Company: AEHR
Filing Date: 2025-10-08
Form Type: 10-Q
Source: 0001654954-25-011582
Chunk: 15

Company: AEHR TEST SYSTEMS
Filing Date: 2025-10-08
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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4 Systems $6,764  $60 Contactors  2,613   12,094 Services  1,592   965   $10,969  $13,119  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    August 29,   August 30,  (In thousands) 2025  2024 Timing of revenue recognition:      Products and services transferred at a point in time $10,225  $12,917 Services transferred over time  744   202   $10,969  $13,119     Contract balances    Accounts receivable are recognized in the period the Company delivers goods or provides services and when the Company’s right to payment 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 August 29, 2025 and May 30, 2025, unbilled receivables were $1.5 million and $3.6 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 August 29, 2025 and May 30, 2025 were $1.2 million and $2.0 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 months ended August 29, 2025, the Company recognized $1.7 million in revenue which were included in contract liabilities as of May 30, 2025. 

 14Table of Contents

 Remaining performance obligations As of August 29, 2025, the remaining performance obligations, exclusive of customer deposits, which were comprised of deferred service contracts and extended warranty contracts not yet delivered, are not material. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less and excludes information