Financial Analysis

14. Commitments and Contingencies Purchase Obligations As of September 30, 2025, we had unrecorded purchase obligations in the amount of $ 4.0 million. These purchase obligations consist of outstanding purchase orders for goods and services. While the amount represents purchase agreements, the actual amounts to be paid may be less in the event that any agreements are renegotiated, canceled or terminated. Legal Proceedings and Other Claims From time to time, we are a party to claims and actions for matters arising out of our business operations. We regularly evaluate the status of the legal proceedings and other claims in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made for disclosure. Although the outcome of claims and litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses. It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the resolution of a claim or legal proceeding. Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expe …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

13. Benefit Plans We have retirement plans covering substantially all our employees. The principal plans are our defined contribution plan that covers substantially all of our employees in the United States and the multi-employer pension plan for hourly union employees in Pennsylvania. Defined Contribution Plan Domestic employees of Amtech and its subsidiaries who meet certain eligibility requirements may participate, at the employees option, in the 401(k) Plan. The 401(k) Plan is a defined contribution plan subject to the provisions of ERISA. We match employee contributions to the 401(k) Plan equal to 60 % of the participants' elective deferrals, up to 3.6 % of the participants eligible compensation each payroll period. Employees are auto-enrolled upon eligibility at a 6 % contribution rate; however, an employee may opt out at their election. The matc h expense was $ 0.3 million a nd $ 0.4 million in 2025 and 2024, respectively. Pension Plan Our hourly union employees in Pennsylvania participate in a multi-employer pension plan, the NIGPP, in accordance with the union agreement between PR Hoffman and the United Automobile, Aerospace and Agriculture Implement Workers of America. The agreement was renewed in 2025 for a three-year term that expires September 30, 2028 . Every company participating in the plan pays a contribution per hour worked for each employee of the company that is eligible to participate in the NIGPP. Our contributions to the NIGPP were $ 30,000 and $ 35,000 …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

11. Long-Term Debt Our finance lease liabilities and long-term debt consists of the following, in thousands: September 30, 2025 2024 Finance leases 294 290 Less: current portion of finance lease liabilities and long-term debt ( 126 ) ( 101 ) Finance Lease Liabilities and Long-Term Debt $ 168 $ 189 Interest expense on finance lease liabilities and long-term debt was $ 25,000 and $ 0.6 million in 2025 and 2024, respectively. Annual maturities relating to our long-term debt as of September 30, 2025 are as follows, in thousands: Annual Maturities 2026 $ 126 2027 101 2028 27 2029 21 2030 19 Thereafter Total long-term debt $ 294 Loan and Security Agreement On January 17, 2023, we entered into a Loan and Security Agreement (the Loan Agreement) among Amtech, its U.S. based wholly owned subsidiaries Bruce Technologies, Inc., BTU International, Inc., Intersurface Dynamics, Incorporated, P.R. Hoffman Machine Products, Inc., and Entrepix, Inc., and UMB Bank, N.A., national banking association. The Loan Agreement provided for (i) a term loan (the Term Loan) in the amount of $ 12.0 million maturing January 17, 2028 , and (ii) a revolving loan facility (the Revolver) with an availability of $ 8.0 million maturing January 17, 2024 , each of which were secured by a first priority lien on substantially all of our assets. The recorded amount of the Term Loan had an interest rate of 6.38 % and the Revolver had a floating per annum rate of interest equal to the Prime Rate, adjusted daily. The Loa …

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12. Equity and Stock-Based Compensation Stock-Based Compensation Expense Stock-based compensation expenses of $ 1.2 million and $ 1.5 million for 2025 and 2024, respectively, are included in selling, general and administrative expenses. As of September 30, 2025, total compensation cost related to non-vested stock options not yet recognized i s $ 0.4 million, which is expected to be recognized over the next 1.07 y ears on a weighted-average basis. As of September 30, 2025, total compensation cost related to nonvested RSUs not yet recognized i s $ 0.6 million, which is expected to be recognized over the next 2.08 years. Amtech Equity Compensation Plans The 2022 Plan, under which 1,000,000 shares could be granted, was adopted by the Board of Directors in November 2021, and approved by the shareholders in March 2022. The 2007 Plan, under which 500,000 shares could be granted, was adopted by the Board in April 2007, and approved by the shareholders in May 2007. The 2007 Plan was amended in 2009, 2014 and 2015 to add 2,500,000 shares. The plan was also amended in 2019 to extend the term of the plan and allow for the grant of restricted stock units. Upon the adoption of the 2022 Plan, no further awards will be granted from the 2007 Plan. Previously issued awards will remain outstanding in accordance with their terms. The Non-Employee Directors Stock Option Plan was approved by the shareholders in 1996 for issuance of up to 100,000 shares of common stock to directors. The Non-Employe …

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10. Income Taxes Income Tax (Benefit) Provision The components of (loss) income before (benefit) provision for income taxes are as follows, in thousands: Years Ended September 30, 2025 2024 Domestic $ ( 32,790 ) $ ( 9,563 ) Foreign 4,798 2,052 $ ( 27,992 ) $ ( 7,511 ) The components of the provision for income taxes are as follows, in thousands: Years Ended September 30, 2025 2024 Current: Domestic federal $ 56 $ ( 49 ) Foreign 2,295 793 Foreign withholding taxes 814 279 Domestic state 19 36 Total current 3,184 1,059 Deferred: Domestic federal State Foreign ( 850 ) ( 84 ) Total deferred ( 850 ) ( 84 ) Total provision $ 2,334 $ 975 A reconciliation of actual income taxes to income taxes at the expected U.S. federal corporate income tax rate is as follows, in thousands, except percentages: Years Ended September 30, 2025 2024 Tax (benefit) expense at the federal statutory rate $ ( 5,878 ) 21.0 % $ ( 1,577 ) 21.0 % Effect of permanent book-tax differences 101 - 0.4 % 152 - 2.0 % State tax provision ( 168 ) 0.6 % 18 - 0.3 % Valuation allowance for net deferred tax assets 2,496 - 8.9 % 1,179 - 15.7 % Tax rate differential 279 - 1.0 % 301 - 4.0 % Goodwill impairment 4,089 - 14.6 % 1,334 - 17.8 % Withholding taxes 814 - 2.9 % 279 - 3.7 % Other items 601 - 2.1 % ( 711 ) 9.5 % $ 2,334 - 8.3 % $ 975 - 13.0 % Deferred Income Taxes and Valuation Allowance Deferred income taxes reflect the tax effects of temporary differences between the financial statement and tax bases of assets and liab …

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"Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2023-07), which requires disclosure of additional information about specific expense categories underlying certain income statement expense line items. This ASU is effective for our annual periods beginning October 1, 2027, and interim periods beginning October 1, 2028, and requires either prospective or retrospective application. We are currently evaluating the impact of this ASU on our disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires additional annual income tax disclosures. These include a tabular rate reconciliation comprised of eight specific categories, the disaggregation of income taxes paid between federal, state, and foreign jurisdictions, and to disaggregate income from continuing operations before income tax expense and income tax expense from continuing operations between domestic and foreign. ASU 2023-09 eliminates the disclosure of the nature and estimate of reasonably possible changes to unrecognized tax benefits in the next 12 months or that an estimated range cannot be made. ASU 2023-09 is effective for fiscal years beginning on or after December 15, 2024, with early adoption permitted, and can be applied on a pros …

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3. Severance In 2025 and 2024, we recorded severance expense of $ 0.7 million and $ 0.4 million, respectively. This related primarily to staff reductions across our locations as we shifted more work to contract manufacturers and dealt with decreasing demand. Years Ended September 30, 2025 2024 Balance at beginning of the year $ $ 154 Severance expense, net of adjustments 701 350 Cash payments ( 701 ) ( 504 ) Balance at the end of the year $ $ …

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15. Reportable Segments In the operation of the business, management, including our Chief Operating Decision Maker (CODM), who is also our Chief Executive Officer , reviews certain financial information, including segmented internal profit and loss statements. The primary profitability measure used by the CODM to review segment operating results is net income. The CODM uses net income to allocate resources during our annual planning process and throughout the year, as well as to assess the performance of our segments, primarily by monitoring actual results compared to prior period and expected results. Amtech has two operating segments that are structured around the types of product offerings provided to our customers. In addition, the operating segments may be further distinguished by the Companys respective brands. These two operating segments comprise our two reportable segments discussed below. Our two reportable segments are as follows: Thermal Processing Solutions We design, manufacture, sell and service thermal processing equipment and related controls for use by leading semiconductor manufacturers, and in electronics, automotive and other industries. Semiconductor Fabrication Solutions We provide consumables, parts and service, and equipment for producing silicon carbide, silicon and gallium nitride wafers, optical components and a variety of crystalline materials. Information concerning our reportable segments is as follows, in thousands: Year Ended September 30, 202 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

18. Subsequent Event Stock Repurchase Program On December 9, 2025, the Board of Directors (the Board) of Amtech Systems, Inc. (the Company) authorized and approved a share repurchase program for up to $ 5 million of the currently outstanding shares of the Companys common stock over a period of 12 months. Under the stock repurchase program, the Company intends to repurchase shares through open market purchases, privately-negotiated transactions, block purchases, 10b5-1 plans, or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934 (the Exchange Act). The Company cannot predict when or if it will repurchase any shares of common stock as such stock repurchase program will depend on a number of factors, including constraints specified in any Rule 10b5-1 trading plans, price, general business and market conditions, and alternative investment opportunities. Information regarding share repurchases will be available in the Companys periodic reports on Form 10-Q and 10-K filed with the Securities and Exchange Commission as required by the applicable rules of the Exchange Act. This report contains forward-looking information, as that term is defined under the Exchange Act, including information regarding purchases by the Company of its common stock pursuant to any Rule 10b5-1 trading plans. By their nature, forward-looking information and statements are subject to risks, uncertainties, and contingencies, including …

SubsequentEventsTextBlock · excerpt; the full note is in the filing