Company: AEHR
Filing Date: 2025-07-28
Form Type: 10-K
Source: 0001654954-25-008553
Chunk: 595

Company: AEHR TEST SYSTEMS
Filing Date: 2025-07-28
Form: 10-K
Item: Item 6
Chunk 595
---
 2023. Gross margin decreased by 1.3% primarily due to an increase in inventory reserves, as well as an increase in costs from design changes.

Research and Development

  Year Ended        May 30,  May 31,  May 31,           (Dollars in thousands) 2025  2024  2023  FY 2025 vs FY 2024  FY 2024 vs FY 2023  Research and development $10,463  $8,719  $7,134  $1,744   20.0% $1,585   22.2% As a percentage of total revenues  17.7%  13.2%  11.0%                 

Research and development expenses consist primarily of compensation and benefits for product development personnel, outside development service costs, travel expenses, facilities cost allocations, and stock-based compensation charges. Research and development expenses increased by $1.7 million in fiscal year 2025 over fiscal year 2024 primarily due to the severance benefits incurred following the death of an executive officer, higher employee costs and stock-based compensation expense resulting from growth in engineering headcount, and additional research and development expenses from the newly acquired Incal business. The increase was partially offset by lower non-recurring engineering service charges.

Research and development expenses increased by $1.6 million in fiscal year 2024 over fiscal year 2023 primarily due to higher employment-related costs because of an increase in headcount, higher non-recurring engineering services charges, an increase in allocated facility cost and an increase in recruiting expenses. 

 26Table of Contents

Selling, General and Administrative

  Year Ended        May 30,  May 31,  May 31,          (Dollars in thousands) 2025  2024  2023  FY 2025 vs FY 2024  FY 2024 vs FY 2023 Selling, general and administrative $18,283  $13,746  $12,237  $4,537   33.0% $1,509   12.3%As a percentage of total revenues  31.0%  20.8%  18.8%                

Selling, general and administrative expenses consist primarily of