EARNINGS PER SHARE

3 Months Ended

Aug. 31, 2022

EARNINGS PER SHARE

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 income per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):

	Three Months Ended
	August 31,
	2022		2021
Numerator: Net income	$	589	$	696
Denominator for basic net income per share:
Weighted average shares outstanding		27,242		23,999
Shares used in basic net income per share calculation		27,242		23,999
Effect of dilutive securities		1,546		1,357
Denominator for diluted net income per share		28,788		25,356
Basic net income per share	$	0.02	$	0.03
Diluted net income per share	$	0.02	$	0.03

For the purpose of computing diluted earnings 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 152,000 shares of common stock were outstanding for the three months ending August 31, 2022, but were not included in the computation of diluted net income per share, because the inclusion of such shares would be anti-dilutive. Stock options to purchase 112,000 shares of common stock were outstanding for the three months ending August 31, 2021, but were not included in the computation of diluted net income per share, because the inclusion of such shares would be anti-dilutive.