Company: AEHR
Filing Date: 2025-07-28
Form Type: 10-K
Source: 0001654954-25-008553
Chunk: 727

Company: AEHR TEST SYSTEMS
Filing Date: 2025-07-28
Form: 10-K
Item: Item 7A
Chunk 727
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 cash restricted in escrow, the Company initially recorded $0.7 million within prepaid expenses and other current assets and $2.1 million within Other non-current assets. During the year ended May 30, 2025, the Company updated the purchase consideration, which reflects a reduction in the receivable related to the working capital adjustment from $0.8 million to $0.2 million and a reduction in escrow payable related to indemnification from $2.8 million to $2.5 million, based on negotiations with the seller. As a result, the total purchase consideration has been adjusted from $21.9 million to $22.2 million. Accordingly, the goodwill balance has increased from $10.4 million to $10.7 million. During the year ended May 30, 2025, the Company released $0.7 million of cash previously held in escrow related to working capital adjustments.  During the year ended May 30, 2025, the Company recorded immaterial adjustments to certain assets and liability balances and finalized the fair value of the assets acquired and liabilities assumed at the acquisition date in the table below: (In thousands) Fair Value Cash  $16 Accounts receivable  1,285 Inventory  2,558 Goodwill  10,719 Property and equipment  165 Intangible assets  12,000 Operating lease right-of-use assets  810 Other assets, current and noncurrent  63 Accounts payable, accrued expenses and other liabilities, current and noncurrent  (2,180)Deferred revenue  (489)Operating lease liabilities, current and noncurrent  (714)Deferred tax liabilities, net  (2,080)Total $22,153  The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from future growth and will not be deductible for income tax purposes. The following table summarizes the fair value of the separately identifiable intangible assets at the time of acquisition:      Estimated Useful life (In thousands) Fair Value  (in years) Developed technology $9,130   12 Trade names  1,050   10 Customer relationships  810   11 Non-compete agreements and others  1,010  1-3  Total intangible assets acquired $12,000      Acquisition-related costs were $0.5 million during