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

Company: AEHR TEST SYSTEMS
Filing Date: 2025-10-08
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 lower average cash balances and lower yields from our investments in money market funds.  Other income (expense), net, increased by $1.1 million for the three months ended August 29, 2025, compared to the same period in the prior year, primarily attributable to the Employee Retention Credit (“ERC”) refund of $1.3 million received, net of a $0.3 million third-party service fee incurred in connection with the filing of the ERC claims during the three months ended August 29, 2025. For further explanation of the ERC, see Note 11, Employee Retention Credit, in Notes to Condensed Consolidated Financial Statements.

Income Tax Expense (Benefit)

  Three Months Ended      August 29,   August 30,   Percent (Dollars in thousands) 2025  2024  Change Income tax expense (benefit) $(752) $154  (588%) 

For the three months ended August 29, 2025, the Company recognized $0.8 million income tax benefit, primarily driven by year-to-date losses in the United States. For the three months ended August 30, 2024, income tax expense was primarily due to taxable income in the United States and in profitable foreign subsidiaries.

Liquidity and Capital Resources

Cash, cash equivalents, and restricted cash were $24.7 million as of August 29, 2025, compared to $40.8 million as of August 30, 2024. We believe that our existing cash resources and anticipated funds from operations will satisfy our cash requirements to fund our operating activities, capital expenditures and other obligations for the next twelve months.

  Three Months Ended       August 29,   August 30,     (In thousands) 2025  2024  Change Operating activities $(282) $2,380  $(2,662)Investing activities  (1,391)  (10,812)  9,421 Financing activities  (158)  (106)  (52)Effect of exchange rate changes on cash, cash equivalents and restricted cash  9   9   - Net increase (decrease) in cash, cash equivalents and restricted cash $(1,822) $(8,529) $6,707 

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Net Cash Fl