Form 4: AEHR Test Systems COO Reports Significant Stock Vesting and Tax Withholding

AEHR Test Systems' Chief Operating Officer, Adil Engineer, reported the vesting of restricted stock units and shares withheld for tax obligations, increasing his beneficial ownership to 47,747 shares.

Summary

• Adil Engineer, Chief Operating Officer of AEHR Test Systems, reported changes in his beneficial ownership of common stock.
• On July 2, 2025, he acquired 17,184 shares through restricted stock unit (RSU) vesting, with one-sixteenth (1/16) of the total shares vesting at the end of each three full calendar months.
• On the same date, he acquired an additional 2,276 shares from RSU vesting, with 25% vesting immediately and the remaining 75% vesting quarterly over the subsequent three years.
• 307 shares were disposed of on July 2, 2025, at a price of $15.13 per share, specifically to satisfy tax withholding obligations upon RSU vesting, and this does not represent a sale by the Reporting Person.
• Following these transactions, Adil Engineer's beneficial ownership stands at 47,747 shares, which includes shares subject to unvested restricted stock units.
• Additionally, Mr. Engineer received 1,176 shares on April 25, 2025, due to the termination of the Company's Employee Stock Ownership Plan (ESOP), at a closing price of $8.76 per share.

Sentiment

Score: 7

Explanation: The document reports routine insider transactions related to executive compensation (RSU vesting) and tax obligations. The increase in beneficial ownership by a key executive is generally positive, indicating continued alignment, and there are no negative operational or financial disclosures.

Positives

• Increased beneficial ownership by a key executive (Chief Operating Officer) through RSU vesting, indicating continued alignment with shareholder interests.
• The acquisition of shares through RSU vesting at a $0 cost basis represents a form of compensation and retention for the executive.

Negatives

• Disposition of 307 shares, although for tax purposes, reduces direct holdings.

Future Outlook

No forward-looking statements or guidance are provided in this insider transaction report.

Management Comments

• The attorneys-in-fact are not assuming, nor is the Company assuming, any of the undersigned's responsibilities to comply with Section 16 of the Securities Exchange Act of 1934.

Industry Context

This document is a routine insider transaction report (Form 4) and does not contain information related to broader industry trends or competitive landscape analysis.

Corporate Governance

Related Party Transactions

• Vesting of restricted stock units (RSUs) to the Chief Operating Officer as part of executive compensation.
• Distribution of shares to the Chief Operating Officer due to the termination of the Company's Employee Stock Ownership Plan (ESOP).

Stakeholder Impact

• Shareholders: Increased insider ownership can be viewed positively as it aligns executive interests with shareholder interests.
• Employees: The termination of the Employee Stock Ownership Plan (ESOP) affects employees who were participants in the plan.

Next Steps

• Continued vesting of restricted stock units for Adil Engineer, with 1/16th of the 17,184 shares vesting every three months.
• Continued quarterly vesting of the remaining 75% of the 2,276 shares over the next three years.

Key Dates

Recommendation

Keywords

AEHR Test Systems, AEHR, Adil Engineer, Form 4, beneficial ownership, restricted stock units, RSU, stock vesting, executive compensation, employee stock ownership plan, ESOP