What changed in this filing

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Item 1. Financial Statements

2025-05-06 compared with 2024-11-07 · 103 added, 147 removed, 374 unchanged (40% of the section changed)

4 unchanged sentences

Three months ended

Nine months ended

September 30,

Total revenue

22 unchanged sentences

Three months ended

Nine months ended

September 30,

Other comprehensive income (loss):

1 unchanged sentence

Amortization of actuarial net gain and other adjustments from pension plan, net of tax

Unrealized gains on available-for-sale investments

Total other comprehensive income (loss)

4 unchanged sentences

(In thousands, except per share amounts)

September 30,

Current assets:

26 unchanged sentences

Common stock, $ 0.001 par value, 75,000 shares authorized;

32,504 shares issued and outstanding at September 30, 2024;

32,129 shares issued and outstanding at March 31, 2025;

32,365 shares issued and outstanding at December 31, 2024

12 unchanged sentences

Foreign currency translation adjustments

Exercise of stock options

Change in pension obligation

Issuance of common stock on restricted stock units, net of shares withheld

2 unchanged sentences

Balance at March 31, 2024

Foreign currency translation adjustments

Issuance of stock under Employee Stock Purchase Plan

Issuance of common stock on restricted stock units, net of shares withheld

Stock-based compensation expense

Repurchase of common stock

Balance at June 30, 2023

Foreign currency translation adjustments

Issuance of common stock on restricted stock units, net of shares withheld

Stock-based compensation expense

Repurchase of common stock

Balance at September 30, 2023

See accompanying Notes to these Consolidated Financial Statements (Unaudited)

Axcelis Technologies, Inc.

Consolidated Statements of Stockholders’ Equity

(In thousands)

Comprehensive

2 unchanged sentences

Foreign currency translation adjustments

Change in pension obligation

Unrealized gains on available-for-sale investments

Issuance of common stock on restricted stock units, net of shares withheld

2 unchanged sentences

Balance at March 31, 2025

Foreign currency translation adjustments

Change in pension obligation

Issuance of stock under Employee Stock Purchase Plan

Issuance of common stock on restricted stock units, net of shares withheld

Stock-based compensation expense

Repurchase of common stock

Balance at June 30, 2024

Foreign currency translation adjustments

Change in pension obligation

Issuance of common stock on restricted stock units, net of shares withheld

Stock-based compensation expense

Repurchase of common stock

Balance at September 30, 2024

See accompanying Notes to these Consolidated Financial Statements (Unaudited)

2 unchanged sentences

(In thousands)

Nine months ended

September 30,

Three months ended

Cash flows from operating activities

18 unchanged sentences

Purchase of short-term investments

Maturities of short-term investments

Net cash used in investing activities

Maturities and sales of short-term investments

Net cash provided by (used in) investing activities

Cash flows from financing activities

1 unchanged sentence

Repurchase of common stock

Proceeds from Employee Stock Purchase Plan purchases

Principal payments on finance lease obligation

Proceeds from exercise of stock options

Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents

Net decrease in cash, cash equivalents and restricted cash

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

13 unchanged sentences

The balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.

As of September 30, 2024, there have been no material changes in the Company’s significant accounting policies, other than with respect to the Company’s accounting policy for derivative financial instruments, which it had not held in prior periods, as described in Note 2 below.

For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2024, as amended by Amendment No.

1 thereto, filed with the SEC on February 28, 2024 (as so amended, the “2023 Form 10-K”).

As of March 31, 2025, there have been no material changes in the Company’s significant accounting policies, other than as described in Note 2 below.

Significant Accounting Policies

Derivative instruments

We are exposed to certain risks relating to our ongoing business operations, including market risks relating to fluctuations in foreign currency exchange rates.

We have entered into forward exchange contracts in order to mitigate risks associated with fluctuations in exchange rates on forecasted transactions denominated in foreign currencies and to minimize the impact of foreign currency fluctuations on our earnings and cash flows.

These contracts have month-to-month settlement dates.

As of September 30, 2024, we had open contracts with a notional value of $ 104 million.

We measure these instruments at fair value and recognize assets or liabilities associated with the intrinsic value on these open contracts on the Consolidated Balance Sheets at the end of each reporting period.

At September 30, 2024, the recognized unrealized loss on these forward exchange contracts was approximately $ 0.6 million.

Unrealized gains and losses are shown in our cash flows from operating activities within our Consolidated Statement of Cash Flows.

We have not designated these forward exchange contracts as hedging instruments and we record changes in the fair values at each measurement date in Other, net on the Consolidated Statements of Operations.

For the three and nine months ended September 30, 2024, we recorded $ 3.3 million of loss and $ 0.5 million of gain on forward currency exchange contracts, respectively.

We do not offset fair value amounts of derivative instruments.

We do not use derivative instruments for speculative purposes.

Cash, Cash Equivalents and Short-term Investments

Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of 90 days or less.

Cash equivalents consist primarily of money market funds, U.S.

government and agency securities and deposit accounts.

Cash equivalents are carried on the balance sheet at fair market value.

Short-term investments are h ighly liquid investments with original maturities of greater than 90 days but less than one year from date of purchase and are carried on the balance sheet at fair value.

We evaluate if a ny declines in fair value below amortized cost are caused by expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs.

Our short-term investments consist primarily of U.S.

government and agency securities.

As of March 31, 2025, our short-term investments are classified as available-for-sale as a result of the below noted sale of securities.

In prior periods, our short-term investments were classified as held-to-maturity.

Any unrealized gains and losses are included in accumulated other comprehensive loss in the Consolidated Statement of Stockholder’s Equity.

Income related to these securities is recorded in interest income in the Consolidated Statements of Operations .

As of March 31, 2025, the amortized cost and fair value of the available-for-sale investments was $ 403.0 million and $ 403.1 million, respectively.

As of March 31, 2025, we had no allowances for credit loss.

In February 2025, we sold securities classified as held-to-maturity with a total net carrying value of $ 199.5 million.

The majority of the proceeds were reinvested back into short-term investments as of March 31, 2025.

Due to this sale, the remaining held-to-maturity securities were reclassified as available-for-sale, resulting in a remeasurement increase in short-term investments for balance sheet presentation purposes with a corresponding adjustment to accumulated other comprehensive loss of $ 81.0 thousand as of March 31, 2025.

Stock-Based Compensation

2 unchanged sentences

The 2012 Equity Plan is more fully described in Note 13 to the consolidated financial statements in our 2024 Form 10-K.

We recognized stock-based compensation expense of $ 5.4 million and $ 5.1 million for the three-month periods ended September 30, 2024 and 2023, respectively.

We recognized stock-based compensation expense of $ 15.6 million and $ 13.0 million for the nine-month periods ended September 30, 2024 and 2023, respectively.

We recognized stock-based compensation expense of $ 4.9 million and $ 4.7 million for the three-month periods ended March 31, 2025 and 2024, respectively.

These amounts include compensation expense related to RSUs and stock issued to participants under the 2020 Employee Stock Purchase Plan (the “2020 ESPP”).

In the three-month periods ended September 30, 2024 and 2023, we issued 5,023 and 7,320 shares of common stock, respectively, upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP.

In the three-month periods ended September 30, 2024 and 2023, we received no proceeds from purchases under the 2020 ESPP.

In the nine-month periods ended September 30, 2024 and 2023, we issued 0.2 million and 0.3 million shares of common stock, respectively, upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP.

In the nine-month periods ended September 30, 2024 and 2023, we received proceeds of $ 1.2 million and $ 1.0 million, respectively, in connection with purchases under the 2020 ESPP.

In the three-month periods ended March 31, 2025 and 2024, we issued 38,459 and 41,941 shares of common stock, respectively, upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP.

In the three-month periods ended March 31, 2025 and 2024, we received no proceeds from purchases under the 2020 ESPP.

We have operating leases for manufacturing, office space, warehouse space, computer and office equipment and vehicles used in our business operations.

17 unchanged sentences

The amounts of operating and finance lease right-of-use assets and related lease obligations recorded within our consolidated balance sheets are as follows:

September 30,

Classification

10 unchanged sentences

Total lease liabilities

*Finance lease assets are recorded net of accumulated depreciation of $ 47.2 million and include $ 0.5 million of prepaid financing costs as of September 30, 2024.

*Finance lease assets are recorded net of accumulated depreciation of $ 47.7 million and include $ 0.5 million of prepaid financing costs as of March 31, 2025.

Finance lease assets are recorded net of accumulated depreciation of $ 47.4 million and include $ 0.5 million of prepaid financing costs as of December 31, 2024.

2 unchanged sentences

We lease a logistics and flex manufacturing center in Beverly, Massachusetts to support our principal product manufacturing operations at our corporate headquarters.

Operating lease expense and depreciation and interest expense relating to our finance lease obligation are recognized within our Consolidated Statement of Operations for the three and nine months ended September 30, 2024 and 2023 as follows:

Three months ended

Nine months ended

September 30,

Classification

17 unchanged sentences

Total lease cost

* Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $ 0.3 million and $ 1.6 million for the three and nine months ended September 30, 2024, respectively, and includes short-term lease and variable lease costs of approximately $ 0.6 million and $ 1.6 million for the three and nine months ended September 30, 2023, respectively.

* Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $ 0.6 million for both the three months ended March 31, 2025 and 2024.

The lease of our corporate headquarters, shown below under finance leases, had an original lease term of 22 years , beginning in January 2015 and expiring in January 2037, with renewal options.

All other locations are treated as operating leases, with lease terms ranging from one to 16 years .

The tables below reflect the minimum cash outflow regarding our current lease obligations as well as the weighted-average remaining lease term and weighted-average discount rates used in our calculation of our lease obligations and right-of-use assets as of September 30, 2024:

Maturity of Lease Liabilities

6 unchanged sentences

The table above does not include options to renew lease terms that are not reasonably certain of being exercised.

September 30,

Lease term and discount rate

8 unchanged sentences

Our cash flows from our finance lease include both an interest component and a principal component.

The table below shows our cash outflows by lease type and related section of our statement of cash flows, as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets for the nine months ended September 30, 2024 and 2023, respectively:

Nine months ended September 30,

The table below shows our cash outflows by lease type and related section of our statement of cash flows, as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets for the three months ended March 31, 2025 and 2024, respectively:

Three months ended March 31,

Cash paid for amounts included in the measurement of lease liabilities

9 unchanged sentences

Three months ended

Nine months ended

September 30,

(in thousands)

4 unchanged sentences

Three months ended

Nine months ended

September 30,

(in thousands)

3 unchanged sentences

Contract liabilities are as follows:

September 30,

(in thousands)

3 unchanged sentences

Three months ended

Nine months ended

September 30,

(in thousands)

3 unchanged sentences

Balance, end of the period

* Amount is net of a reclassification of $ 4.7 million from deferred revenue to refund liability for the nine months ended September 30, 2024.

* Amount includes a reclassification of $ 8.0 million of a refund liability included within other current liabilities as of December 31, 2024 to deferred revenue for the three months ended March 31, 2025.

The majority of our system transactions have either (1) payment terms of 90 % due upon shipment of the system and 10 % due upon acceptance or (2) a pre-shipment deposit ranging from 20 % to 60 %, with the remainder due upon shipment, less 10 % due at acceptance.

5 unchanged sentences

We use historical loss experience rates and apply them to a related aging analysis while also considering customer and/or economic risk where appropriate.

Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings.

allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, loss migration, delinquency trends, collection experience, current economic conditions, trade restrictions, estimates for supportable forecasts, when appropriate, and credit risk characteristics.

Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency

and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings.

The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, loss migration, delinquency trends, collection experience, current economic conditions, trade restrictions, estimates for supportable forecasts, when appropriate, and credit risk characteristics.

We evaluate the credit risk of the customer when extending credit based on a combination of financial and qualitative factors that may affect our customers’ ability to pay.

3 unchanged sentences

Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings.

We recorded $ 3.4 million of bad debt expense for the three month period ended September 30, 2024 associated with a European customer that filed for bankruptcy.

We recorded $ 0.5 million of recovery of bad debt expense and $ 3.4 million of bad debt expense for the nine-month period ended September 30, 2024.

We recorded $ 0.7 million of bad debt expense for the three and nine-month periods ended September 30, 2023.

As of both September 30, 2024 and September 30, 2023, we had no provision for credit losses.

We did not have any allowance or incur any credit losses or recoveries for the three-month period ended March 31, 2025.

We recorded $ 0.5 million of recovery of bad debt expense for the three month period ended March 31, 2024.

As of both March 31, 2025 and March 31, 2024, we had no provision for credit losses.

Computation of Net Earnings per Share

Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) for the period.

The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive shares of common stock issuable on exercise of stock options and vesting of RSUs had been issued, calculated using the treasury stock method.

The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive shares of common stock issuable on vesting of RSUs had been issued, calculated using the treasury stock method.

The components of net earnings per share are as follows:

Three months ended

Nine months ended

September 30,

(in thousands, except per share amounts)

1 unchanged sentence

Weighted average shares of common stock outstanding used in computing basic income per share

Incremental options and RSUs

Incremental RSUs

Weighted average shares of common stock used in computing diluted net income per share

Net income per share

Diluted weighted average shares of common stock outstanding does not include 109,266 and 734 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended September 30, 2024 and 2023, respectively, or 21,477 and 2,598 common equivalent shares issuable with respect to outstanding equity awards for the nine-month periods ended September 30, 2024 and 2023, respectively, as their effect would have been anti-dilutive.

Diluted weighted average shares of common stock outstanding does not include 325,364 and 19,548 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended March 31, 2025 and 2024, respectively, as their effect would have been anti-dilutive.

Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the nine months ended September 30, 2024:

The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the three months ended March 31, 2025:

Unrealized gains on

Defined benefit

available-for-sale

(in thousands)

Balance at December 31, 2024

Other comprehensive loss and pension reclassification

Balance at September 30, 2024

Other comprehensive income and reclassifications

Balance at March 31, 2025

Cash, cash equivalents and restricted cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the statement of cash flows:

September 30,

(in thousands)

2 unchanged sentences

Total cash, cash equivalents and restricted cash

As of September 30, 2024, we had $ 6.7 million in restricted cash representing the total of (i) a $ 5.9 million cash collateralized letter of credit serving as a security deposit for our headquarters lease in Beverly, Massachusetts, (ii) a $ 0.7 million cash collateralized letter of credit relating to workers’ compensation insurance and (iii) a $ 0.1 million deposit relating to customs activity.

As of March 31, 2025, we had $ 7.6 million in restricted cash representing the total of (i) a $ 5.9 million cash collateralized letter of credit serving as a security deposit for our headquarters lease in Beverly, Massachusetts, (ii) a $ 0.9 million letter of credit for custom purposes, (iii) a $ 0.7 million cash collateralized letter of credit relating to workers’ compensation insurance and (iv) a $ 0.1 million deposit relating to customs activity.

See Note 13 for further discussion on the $ 5.9 million cash collateralized letter of credit.

1 unchanged sentence

The components of inventories are as follows:

September 30,

(in thousands)

11 unchanged sentences

For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and, if applicable, defer the portion of systems revenue attributable to non-standard warranty.

Costs for non-standard warranty are expensed as incurred.

non-standard warranty are expensed as incurred.

Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs.

1 unchanged sentence

The changes in our standard product warranty liability are as follows:

Nine months ended

September 30,

Three months ended

(in thousands)

3 unchanged sentences

Changes in estimate of liability for pre-existing warranties during the period

Balance at September 30 (end of period)

Balance at March 31 (end of period)

Amount classified as current

16 unchanged sentences

Other investments that have a maturity of greater than three months but less than one year are included within short-term investments in the consolidated balance sheets.

The following table sets forth our assets by level within the fair value hierarchy:

September 30, 2024

The following tables set forth our assets which are measured at fair value by level within the fair value hierarchy:

March 31, 2025

Fair Value Measurements

14 unchanged sentences

Government Securities and Agency Investments)

Mark-to-market adjustment on forward exchange contracts

1 unchanged sentence

(d) Forward Currency Exchange Contracts

Beginning in February 2024, we entered into forward currency exchange contracts to minimize the impact of foreign currency fluctuations on our earnings and cash flows.

We enter into forward currency exchange contracts to minimize the impact of foreign currency fluctuations on our earnings and cash flows.

These contracts have month-to-month settlement dates.

3 unchanged sentences

Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy.

At September 30, 2024, the recognized unrealized loss on these forward exchange contracts was approximately $ 0.6 million.

At March 31, 2025, the recognized unrealized loss on these forward exchange contracts was approximately $ 0.1 million.

Based on our continued ability to trade and enter into forward contracts, we consider the markets for our fair value instruments to be active.

We evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of September 30, 2024, such credit risks have not had an adverse impact on the fair value of these instruments.

We evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of March 31, 2025, such credit risks have not had an adverse impact on the fair value of these instruments.

Financing Arrangements

1 unchanged sentence

As part of the sale, we also entered into a 22-year lease agreement of our headquarters facility.

This sale-leaseback is accounted for as a financing lease under generally accepted accounting principles and, as such, we have recorded a financing obligation of $ 44.1 million as of September 30, 2024.

This sale-leaseback is accounted for as a finance lease under generally accepted accounting principles and, as such, we have recorded a finance lease obligation of $ 43.3 million as of March 31, 2025.

The associated lease payments include both an interest component and payment of principal, with the remaining liability being extinguished at the end of the original lease term.

As of September 30, 2024, we had a security deposit of $ 5.9 million related to this lease in the form of a cash collateralized letter of credit issued with UBS Bank USA, which is classified as long-term restricted cash on our balance sheet at September 30, 2024.

Income tax expense was $ 6.8 million for the three months ended September 30, 2024, compared to $ 7.7 million for the three months ended September 30, 2023.

The $ 0.9 million decrease was primarily due to a decrease in pre-tax income.

Income tax expense was $ 20.6 million for the nine months ended September 30, 2024, compared to $ 16.0 million for the nine months ended September 30, 2023.

The increase was primarily due to a decrease in in the benefit received from share-based compensation.

The effective tax rate for the three and nine months ended September 30, 2024 was less than the U.S.

statutory rate of 21 % primarily attributable to the Foreign Derived Intangible Income deduction, Federal research and development tax credits and excess tax benefits from share-based compensation.

The deferred income taxes of $ 58.9 million and $ 53.4 million as of September 30, 2024 and December 31, 2023, respectively, reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards.

As of September 30, 2024, we have recorded a $ 12.1 million valuation allowance in the U.S.

against certain tax credits due to the uncertainty of their realization.

Realization of our net deferred tax assets is dependent on future taxable income.

We believe it is more likely than not that such assets will be realized;

however, ultimate realization could be impacted by market conditions and other variables not known or anticipated at this time.

31, 2025, we had a security deposit of $ 5.9 million related to this lease in the form of a cash collateralized letter of credit issued with UBS Bank USA, which is classified as long-term restricted cash on our balance sheet at March 31, 2025.

Income tax expense was $ 4.5 million for the three months ended March 31, 2025, compared to $ 7.4 million for the three months ended March 31, 2024.

The $ 2.9 million decrease was primarily due to a decrease in pre-tax book income.

The effective tax rate (“ETR”) for the three months ended March 31, 2025 was less than the U.S.

statutory rate of 21 % primarily attributable to Foreign Derived Intangible Income deduction and Federal research and development tax credits.

The reported ETR for the three months ended March 31, 2025 was 13.6 % compared to 12.5 % for the respective 2024 period.

The increase in the reported ETR is primarily related to a decrease in pre-tax book income and stock-based compensation.

Concentration of Risk

For the three months ended September 30, 2024, one customer accounted for 11.9 % of total revenue.

For the three months ended September 30, 2023, no individual customer accounted for greater than ten percent of total revenue.

For the nine months ended September 30, 2024, no individual customer accounted for greater than ten percent of total revenue.

For the nine months ended September 30, 2023, one customer accounted for 10.7 % of total revenue.

At September 30, 2024, one customer accounted for 11.7 % of accounts receivable.

For the three months ended March 31, 2025, two customers accounted for 15.3 % and 15.2 % of total revenue, respectively.

For the three months ended March 31, 2024, no individual customer accounted for greater than ten percent of total revenue.

At March 31, 2025, three customers accounted for 10.7 %, 10.5 % and 10.4 % of accounts receivable, respectively.

At December 31, 2024, one customer accounted for 10.0 % of accounts receivable.

Share Repurchase

In February 2022, our Board of Directors approved stock repurchases of up to $ 100 million of our common stock.

In August 2023, our Board of Directors approved additional funding of $ 200 million for our stock repurchase program, to be available on full utilization of the $ 100 million repurchase funding approved in February 2022.

During the nine months ended September 30, 2024, we repurchased 0.4 million shares at an average cost of $ 118.02 per share.

In March 2025, our Board of Directors approved an additional funding of $ 100 million for our stock repurchase program.

This approval brings the current outstanding repurchase authorization to $ 215 million.

During the three months ended March 31, 2025, we repurchased 0.3 million shares of common stock at an average cost of $ 66.22 per share.

The timing and actual number of any additional shares to be repurchased under this program will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions.

10 unchanged sentences

We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.

Business Segment

The Company operates as one operating segment.

The Company’s chief operating decision maker (“CODM”) is our chief executive officer, who assesses financial performance for the Company and decides how to allocate resources based on consolidated net income.

Segment asset information is provided to the CODM but it is not used to allocate resources.

The following table presents selected financial information with respect to the Company’s single operating segment for the three months ended March 31, 2025 and 2024:

Three months ended March 31,

(in thousands)

Cost of revenue

Research and development

Sales and marketing

General and administrative

Total other income

Income tax provision

Segment Net Income

Reconciliation of profit or loss Adjustments and reconciling items

The above table includes depreciation expense and amortization expense of $ 4.3 million and $ 3.8 million for the three months ended March 31, 2025 and 2024, respectively.

Recent Accounting Guidance

In November 2023 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

ASU 2023-07 is intended to enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC Topic 280, Segment Reporting (“ASC 280”).

ASC 280 requires a public entity to report for each reportable segment a measure of segment profit or loss that its chief operating decision maker (“CODM”) uses to assess segment performance and to make decisions about resource allocations.

ASU 2023-07 is intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more useful financial analyses.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the consolidated financial statements.

We are currently evaluating the impact of ASU 2023-07 on our future consolidated financial statements and related disclosures.

In December 2023 the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740):

In December 2023 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”).

4 unchanged sentences

We are currently evaluating the impact of ASU 2023-09 on our future consolidated financial statements and related disclosures.

In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (“ASU 2024-03”).

ASU 2024-03 is intended to enhance the disclosures for expenses for all public entities in accordance with ASC Topic 220, Income Statement-Reporting Comprehensive Income.

ASU 2024-03 addresses investor requests for more detailed information about expenses, specifically cost of sales and selling, general, and administrative expenses.

ASU 2024-03 requires a public entity to disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption presented on the face of the income statement as well as a qualitative description of the amounts remaining in the relevant expense captions that are not separately disaggregated quantitatively.

ASU 2024-03 also requires a public entity to disclose the total amount of selling expenses and the entity’s definition of selling expenses.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

Early adoption is permitted.

A public entity should apply ASU 2024-03 either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating the impact of ASU 2024-03 on its future consolidated financial statements and related disclosures.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements