Company: AEHR
Filing Date: 2025-07-28
Form Type: 10-K
Source: 0001654954-25-008553
Chunk: 782

Company: AEHR TEST SYSTEMS
Filing Date: 2025-07-28
Form: 10-K
Item: Item 8
Chunk 782
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 an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of the arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. As of May 30, 2025, the weighted average remaining lease term for the Company’s operating leases was 9.9 years and the weighted average discount rate was 6.95%. The Company’s operating lease cost was $1.6 million, $1.2 million, and $0.9 million for the years ended May 30, 2025, May 31, 2024, and May 31, 2023. The following table presents supplemental cash flow information related to the Company’s operating leases:    May 30,  May 31,  May 31, (In thousands) 2025  2024  2023           Operating cash flows paid for operating leases $1,239  $916  $835 Right of use assets obtained in exchange for operating leases liabilities  $4,619  $318  $5,855  The following table presents the maturities of the Company’s operating lease liabilities as of May 30, 2025: (In thousands)   Fiscal year Operating Leases 2026 $1,635 2027  1,350 2028  1,316 2029  1,361 2030  1,341 Thereafter  8,327 Total future minimum operating lease payments  15,330 Less: imputed interest  (4,500)Present value of operating lease liabilities $10,830 

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8. RETIREMENT PLAN The Company maintains a defined contribution savings plan named AEHR Test Systems 401(k) Savings & Retirement Plan (the “401(k) Plan”) to provide retirement savings to all qualified employees of the Company. The 401(k) Plan is intended to be