEGMENT AND CONCENTRATION INFORMATION (Details) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
Property and equipment, net	$ 3,253	$ 2,759
International
Property and equipment, net	125	46
United States
Property and equipment, net	$ 3,128	$ 2,713

SEGMENT INFORMATION (Details Na

SEGMENT INFORMATION (Details Narrative) - USD ($) $ in Thousands	May 31, 2024	May 31, 2023
Operating lease right-of-use assets	$ 5,734	$ 6,123
International
Operating lease right-of-use assets	300	200
United States
Operating lease right-of-use assets	$ 5,400	$ 6,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Jul. 15, 2024
Subsequent Event [Member]
Description of stock purchase agreement	Under the terms of the agreement, the Company will acquire all of the outstanding capital stock of the acquiree for a purchase price of $21.0 million, consisting of $14.0 million in cash and issuance of $7.0 million in shares of the Company’s common stock