Company: AEHR
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001654954-25-000285
Chunk: 21

Company: AEHR TEST SYSTEMS
Filing Date: 2025-01-13
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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575   9,152   20,669   20,415 Services  1,468   1,594   2,433   2,861   $13,453  $21,431  $26,572  $42,055 

 17Table of Contents

With the exception of the amount of service contracts and extended warranties, the Company’s product net revenues are recognized at a point in time when control transfers to the customer. The following presents net revenues based on timing of recognition:   Three Months Ended   Six Months Ended    November 29,   November 30,   November 29,   November 30,  (In thousands) 2024  2023  2024  2023 Timing of revenue recognition:            Products and services transferred at a point in time $13,231  $20,974  $26,148  $40,985 Services transferred over time  222   457   424   1,070   $13,453  $21,431  $26,572  $42,055  Contract balances Accounts receivable are recognized in the period the Company delivers goods or provides services and when the Company’s right to consideration is unconditional. Contract assets include unbilled receivables which represent revenues that are earned in advance of scheduled billings to customers. These amounts are primarily related to product sales where transfer of control has occurred but the Company has not yet invoiced. As of November 29, 2024 and May 31, 2024, unbilled receivables were $0.2 million and $0.2 million, respectively, and were included in prepaid expenses and other current assets on the accompanying Condensed Consolidated Balance Sheets.  Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities as of November 29, 2024 and May 31, 2024 were $0.7 million and $1.4 million, respectively, and were included in deferred revenue, short-term and deferred revenue, long-term on the accompanying Condensed Consolidated Balance Sheets. During the three and six months ended November 29, 2024, the Company recognized $0.06 million and $1.1 million in revenue, respectively, which were included in contract liabilities as