What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-11-20 compared with 2024-11-14 · 455 added, 346 removed, 901 unchanged (47% of the section changed)

2 unchanged sentences

Report of Independent Registered Public Accounting Firm 49

Consolidated Balance Sheets as of September 28, 2024 and September 30, 2023

Consolidated Balance Sheets as of October 4, 2025 and September 28, 2024

Consolidated Statements of Operations for fiscal 2025, 2024 and 2023

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We have audited the accompanying consolidated balance sheets of Kulicke and Soffa Industries, Inc.

and its subsidiaries (the “Company”) as of September 28, 2024 and September 30, 2023, and the related consolidated statements of operations, of comprehensive income, of changes in shareholders’ equity and of cash flows for each of the three years in the period ended September 28, 2024, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended September 28, 2024 appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

We also have audited the Company’s internal control over financial reporting as of September 28, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 28, 2024 and September 30, 2023 , and the results of its operations and its cash flows for each of the three years in the period ended September 28, 2024 in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 28, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

and its subsidiaries (the “Company”) as of October 4, 2025 and September 28, 2024, and the related consolidated statements of operations, of comprehensive income, of changes in shareholders’ equity and of cash flows for each of the three years in the period ended October 4, 2025, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended October 4, 2025 appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

We also have audited the Company’s internal control over financial reporting as of October 4, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of October 4, 2025 and September 28, 2024 , and the results of its operations and its cash flows for each of the three years in the period ended October 4, 2025 in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of October 4, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

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CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amount)

September 28, 2024 September 30, 2023

(in thousands)

October 4, 2025 September 28, 2024

CURRENT ASSETS

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Short-term investments 295,000 350,000

Accounts and notes receivable, net of allowance for doubtful accounts of $ 49 and $ 49 , respectively

Accounts and other receivable, net of allowance for doubtful accounts of $ — and $ 49 , respectively

183,538 193,909

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Equity investments 6,978 3,143

Investment in debt securities 10,000 —

Other assets 3,412 8,433

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Authorized 5,000 shares;

issued - no ne

Common stock, no par value:

issued - none

Common stock, without par value:

Authorized 200,000 shares;

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TOTAL SHAREHOLDERS' EQUITY $ 821,491 $ 944,009

$ 944,009 $ 1,174,561

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,104,342 $ 1,240,162

$ 1,240,162 $ 1,499,777

The accompanying notes are an integral part of these consolidated financial statements

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Research and development 149,616 151,214 144,701

Gain relating to cessation of business ( 75,987 ) — —

Impairment charges 39,817 44,472 21,535

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(Loss) / Income from operations ( 3,224 ) ( 92,496 ) 39,437

( 92,496 ) 39,437 470,072

Interest income 23,834 34,230 32,906

Interest expense ( 134 ) ( 89 ) ( 142 )

(Loss)/Income before income taxes

( 58,355 ) 72,201 476,988

Income / (Loss) before income taxes 20,476 ( 58,355 ) 72,201

Provision for income taxes 20,263 10,651 15,053

Net (loss)/income

$ ( 69,006 ) $ 57,148 $ 433,545

Net (loss)/income per share:

Net income / (loss) $ 213 $ ( 69,006 ) $ 57,148

Net income / (loss) per share:

Basic $ 0.004 $ ( 1.24 ) $ 1.01

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2025 2024 2023

Net (loss) / income

$ ( 69,006 ) $ 57,148 $ 433,545

Other comprehensive income / (loss):

Net income / (loss) $ 213 $ ( 69,006 ) $ 57,148

Other comprehensive (loss) / income:

Foreign currency translation adjustment ( 8,908 ) 6,917 9,676

Unrecognized actuarial (loss) / gain on pension plan ( 821 ) ( 49 ) 2,276

Net increase / (decrease) from derivatives designated as hedging instruments 2,244 1,511 ( 1,618 )

Total other comprehensive income / (loss) 8,340 11,138 ( 29,878 )

Net changes in pension plan, net of tax ( 84 ) ( 821 ) ( 49 )

Net (decrease) / increase from derivatives designated as hedging instruments, net of tax ( 1,436 ) 2,244 1,511

Total other comprehensive (loss) / income ( 10,428 ) 8,340 11,138

Comprehensive (loss) / income $ ( 10,215 ) $ ( 60,666 ) $ 68,286

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(in thousands)

Common Stock Treasury Stock Retained earnings Accumulated Other Comprehensive (loss) / income Shareholders' Equity

Shares Amount

Outstanding Shares Amount Treasury Stock Retained earnings Accumulated Other Comprehensive (loss) / income Shareholders' Equity

Balances as of October 1, 2022 57,128 $ 561,684 $ ( 675,800 ) $ 1,341,666 $ ( 32,900 ) $ 1,194,650

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Issuance of shares for equity-based compensation 676 ( 6,499 ) 6,499 — — —

Equity-based compensation — 18,037 — — — 18,037

Equity-based compensation expense — 21,744 — — — 21,744

Cash dividend declared ($ 0.19 per share)

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Net income — — — 57,148 — 57,148

Other comprehensive loss — — — — ( 29,878 ) ( 29,878 )

Total comprehensive income / (loss) — — — 433,545 ( 29,878 ) 403,667

Balances as of October 1, 2022 57,128 $ 561,684 $ ( 675,800 ) $ 1,341,666 $ ( 32,900 ) $ 1,194,650

Other comprehensive income — — — — 11,138 11,138

Total comprehensive income — — — 57,148 11,138 68,286

Balances as of September 30, 2023 56,310 $ 577,727 $ ( 737,214 ) $ 1,355,810 $ ( 21,762 ) $ 1,174,561

Issuance of stock for services rendered 25 434 242 — — 676

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Issuance of shares for equity-based compensation 740 ( 7,090 ) 7,090 — — —

Equity-based compensation — 21,744 — — — 21,744

Excise tax — — ( 1,157 ) — — ( 1,157 )

Equity-based compensation expense — 25,632 — — — 25,632

Cash dividend declared ($ 0.20 per share)

1 unchanged sentence

Components of comprehensive income:

Net income — — — 57,148 — 57,148

Net loss — — — ( 69,006 ) — ( 69,006 )

Other comprehensive income — — — — 8,340 8,340

Total comprehensive income / (loss) — — — 57,148 11,138 68,286

Total comprehensive income — — — ( 69,006 ) 8,340 ( 60,666 )

Balances as of September 28, 2024 53,854 $ 596,703 $ ( 881,830 ) $ 1,242,558 $ ( 13,422 ) $ 944,009

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Components of comprehensive income

— — — ( 69,006 ) — ( 69,006 )

Other comprehensive income — — — — 8,340 8,340

Net income — — — 213 — 213

Other comprehensive loss — — — — ( 10,428 ) ( 10,428 )

Total comprehensive income / (loss) — — — 213 ( 10,428 ) ( 10,215 )

Balances as of September 28, 2024 53,854 $ 596,703 $ ( 881,830 ) $ 1,242,558 $ ( 13,422 ) $ 944,009

Balances as of October 4, 2025 51,920 $ 620,043 $ ( 974,202 ) $ 1,199,500 $ ( 23,850 ) $ 821,491

The accompanying notes are an integral part of these consolidated financial statements.

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CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $ ( 69,006 ) $ 57,148 $ 433,545

Net income / (loss) $ 213 $ ( 69,006 ) $ 57,148

Adjustments to reconcile net income to net cash provided by operating activities:

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Equity-based compensation 28,526 26,891 22,744

26,891 22,744 18,986

Adjustment for doubtful accounts ( 49 ) — 49

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Deferred taxes 2,745 11,374 ( 4,478 )

Loss/(gain) on disposal of property, plant and equipment

72 ( 499 ) ( 253 )

(Gain) Loss disposal of property, plant and equipment ( 196 ) 72 ( 499 )

(Gain) Loss on disposal of a subsidiary ( 3,154 ) — —

Unrealized fair value changes on equity investment ( 959 ) ( 47 ) 323

Unrealized foreign currency translation 1,944 85 ( 7,278 )

Changes in operating assets and liabilities, net of assets and liabilities assumed in businesses combinations:

Accounts and notes receivable ( 34,707 ) 152,667 113,340

Inventory ( 31,511 ) ( 35,755 ) ( 14,924 )

Unrealized foreign currency transactions ( 7,662 ) 1,944 85

Changes in operating assets and liabilities, net of businesses acquired or sold:

Accounts and other receivable 10,058 ( 34,707 ) 152,667

Inventories ( 26,097 ) ( 31,511 ) ( 35,755 )

Prepaid expenses and other current assets ( 2,264 ) 9,073 8,619

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CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of business, net of cash acquired — ( 36,881 ) —

Acquisition of business — — ( 36,881 )

Disposal of a subsidiary, net of cash disposed of 2,535 — —

Purchases of property, plant and equipment ( 17,203 ) ( 16,148 ) ( 44,406 )

1 unchanged sentence

Investment in private equity fund ( 2,876 ) ( 2,380 ) ( 642 )

Investment in debt securities ( 10,000 ) — —

Purchase of short-term investments ( 585,000 ) ( 690,000 ) ( 595,000 )

Maturity of short-term investments 640,000 570,000 585,000

Net cash (used in) / provided by investing activities

Net cash provided by (used in) investing activities $ 27,663 $ ( 138,501 ) $ ( 91,338 )

KULICKE AND SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

(in thousands)

2025 2024 2023

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment on short term debt — — ( 54,500 )

Payment for finance leases ( 564 ) ( 629 ) ( 509 )

Repurchase of common stock ( 150,791 ) ( 69,210 ) ( 281,319 )

Tax withholding payments related to vested and released restricted stock units ( 583 ) — —

Proceeds from short term debt — — 54,500

Payment for finance lease ( 412 ) ( 564 ) ( 629 )

Repurchase of common stock/treasury stock ( 97,105 ) ( 150,791 ) ( 69,210 )

Payments related to tax on vested equity compensation ( 334 ) ( 583 ) —

Payment of excise tax for share repurchases ( 1,156 ) — —

Common stock cash dividends paid ( 54,065 ) ( 44,162 ) ( 42,037 )

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Property, plant and equipment included in accounts payable and accrued expenses — — 3,000

Lease liabilities arising from obtaining right-of-use assets 5,552 — —

CASH PAID FOR:

Interest $ 134 $ 89 142

Income taxes $ 22,787 $ 56,254 $ 50,309

Income taxes, net of refunds $ 23,739 $ 22,787 56,254

The accompanying notes are an integral part of these consolidated financial statements.

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These consolidated financial statements include the accounts of Kulicke and Soffa Industries, Inc.

and its subsidiaries (the “Company”), with appropriate elimination of intercompany balances and transactions.

Each of the Company’s first three fiscal quarters ends on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter.

and its subsidiaries (“K&S,” “we,” “us,” “our,” or the “Company”), with appropriate elimination of intercompany balances and transactions.

Each of the Company’s first three fiscal quarters end on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter.

The fourth quarter of each fiscal year ends on the Saturday closest to September 30.

In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks.

The 2024, 2023 and 2022 fiscal years ended on September 28, 2024, September 30, 2023 and October 1, 2022, respectively.

The 2025, 2024, 2023 fiscal years ended on October 4, 2025, September 28, 2024, September 30, 2023.

Nature of Business

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The Company believes such volatility will continue to characterize the industry and the Company’s operations in the future.

In connection with the cancellation of a project with one of its customers (previously referred to as Project W), on March 11, 2024, the Company committed to a plan to cease operational activities and commence wind down activities concerning various aspects of Project W.

As of September 28, 2024, the wind down activities have been substantially completed.

On March 25, 2025, the Board of Directors of the Company approved a strategic plan related to the cessation of the Company's Electronics Assembly ("EA") equipment business.

As part of the plan, the Company began the process of winding down the EA equipment business in an effort to prioritize core semiconductor assembly business opportunities and enhance overall through-cycle financial performance.

The cessation of the EA equipment business is subject to a consultation process with the applicable works council and union representatives, which the Company initiated in the third fiscal quarter of 2025 and, as of October 4, 2025, has substantially completed.

The wind down activities remains ongoing and are expected to be substantially completed by fiscal 2026, after which there will be some service support activities to serve out the remaining customer obligations.

For additional information, see Note 17:

Restructuring and Cancellation of Project in our Notes to the Consolidated Financial Statements.

Cessation of Business.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Use of Estimates

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Actual results may differ from these estimates.

In light of the macroeconomic headwinds, there has been uncertainty and disruption in the global economy and financial markets.

The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of September 28, 2024.

While there was no material impact to our consolidated financial statements as of and for the year ended September 28, 2024, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to the macroeconomic headwinds that could materially impact our consolidated financial statements in future reporting periods.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In light of macroeconomic headwinds, there has been uncertainty and disruption in the global economy and financial markets.

While there was no material impact from macroeconomic headwinds to our consolidated financial statements as of and for the year ended October 4, 2025, these estimates may change, as new events occur and additional information is obtained, including factors related to these headwinds, that could materially impact our consolidated financial statements in future reporting periods.

Vulnerability to Certain Concentrations

Financial instruments which may subject the Company to concentrations of credit risk as of September 28, 2024 and September 30, 2023 consisted primarily of trade receivables.

Financial instruments which may subject the Company to concentrations of credit risk as of October 4, 2025 and September 28, 2024 consisted primarily of trade receivables.

The Company manages credit risk associated with investments by investing its excess cash in highly rated debt instruments of the U.S.

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dollar, gains and losses resulting from the translation of the functional currency into U.S.

dollars for financial statement presentation are not included in determining net income, but are accumulated in the cumulative translation adjustment account as a separate component of shareholders’ equity (accumulated other comprehensive income / (loss)).

The tax effect of currency translation adjustments related to unremitted foreign earnings no longer deemed to be indefinitely reinvested outside the U.S.

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Gains and losses resulting from foreign currency transactions are included in the determination of net income and to date has not been material.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company’s operations are exposed to changes in foreign currency exchange rates due to transactions denominated in currencies other than the location’s functional currency.

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The criteria for designating a derivative as a cash flow hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction, and the assessment of the probability that the underlying transaction will occur.

For derivatives with cash flow hedge accounting designation, we report the after-tax gain / (loss) from the effective portion of the hedge as a component of accumulated other comprehensive income / (loss) and reclassify it into earnings in the same period in which the hedged transaction affects earnings and in the same line item on the Consolidated Statements of Operations as the impact of the hedged transaction.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Derivatives that we designate as cash flow hedges are classified in the consolidated statement of cash flows in the same section as the underlying item, primarily within cash flows from operating activities.

For derivatives with cash flow hedge accounting designation, we report the after-tax gain/(loss) from the effective portion of the hedge as a component of accumulated other comprehensive (loss) / income and reclassify it into earnings in the same period in which the hedged transaction affects earnings and in the same line item on the Consolidated Statements of Operations as the impact of the hedged transaction.

Derivatives that we designate as cash flow hedges are classified in the Consolidated Statements of Cash Flows in the same section as the underlying item, primarily within cash flows from operating activities.

The hedge effectiveness of these derivative instruments is evaluated by comparing the cumulative change in the fair value of the hedge contract with the cumulative change in the fair value of the forecasted cash flows of the hedged item.

If it is probable that the forecasted transaction will no longer occur, the cumulative unrealized gain or loss on the related derivative is reclassified from accumulated other comprehensive income / (loss) into earnings.

Subsequent gain/(loss) on the related derivative instrument is recognized into earnings in each period until the instrument matures, is terminated, is re-designated as a qualified cash flow hedge, or is sold.

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• Either using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes, or;

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

• Using the published or estimated Net Asset Value (“NAV”) for investments that qualify as a practical expedient to determine the fair values of equity securities.

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Changes in the fair value of the investments are recognized as gains and losses in earnings.

Debt Securities

Management classifies investments as available-for-sale or held-to-maturity at the time of purchase and re-evaluates such designation at each balance sheet date, although classification is not generally changed.

Securities are classified as held-to-maturity when the Company has the positive intent and the ability to hold the securities until maturity.

Held-to-maturity securities are carried at cost adjusted for amortization of premiums and accretion of discounts to maturity.

Such amortization, as well as any interest on the securities, is included in interest income.

The securities are subjected to the current expected credit losses (CECL) impairment model, which requires the immediate recognition of estimated expected credit losses over the life of the financial instrument.

The estimate of expected credit losses considers not only historical information, but also current and future economic conditions and events.

No expected credit loss was recognized during the fiscal year.

Allowance for Doubtful Accounts

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This estimate is based on historical sales volumes, internal projections and market developments and trends.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Property, Plant and Equipment

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Land is not depreciated.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Valuation of Long-Lived Assets

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or significant changes in market capitalization.

During the fiscal years ended September 28, 2024 and September 30, 2023, no “triggering” events occurred.

Other than the triggering event related to the cessation of the Electronics Assembly ("EA") equipment business for the fiscal year ended October 4, 2025 and the cancellation of Project W for the fiscal year ended September 28, 2024, which resulted in impairment charges as disclosed in Note 17, no other triggering events occurred that would require the Company to perform additional impairment reviews.

Accounting for Impairment of Goodwill and Other Intangible Assets

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For further information on goodwill and other intangible assets, see Note 3 below.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Government Incentives

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The Company recognized an immaterial benefit for operating grants in fiscal 2025.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Revenue Recognition

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Compensation expense associated with Relative TSR Performance Share Units is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based and Growth Performance Share Units is determined based on the number of shares granted and the fair value on the date of grant.

See Note 11 for a summary of the terms of these performance-based awards.

See Note 11 Shareholders' Equity and Employee Benefit Plans for a summary of the terms of these performance-based awards.

The fair value of equity-based awards is amortized over the vesting period of the award, and the Company elected to use the straight-line method for awards granted after the adoption of ASC 718.

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The purpose of the amendments is to enable investors to better understand an entity's overall performance and assess potential future cash flows.

This ASU will be effective for the Company's fiscal year 2025, and interim periods within the fiscal years beginning in the Company's fiscal year 2026.

This ASU is effective for the Company's fiscal year 2025, and interim periods within the fiscal years beginning after the Company’s fiscal year 2026.

Early adoption is permitted.

The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

Segment Information for the required disclosures.

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

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The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Topic 220):

Disaggregation of Income Statement Expenses.

This ASU requires disclosure of certain expenses in the notes to the financial statements.

This ASU will be effective for the Company's fiscal year 2028 on a prospective basis, with retrospective application permitted.

The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

KULICKE AND SOFFA INDUSTRIES, INC.

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BALANCE SHEET COMPONENTS

The following tables reflect the components of significant balance sheet accounts as of September 28, 2024 and September 30, 2023:

(in thousands) September 28, 2024 September 30, 2023

Components of significant balance sheet accounts as of October 4, 2025 and September 28, 2024 are as follows:

(in thousands) October 4, 2025 September 28, 2024

Inventories, net:

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( 70,502 ) ( 31,784 )

$ 160,225 $ 177,736

Property, plant and equipment, net:

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Accumulated depreciation ( 154,679 ) ( 159,517 )

Accumulated impairment $ ( 41,691 ) $ —

$ 58,993 $ 64,823

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Wages and benefits 35,175 28,942

Dividend payable — 10,794

Commissions and professional fees 5,266 4,654

Dividends payable 10,794 10,710

Accrued leasehold renovations 395 6,476

Accrued adverse purchase commitments (1)

Severance (1)

Other 3,593 4,679

$ 97,786 $ 90,802

(1) Please see Note 17:

Cessation of Business for more information on the wind down charges and impairments related to the cessation of the EA equipment business, as well as employee termination costs related to restructuring.

(2) Certain balances previously presented as Accumulated impairment as of September 28, 2024 have been reclassified to conform to the current period presentation.

These reclassifications have no impact to the consolidated financial statements in the fiscal period.

(3) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

BUSINESS COMBINATION

Acquisition of Advanced Jet Automation Co., Ltd.

On September 8, 2022, the Company through one of its subsidiaries, Kulicke and Soffa Luxembourg S.À R.L, entered into a definitive agreement (the “Definitive Agreement”) for the acquisition of Advanced Jet Automation Co., Ltd.

(“AJA”), a technology company headquartered in Taiwan.

On February 22, 2023 (the “Closing Date”), pursuant to the Definitive Agreement, the Company completed its acquisition of AJA, including the material business and assets formerly owned by AJA’s affiliate, Samurai Spirit Inc., a leading developer and manufacturer of high-precision micro-dispensing equipment and solutions in Taiwan.

AJA became a wholly-owned subsidiary of the Company and on March 30, 2023, AJA was renamed Kulicke and Soffa Hi-Tech Co., Ltd.

(“K&S Hi-Tech”).

The newly acquired business of K&S Hi-Tech will operate as a business unit (“advanced dispensing solutions”), deemed a separate operating segment which is reported under the “All Others” category.

The acquisition broadens the Company’s existing semiconductor, electronic assembly and advanced display portfolio, increasing opportunities across several exciting growth areas including mini and micro-LED, which support both backlighting and direct-emissive approaches.

The purchase price consisted of $ 38.1 million in cash paid at closing (the “Purchase Price”) and additional potential earn-out payments based on certain revenue and earnings before interest, tax, depreciation and amortization (“EBITDA”) benchmarks established for the dispensing business unit.

As at September 28, 2024, the Company held $ 4.0 million in escrow and will continue to hold such sums for a period of twenty-four ( 24 ) months from the Closing Date, as security pending the completion of Ruo Chuan Inc.’s obligations as the seller under the Definitive Agreement.

On February 22, 2024, the Company finalized the valuation of the tangible and identifiable intangible assets and liabilities in connection with the acquisition of AJA and no further adjustment was recorded.

The acquisition of AJA was accounted for in accordance with ASC No.

805, Business Combinations , using the acquisition method.

The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the acquisition date:

(in thousands) February 22, 2023

Cash and cash equivalents $ 1,238

Account and other receivables, net 1,156

Inventory 1,581

Property, plant and equipment 1,462

Right-of-use assets 989

Other assets 127

Goodwill 27,975

Intangible assets 7,768

Accounts and other payables ( 965 )

Accrued expenses and other liabilities ( 251 )

Contract liabilities ( 187 )

Lease liability ( 989 )

Deferred tax liabilities ( 1,785 )

Total purchase price $ 38,119

Excluding inventory and property, plant and equipment, all other tangible net assets (liabilities) were valued at their respective carrying amounts, which the Company determined approximate their current fair values at the Closing Date.

In connection with the acquisition of AJA, the Company recorded deferred tax liabilities primarily relating to the acquired intangible assets.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and includes the value of expected future cash flows of AJA from expected synergies with our other affiliates and other unidentifiable intangible assets.

None of the goodwill recorded as part of the acquisition will be deductible for income tax purposes.

The following table summarizes the fair value, useful life and valuation methodology of each identifiable intangible asset.

(in thousands) Fair Value Useful Lives

Developed technology (1)

Customer relationships (2)

In-process research and development (“IPR&D”) (3)

Order Backlog (4)

Total identifiable intangible assets $ 7,768

(1) The fair value of developed technology was determined using the Relief-from-Royalty Method under the income approach.

(2) Customer relationships represent the fair value of the existing relationships using the Multi-Period Excess Earnings Method under the income approach.

(3) The fair value of IPR&D and Patents were determined using the Replacement Cost Method, a form of the cost approach.

(4) Order backlog represents primarily the fair value of purchase arrangements with customers using the Multi-Period Excess Earnings Method under the income approach.

IPR&D is recorded as an indefinite-lived intangible asset and not amortized, but rather is reviewed for impairment on an annual basis or more frequently if indicators of impairment are present, until the project is completed, abandoned, or transferred to a third party.

Developed technology, customer relationships, patents and order backlog are amortized using a straight-line method, representing the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets.

For fiscal 2023, the acquired dispensing business unit contributed to a net loss of $ 3.0 million.

For fiscal 2023, the Company incurred $ 0.5 million of expenses related to the acquisition, which is included within selling, general and administrative expense in the Consolidated Statements of Operations.

The acquisition did not result in material contributions to revenue and net income in the consolidated financial statements for fiscal 2023.

Additionally, pro forma financial information is not provided for consolidated revenue and net income as such amounts attributable to AJA were insignificant to the Company’s consolidated financial statements taken as a whole.

GOODWILL AND INTANGIBLE ASSETS

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The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Impairment pertaining to the Lithography reporting unit in fiscal 2023

During the fiscal year ended September 30, 2023, the Company reviewed qualitative factors to ascertain if a "triggering" event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value.

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Based on the calculation, the Company determined that the carrying value exceeded the fair value of this reporting unit which resulted in a goodwill impairment charge of $ 9.8 million, representing the entire goodwill assigned to this reporting unit.

This goodwill impairment charge was reflected in the Company’s Consolidated Statements of Operations in fiscal 2023.

The Company performed its annual impairment test in the fourth quarter of fiscal 2024 and elected to perform the quantitative impairment test as permitted by ASC 350.

Based on the quantitative assessment performed on all its reporting units, the Company concluded that no impairment on the Company's recorded goodwill was required.

The following table summarizes the changes in the Company’s recorded goodwill based on its reportable segments as of September 28, 2024 and September 30, 2023:

This goodwill impairment charge, which is a non-cash charge, has been reflected in the Company’s Consolidated Statements of Operations for the fiscal year ended September 30, 2023.

Impairment pertaining to the reporting units within APS and "All Others" category in fiscal 2025

During the fiscal year ended October 4, 2025, the Company reviewed qualitative factors to ascertain if a "triggering" event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value.

In the quarter ended March 29, 2025, the Company concluded that a triggering event had occurred in connection with one reporting unit within the APS reportable segment and one reporting unit within the "All Others" category.

The triggering event occurred based on the approval of the strategic plan related to the cessation of the EA equipment business.

In view of the cessation of the EA equipment business and the related reduction in revenue and future cash flow for the reporting units, the Company performed a qualitative assessment and determined that it is more likely than not that this will reduce the fair value of the impacted reporting units below their carrying amount.

In accordance with the guidance under ASC 350, the Company’s impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, not to exceed the amount of goodwill assigned to the reporting unit.

Accordingly, the Company performed a quantitative impairment test and estimated the fair value of each reporting unit to be less than its carrying value.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company used a discounted cash flow model to determine the fair value of each reporting unit within the APS reportable segment and "All Others" category respectively, and as such they were classified as Level 3 assets in the fair value hierarchy.

The cash flow projections used within the discounted cash flow models were prepared using the forecasted financial results of each reporting unit, which was based upon the underlying assumption that future revenue and cash flows will diminish once the cessation of business is completed.

Significant assumptions used to determine the fair value of the respective reporting units include revenue forecasts, a terminal growth rate of 2.5 %, working capital, tax rate and a weighted average cost of capital (discount rate) of 12.6 %.

Please refer to Note 17:

Cessation of Business for further information on the cessation of business.

As a result, a goodwill impairment charge, which is a non-cash charge that represents the entire goodwill assigned to the respective reporting units, of $ 19.2 million within the APS reportable segment and "All Others" category has been recorded and reflected in the Company’s Consolidated Statements of Operations for the fiscal year ended October 4, 2025.

The Company performed its annual impairment test in the fourth quarter of fiscal 2025 and elected to perform the quantitative impairment test as permitted by ASC 350 for another reporting unit within the "All Others" category and the qualitative impairment assessment for all of its remaining reporting units.

Based on the quantitative and qualitative assessments performed, the Company concluded that no impairment on the Company's recorded goodwill was required in addition to the impairment recorded in the quarter ended March 29, 2025.

The following table summarizes the changes in the Company’s recorded goodwill based on its reportable segments as of October 4, 2025 and September 28, 2024:

(in thousands) Wedge Bonding Equipment APS All Others Total

Balance at September 30, 2023 18,280 26,109 44,284 88,673

18,280 26,109 44,284 88,673

Other — 159 916 1,075

Balance at September 28, 2024 (1)

(1) Cumulative goodwill impairment as of September 30, 2023 was approximately $ 45.0 million.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

18,280 26,268 45,200 89,748

Goodwill impairment — ( 2,850 ) ( 16,348 ) $ ( 19,198 )

Other — ( 152 ) ( 876 ) $ ( 1,028 )

Balance at October 4, 2025 (1)

18,280 23,266 27,976 69,522

(1) Cumulative goodwill impairment as of September 28, 2024 and October 4, 2025 was approximately $ 45.0 million and $ 64.2 million.

Intangible Assets

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The Company’s intangible assets consist primarily of developed technology, customer relationships, in-process research and development, and trade and brand names.

Impairment pertaining to the Lithography reporting unit in fiscal 2023

In connection with the evaluation of the goodwill impairment in the Lithography reporting unit performed during the third quarter of fiscal year ended September 30, 2023, the Company assessed tangible and intangible assets for impairment prior to performing the first step of the goodwill impairment test.

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Subsequently, the Company proceeded to measure the impairment loss by comparing the carrying value against the discounted cash flow model to determine the fair value of the asset group for the Lithography reporting unit, where significant assumptions include revenue forecasts, terminal growth rate of 2.5 %, working capital, tax rate and a weighted average cost of capital (discount rate) of 11.7 %.

As a result of the analysis, the Company recorded an impairment charge of $ 6.9 million on the developed technology reported within the “All Others” category in fiscal 2023.

The impairment of intangible assets was reflected in the Company’s Consolidated Statements of Operations in fiscal 2023.

No impairment charge was required in the fiscal year ended September 28, 2024 .

The following table reflects net intangible assets as of September 28, 2024 and September 30, 2023:

As of September 28, 2024

As of September 30, 2023

(dollar amounts in thousands) Average estimated

(in years) Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount

As a result of the analysis, the Company determined an impairment charge of $ 6.9 million on the developed technology reported within the “All Others” category for the fiscal year ended September 30, 2023.

The impairment of intangible assets is a non-cash charge which has been reflected in the Company’s Consolidated Statements of Operations for the fiscal year ended September 30, 2023.

Impairment pertaining to the cessation of EA equipment business in fiscal 2025

In connection with the cessation of the EA equipment business, the Company recorded an impairment charge of $ 15.7 million on the developed technology reported within the APS reportable segment and “All Others” category in

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

the fiscal year ended October 4, 2025.

The impairment of intangible assets is a non-cash charge which has been reflected in the Consolidated Statements of Operations for the fiscal year ended October 4, 2025.

The following table reflects net intangible assets as of October 4, 2025 and September 28, 2024:

As of October 4, 2025 As of September 28, 2024

(dollar amounts in thousands) Average estimated useful lives (in years)

Gross carrying amount Accumulated amortization Net amount Gross carrying amount Accumulated amortization Net amount

Developed technology 7.0 to 8.0

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$ 21,430 $ ( 19,988 ) $ 1,442 $ 37,625 $ ( 35,916 ) $ 1,709

Trade and brand name 7.0 to 8.0

Trade and brand name 8.0

$ 4,600 $ ( 4,600 ) $ — $ 7,272 $ ( 7,272 ) $ —

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In-process research and development N.A $ 459 $ — $ 459 $ 459 $ — $ 459

$ 134,374 $ ( 109,135 ) $ 25,239 $ 130,929 $ ( 101,572 ) $ 29,357

The following table reflects estimated annual amortization expense related to intangible assets as of September 28, 2024:

(in thousands) September 28, 2024

Total $ 69,568 $ ( 63,968 ) $ 5,600 $ 134,374 $ ( 109,135 ) $ 25,239

The following table reflects estimated annual amortization expense related to intangible assets as of October 4, 2025:

(in thousands) October 4, 2025

Fiscal 2026 1,250

Fiscal 2027 1,013

Fiscal 2030 and thereafter $ 2,021

Fiscal 2028 922

Fiscal 2029 922

Fiscal 2030 922

Thereafter 571

Total amortization expense 5,600

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In general, these investments are free of trading restrictions.

Cash, cash equivalents and short-term investments consisted of the following as of September 28, 2024:

(dollar amounts in thousands) Amortized

Cost Unrealized

Cash, cash equivalents, and short-term investments consisted of the following as of October 4, 2025:

(in thousands) Amortized Cost Unrealized

Gains Unrealized

Losses Estimated Fair Value

Losses Estimated

Current assets:

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Total short-term investments $ 295,000 $ — $ — $ 295,000

Total cash, cash equivalents, and short-term investments $ 577,058 $ 89 $ — $ 577,147

Total cash, cash equivalents, restricted cash, and short-term investments $ 510,572 $ 136 $ — $ 510,708

(1) Mutual funds held by the Company include Money Market Funds and Ultra-Short Funds.

The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy.

(2) All short-term investments were classified as available-for-sale and the fair value approximates cost basis.

The Company did not recognize any realized gains or losses on the sale of investments during the fiscal year ended 2024.

Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 30, 2023:

(dollar amounts in thousands) Amortized

Cost Unrealized

(2) The fair value of the short-term investments approximates cost basis and is categorized within Level 2 of the fair value hierarchy due to the use of observable market inputs, including benchmark yields and credit spreads.

The Company did not recognize any realized gains or losses on the sale of investments during the fiscal year ended October 4, 2025.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Cash, cash equivalents and short-term investments consisted of the following as of September 28, 2024:

(in thousands) Amortized Cost Unrealized

Gains Unrealized

Losses Estimated Fair Value

Losses Estimated

Current assets:

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The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy.

(2) All short-term investments were classified as available-for-sale and the fair value approximates cost basis.

The Company did not recognize any realized gains or losses on the sale of investments during the fiscal year ended 2023.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company did not recognize any realized gains or losses on the sale of investments during the fiscal year ended September 28, 2024.

EQUITY INVESTMENTS

Equity investments consisted of the following as of September 28, 2024 and September 30, 2023:

(in thousands) September 28, 2024 September 30, 2023

Equity investments consisted of the following as of October 4, 2025 and September 28, 2024:

(in thousands) October 4, 2025 September 28, 2024

Non-marketable equity securities $ 6,978 $ 3,143

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Additionally, the Company’s ability to withdraw from the fund is subject to restrictions.

The term of the fund will continue until March 18, 2032 unless dissolved earlier or extended by the General Partner.

The term of the fund will continue until March 18, 2032, unless dissolved earlier or otherwise extended by the General Partner.

In accordance with ASC Topic 820-10, this investment is measured at fair value using the NAV per share (or its equivalent) practical expedient and has not been classified in the fair value hierarchy.

As of September 28, 2024, the Company has funded $ 3.4 million into the affiliated investment fund and recognized an unrealized fair value loss of $ 0.3 million on the Consolidated Statements of Operations.

As of October 4, 2025, the Company has funded $ 6.3 million into the affiliated investment fund and recognized a cumulative unrealized fair value gain of $ 0.7 million.

The Company has recorded the amount of funded capital that has been called as an equity investment.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

INVESTMENT IN DEBT SECURITIES

Debt securities have been classified in the Consolidated Balance Sheets according to management’s intent.

Investment in debt securities consisted of the following as of October 4, 2025 and September 28, 2024:

(in thousands) October 4, 2025 September 28, 2024

Held-to-maturity debt securities 10,000 —

The Company classifies its investment in debt securities as held-to-maturity, which were carried at amortized cost.

Although held-to-maturity securities are recorded at amortized cost, the Company discloses the fair value in accordance with ASC 825-10.

The fair value of the investment approximates cost basis and are categorized within Level 2 of the fair value hierarchy due to the use of observable market inputs, including benchmark yields and credit spreads.

Maturity of debt securities as of October 4, 2025 were as follows:

Maturity grouping

(in thousands) Total Within 1 year 1 - 5 years 5 - 10 years After 10 years

Held-to-maturity debt securities $ 10,000 — $ 10,000 — —

Total $ 10,000 $ — $ 10,000 $ — $ —

The Company did not recognize any unrealized gains or losses during the fiscal year ended October 4, 2025.

FAIR VALUE MEASUREMENTS

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Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

We measure certain financial assets and liabilities at fair value on a recurring basis.

There were no transfers between fair value measurement levels during the fiscal year ended September 28, 2024.

We measure certain financial assets and liabilities as described in Note 4:

Cash, Cash Equivalents, And Short-term Investments, Note 5:

Equity Investments on a recurring basis.

There were no transfers between fair value measurement levels during the fiscal years ended October 4, 2025 and September 28, 2024.

Fair Value Measurements on a Nonrecurring Basis

Our non-financial assets such as intangible assets and property, plant and equipment are carried at cost unless impairment is deemed to have occurred.

Please refer to Note 3:

Goodwill and Intangible Assets for further information on the fair value measurement of assets relating to the cessation of the EA equipment business.

Fair Value of Financial Instruments

Amounts reported as accounts receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value.

Amounts reported as accounts receivables, prepaid expenses and other current assets, investment in debt securities, accounts payable and accrued expenses approximate fair value.

DERIVATIVE FINANCIAL INSTRUMENTS

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Most of the Company’s revenue and cost of materials are transacted in U.S.

However, a significant amount of the Company’s operating expenses is denominated in foreign currencies, primarily in Singapore.

However, a significant amount of the Company’s operating expenses is denominated in local currencies, primarily in Singapore.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The foreign currency exposure of our operating expenses is generally hedged with foreign exchange forward contracts.

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These instruments generally mature within twelve months.

For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss), and we reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the Consolidated Statements of Operations as the impact of the hedged transaction.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The fair value of derivative instruments on our Consolidated Balance Sheets as of September 28, 2024 and September 30, 2023 is as follows:

(in thousands) September 28, 2024 September 30, 2023

Notional Amount Fair Value Asset

Derivatives (1)

Notional Amount Fair Value Liability Derivatives (2)

For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive (loss) / income, and we reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the Consolidated Statements of Comprehensive Income as the impact of the hedged transaction.

The fair value of derivative instruments on our Consolidated Balance Sheets as of October 4, 2025 and September 28, 2024 were as follows:

October 4, 2025 September 28, 2024

(in thousands) Notional Amount Fair Value Asset Derivatives (1)

Notional Amount Fair Value Asset Derivatives (1)

Derivatives designated as hedging instruments:

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(1) The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Balance Sheets.

(2) The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Balance Sheets.

(3) Hedged amounts expected to be recognized into earnings within the next twelve months .

The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Operations for the fiscal years ended September 28, 2024 and September 30, 2023 was as follows:

(in thousands) Fiscal

(2) Hedged amounts expected to be recognized to income within the next twelve months .

The effects of derivative instruments designated as cash flow hedges in our Consolidated Statements of Comprehensive Income for the fiscal years ended October 4, 2025 and September 28, 2024 were as follows:

(in thousands) 2025 2024 2023

Foreign exchange forward contract in cash flow hedging relationships:

Net gain recognized in OCI, net of tax (1)

Net (loss)/gain recognized in OCI, net of tax (1)

$ ( 1,022 ) $ 1,799 $ 2,381

Net (loss)/gain reclassified from accumulated OCI into earnings, net of tax (2)

Net (loss)/gain reclassified from accumulated OCI into income, net of tax (2)

$ 414 $ ( 445 ) $ 870

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Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option.

As of September 28, 2024, no option to extend the lease was recognized as right-of-use (“ROU”) assets and lease liabilities.

We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our ROU assets and corresponding liabilities.

As of October 4, 2025, there were no options to extend the lease which was recognized as a right-of-use (“ROU”) asset, or a lease liability.

We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our leased assets and corresponding liabilities.

We have elected not to present short-term leases on the Consolidated Balance Sheets as these leases have a lease term of 12 months or less at lease inception.

Operating leases are included in operating ROU assets, current and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Balance Sheets.

As of September 28, 2024, our finance leases are not material.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Operating leases are included in operating ROU assets, current operating lease liabilities and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Balance Sheets.

As of October 4, 2025 and September 28, 2024, our finance leases were not material.

The following table shows the components of lease expense:

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$ 9,221 $ 10,015 $ 10,746

(1) Operating lease expense includes short-term lease and variable lease expenses, which is immaterial for the fiscal year ended September 28, 2024.

(1) Operating lease expense includes short-term lease expense and variable lease expenses, which is immaterial for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023.

The following table shows the cash flows arising from lease transactions.

Cash payments related to short-term leases are not included in the measurement of operating and finance lease liabilities, and, as such, are excluded from the amounts below:

Cash payments related to short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:

(in thousands) Fiscal

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The following table shows the weighted-average lease terms and discount rates for operating leases:

October 4, 2025 September 28, 2024

Operating leases:

1 unchanged sentence

Weighted-average discount rate:

Future lease payments, excluding short-term leases, as of September 28, 2024, are detailed as follows:

(in thousands) Operating leases

Future lease payments, excluding short-term leases, as of October 4, 2025, are detailed as follows:

Operating Leases

Fiscal 2026 $ 8,714

3 unchanged sentences

Fiscal 2030 5,209

Fiscal 2030 and thereafter 18,743

Thereafter 13,522

Total minimum lease payments 48,595

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On November 22, 2013, the Company obtained a $ 5.0 million credit facility with Citibank in connection with the issuance of bank guarantees for operational purposes.

As of September 28, 2024 and September 30, 2023, the outstanding amount under the facility was $ 5.0 million and $ 3.1 million respectively.

As of October 4, 2025, the credit facility remains unutilized and no liability has been recognized on the Consolidated Balance Sheets.

Credit Facilities

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The Facility Agreements provide the Company and one of its subsidiaries with an overdraft facility of up to $ 150.0 million (the “Overdraft Facility”) for general corporate purposes.

Amounts outstanding under the Overdraft Facility, including interest, are payable upon thirty days’ written demand by the Bank.

Interest on the Overdraft Facility is calculated on a daily basis, and the applicable interest rate is calculated at the secured overnight financing rate (“SOFR”) plus a margin of 1.5 % per annum.

The Overdraft Facility is an unsecured facility per the terms of the Facility Agreements.

The Facility Agreements contain customary non-financial covenants, including, without limitation, covenants that restrict the Company’s ability to sell or dispose of its assets, cease owning at least 51% of two of its subsidiaries (the “Subsidiaries”), or encumber its assets with material security interests (including any pledge of monies in the Subsidiaries’ cash deposit account with the Bank).

The Facility Agreements also contain customary events of default, including, without limitation, non-payment of financial obligations when due, cross defaults to other material indebtedness of the Company and any breach of a representation or warranty under the Facility Agreements.

As of September 28, 2024, there were no outstanding amounts under the Overdraft Facility.

On June 6, 2025, the Company terminated the Facility Agreements with the Bank.

As of the date of termination, there were no outstanding amounts under the Overdraft Facility.

In addition, the Company did not incur any early termination penalties in connection with the termination of the Facility Agreements.

SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS

Share Repurchase Program

On August 15, 2017, the Company's Board of Directors authorized a program (the "Program") to repurchase up to $ 100 million of the Company’s common stock on or before August 1, 2020.

In 2018, 2019 and 2020, the Board of Directors increased the share repurchase authorization under the Program to $ 200 million, $ 300 million and $ 400 million, respectively.

On March 3, 2022, the Board of Directors increased the share repurchase authorization under the Program by an additional $ 400 million to $ 800 million, and extended its duration through August 1, 2025.

On November 17, 2023, the Company modified its written trading plan under Rule 10b5-1 of the Exchange Act, dated as of May 7, 2022, to facilitate repurchases under the Program.

The modification provided for the purchase of up to approximately $ 169 million of the Company’s common stock from November 20, 2023 through August 1, 2025.

The Program may be suspended or discontinued at any time and is funded using the Company’s available cash, cash equivalents and short-term investments.

Under the Program, shares may be repurchased through open market and/or privately negotiated transactions at prices deemed appropriate by management.

The timing and amount of repurchase transactions under the Program depend on market conditions as well as corporate and regulatory considerations.

During the fiscal year ended September 28, 2024, the Company repurchased a total of approximately 3,221.0 thousand shares of common stock at an aggregate cost of approximately $ 151.0 million.

The stock repurchases were recorded in the periods they were delivered and accounted for as treasury stock in the Company’s Consolidated Balance Sheets.

On August 15, 2017, the Company’s Board of Directors authorized a program to repurchase up to $ 100 million of the Company’s common stock on or before August 1, 2020.

In 2018, 2019, 2020 and 2022, the Board of Directors increased the share repurchase authorization to $ 200 million, $ 300 million, $ 400 million and $ 800 million, respectively, and extended its duration through August 1, 2025 (the "Prior Program").

During the three months ended December 28, 2024, the Company repurchased a total of approximately 657.0 thousand shares of common stock under the Prior Program at a cost of approximately $ 30.3 million.

During the fiscal year ended September 28, 2024, the Company repurchased a total of approximately 3,221.0 thousand shares of common stock under the Prior Program at a cost of approximately $ 151.0 million.

On December 2, 2024, the Company announced that it has completed share repurchases under the Prior Program.

Additionally, as announced on November 13, 2024, the Board of Directors authorized a new share repurchase program to repurchase up to $ 300 million of the Company's common stock (the "New Program").

On December 2, 2024, the Company entered into a new written trading plan under Rule 10b5-1 of the Exchange Act, to facilitate repurchases under the New Program.

The plan permits the purchase of up to approximately $ 300 million of the Company’s common stock from December 2, 2024 through December 2, 2029.

The New Program may be suspended or discontinued at any time and is funded using the Company’s available cash, cash equivalents and short-term investments.

Under the New Program, shares may be repurchased through open market and/or privately negotiated transactions at prices deemed appropriate by management.

The timing and amount of repurchase transactions under the New Program depend on market conditions as well as corporate and regulatory considerations.

During the fiscal year ended October 4, 2025, the Company repurchased a total of approximately 1,785.0 thousand shares of common stock under the New Program at a cost of approximately $ 66.2 million.

The stock repurchases were recorded in the periods the repurchased shares were delivered and accounted for as treasury stock in the Company’s Consolidated Balance Sheets.

The Company records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method.

Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital.

Upon re-issuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital.

If the Company reissues treasury stock at an amount below its acquisition cost and additional paid-in capital associated with prior treasury stock transactions is insufficient to cover the difference between acquisition cost and the reissue price, this difference is recorded against retained earnings.

As of September 28, 2024, our remaining stock repurchase authorization under the Program was approximately $ 30.3 million.

As of October 4, 2025, our remaining stock repurchase authorization under the New Program was approximately $ 233.8 million.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

On August 26, 2024, May 16, 2024, March 14, 2024 and November 15, 2023, the Board of Directors declared a quarterly dividend $ 0.20 per share of common stock, resulting in an aggregate dividend of $ 0.80 per share of common stock for the fiscal year ended September 28, 2024.

On August 29, 2025, June 5, 2025, March 6, 2025 and November 13, 2024, the Board of Directors declared a quarterly dividend of $ 0.205 per share of common stock, resulting in an aggregate dividend of $ 0.82 per share of common stock for the fiscal year ended October 4, 2025.

For the fiscal year ended September 28, 2024, the Board of Directors declared a quarterly dividend of $ 0.20 per share of common stock, resulting in an aggregate dividend of $ 0.80 per share of common stock.

The declaration of any future cash dividend is at the discretion of the Board of Directors, subject to applicable laws, and will depend on the Company’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that such dividends are in the best interests of the Company’s stockholders.

Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income (loss) by component for the year ended September 28, 2024:

(in thousands) Cumulative Foreign Currency Translation Adjustment Pension Plan Adjustments Gain (Losses) on Derivative Instruments Total

Accumulated Other Comprehensive (Loss) / Income

Changes in accumulated other comprehensive (loss) / income by component for the year ended October 4, 2025:

(in thousands) Cumulative Foreign Currency Translation Adjustment Pension Plan Adjustments Gain / (Loss) on Derivative Instruments Total

As of September 30, 2023 $ ( 20,178 ) $ ( 861 ) $ ( 723 ) $ ( 21,762 )

$ ( 20,178 ) $ ( 861 ) $ ( 723 ) $ ( 21,762 )

Other comprehensive income (loss) before reclassifications $ 7,263 $ ( 968 ) $ 1,799 $ 8,094

3 unchanged sentences

As of September 28, 2024 $ ( 13,261 ) $ ( 1,682 ) $ 1,521 $ ( 13,422 )

$ ( 13,261 ) $ ( 1,682 ) $ 1,521 $ ( 13,422 )

Other comprehensive income (loss) before reclassifications ( 8,219 ) ( 99 ) ( 1,022 ) ( 9,340 )

Amount reclassified out of accumulated other comprehensive income (loss) ( 815 ) — ( 414 ) ( 1,229 )

Tax effects 126 15 — 141

Accumulated other comprehensive loss ( 8,908 ) ( 84 ) ( 1,436 ) ( 10,428 )

As of October 4, 2025 $ ( 22,169 ) $ ( 1,766 ) $ 85 $ ( 23,850 )

Equity-Based Compensation

The Company has a stockholder-approved equity-based compensation plan, the 2021 Omnibus Incentive Plan (the “Plan”) from which employees and directors receive grants.

As of September 28, 2024, 1.8 million shares of common stock are available for grant to the Company’s employees and directors under the Plan.

On March 5, 2025, the stockholders of the Company approved an amendment to the Plan that increased the number of shares of common stock available for issuance by 2.8 million shares, which were registered on the registration statement on Form S-8 filed with the SEC on March 11, 2025.

As of October 4, 2025, 4.0 million shares of common stock are available for grant to the Company’s employees and directors under the Plan.

• Relative TSR Performance Share Units (“Relative TSR PSUs”) entitle the employee to receive common stock of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), if market performance objectives which measure relative total shareholder return (“TSR”) are attained.

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Compensation expense is reversed if the award is forfeited prior to the vesting date.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

• Revenue Growth Performance Share Units (“Growth PSUs”) entitle the employee to receive common stock of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), based on organic revenue growth objectives and relative growth performance against named competitors as set by the Management Development and Compensation Committee (“MDCC”) of the Company’s Board of Directors.

3 unchanged sentences

Vesting percentages range from 0 % to 200 % of awards granted.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

• In general, Time-based Restricted Share Units (“Time-based RSUs”) awarded to employees vest ratably over a three-year period on the anniversary of the grant date provided the employee remains employed by the Company.

8 unchanged sentences

(in thousands) 2025 2024 2023

Relative TSR PSUs 5,856 4,949 4,255

Time-based RSUs $ 20,801 $ 17,683 $ 14,304

Relative TSR PSUs 7,280 5,856 4,949

Growth PSUs ( 725 ) 2,093 2,491

10 unchanged sentences

Vested ( 79 ) $ 52.12

Outstanding as of September 28, 2024

Outstanding as of October 4, 2025 377 $ 58.06

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(in thousands, except fair value per share)

3 unchanged sentences

$ 61.92 $ 36.88 $ 48.35

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table reflects the assumptions used to calculate compensation expense related to the Company’s Relative TSR PSUs issued during fiscal 2025, 2024 and 2023:

12 unchanged sentences

Vested ( 406 ) $ 44.06

Outstanding as of September 28, 2024

Outstanding as of October 4, 2025 994 $ 44.37

(in thousands, except fair value per share)

10 unchanged sentences

Vested ( 2 ) $ 49.22

Outstanding as of September 28, 2024

Outstanding as of October 4, 2025 41 $ 37.55

(in thousands, except fair value per share)

3 unchanged sentences

— $ 23.51 $ 37.55

The total fair value of RSUs and PSUs, as of their respective vesting dates, during the years ended September 28, 2024, September 30, 2023 and October 1, 2022, was $ 36.4 million, $ 28.9 million and $ 41.3 million, respectively.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The total fair value of RSUs and PSUs, as of their respective vesting dates, during the years ended October 4, 2025, September 28, 2024 and September 30, 2023, was $ 23.2 million, $ 36.4 million and $ 28.9 million, respectively.

Equity-Based Compensation:

8 unchanged sentences

We have pension plans available to employees at various foreign sites.

As of September 28, 2024 and September 30, 2023, the defined benefits pension obligations of our plans were $ 5.1 million and $ 4.0 million respectively.

As of October 4, 2025 and September 28, 2024, the defined benefits pension obligations of our plans were $ 5.3 million and $ 5.1 million, respectively.

Some of the Company’s other foreign subsidiaries have retirement plans that are integrated with and supplement the benefits provided by laws of the various countries.

5 unchanged sentences

Service revenue is generally recognized over time as the services are performed.

For the fiscal years ended September 28, 2024, September 30, 2023 and October 1, 2022, service revenue is not material.

Please refer to Note 1:

Basis of Presentation — Revenue Recognition , for additional disclosure on the Company’s revenue recognition policy.

The Company reports revenue based on our reportable segments and end markets, which provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

For the for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023, the service revenue was not material.

The Company reports revenue based on its reportable segments and end markets, which provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

Please refer to Note 15:

Segment Information, for disclosure of revenue by segments and end markets.

Segment Information, for disclosure of revenue by segment and end market.

Contract Balances

(in thousands) September 28, 2024 September 30, 2023 October 1,

Contract assets

$ — $ 10,181 $ 26,317

(in thousands) October 4, 2025 September 28, 2024 September 30, 2023

Contract liabilities

$ 23,936 $ 18,646 $ 4,797

Our contract assets relate to our rights to consideration for revenue with collection dependent on events other than the passage of time, such as the achievement of specified payment milestones.

The contract assets will be transferred to net account receivables as our right to consideration for these contract assets become unconditional.

Contracts assets are reported in the accompanying Consolidated Balance Sheets within prepaid expenses and other current assets.

The change in contract assets during the fiscal year ended September 28, 2024 was mainly due to $ 10.2 million of contract assets reclassified to accounts receivable, net, as our right to consideration for these contract assets became unconditional.

Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations, and are reported in the accompanying Consolidated Balance Sheets within accrued expenses and other current liabilities.

Contract liabilities increased as a result of receiving new advanced payments from customers, partially offset by the recognition in revenue of $ 15.9 million that was included in contract liabilities as of September 28, 2024.

Revenue recognized during fiscal year 2024 that was included in deferred revenue as of September 30, 2023 was $ 4.5 million.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations and obligations from customer credit programs, and are reported in the accompanying Consolidated Balance Sheets within accrued expenses and other current liabilities.

Revenue recognized during fiscal year 2024 that was included in deferred revenue as of September 30, 2023 was $ 4.5 million.

Revenue recognized during fiscal year 2023 that was included in deferred revenue as of October 1, 2022 was $ 2.9 million.

(LOSS) EARNINGS PER SHARE

Basic (loss)/income per share is calculated using the weighted average number of shares of common stock outstanding during the period.

EARNINGS PER SHARE

Basic income / (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period.

Restricted stock are included in the calculation of diluted earnings per share, except when their effect would be anti-dilutive.

3 unchanged sentences

Basic Diluted Basic Diluted Basic Diluted

Net (loss) / income $ ( 69,006 ) $ ( 69,006 ) $ 57,148 $ 57,148 $ 433,545 $ 433,545

Net income / (loss) 213 213 ( 69,006 ) ( 69,006 ) 57,148 57,148

Weighted average shares outstanding - Basic 52,955 52,955 55,613 55,613 56,682 56,682

1 unchanged sentence

Weighted average shares outstanding - Diluted 53,193 55,613 57,548

Net (loss) / income per share - Basic $ ( 1.24 ) $ ( 1.24 ) $ 1.01 $ 1.01 $ 7.21 $ 7.21

Net income / (loss) per share - Basic 0.004 0.004 ( 1.24 ) ( 1.24 ) 1.01 1.01

Effect of dilutive shares — — ( 0.02 )

Net (loss) / income per share - Diluted $ ( 1.24 ) $ 0.99 $ 7.09

Net income / (loss) per share - Diluted 0.004 ( 1.24 ) 0.99

Anti-dilutive shares (1)

(1) Represents the Relative TSR PSUs and Growth PSUs that are excluded from the calculation of diluted earnings per share for fiscal 2025, 2024 and 2023 as the effect would have been anti-dilutive.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table reflects the U.S.

and foreign income (loss) before income taxes for fiscal 2024, 2023 and 2022:

and foreign (loss) / income before income taxes for fiscal 2025, 2024 and 2023:

(in thousands) 2025 2024 2023

United States $ ( 8,522 ) $ ( 5,635 ) $ ( 11,415 )

Foreign ( 49,833 ) 77,836 488,403

Income before income taxes $ ( 58,355 ) $ 72,201 $ 476,988

The following table reflects the current and deferred components of provision for (benefit from) income taxes for fiscal 2024, 2023 and 2022:

United States operations $ ( 8,095 ) $ ( 8,522 ) $ ( 5,635 )

Foreign operations 28,571 ( 49,833 ) 77,836

Income / (loss) from operations before tax $ 20,476 $ ( 58,355 ) $ 72,201

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table reflects the current and deferred components of provision for income taxes for fiscal 2025, 2024 and 2023:

(in thousands) 2025 2024 2023

5 unchanged sentences

Provision for income taxes $ 20,263 $ 10,651 $ 15,053

The following table reconciles the provision for (benefit from) income taxes with the expected income tax provision computed based on the applicable U.S.

The following table reconciles the provision for income taxes with the expected income tax provision computed based on the applicable U.S.

federal statutory tax rate for fiscal 2025, 2024 and 2023:

(dollar amounts in thousands) 2024 2023 2022

(in thousands) 2025 2024 2023

Expected income tax provision based on the U.S.

6 unchanged sentences

Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) 23,487 7,268 24,450

Unrecognized tax benefit (1)

( 2,572 ) 1,011 265

Non-deductible items (1)

5 unchanged sentences

Effective tax rate 99.0 % ( 18.3 ) % 20.8 %

(1) Certain balances in fiscals 2023 and 2022 have been reclassified to conform to the current period presentation.

(1) Certain balances in fiscal 2024 and 2023 have been reclassified to conform to the current period presentation.

These reclassifications have no impact to the consolidated financial statements in the respective fiscal periods.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company recorded a tax benefit from the U.S.

Tax Court opinion in Varian Medical Systems, Inc.

Commissioner relating to the U.S.

TCJA one-time transition tax of $ 6.5 million in fiscal 2024.

As of September 28, 2024, a large portion of the Company’s undistributed foreign earnings are not considered to be indefinitely reinvested outside the U.S.

As of October 4, 2025, a large portion of the Company’s undistributed foreign earnings are not considered to be indefinitely reinvested outside the U.S.

and are expected to be available for use in the U.S.

1 unchanged sentence

Determination of the amount of unrecognized deferred tax liabilities related to the indefinitely reinvested undistributed foreign earnings is not practicable.

Further, we operate in a number of foreign jurisdictions, including Singapore, where we have a tax incentive that allows for a reduced tax rate on certain classes of income, provided the Company meets certain employment and investment conditions through the expiration date in fiscal 2025.

In fiscal 2025, 2024 and 2023, the tax incentive arrangement helped to reduce the Company’s provision for income taxes by $ 10.7 million or $ 0.20 per share, $( 1.0 ) million or $( 0.02 ) per share and $ 11.2 million or $ 0.19 per share, respectively.

7 unchanged sentences

Valuation allowance $ ( 68,775 ) $ ( 45,462 )

Deferred tax assets, net of valuation allowance $ 31,322 $ 35,797

Deferred tax asset, net of valuation allowance $ 29,399 $ 31,322

Fixed and intangible assets $ ( 16,178 ) $ ( 20,055 )

$ ( 20,055 ) $ ( 16,357 )

Taxes on undistributed foreign earnings ( 32,645 ) ( 27,961 )

Deferred tax liabilities $ ( 48,016 ) $ ( 41,510 )

Net deferred tax liabilities $ ( 16,694 ) $ ( 5,713 )

Total long-term deferred tax liability $ ( 48,823 ) $ ( 48,016 )

Total net deferred tax liability $ ( 19,424 ) $ ( 16,694 )

Deferred tax assets $ 16,109 $ 17,900

1 unchanged sentence

Net deferred tax liabilities $ ( 19,424 ) $ ( 16,694 )

As of September 28, 2024, the Company has foreign net operating loss carryforwards of $ 153.9 million, state net operating loss carryforwards of $ 40.2 million, and U.S.

As of October 4, 2025, the Company has foreign net operating loss carryforwards of $ 233.7 million, state net operating loss carryforwards of $ 35.7 million, and U.S.

federal and state tax credit carryforwards of $ 9.8 million that can be used to offset future income tax obligations.

11 unchanged sentences

The amount of interest and penalties related to unrecognized tax benefit recorded in fiscal 2025 provision for income taxes is not material.

As of September 28, 2024, the Company has recognized $ 3.7 million of accrued interest and penalties related to unrecognized tax benefit within the income tax payable for uncertain tax positions and approximately $ 19.7 million of unrecognized tax benefit, including related interest and penalties, that if recognized, would impact the Company’s effective tax rate.

As of October 4, 2025, the Company has recognized $ 3.1 million of accrued interest and penalties related to unrecognized tax benefit within the income tax payable for uncertain tax positions and approximately $ 16.6 million of unrecognized tax benefit, including related interest and penalties, that if recognized, would impact the Company’s effective tax rate.

It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain uncertain tax positions will increase or decrease during the next 12 months due to the expected lapse of statutes of limitation and/or settlements of tax examinations.

7 unchanged sentences

The Company believes that adequate provisions have been made for any adjustments that may result from the examination.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

SEGMENT INFORMATION

1 unchanged sentence

The Company’s Chief Executive Officer is the CODM.

Our CODM evaluates performance and allocates resources primarily based on income from operations.

This measure is regularly provided to and reviewed by our CODM to support budgeting, forecasting, and decisions regarding resource allocation for strategic initiatives across segments, capital investments, and workforce planning.

While income from operations is the primary measure used by our CODM to allocate resources, our CODM regularly reviews materials that present revenue, cost of sales and significant operating expenses.

Accordingly, we have disclosed these segment items in the tables below.

The CODM does not review discrete asset information.

The Company operates four reportable segments consisting of:

Segment information is disclosed based upon our management organization structure as of the fiscal year ended October 4, 2025.

Future changes to this internal financial structure may result in changes to our reportable segments.

The Company has four reportable segments consisting of:

(1) Ball Bonding Equipment, (2) Wedge Bonding Equipment, (3) Advanced Solutions, and (4) Aftermarket Products and Services (“APS”).

7 unchanged sentences

Reflects the results of the Company from the design, development, manufacture and sale of a variety of tools, spares and services for our equipment.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Any other operating segments that have not been aggregated within the reportable segments described above which do not meet the quantitative threshold to be disclosed as a separate reportable segment have been grouped within an “All Others” category.

This group is reflective of the results of the Company from the design, development, manufacture and sale of certain advanced display, advanced dispense, electronics assembly, die-attach and lithography systems and solutions.

Results for the “All Others” category and other corporate expenses are included as a reconciling item between the Company’s reportable segments and its consolidated results of operations.

The following table reflects the operating information by reportable segment for fiscal 2024, 2023 and 2022:

(in thousands) 2024 2023 2022

Ball Bonding Equipment $ 357,833 $ 287,465 $ 909,428

Wedge Bonding Equipment 105,826 175,550 194,086

Advanced Solutions 52,876 72,256 94,683

APS 160,009 160,718 197,152

All Others 29,688 46,502 108,271

The unallocated corporate expenses category includes certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level.

These operating expenses include costs related to certain management, finance, legal, human resources, and research and development functions provided at the corporate level.

In addition, we do not allocate to our reportable segments severance cost related to restructuring actions.

Segment operating income also excludes interest income/expenses, other financial charges and income taxes.

Our CODM does not consider the unallocated costs in measuring the performance of the reportable segments.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table reflects operating information by segment for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:

(in thousands) Fiscal 2025

Reportable segments Reconciling items

Ball Bonding Equipment Wedge Bonding Equipment Advanced Solutions APS All Others Unallocated Corporate Expenses Total Company

Net Revenue $ 292,951 $ 110,593 $ 72,737 $ 156,129 $ 21,671 $ — $ 654,081

Cost of sales 146,553 60,763 30,549 80,789 57,307 199 376,160

Selling, general and administrative 23,132 8,757 ( 57,519 ) 28,289 41,339 87,531 131,529

Research and development 38,836 22,686 50,296 18,186 12,325 7,287 149,616

Total operating expenses 61,968 31,443 ( 7,223 ) 46,475 53,664 94,818 281,145

Income / (Loss) from operations $ 84,430 $ 18,387 $ 49,411 $ 28,865 $ ( 89,300 ) $ ( 95,017 ) $ ( 3,224 )

Ball Bonding Equipment $ 113,000 81,929 385,276

Wedge Bonding Equipment 19,575 63,088 66,649

Advanced Solutions ( 155,350 ) ( 32,530 ) ( 15,389 )

APS 49,744 47,654 82,473

All Others ( 33,527 ) ( 36,797 ) 25,732

Corporate Expenses ( 85,938 ) ( 83,907 ) ( 74,669 )

(Loss)/Income from Operations

(in thousands) Fiscal 2024

Reportable segments Reconciling items

Ball Bonding Equipment Wedge Bonding Equipment Advanced Solutions APS All Others Unallocated Corporate Expenses Total Company

Net Revenue $ 357,833 $ 105,826 $ 52,876 $ 160,009 $ 29,688 $ — $ 706,232

Cost of sales 187,018 56,439 96,133 71,114 26,957 ( 183 ) 437,478

Selling, general and administrative 23,435 9,720 61,657 18,187 16,373 80,664 210,036

Research and development 34,380 20,092 50,436 20,964 19,885 5,457 151,214

Total operating expenses 57,815 29,812 112,093 39,151 36,258 86,121 361,250

Income / (Loss) from operations $ 113,000 $ 19,575 $ ( 155,350 ) $ 49,744 $ ( 33,527 ) $ ( 85,938 ) $ ( 92,496 )

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(in thousands) Fiscal 2023

Reportable segments Reconciling items

Ball Bonding Equipment Wedge Bonding Equipment Advanced Solutions APS All Others Unallocated Corporate Expenses Total Company

Net Revenue $ 287,465 $ 175,550 $ 72,256 $ 160,718 $ 46,502 $ — $ 742,491

Cost of sales 156,424 84,173 45,262 72,076 25,855 46 383,836

Selling, general and administrative 17,392 10,070 13,261 18,564 36,102 79,129 174,518

Research and development 31,720 18,219 46,263 22,424 21,342 4,732 144,700

Total operating expenses 49,112 28,289 59,524 40,988 57,444 83,861 319,218

Income / (Loss) from operations $ 81,929 $ 63,088 $ ( 32,530 ) $ 47,654 $ ( 36,797 ) $ ( 83,907 ) $ 39,437

The following table reconciles total segment profit to total income / (loss) before income taxes for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:

2025 2024 2023

Total income from reportable segments $ 181,093 $ 26,969 $ 160,141

All Others ( 89,300 ) ( 33,527 ) ( 36,797 )

Unallocated corporate expenses ( 95,017 ) ( 85,938 ) ( 83,907 )

Net interest income 23,700 34,141 32,764

Income / (loss) before income taxes $ 20,476 $ ( 58,355 ) $ 72,201

We have considered:

(1) information that is regularly reviewed by our CODM in evaluating financial performance and how to allocate resources;

(1) information that is regularly provided to our CODM in evaluating financial performance and how to allocate resources;

and (2) other financial data, including information that we include in our earnings releases but which is not included in our financial statements, to disaggregate revenues by end markets served.

The principal category we use to disaggregate revenues is by the end markets served.

The following table reflects the net revenue by end markets served for fiscal 2024, 2023 and 2022:

The following table reflects net revenue by end markets served for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:

(in thousands) 2025 2024 2023

1 unchanged sentence

Automotive & Industrial (1)

LED 21,076 50,166 137,077

110,351 138,845 225,415

Memory 53,420 73,590 22,421

1 unchanged sentence

Total revenue $ 654,081 $ 706,232 $ 742,491

(1) In view of the cessation of EA equipment business, the Company has simplified its end market disclosures by consolidating LED revenue within Automotive & Industrial revenue.

As a result, the net revenue recorded within the previously-defined LED end market for prior periods has been consolidated within the Automotive & Industrial end market to conform to the current period presentation.

These changes have no impact to the consolidated financial statements.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following tables reflect the capital expenditures, depreciation and amortization expense by reportable segment for fiscal 2024, 2023 and 2022:

The following table reflects capital expenditures, depreciation expense and amortization expense for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:

(in thousands) 2025 2024 2023

6 unchanged sentences

Corporate Expenses 6,179 8,617 9,701

Capital expenditures $ 13,736 $ 47,702 $ 32,233

(in thousands) 2024 2023 2022

$ 10,377 $ 13,736 $ 47,702

Depreciation expense:

5 unchanged sentences

Corporate Expenses 5,312 4,307 4,674

Depreciation expense $ 19,547 $ 22,758 $ 16,376

(in thousands) 2024 2023 2022

$ 14,941 $ 19,547 $ 22,758

Amortization expense:

5 unchanged sentences

Corporate Expenses 367 367 366

Amortization expense $ 5,188 $ 6,099 $ 4,917

$ 3,033 $ 5,188 $ 6,099

KULICKE AND SOFFA INDUSTRIES, INC.

13 unchanged sentences

All other 58,319 63,158 111,736

63,158 111,736 136,389

Total destination sales to unaffiliated customers $ 654,081 $ 706,232 $ 742,491

5 unchanged sentences

Israel 4,447 7,822

12,664 13,774

Total long-lived assets $ 91,186 $ 112,322

3 unchanged sentences

The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized.

The reserve for estimated warranty expense is based upon historical experience and management’s estimate of future warranty costs, including product part replacement, freight charges and related labor costs expected to be incurred to correct product failures during the warranty period.

The following table reflects the reserve for product warranty activity for fiscal 2024, 2023 and 2022:

(in thousands) 2024 2023 2022

Reserve for warranty, beginning of period $ 10,457 $ 13,443 $ 16,961

Provision for warranty 12,824 12,850 12,907

Utilization of reserve ( 13,370 ) ( 15,836 ) ( 16,425 )

Reserve for warranty, end of period $ 9,911 $ 10,457 $ 13,443

The reserve for estimated warranty expense is based upon historical experience and management’s estimate of future warranty costs, including product part replacement, freight charges and related labor costs expected to be incurred in correcting manufacturing defects during the warranty period.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table reflects the reserve for warranty activity for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:

(in thousands) 2025 2024 2023

Reserve for product warranty, beginning of period $ 9,911 $ 10,457 13,443

Provision for product warranty 9,418 12,824 12,850

Utilization of reserve ( 12,074 ) ( 13,370 ) ( 15,836 )

Reserve for product warranty, end of period $ 7,255 $ 9,911 $ 10,457

Other Commitments and Contingencies

The following table reflects the obligations not reflected on the Consolidated Balance Sheets as of September 28, 2024:

The following table reflects obligations not reflected on the Consolidated Balance Sheets as of October 4, 2025:

Payments due by fiscal year

9 unchanged sentences

Unfunded Capital Commitments

As of September 28, 2024, the Company also has an obligation to fund uncalled capital commitments of approximately $ 6.6 million, as and when required, in relation to its investment in a private equity fund.

As of October 4, 2025, the Company also has an obligation to fund uncalled capital commitments of approximately $ 3.7 million, as and when required, in relation to its investment in a private equity fund.

Concentrations

There were no customers with sales representing more than 10% of our net revenue in fiscal 2024, 2023 and 2022.

The following table reflects the significant customer concentrations as a percentage of total accounts receivable as of September 28, 2024 and September 30, 2023:

September 28, 2024 September 30, 2023

The following table reflects significant customer concentrations as a percentage of net revenue for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:

October 4, 2025 September 28, 2024 September 30, 2023

Tianshui Huatian Technology Co., Ltd 12.0 % * *

Forehope Semiconductor Group 15.7 % *

* Represents less than 10% of total accounts receivables

RESTRUCTURING AND CANCELLATION OF PROJECT

Cancellation of Project

The Company was engaged by one of its customers (the "Customer") to support the Customer with the development and future mass production of certain technologies relating to advanced display (the "Project"), which project was previously referred to as Project W.

In connection with the Customer's strategic review of its business, the Customer informed the Company that it cancelled the Project.

In connection with the foregoing, on March 11, 2024, the Company committed to a plan to cease operational activities and commence wind down activities concerning various aspects of Project W.

As at September 28, 2024, the wind down activities have been substantially completed.

Wind down charges as a result of these activities incurred during fiscal 2024 were accounted in accordance with ASC 330, Inventory.

The Company also performed the impairment tests of all associated assets with reference to the guidance under ASC 330, Inventory and ASC 360, Property, Plant and Equipment.

The wind down charges and impairments are primarily recorded in the Advanced Solutions reportable segment.

Based on current information available, we do not expect any material future charges with respect to the cancellation of Project W that will be classified as exit and disposal costs under the guidance of ASC 420, Exit or Disposal Cost Obligations.

We plan to fund the cash costs through existing cash balances.

* Represents less than 10% of total net revenue

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

On November 4, 2024, the Company and the Customer entered into a written agreement pursuant to which the Customer has agreed to reimburse the Company for certain costs and expenses that the Company incurred in connection with the Project.

The aggregate amount of the reimbursement that the Customer has agreed to pay to the Company pursuant to the agreement is $ 86.2 million.

The following table presents a summary of the charges related to the cancellation of Project W incurred for the year ended September 28, 2024.

(in thousands) Total Recognized

Statement of Operations Classification September 28, 2024

Inventory write-down Cost of sales $ 57,333

Purchase Order cancellation charges Cost of sales $ 2,931

Impairment charges relating to long-lived assets Impairment charges $ 44,472

The following table reflects significant customer concentrations as a percentage of total accounts receivable as of October 4, 2025 and September 28, 2024:

October 4, 2025 September 28, 2024

Tianshui Huatian Technology Co., Ltd 30.3 % 17.2 %

Haoseng Industrial Co Ltd 13.0 % *

Forehope Group * 15.7 %

* Represents less than 10% of total accounts receivable

CESSATION OF BUSINESS

Cancellation of Project

As previously disclosed in fiscal 2024, in connection with the Customer's strategic review of its business, the Customer informed the Company that it cancelled the Project.

The following table presents a summary of the charges related to the cancellation of the Project incurred for the year ended September 28, 2024.

(in thousands) Cost of sales Impairment charges Total

Inventory write-down $ 57,333 $ — $ 57,333

Purchase order cancellation charges $ 2,931 $ — $ 2,931

Impairment charges relating to long-lived assets $ — $ 44,472 $ 44,472

$ 60,264 $ 44,472 $ 104,736

Inventory write-down

In determining the value of our inventory, we consider indicators that net realizable value may be lower than cost based upon projections about future consumption, and market conditions.

6 unchanged sentences

Accordingly, as of September 28, 2024, we recorded a full impairment of the long-lived assets, resulting in an impairment charge of $ 38.0 million related to property, plant and equipment primarily pertaining to leasehold improvements, $ 3.0 million related to the ROU assets and $ 3.5 million related to Asset Retirement Obligation (ARO).

On November 4, 2024, the Company and the Customer entered into a written agreement pursuant to which the Customer agreed to reimburse the Company for certain costs and expenses that the Company incurred in connection with the Project.

Pursuant to the agreement, the Customer agreed to pay $ 86.2 million to the Company.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During the fiscal year ended October 4, 2025, $ 15.1 million was included within "Net Revenue" for delivered products and the remaining $ 71.1 million was included in "Gain relating to cessation of business" in the Consolidated Statements of Operations.

In the quarter ended March 29, 2025, the Company has received the reimbursement amount from the Customer.

Cessation of EA Equipment Business

On March 25, 2025, the Board of Directors of the Company approved a strategic plan related to the cessation of the Company's Electronics Assembly ("EA") equipment business.

Wind down charges as a result of these activities incurred during the fiscal year ended October 4, 2025 were accounted in accordance with ASC 330, Inventory, ASC 420, Exit or Disposal Cost Obligations and ASC 712, Compensation—Nonretirement Postemployment Benefits.

The Company also performed the impairment tests of all associated assets with reference to the guidance under ASC 330, Inventory, ASC 360, Property, Plant and Equipment and ASC 350, Intangibles - Goodwill and Other.

The wind down charges and impairments are primarily recorded in the Company’s "All Others" category and the APS reportable segment.

We plan to fund the cash costs through existing cash balances.

The following table summarizes the charges resulting from the cessation of the EA equipment business.

(in thousands) Cost of sales Impairment charges Selling, general and administrative

Inventory write-down $ 31,481 $ — $ — $ 31,481

Impairment charges related to goodwill and intangible assets — 34,870 — 34,870

Impairment charges relating to long-lived assets — 4,947 — 4,947

Employee termination benefits — — 5,337 5,337

Adverse purchase commitments

10,900 — — 10,900

$ 42,381 $ 39,817 $ 5,337 $ 87,535

Inventory write-down

In determining the value of our inventory, we consider indicators that net realizable value may be lower than cost based upon projections about future consumption and market conditions.

We recorded a write-down to inventory totaling $ 31.5 million with a corresponding increase to cost of sales in our consolidated financial statements for the fiscal year ended October 4, 2025.

Balance Sheet Components for inventory balances.

Impairment charges relating to goodwill and intangible assets

In accordance with the guidance under ASC 350, the Company performed a qualitative assessment as the cessation of the EA equipment business was a triggering event.

Accordingly, the Company performed a quantitative impairment test and estimated the fair value of each reporting unit to be less than its carrying value.

During the fiscal year ended October 4, 2025, we recorded a full impairment charge of $ 19.2 million related to goodwill, and $ 15.7 million impairment charge related to the intangible assets reported within the APS reportable segment and "All Others" category.

Goodwill and Intangible Assets for more details.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Impairment charges relating to long-lived assets

During the fiscal year ended October 4, 2025, we recorded a full impairment of the long-lived assets, resulting in an impairment charge of $ 1.4 million related to property, plant and equipment and $ 3.6 million related to the ROU assets.

Employee termination benefits

During the fiscal year ended October 4, 2025, in connection with the cessation of the EA equipment business and in accordance with ASC 712, the Company accrued for costs amounting to $ 4.4 million pertaining to the ongoing employee benefit arrangements.

The costs were recorded within "Selling, general and administrative" in the Consolidated Statements of Operations, and are expected to be paid progressively as we complete the wind-down activities.

The Company also incurred employee termination benefits pertaining to one-time benefit arrangements in accordance with ASC 420, as summarized below.

(in thousands) Employee termination benefits Total

As of September 28, 2024 $ — $ —

Additions charged to expense $ 957 $ 957

Cash payments $ — $ —

As of October 4, 2025 $ 957 $ 957

The costs were also recorded within "Selling, general and administrative" in the Consolidated Statements of Operations, and are expected to be paid progressively as we complete the wind-down activities.

We expect to record between approximately $ 3.0 million and $ 5.0 million of these costs throughout the completion of the wind-down period.

Adverse purchase commitments

During the fiscal year ended October 4, 2025, the Company accrued for a loss of $ 10.9 million that is expected to arise from firm, non-cancelable and unhedged commitments for the future purchase of inventory items in accordance with ASC 330.

The costs were recorded within "Cost of sales" in the Consolidated Statements of Operations.

Contract termination charges and other associated costs

Contract termination charges primarily relate to the costs expected to be incurred to terminate a contract before the end of its term in accordance with ASC 420.

The Company expects to record between approximately $ 3.0 million and $ 5.0 million throughout the completion of the wind-down period.

Restructuring

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In September 2024, the Company also implemented a restructuring program as part of our efforts to centralize global manufacturing and supply chain operations.

The accrued costs amounting to $ 2.2 million, which pertain to ongoing employee benefit arrangements arising from the restructuring program as of September 28, 2024 are accounted in accordance with ASC 712 and is expected to be paid by the end of fiscal year 2025.

The costs were recorded within " Selling, general and administrative " in the Consolidated Statement of Operations.

The accrued costs amounting to $ 2.2 million, which pertained to ongoing employee benefit arrangements arising from the restructuring program, were accounted in accordance with ASC 712 and were substantially paid in fiscal year 2025.

The costs were recorded within "Selling, general and administrative" in the Consolidated Statements of Operations.

The Company also recorded costs amounting to $ 1.8 million in fiscal year 2025, pertaining to one-time benefit arrangements in accordance with ASC 420.

The amounts were substantially paid in fiscal year 2025.

KULICKE AND SOFFA INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In September 2025, management approved a restructuring program to implement cost-reduction measures, including reductions in employee headcount and other operating expenditures.

As a result, we accounted for the related employee termination costs in accordance with ASC 712, Compensation—Nonretirement Postemployment Benefits.

For fiscal 2025, employee termination costs of $ 4.2 million related to other severance and employee costs incurred as a result of the restructuring program, primarily pertaining to ongoing employee benefit arrangements, were recorded within "Selling, general and administrative" in the Consolidated Statements of Operations.

In September 2025, management also approved a restructuring program as part of our efforts to centralize global manufacturing.

The accrued costs amounting to $ 1.2 million, which pertain to ongoing employee benefit arrangements arising from the restructuring program as of October 4, 2025, are accounted in accordance with ASC 712 and are expected to be substantially paid by the end of fiscal year 2026.

The costs were recorded within "Selling, general and administrative" in the Consolidated Statements of Operations.

The Company also expects to record costs amounting to $ 1.1 million in fiscal year 2026, pertaining to one-time benefit arrangements in accordance with ASC 420.

Disposal of a subsidiary

On October 16, 2024, the Company, through one of its subsidiaries, Kulicke and Soffa Holland Holdings B.V., entered into a Share Sale and Purchase Agreement with Onto Innovation Europe B.V.

("Onto") for the sale of 100 % of the common shares of Kulicke & Soffa Liteq B.V.

("K&S Liteq") and its related lithography business.

The sale was completed on October 18, 2024.

Accordingly, the Company has deconsolidated K&S Liteq in the Company’s unaudited consolidated condensed financial statements.

The disposal of K&S Liteq did not have a material impact on our consolidated financial statements.

SUBSEQUENT EVENTS

On October 28, 2025, the Company announced that Dr.

Fusen Chen will retire as President and Chief Executive Officer of the Company and as a member of the Board, effective December 1, 2025.

Also, on October 28, 2025, the Board appointed Lester Wong, the Company’s current Executive Vice President and Chief Financial Officer, as the Company’s Interim Chief Executive Officer.

The Board will conduct a search for a permanent successor among external and internal candidates.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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What changed 10-K

Item 8. Financial Statements and Supplementary Data