Company: AEHR
Filing Date: 2025-07-28
Form Type: 10-K
Source: 0001654954-25-008553
Chunk: 724

Company: AEHR TEST SYSTEMS
Filing Date: 2025-07-28
Form: 10-K
Item: Item 7A
Chunk 724
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 that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 - Unobservable inputs that are supported by little or no market activities.

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The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 30, 2025:   Balance as of       (In thousands) May 30, 2025  Level 1  Level 2  Level 3 Money market funds $21,461  $21,461  $-  $-                  Total $21,461  $21,461  $-  $-  The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of May 31, 2024:   Balance as of       (In thousands) May 31, 2024  Level 1  Level 2  Level 3 Money market funds $44,280  $44,280  $-  $-                  Total $44,280  $44,280  $-  $-  As of May 30, 2025 and May 31, 2024, money market funds included restricted cash of $0.2 million, representing a security deposit for the Company’s manufacturing and office space lease in the United States, which is included in other non-current assets in the consolidated balance sheets. There were no financial liabilities measured at fair value as of May 30, 2025 and May 31, 2024. There were no transfers between Level 1 and Level 2 fair value measurements during the fiscal years ended May 30, 2025 and May 31, 2024. The carrying amounts of financial instruments including cash equivalents, accounts receivables, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities.

3. BALANCE SHEET INFORMATION Inventories consisted of the following: