Aehr Test Systems (AEHR) 10-Q12 Oct 232024 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Aug. 31, 2023	Oct. 09, 2023
Cover [Abstract]
Entity Registrant Name	AEHR TEST SYSTEMS
Entity Central Index Key	0001040470
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Aug. 31, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		28,799,313
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-22893
Entity Incorporation State Country Code	CA
Entity Tax Identification Number	94-2424084
Entity Address Address Line 1	400 Kato Terrace
Entity Address City Or Town	Fremont
Entity Address State Or Province	CA
Entity Address Postal Zip Code	94539
City Area Code	510
Local Phone Number	623-9400
Security 12b Title	Common Stock par value of $0.01 per share
Trading Symbol	AEHR
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Aug. 31, 2023	May 31, 2023
Current assets:
Cash and cash equivalents	$ 50,955	$ 30,054
Short-term investments	0	17,853
Accounts receivable, net	13,161	16,594
Inventories	31,557	23,908
Prepaid expenses and other current assets	540	621
Total current assets	96,213	89,030
Property and equipment, net	3,083	2,759
Operating lease right-of-use assets, net	5,951	6,123
Other non-current assets	222	231
Total assets	105,469	98,143
Current liabilities:
Accounts payable	8,328	9,206
Accrued expenses	4,536	4,143
Operating lease liabilities, short-term	275	137
Deferred revenue, short-term	6,114	2,822
Total current liabilities	19,253	16,308
Operating lease liabilities, long-term	5,997	6,163
Deferred revenue, long-term	33	31
Other long-term liabilities	41	41
Total liabilities	25,324	22,543
Shareholders' equity:
Preferred stock, $0.01 par value: Authorized: 10,000 shares; Issued and outstanding: none	0	0
Common stock, $0.01 par value: Authorized: 75,000 shares; Issued and outstanding: 28,763 shares and 28,539 shares at August 31, 2023 and May 31, 2023, respectively	288	285
Additional paid-in-capital	127,630	127,776
Accumulated other comprehensive loss	(141)	(155)
Accumulated deficit	(47,632)	(52,306)
Total shareholders' equity	80,145	75,600
Total liabilities and shareholders' equity	$ 105,469	$ 98,143

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 31, 2023	May 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	28,763,000	28,539,000
Common stock, shares outstanding	28,763,000	28,539,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Aug. 31, 2023	Aug. 31, 2022
Revenue:
Total revenue	$ 20,624	$ 10,671
Cost of revenue:
Total cost of revenue	10,643	6,190
Gross profit	9,981	4,481
Operating expenses:
Research and development	2,457	1,498
Selling, general and administrative	3,409	2,525
Total operating expenses	5,866	4,023
Income from operations	4,115	458
Interest income, net	581	121
Other income (expense), net	(6)	24
Income before provision for income taxes	4,690	603
Provision for income taxes	16	14
Net income	$ 4,674	$ 589
Net income per share:
Basic	$ 0.16	$ 0.02
Diluted	$ 0.16	$ 0.02
Shares used in per share calculations:
Basic	28,649	27,242
Diluted	29,632	28,788
Product [Member]
Revenue:
Total revenue	$ 19,357	$ 9,588
Cost of revenue:
Total cost of revenue	9,919	5,349
Service [Member]
Revenue:
Total revenue	1,267	1,083
Cost of revenue:
Total cost of revenue	$ 724	$ 841

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2023	Aug. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
Net income	$ 4,674	$ 589
Other comprehensive income (loss), net of tax:
Net change in cumulative translation adjustment	(3)	(45)
Net change in unrealized loss on investments	17	0
Comprehensive income	$ 4,688	$ 544

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated other comprehensive loss	Retained Earnings (Accumulated Deficit)
Balance, shares at May. 31, 2022		27,120
Balance, amount at May. 31, 2022	$ 50,989	$ 271	$ 117,686	$ (105)	$ (66,863)
Issuance of common stock under employee plans, shares		422
Issuance of common stock under employee plans, amount	455	$ 4	451	0	0
Shares repurchased for tax withholdings on vesting of restricted stock units, shares		(147)
Shares repurchased for tax withholdings on vesting of restricted stock units, amount	(1,179)	$ (1)	(1,178)	0	0
Stock-based compensation	709	0	709	0	0
Net income	589	0	0	0	589
Foreign currency translation adjustment	(45)	$ 0	0	(45)	0
Balance, shares at Aug. 31, 2022		27,395
Balance, amount at Aug. 31, 2022	51,518	$ 274	117,668	(150)	(66,274)
Balance, shares at May. 31, 2023		28,539
Balance, amount at May. 31, 2023	75,600	$ 285	127,776	(155)	(52,306)
Issuance of common stock under employee plans, shares		247
Issuance of common stock under employee plans, amount	318	$ 3	315	0	0
Shares repurchased for tax withholdings on vesting of restricted stock units, shares		(23)
Shares repurchased for tax withholdings on vesting of restricted stock units, amount	(1,012)	$ 0	(1,012)	0	0
Stock-based compensation	551	0	551	0	0
Net income	4,674	0	0	0	4,674
Foreign currency translation adjustment	(3)	0	0	(3)	0
Net unrealized gains on investments	17	$ 0	0	17	0
Balance, shares at Aug. 31, 2023		28,763
Balance, amount at Aug. 31, 2023	$ 80,145	$ 288	$ 127,630	$ (141)	$ (47,632)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2023	Aug. 31, 2022
Cash flows from operating activities:
Net income	$ 4,674	$ 589
Stock-based compensation expense	522	710
Depreciation and amortization	138	104
Accretion of investment discount	(130)	0
Non-cash lease expenses	172	177
Changes in operating assets and liabilities:
Accounts receivable	3,437	7,648
Inventories	(7,704)	(2,323)
Prepaid expenses and other current assets	90	(210)
Accounts payable	(939)	(769)
Accrued expenses	355	(1,130)
Deferred revenue	3,294	855
Operating lease liabilities	(28)	(192)
Income taxes payable	20	2
Net cash provided by operating activities	3,901	5,461
Cash flows from investing activities:
Purchases of property and equipment	(284)	(84)
Proceeds from maturities of investments	18,000	0
Net cash provided by (used in) investing activities	17,716	(84)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee plans	318	455
Shares repurchased for tax withholdings on vesting of restricted stock units, amount	(1,012)	(1,179)
Net cash used in financing activities	(694)	(724)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(22)	10
Net increase in cash, cash equivalents and restricted cash	20,901	4,663
Cash, cash equivalents and restricted cash, beginning of period (1)	30,204	31,564
Cash, cash equivalents and restricted cash, end of period (1)	$ 51,105	$ 36,227

ORGANIZATION AND SIGNIFICANT AC

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	Aug. 31, 2023
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization Basis of Presentation – Principles of Consolidation – Critical Accounting Policies and use of Estimates Reclassifications - Concentration of Credit Risk Three Months Ended August 31, 2023 2022 Customer A 88.0 % 67.3 % Customer B * 22.9 % The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: August 31, May 31, 2023 2023 Customer A 74.0 % 81.6 % Customer C 18.0 % 16.5 % Recent Accounting Pronouncements — $0 Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a significant impact on its Condensed Consolidated Financial Statements.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Aug. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	2. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value of Measurements — Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Inputs 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. The following table represents the Company’s assets measured at fair value on a recurring basis as of August 31, 2023, and the basis for that measurement: Balance as of (In thousands) August 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 48,975 $ 48,975 $ - $ - Total $ 48,975 $ 48,975 $ - $ - The following table represents the Company’s assets measured at fair value on a recurring basis as of May 31, 2023, and the basis for that measurement: Balance as of May 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 27,022 $ 27,022 $ - $ - U. S. treasury securities 17,853 17,853 Total $ 44,875 $ 44,875 $ - $ - Included in money market funds as of August 31, 2023 and May 31, 2023 is $150,000 restricted cash representing a security deposit for the Company’s United States manufacturing and office space lease. There were no financial liabilities measured at fair value as of August 31, 2023 and May 31, 2023. There were no transfers between Level 1 and Level 2 fair value measurements during the three months ended August 31, 2023. The carrying amounts of financial instruments, including cash equivalents, accounts receivable, accounts payable and certain other accrued liabilities, approximate fair value due to their short maturities. The following table summarizes the Company’s cash, cash equivalents and investments by security type as of August 31, 2023 and May 31, 2023, respectively: Balances as of August 31, 2023 Gross Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 2,130 $ - $ 2,130 Cash equivalents: Money market funds $ 48,825 $ - $ 48,825 Total cash and cash equivalents $ 50,955 $ - $ 50,955 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 51,105 $ - $ 51,105 Gross Balances as of May 31, 2023 Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 3,182 $ - $ 3,182 Cash equivalents: Money market funds $ 26,872 $ - $ 26,872 Total cash and cash equivalents $ 30,054 $ - $ 30,054 Short term investments: U. S. treasury securities $ 17,870 $ (17 ) $ 17,853 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 48,074 $ (17 ) $ 48,057 Long-term investments are included in other assets on the accompanying condensed consolidated balance sheets. Unrealized gains and temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive loss, net of any related tax effect. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to results of operations.

BALANCE SHEET INFORMATION

BALANCE SHEET INFORMATION	12 Months Ended
BALANCE SHEET INFORMATION	May 31, 2023
BALANCE SHEET INFORMATION
BALANCE SHEET INFORMATION	3. BALANCE SHEET INFORMATION Inventories Inventories consisted of the following: August 31, May 31, (In thousands) 2023 2023 Raw materials and sub-assemblies $ 19,422 $ 15,953 Work in process 9,617 5,764 Finished goods 2,518 2,191 $ 31,557 $ 23,908 Property and equipment Property and equipment, net consisted of the following: Useful life August 31, May 31, (In thousands) (In years) 2023 2023 Leasehold improvements * $ 1,325 $ 1,310 Machinery and equipment 3 - 6 5,787 5,445 Test equipment 4 - 6 3,083 2,998 Furniture and fixtures 2 - 6 725 706 10,920 10,459 Less: accumulated depreciation and amortization (7,837 ) (7,700 ) $ 3,083 $ 2,759 * Lesser of estimated useful life or lease term. Product warranties The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The standard warranty period is one year for systems and ninety days for parts and service. The following is a summary of changes in the Company's liability for product warranties during the three months ended August 31, 2023 and 2022: Three Months Ended August 31, (In thousands) 2023 2022 Balance at the beginning of the period $ 267 $ 410 Accruals for warranties issued during the period 65 118 Adjustments to previously existing warrany accruals - 61 Consumption of reserves (100 ) (165 ) Balance at the end of the period $ 232 $ 424 The accrued warranty balance is included in accrued expenses on the accompanying Condensed Consolidated Balance Sheets. Deferred revenue Deferred revenue, short-term consisted of the following: August 31, May 31, (In thousands) 2023 2023 Customer deposits $ 2,008 $ 2,690 Deferred revenue 4,106 132 $ 6,114 $ 2,822

INCOME TAX

INCOME TAX	3 Months Ended
INCOME TAX	Aug. 31, 2023
INCOME TAX
INCOME TAXES	4. INCOME TAX The Company is subject to U.S federal and state and foreign income taxes as a corporation. The Company’s tax provision and the resulting effective tax rate for the interim period is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The Company recorded a provision for income taxes of $16,000 and $14,000 for the three months ended August 31, 2023 and 2022, respectively, which consisted primarily of foreign withholding taxes and foreign income taxes. Income taxes have been provided using the liability method whereby deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and net operating loss and tax credit carryforwards measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse, or the carryforwards are utilized. Valuation allowances are established when it is determined that it is more likely than not that such assets will not be realized. Since fiscal 2009, a full valuation allowance was established against all deferred tax assets, as management determined that it was more likely than not that certain deferred tax assets would not be realized. The Company continues to reassess the need for a valuation allowance on a quarterly basis. The Company accounts for uncertain tax positions consistent with authoritative guidance. The guidance prescribes a “more likely than not” recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income taxes.

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	3 Months Ended
BORROWING ARRANGEMENTS	Aug. 31, 2023
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS	5. BORROWING ARRANGEMENTS On January 16, 2020, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). Pursuant to the Loan Agreement, the Company may borrow up to (a) the lesser of (i) the revolving line of $4.0 million or (ii) the amount available under the borrowing base under a revolving line of credit which is collateralized by all the Company’s assets except intellectual property. The borrowing base is 80% of eligible accounts, as determined by SVB from the Company’s most recent borrowing base statement; provided, however, SVB has the right to decrease the foregoing percentage in its good faith business judgment to mitigate the impact of certain events or conditions, which may adversely affect the collateral or its value. Subject to an event of default, the principal amount outstanding under the revolving line of credit will accrue interest at a floating per annum rate equal to the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 4.75%. Interest is payable monthly on the last calendar day of each month and the outstanding principal amount, the unpaid interest and all other obligations are due on the maturity date, which is 364 days from the effective date of January 13, 2020. On January 14, 2021, the Company entered into the First Amendment to Loan and Security Agreement (the “Amendment”) with SVB. The Amendment, among other things, extended the Revolving Line Maturity Date to July 14, 2021; provided, however, that if the Company achieved specified operating metrics on a consolidated basis on or prior to May 31, 2021 the Amended Revolving Line Maturity Date would be extended to January 13, 2022. On January 11, 2022, the Company entered into the Second Amendment to the Loan and Security Agreement (the “Second Amendment”) with SVB. The Second Amendment, among other things, (A) increased the available amount of the line up to the lesser of (i) $10 million or (ii) the available amount under the borrowing base, under a revolving line of credit, (B) allowed for borrowing up to $3 million of the available balance based upon eligible customer purchase orders, (C) reduced the interest rate for account advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.25%, reduces the interest rate for purchase order advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.5%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.75%, and (D) extended the maturity date to January 13, 2023. On January 10, 2023, the Company entered into the Third Amendment to the Loan and Security Agreement (the “Third Amendment”) with SVB. The Third Amendment, among other things, extends the Revolving Line Maturity Date to January 13, 2024, provided, however, that (i) if the Company submits a fiscal year 2024 plan of record that is generally acceptable to SVB, and (ii) the minimum net liquidity at the end of November 30, 2023 is at least $20.0 million, the Amended Revolving Line Maturity Date would be extended to January 13, 2025. As of August 31, 2023, the Company had not drawn against the credit facility and was in compliance with all covenants related to obligations to meet reporting requirements. The balance available to borrow under the line as of August 31, 2023 was $5,396,000. There are no financial covenants in the agreement.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Aug. 31, 2023
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	6. COMMITMENTS AND CONTINGENCIES Commitments As of August 31, 2023 and May 31, 2023, the Company had restricted money market funds of $150,000, held by a financial institution, representing a security deposit for its United States manufacturing and office space lease. This amount is included in other assets on the Condensed Consolidated Balance Sheets. Purchase Obligations The Company has purchase obligations to certain suppliers. In some cases, the products the Company purchases are unique and have provisions against cancellation of the order. Contingencies The Company may, from time to time, be involved in legal proceedings arising in the ordinary course of business. While there can be no assurances as to the ultimate outcome of any litigation involving the Company, management does not believe any pending legal proceedings will result in judgment or settlement that will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. In the normal course of business to facilitate sales of its products, the Company indemnifies other parties, including customers, with respect to certain matters, for example, including against losses arising from a breach of representations or covenants, or from intellectual property infringement or other claims. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors, and the Company’s bylaws contain similar indemnification obligations to the Company’s agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, payments made by the Company under these agreements have not had a material impact on the Company’s operating results, financial position or cash flow.

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	3 Months Ended
SHAREHOLDERS EQUITY	Aug. 31, 2023
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY	7. SHAREHOLDERS’ EQUITY On August 25, 2021, the Board of Directors authorized management to take actions necessary for the execution of a $75 million shelf registration. A Registration Statement on Form S-3 was filed with the SEC on September 3, 2021. A Prospectus Supplement for an "At the Market" ("ATM") sale of $25 million of common stock was subsequently filed on September 17, 2021. On October 8, 2021, the Company executed the ATM offering by selling 1,696,729 shares of common stock at an average selling price of $14.73 per share. The gross proceeds to the Company were $25.0 million, before commission fees of $0.7 million and offering expenses of $0.3 million. Another Prospectus Supplement for an ATM sale of $25 million of common stock was subsequently filed on February 8, 2023. The Company partially executed the ATM offering by selling 208,917 shares of common stock at an average selling price of $34.78 per share. The gross proceeds to the Company were $7.3 million, before commissions of $0.2 million and offering expenses of $0.2 million. As of August 31, 2023, the remaining amount of the ATM offering was $17.7 million.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
ACCUMULATED OTHER COMPREHENSIVE LOSS	Aug. 31, 2023
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS	8. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): Cumulative Unrealized loss (In thousands) translation adjustment on investments, net Total Balance as of May 31, 2023 $ (138 ) $ (17 ) $ (155 ) Other comprehensive income (loss) before reclassifications (3 ) 17 14 Balance as of August 31, 2023 $ (141 ) $ - $ (141 )

REVENUE

REVENUE	3 Months Ended
REVENUE	Aug. 31, 2023
REVENUE
REVENUE	9. REVENUE Revenue recognition The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Performance obligations include sales of systems, contactors, spare parts, and services, as well as installation and training services included in customer contracts. A contract’s transaction price is allocated to each distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return privileges, except for defective products during the warranty period. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to historical discounting trends for products and services and pricing practices in different geographies. Revenue for systems and spares are recognized at a point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. The Company has elected the practical expedient to not assess whether a contract has a significant financing component as the Company’s standard payment terms are less than one year. The Company sells its products primarily through a direct sales force. In certain international markets, the Company sells its products through independent distributors. Transfer of control is evidenced upon passage of title and risk of loss to the customer unless we are required to provide additional services. Disaggregation of revenue The following presents information about the Company’s net revenues in different geographic areas, which are based upon ship-to locations, and by product category: Three Months Ended August 31, (In thousands) 2023 2022 Asia $ 19,231 $ 7,808 United States 789 2,863 Europe 604 - $ 20,624 $ 10,671 Three Months Ended August 31, (In thousands) 2023 2022 Systems $ 8,093 $ 9,094 Contactors 11,264 494 Services 1,267 1,083 $ 20,624 $ 10,671 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 31, (In thousands) 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 20,011 $ 10,254 Services transferred over time 613 417 $ 20,624 $ 10,671 Contract balances A receivable is recognized in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. The Company usually does not record contract assets because the Company has an unconditional right to payment upon satisfaction of the performance obligation, and therefore, a receivable is more commonly recorded than a contract asset. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Condensed Consolidated Balance Sheets at the end of each reporting period as a component of deferred revenue. Contract liabilities as of August 31, 2023 and May 31, 2023 were $6.1 million and $2.9 million, respectively. During the three months ended August 31, 2023, the Company recognized $0.7 million of revenues that were included in contract liabilities as of May 31, 2023. Remaining performance obligations On August 31, 2023, the Company had $0.1 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. The Company expects to recognize approximately 72% of its remaining performance obligations as revenue in the remainder of fiscal 2024, and an additional 28% in fiscal 2025 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Costs to obtain or fulfill a contract The Company generally expenses sales commissions when incurred as a component of selling, general and administrative expenses as the amortization period is typically less than one year. Additionally, the majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventory and fixed assets, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of the Company’s products and their respective manufacturing process.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
STOCK-BASED COMPENSATION	Aug. 31, 2023
SHAREHOLDERS EQUITY
STOCK-BASED COMPENSATION	10. STOCK-BASED COMPENSATION Stock-based compensation expense consists of expenses for stock options, restricted stock units (“RSUs”), performance RSUs, or PRSUs, restricted shares, performance restricted shares and employee stock purchase plan, or ESPP, purchase rights. Stock-based compensation expense for stock options and ESPP purchase rights is measured at each grant date, based on the fair value of the award using the Black-Scholes option valuation model, and is recognized as expense over the employee’s requisite service period. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. The Company’s employee stock options have characteristics significantly different from those of publicly traded options. For RSUs, PRSUs, restricted shares and performance restricted shares, stock-based compensation expense is based on the fair value of the Company’s common stock at the grant date and is recognized as expense over the employee’s requisite service period. All of the Company’s stock-based compensation is accounted for as equity instruments. See Note 13 in the Company’s Annual Report on Form 10-K for fiscal 2023 filed on August 28, 2023 for further information regarding the 2016 Equity Incentive Plan (the “2016 Plan”) and the ESPP. The following table summarizes the stock-based compensation expense for the three months ended August 31, 2023 and 2022: Three Months Ended August 31, (In thousands) 2023 2022 Cost of sales $ 63 $ 91 Research and development 153 154 Selling, general and administrative 306 465 $ 522 $ 710 There were $149,000 and $120,000 in stock-based compensation expense capitalized as part of inventory as of August 31, 2023 and as of May 31, 2023, respectively. There were no options granted during the three months ended August 31, 2023. There were no ESPP purchase rights granted during the three months ended August 31, 2023 and 2022. Nonvested restricted stock units activity during the three months ended August 31, 2023, was as follows: Weighted Average Grant Date Fair Shares Value (in thousands) Per Share Unvested May 31, 2023 345 $ 6.40 Granted - Vested (77 ) 7.16 Forfeited (52 ) 5.79 Unvested August 31, 2023 216 $ 6.27

NET INCOME PER SHARE

NET INCOME PER SHARE	3 Months Ended
NET INCOME PER SHARE	Aug. 31, 2023
Net income per share:
NET INCOME PER SHARE	11. NET INCOME PER SHARE Basic net income per share is determined using the weighted average number of common shares outstanding during the period. Diluted net income per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, unvested RSUs, and ESPP shares) outstanding during the period using the treasury stock method. The following table presents the computation of basic and diluted net income per share: Three Months Ended August 31, (In thousands, except per share data) 2023 2022 Numerator: Net income $ 4,674 $ 589 Denominator: Basic weighted average shares outstanding 28,649 27,242 Dilutive effect of common equivalent shares outstanding 983 1,546 Diluted weighted average shares outstanding 29,632 28,788 Net income per share - Basic $ 0.16 $ 0.02 Net income per share - Diluted $ 0.16 $ 0.02 For the purpose of computing diluted net income per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair value of the Company’s common stock for the period, as the effect would be anti-dilutive. Stock options to purchase 2,000 and 152,000 shares of common stock were outstanding as of August 31, 2023 and 2022, respectively, but were not included in the computation of diluted net income per share, because the inclusion of such shares would be anti-dilutive.

SEGMENT AND CONCENTRATION INFOR

SEGMENT AND CONCENTRATION INFORMATION	3 Months Ended
SEGMENT AND CONCENTRATION INFORMATION	Aug. 31, 2023
SEGMENT AND CONCENTRATION INFORMATION
SEGMENT AND CONCENTRATION INFORMATION	12. SEGMENT AND CONCENTRATION INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in one operating segment. Long-lived assets, net by geographic area are as follows: August 31, May 31, (In thousands) 2023 2023 United States $ 3,041 $ 2,713 International 42 46 Total long-lived assets, net $ 3,083 $ 2,759

ORGANIZATION AND SIGNIFICANT _2

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	Aug. 31, 2023
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization	Organization
Principles of Consolidation	Principles of Consolidation –
Basis of Presentation	Basis of Presentation –
Critical Accounting Policies and use of Estimates	Critical Accounting Policies and use of Estimates
Concentration of Credit Risk	Concentration of Credit Risk Three Months Ended August 31, 2023 2022 Customer A 88.0 % 67.3 % Customer B * 22.9 % The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: August 31, May 31, 2023 2023 Customer A 74.0 % 81.6 % Customer C 18.0 % 16.5 %
Reclassifications	Reclassifications -
Recent Accounting Pronouncements	Recent Accounting Pronouncements — $0 Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a significant impact on its Condensed Consolidated Financial Statements.

ORGANIZATION AND SIGNIFICANT _3

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	Aug. 31, 2023
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Schedule of financial instruments	Three Months Ended August 31, 2023 2022 Customer A 88.0 % 67.3 % Customer B * 22.9 % August 31, May 31, 2023 2023 Customer A 74.0 % 81.6 % Customer C 18.0 % 16.5 %

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Aug. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Cash, cash equivalents and investments by security type	Balances as of August 31, 2023 Gross Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 2,130 $ - $ 2,130 Cash equivalents: Money market funds $ 48,825 $ - $ 48,825 Total cash and cash equivalents $ 50,955 $ - $ 50,955 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 51,105 $ - $ 51,105 Gross Balances as of May 31, 2023 Unrealized Estimated (In thousands) Cost Loss Fair Value Cash $ 3,182 $ - $ 3,182 Cash equivalents: Money market funds $ 26,872 $ - $ 26,872 Total cash and cash equivalents $ 30,054 $ - $ 30,054 Short term investments: U. S. treasury securities $ 17,870 $ (17 ) $ 17,853 Long-term investments: Money market funds $ 150 $ - $ 150 Total cash, cash equivalents and investments $ 48,074 $ (17 ) $ 48,057
Fair value by hierarchy	Balance as of (In thousands) August 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 48,975 $ 48,975 $ - $ - Total $ 48,975 $ 48,975 $ - $ - Balance as of May 31, 2023 Level 1 Level 2 Level 3 Money market funds $ 27,022 $ 27,022 $ - $ - U. S. treasury securities 17,853 17,853 Total $ 44,875 $ 44,875 $ - $ -

BALANCE SHEET INFORMATION (Tabl

BALANCE SHEET INFORMATION (Tables)	3 Months Ended
BALANCE SHEET INFORMATION (Tables)	Aug. 31, 2023
BALANCE SHEET INFORMATION
Inventories	August 31, May 31, (In thousands) 2023 2023 Raw materials and sub-assemblies $ 19,422 $ 15,953 Work in process 9,617 5,764 Finished goods 2,518 2,191 $ 31,557 $ 23,908
Property and equipment, net	Useful life August 31, May 31, (In thousands) (In years) 2023 2023 Leasehold improvements * $ 1,325 $ 1,310 Machinery and equipment 3 - 6 5,787 5,445 Test equipment 4 - 6 3,083 2,998 Furniture and fixtures 2 - 6 725 706 10,920 10,459 Less: accumulated depreciation and amortization (7,837 ) (7,700 ) $ 3,083 $ 2,759
Liability for product warranties	Three Months Ended August 31, (In thousands) 2023 2022 Balance at the beginning of the period $ 267 $ 410 Accruals for warranties issued during the period 65 118 Adjustments to previously existing warrany accruals - 61 Consumption of reserves (100 ) (165 ) Balance at the end of the period $ 232 $ 424
Customer deposits and deferred revenue, short-term	August 31, May 31, (In thousands) 2023 2023 Customer deposits $ 2,008 $ 2,690 Deferred revenue 4,106 132 $ 6,114 $ 2,822

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	Aug. 31, 2023
ACCUMULATED OTHER COMPREHENSIVE LOSS
Schedule of Changes in the components of accumulated other comprehensive loss, net of tax	Cumulative Unrealized loss (In thousands) translation adjustment on investments, net Total Balance as of May 31, 2023 $ (138 ) $ (17 ) $ (155 ) Other comprehensive income (loss) before reclassifications (3 ) 17 14 Balance as of August 31, 2023 $ (141 ) $ - $ (141 )

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
REVENUE (Tables)	Aug. 31, 2023
REVENUE
Disaggregation of revenue	Three Months Ended August 31, (In thousands) 2023 2022 Asia $ 19,231 $ 7,808 United States 789 2,863 Europe 604 - $ 20,624 $ 10,671 Three Months Ended August 31, (In thousands) 2023 2022 Systems $ 8,093 $ 9,094 Contactors 11,264 494 Services 1,267 1,083 $ 20,624 $ 10,671 Three Months Ended August 31, (In thousands) 2023 2022 Timing of revenue recognition: Products and services transferred at a point in time $ 20,011 $ 10,254 Services transferred over time 613 417 $ 20,624 $ 10,671

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
STOCK-BASED COMPENSATION (Tables)	Aug. 31, 2023
SHAREHOLDERS EQUITY
Compensation costs related to the Company's stock-based compensation	Three Months Ended August 31, (In thousands) 2023 2022 Cost of sales $ 63 $ 91 Research and development 153 154 Selling, general and administrative 306 465 $ 522 $ 710
Nonvested RSU activity	Weighted Average Grant Date Fair Shares Value (in thousands) Per Share Unvested May 31, 2023 345 $ 6.40 Granted - Vested (77 ) 7.16 Forfeited (52 ) 5.79 Unvested August 31, 2023 216 $ 6.27

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	3 Months Ended
NET INCOME PER SHARE (Tables)	Aug. 31, 2023
Net income per share:
Net income earnings per share	Three Months Ended August 31, (In thousands, except per share data) 2023 2022 Numerator: Net income $ 4,674 $ 589 Denominator: Basic weighted average shares outstanding 28,649 27,242 Dilutive effect of common equivalent shares outstanding 983 1,546 Diluted weighted average shares outstanding 29,632 28,788 Net income per share - Basic $ 0.16 $ 0.02 Net income per share - Diluted $ 0.16 $ 0.02

SEGMENT AND CONCENTRATION INF_2

SEGMENT AND CONCENTRATION INFORMATION (Tables)	3 Months Ended
SEGMENT AND CONCENTRATION INFORMATION (Tables)	Aug. 31, 2023
SEGMENT AND CONCENTRATION INFORMATION
Property and equipment by geographic region	August 31, May 31, (In thousands) 2023 2023 United States $ 3,041 $ 2,713 International 42 46 Total long-lived assets, net $ 3,083 $ 2,759

ORGANIZATION AND SIGNIFICANT _4

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		12 Months Ended
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details)	Aug. 31, 2023	Aug. 31, 2022	May 31, 2023
Customer A \| Accounts Receivable
Concentration of Credit Risk	74%		81.60%
Customer A \| Revenue
Concentration of Credit Risk	88%	67.30%
Customer C \| Accounts Receivable
Concentration of Credit Risk	18%		16.50%
Customer B \| Revenue
Concentration of Credit Risk		22.90%

ORGANIZATION AND SIGNIFICANT _5

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Aug. 31, 2023	May 31, 2023
Allowance for credit losses	$ 0	$ 0
Revenue [Member]
Concentration risk	10%

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Aug. 31, 2023	May 31, 2023
Assets [Member]
Investment securities	$ 48,975	$ 44,875
U.S. treasury securities
Investment securities		17,853
Level 1 [Member] \| Assets [Member]
Investment securities	48,975	44,875
Level 2 [Member] \| Assets [Member]
Investment securities	0	0
Level 3 [Member] \| Assets [Member]
Investment securities	0	0
Money Market Funds
Investment securities	48,975	27,022
Money Market Funds \| Level 1 [Member]
Investment securities	48,975	27,022
Money Market Funds \| Level 2 [Member]
Investment securities	0	0
Money Market Funds \| Level 3 [Member]
Investment securities	$ 0	0
US Treasury Securities \| Level 1 [Member]
Investment securities		$ 17,853

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands	Aug. 31, 2023	May 31, 2023
Total cash and cash equivalents	$ 50,955	$ 30,054
Short-term Investments	0	17,853
Short-term Investments	0	(17,853)
Cost [Member]
Cash	2,130	3,182
Total cash and cash equivalents	50,955	30,054
Total cash, cash equivalents and investments	51,105	48,074
Total cash, cash equivalents and investments	(51,105)	(48,074)
Cost [Member] \| Money Market Funds
Cash equivalents	48,825	26,872
Long-term investments	150	150
Cost [Member] \| U S Treasury Securities [Member]
Short-term Investments		17,870
Short-term Investments		(17,870)
Gross Unrealized Loss
Cash	0	0
Total cash and cash equivalents	0	0
Total cash, cash equivalents and investments	0	17
Total cash, cash equivalents and investments	0	(17)
Gross Unrealized Loss \| Money Market Funds
Cash equivalents	0	0
Long-term investments	0	0
Gross Unrealized Loss \| U S Treasury Securities [Member]
Short-term Investments		17
Short-term Investments		(17)
Estimated Fair Value [Member]
Cash	2,130	3,182
Total cash and cash equivalents	50,955	30,054
Total cash, cash equivalents and investments	51,105	48,057
Total cash, cash equivalents and investments	(51,105)	(48,057)
Estimated Fair Value [Member] \| Money Market Funds
Cash equivalents	48,825	26,872
Long-term investments	$ 150	150
Estimated Fair Value [Member] \| U S Treasury Securities [Member]
Short-term Investments		17,853
Short-term Investments		$ (17,853)

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)	3 Months Ended
	Aug. 31, 2023	May 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Transfer between Level 1 and Level 2 fair value measurements	$ 0
Restricted cash	150,000	$ 150,000
Financial liabilities at fair value	$ 0	$ 0

BALANCE SHEET INFORMATION (Deta

BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands	Aug. 31, 2023	May 31, 2023
BALANCE SHEET INFORMATION
Raw materials and sub-assemblies	$ 19,422	$ 15,953
Work in process	9,617	5,764
Finished goods	2,518	2,191
Inventories	$ 31,557	$ 23,908

BALANCE SHEET INFORMATION (De_2

BALANCE SHEET INFORMATION (Details 1) - USD ($) $ in Thousands	Aug. 31, 2023	May 31, 2023
BALANCE SHEET INFORMATION
Leasehold improvements	$ 1,325	$ 1,310
Furniture and fixtures	725	706
Machinery and equipment	5,787	5,445
Test equipment	3,083	2,998
Property and equipment, gross	10,920	10,459
Less: Accumulated depreciation and amortization	(7,837)	(7,700)
Property and equipment, net	$ 3,083	$ 2,759

BALANCE SHEET INFORMATION (De_3

BALANCE SHEET INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2023	Aug. 31, 2022
BALANCE SHEET INFORMATION
Balance at the beginning of the period	$ 267	$ 410
Accruals for warranties issued during the period	65	118
Adjustments to previously existing warranty accruals	0	61
Consumption of reserves	(100)	(165)
Balance at the End of the period	$ 232	$ 424

BALANCE SHEET INFORMATION (De_4

BALANCE SHEET INFORMATION (Details 3) - USD ($) $ in Thousands	Aug. 31, 2023	May 31, 2023
BALANCE SHEET INFORMATION
Customer deposits	$ 2,008	$ 2,690
Deferred revenue	4,106	132
Deferred revenue, short-term	$ 6,114	$ 2,822

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	Aug. 31, 2023	Aug. 31, 2022
INCOME TAX
Provision for income taxes	$ 16	$ 14

BORROWING ARRANGEMENTS (Details

BORROWING ARRANGEMENTS (Details Narrative) - USD ($)	3 Months Ended
BORROWING ARRANGEMENTS (Details Narrative) - USD ($)	Aug. 31, 2023	Nov. 30, 2023
Original Loan and Security Agreement
Line of Credit, maximum borrowing	$ 4,000,000
Balance available to borrow under the line of credit	$ 5,396,000
Variable interest rate	the greater of (a) the prime rate plus an additional percentage of up to 1%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 4.75%
Second Amendment To Loan And Security Agreement
Line of Credit, maximum borrowing	$ 10,000,000
Variable interest rate	the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.25%, reduces the interest rate for purchase order advances under the line to the greater of (a) prime rate plus an additional percentage up to 1.5%, which additional percentage depends on the Company’s adjusted quick ratio, and (b) 3.75%
Revolving line maturity date	Jan. 13, 2023
First Amendment to Loan and Security Agreement
Revolving line maturity date	Jan. 13, 2022
Third Amendment to Loan and Security Agreement
Revolving line maturity date	Jan. 13, 2025
Third Amendment to Loan and Security Agreement \| Subsequent Event
Minimum liquidity net		$ 20,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Aug. 31, 2023	May 31, 2023
COMMITMENTS AND CONTINGENCIES
Restricted cash	$ 150,000	$ 150,000

SHAREHOLDERS EQUITY (Details Na

SHAREHOLDERS EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Millions	Feb. 08, 2023	Oct. 08, 2021	Aug. 31, 2023	Aug. 25, 2021
SHAREHOLDERS EQUITY
Sale of common stock price per share	$ 34.78	$ 14.73
Sale of common stock shares	208,917	1,696,729
Gross proceeds	$ 7.3	$ 25
Commission fees	0.2	0.7
Offering expenses	$ 0.2	$ 0.3
Remaining amount of the ATM offering			$ 17.7
Shelf registration amount				$ 75

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands	3 Months Ended
	Aug. 31, 2023 USD ($)
Balance at the beginning of the year	$ (155)
Other comprehensive loss before reclassifications	14
Balance at the ending of the year	(141)
Unrealized Loss on Investments Net [Member]
Balance at the beginning of the year	(17)
Other comprehensive loss before reclassifications	17
Balance at the ending of the year	0
Cumulative Translation Adjustments [Member]
Balance at the beginning of the year	(138)
Other comprehensive loss before reclassifications	(3)
Balance at the ending of the year	$ (141)

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
REVENUE (Details) - USD ($) $ in Thousands	Aug. 31, 2023	Aug. 31, 2022
Net sales	$ 20,624	$ 10,671
United States [Member]
Net sales	789	2,863
Asia
Net sales	19,231	7,808
Europe
Net sales	$ 604	$ 0

REVENUE (Details 1)

REVENUE (Details 1) - USD ($) $ in Thousands	3 Months Ended
REVENUE (Details 1) - USD ($) $ in Thousands	Aug. 31, 2023	Aug. 31, 2022
Net sales	$ 20,624	$ 10,671
Systems [Member]
Net sales	8,093	9,094
Services [Member]
Net sales	1,267	1,083
Contactors [Member]
Net sales	$ 11,264	$ 494

REVENUE (Details 2)

REVENUE (Details 2) - USD ($) $ in Thousands	3 Months Ended
REVENUE (Details 2) - USD ($) $ in Thousands	Aug. 31, 2023	Aug. 31, 2022
Net sales	$ 20,624	$ 10,671
Products And Services Transferred At A Point In Time [Member]
Net sales	20,011	10,254
Services Transferred over Time [Member]
Net sales	$ 613	$ 417

REVENUE (Details Narrative)

REVENUE (Details Narrative) - USD ($) $ in Millions	3 Months Ended
REVENUE (Details Narrative) - USD ($) $ in Millions	Aug. 31, 2023	Aug. 31, 2025	Aug. 31, 2024	May 31, 2023
Contract liabilities	$ 6.1			$ 2.9
Recognition of contract liabilities	0.7
Remaining performance obligations	$ 0.1
Scenario Forecast [Member] \| Subsequent Event
Remaining performance obligation revenue recognition		72%	28%

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	Aug. 31, 2023	Aug. 31, 2022
Stock-based compensation	$ 522	$ 710
Cost of Sales
Total stock-based compensation	63	91
Selling, General and Administrative
Total stock-based compensation	153	154
Research and Development
Total stock-based compensation	$ 306	$ 465

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details 1) - Nonvested RSU Activty shares in Thousands	3 Months Ended
	Aug. 31, 2023 $ / shares shares
Unvested May 31, 2023, beginning (in thousands) \| shares	345
Shares, Vested (in thousands) \| shares	(77)
Shares, Forfeited (in thousands) \| shares	(52)
Unvested August 31, 2023, ending (in thousands) \| shares	216
Weighted Average Grant Date Fair Value Per Share, beginning \| $ / shares	$ 6.40
Vested \| $ / shares	7.16
Forfeited \| $ / shares	5.79
Weighted Average Grant Date Fair Value Per Share, Ending \| $ / shares	$ 6.27

STOCK-BASED COMPENSATION (Det_3

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	Aug. 31, 2023	May 31, 2023
SHAREHOLDERS EQUITY
Stock-based compensation expense capitalized	$ 149,000	$ 120,000

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Aug. 31, 2023	Aug. 31, 2022
Net income per share:
Net income	$ 4,674	$ 589
Denominator: Weighted average shares outstanding	28,649	27,242
Dilutive effect of common equivalent shares outstanding	983	1,546
Denominator: Diluted weighted average shares outstanding	29,632	28,788
Basic net income (loss) per share	$ 0.16	$ 0.02
Diluted net income (loss) per share	$ 0.16	$ 0.02

NET INCOME PER SHARE (Details N

NET INCOME PER SHARE (Details Narrative) - shares	3 Months Ended
NET INCOME PER SHARE (Details Narrative) - shares	Aug. 31, 2023	Aug. 31, 2022
Stock Option
Options not included in the computation of diluted net income per share	2,000	152,000

SEGMENT AND CONCENTRATION INF_3

SEGMENT AND CONCENTRATION INFORMATION (Details) - USD ($) $ in Thousands	Aug. 31, 2023	May 31, 2023
Property and equipment, net	$ 3,083	$ 2,759
United States [Member]
Property and equipment, net	3,041	2,713
International
Property and equipment, net	$ 42	$ 46