Company: AEHR
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001654954-25-000285
Chunk: 12

Company: AEHR TEST SYSTEMS
Filing Date: 2025-01-13
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 11Table of Contents

The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date: (In thousands) Fair Value Cash  $16 Accounts receivable  1,285 Inventory  2,829 Goodwill  10,742 Property and equipment  129 Intangible assets  12,000 Operating lease right-of-use assets  810 Other assets, current and noncurrent  63 Accounts payable, accrued expenses and other liabilities, current and noncurrent  (2,240)Deferred revenue  (489)Operating lease liabilities, current and noncurrent  (714)Deferred tax liabilities, net  (2,278)Total $22,153  The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from future growth and will not be deductible for income tax purposes. The following table summarizes the fair value of the separately identifiable intangible assets at the time of acquisition:      Estimated Useful life (In thousands) Fair Value  (in years) Developed technology $9,130   12 Trade names  1,050   10 Customer relationships  810   11 Non-compete agreements and others  1,010  1-3  Total intangible assets acquired $12,000      Acquisition-related costs were $0.5 million for the six months ended November 29, 2024 and were expensed in the period incurred within selling, general and administrative expense in the Company's Condensed Consolidated Statements of Operations. The Company's Condensed Consolidated Statement of Operations includes $5.0 million in revenue and $0.4 million in net income contributed by Incal from the date of acquisition. Pro forma results of operations for this acquisition have not been presented, as the acquisition was not determined to be significant as of the date of acquisition.  The purchase consideration allocation remains preliminary, and as additional information becomes available, the Company may further revise it during the remainder of the measurement period.

3. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures its cash equivalents and money market funds at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement