Company: AEHR
Filing Date: 2025-10-08
Form Type: 10-Q
Source: 0001654954-25-011582
Chunk: 26

Company: AEHR TEST SYSTEMS
Filing Date: 2025-10-08
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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ows Provided by (Used in) Operating Activities

The $2.7 million decrease in cash flows from operating activities for the three months ended August 29, 2025, compared to the same period in the prior year, was driven primarily by a lower income (loss) before income tax (benefit), a decrease in cash provided by deferred revenue due to timing of customer deposits and revenue recognition, an increase in cash used to pay down accounts payable, and a decrease in cash provided by collection of accounts receivable due to the lower revenue, partially offset by a decrease in cash used in inventory purchase due to anticipated lower customer demand, a decrease in cash used in prepaid expenses and higher non-cash charges including stock-based compensation expense and depreciation and amortization. 

Net Cash Flows Used in Investing Activities

Net cash used in investing activities decreased by $9.4 million for the three months ended August 29, 2025 compared to the same period in the prior year. The decrease was primarily due to the $10.6 million payment to acquire Incal during the three months ended August 30, 2024, partially offset by a $1.2 million increase in cash spending on property and equipment, primarily related to office renovation.

Net Cash Flows Used in Financing Activities

Net cash used in financing activities did not change materially for the three months ended August 29, 2025, compared to the same period in the prior year. 

Off-Balance Sheet Agreements 

We do not have any off-balance sheet arrangements, investments in special purpose entities or undisclosed borrowings or debt. There have been no material changes in the composition, magnitude or other key characteristics of our contractual obligations or other commitments as disclosed in the Company's Annual Report on Form 10-K for the year ended May 30, 2025.  

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

As a smaller reporting company, we are not required to provide the information under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer, or CEO, and chief financial officer, or CFO, evaluated the effectiveness of our "disclosure controls and procedures" as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) as of August 29, 2025, in connection with the filing of this Quarterly Report on Form 10-Q