3. EARNINGS PER SHARE (''EPS'')

12 Months Ended

May 31, 2021

Earnings Per Share [Abstract]

3. EARNINGS PER SHARE (''EPS'')

3. EARNINGS PER SHARE (“EPS”) 

    Basic EPS is determined using the weighted average number of common shares outstanding during the period. Diluted EPS is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, RSUs and ESPP shares) outstanding during the period using the treasury stock method.

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

	Year Ended May 31,
	2021		2020		2019
Numerator: Net loss	$	(2,027)	$	(2,802)	$	(5,235)
Denominator for basic net loss per share:
Weighted average shares outstanding		23,457		22,882		22,387
Shares used in basic net loss per share calculation		23,457		22,882		22,387
Effect of dilutive securities		--		--		--
Denominator for diluted net loss per share		23,457		22,882		22,387
Basic net loss per share	$	(0.09)	$	(0.12)	$	(0.23)
Diluted net loss per share	$	(0.09)	$	(0.12)	$	(0.23)

    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 fiscal years ended May 31, 2021, 2020 and 2019, 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 2,766,000, 3,153,000 and 3,107,000 shares of common stock were outstanding on May 31, 2021, 2020 and 2019, respectively, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. ESPP rights to purchase 239,000, 192,000 and 297,000 ESPP shares were outstanding on May 31, 2021, 2020 and 2019, respectively, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. RSUs for 132,000 shares, 10,000 shares and 23,000 shares were outstanding on May 31, 2021, 2020 and 2019, respectively, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.