AEHR TEST SYSTEMS : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)

Published: 2022-01-13 15:19:02 ET AEHR

Item 1.01. Entry into a Material Definitive Agreement.

On January 11, 2022, Aehr Test Systems (the "Company") entered into the Second Amendment to Loan and Security Agreement (the "Amendment") with Silicon Valley Bank (the "Lender") which amended the Loan and Security Agreement dated as of January 13, 2020 and the First Amendment to Loan and Security Agreement dated as of January 14, 2021 with the Lender (the "Loan Agreement").

The Amendment, among other things, increases the available amount of the Revolving Line (as defined in the Loan Agreement) up to the lesser of (i) $10 million or (ii) the available amount under the Borrowing Base (as defined in the Loan Agreement), allows for borrowing up to $3 million of the available amount based upon Eligible Purchase Orders (as defined in the Loan Agreement), and extends the Revolving Line Maturity Date (as defined in the Loan Agreement) to January 13, 2023. In addition, the Amendment reduces the Applicable Interest Rate (as defined in the Loan Agreement) for Account Advances (as defined in the Loan Agreement) under the Revolving Line to the greater of (a) prime rate plus an additional percentage up to 1.0%, which additional percentage depends on the Company's Adjusted Quick Ratio (as defined in the Loan Agreement), and (b) 3.25%,; and for Purchase Order Advances (as defined in the Loan Agreement) under the Revolving Line to the greater of (a) prime rate plus an additional percentage up to 1.5%, which additional percentage depends on the Company's Adjusted Quick Ratio, and (b) 3.75%.

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information disclosed in Item 1.01 above is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.