4. EARNINGS PER SHARE

9 Months Ended

Feb. 28, 2021

Net (loss) income per share:

4. EARNINGS PER SHARE

4. EARNINGS PER SHARE

    Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, restricted stock units (“RSUs”), and Amended and Restated 2006 Employee Stock Purchase Plan (“ESPP”) shares) outstanding during the period using the treasury stock method.

    The following table presents the computation of basic and diluted net (loss) income per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	February 28,		February 29,		February 28,		February 29,
	2021		2020		2021		2020
Numerator: Net (loss) income	$	(735)	$	245	$	(2,594)	$	83
Denominator for basic net (loss) income per share:
Weighted average shares outstanding		23,525		22,937		23,390		22,823
Shares used in basic net (loss) income per share calculation		23,525		22,937		23,390		22,823
Effect of dilutive securities		—		193		—		117
Denominator for diluted net (loss) income per share		23,525		23,130		23,390		22,940
Basic net (loss) income per share	$	(0.03)	$	0.01	$	(0.11)	$	0.00
Diluted net (loss) income per share	$	(0.03)	$	0.01	$	(0.11)	$	0.00

   For the purpose of computing diluted earnings per share, the weighted average number of potential common shares does 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. In the three and nine months ended February 28, 2021 potential common shares have not been included in the calculation of diluted net loss per share as the effect would be anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for these periods are the same. Stock options to purchase 2,804,000 shares of common stock, RSUs for 143,000 shares and ESPP rights to purchase 139,000 ESPP shares were outstanding as of February 28, 2021, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. Stock options to purchase 2,505,000 shares of common stock were outstanding as of February 29, 2020 but were not included in the computation of diluted net income per share, because the inclusion of such shares would be anti-dilutive.