Company: AEHR
Filing Date: 2025-07-28
Form Type: 10-K
Source: 0001654954-25-008553
Chunk: 662

Company: AEHR TEST SYSTEMS
Filing Date: 2025-07-28
Form: 10-K
Item: Item 7
Chunk 662
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 on the carrying value of the inventory and results of operations.

The principal considerations for our determination that performing procedures relating to adjustments for excess or obsolete inventory is a critical audit matter are the significant amount of judgement by management in developing the assumptions of the forecasted product demand, which in turn led to significant auditor judgement, subjectivity, and effort in performing audit procedures and evaluating audit evidence relating to the forecasted product demand. Additionally, for certain new sales channels there may be limited historical data with which to evaluate forecasts.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, among others, testing management’s process for developing the estimate of the adjustments for excess or obsolete inventory, testing the completeness and accuracy of the underlying data used in the estimate, and evaluating management’s assumptions of forecasted product demand. Evaluating management’s demand forecast for reasonableness involved considering historical sales of its products, comparing prior period estimates to actual results of the same period, and determining whether the demand forecast used was consistent with evidence obtained in other areas of the audit.

/s/ BPM LLP

We have served as the Company’s auditor since 2005.

San Jose, California

July 28, 2025

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AEHR TEST SYSTEMS

CONSOLIDATED BALANCE SHEETS

  May 30,  May 31, (In thousands, except par value) 2025  2024 ASSETS      Current assets:      Cash and cash equivalents $24,529  $49,159 Accounts receivable  14,191   9,796 Inventories  41,997   37,470 Prepaid expenses and other current assets  8,061   1,423 Total current assets  88,778   97,848 Property and equipment, net  8,969   3,253 Goodwill  10,719   - Intangible assets, net  10,781   - Deferred tax assets, net  19,114   20,773 Operating lease right-of-use assets, net  9,601   5,734 Other non-current assets  546   304 Total assets $148,508  $127,912 LIABILITIES AND SHAREHOLDERS EQUITY        Current liabilities:        Accounts payable