AEHR TEST SYSTEMS

Item 1A, “Risk Factors,” on pages 11 through 18 of the Company’s Annual Report on Form 10-K for the year ended May 31, 2024, provides information on the significant risks associated with our business. Since the filing of the Annual Report, we have identified the following material risk factor:

Geopolitical Tensions and Changes in Government Trade Policies Could Adversely Affect Our Operations in China and Our Business, Results of Operations and Financial Condition

Heightened geopolitical tensions between the United States and China could create barriers to selling our products and services to customers in China as there is currently significant uncertainty about the future relationship between the United States and China with respect to trade policies, treaties, tariffs and taxes. These barriers may include increased tariffs and other trade barriers, regulatory restrictions, or limitations on technology transfer. Any such developments, including changes in trade policies, export and import restrictions, or diplomatic relations under the current or future administration, could adversely affect our ability to compete in the Chinese market and impair our growth prospects in China, as well as our business, results of operations, and financial condition.