XML 28 R16.htm IDEA: XBRL DOCUMENT
v3.26.1

Goodwill and Intangible Assets | 9 Months Ended
--- | ---
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract] |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The Company evaluates goodwill at the reporting unit level, which, for the Company, is at the level of the reportable segments, Thermal Processing Solutions and Semiconductor Fabrication Solutions. The changes in carrying amount of goodwill allocated to each of the reporting segments for the nine months ended June 30, 2026 is as follows, in thousands:
|  | Thermal Processing Solutions |  |  | Semiconductor Fabrication Solutions |  |  | Total Goodwill |
Balance at September 30, 2024 |  | $ | 5,905 |  |  | $ | 15,356 |  |  |  | 21,261 |
Impairment of goodwill |  |  | (4,997 | ) |  |  | (15,356 | ) |  |  | (20,353 | )
Balance at September 30, 2025 |  |  | 908 |  |  |  | — |  |  |  | 908 |
Impairment of goodwill |  |  | — |  |  |  | — |  |  |  | — |
Balance at June 30, 2026 |  | $ | 908 |  |  | $ | — |  |  | $ | 908 |
We review goodwill for impairment when events or circumstances indicate the carrying value may not be recoverable. For the period ended March 31, 2025, the Company lowered its guidance for the second quarter of fiscal year 2025 and reset projections for future periods due to prolonged weakness in the mature node semiconductor market driven by high inventory, tepid demand, and geopolitical tensions. This triggering event indicated a need to test goodwill for impairment. The goodwill impairment test indicated book value was in excess of fair value by $15.4 million for our Semiconductor Fabrication Solutions segment and $5.0 million for our Thermal Processing Solutions segment. As a result, we recorded a $20.4 million impairment charge in the period ended March 31, 2025. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. Our goodwill impairment test uses a weighting of the income approach and the market approach to estimate a reporting unit’s fair value. The income approach is based on a discounted future cash flow analysis that uses certain assumptions including: projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments and working capital requirements to sustain and grow the business; and estimated discount rates based on the reporting unit’s weighted average cost of capital as derived by the Capital Asset Pricing Model and other methods, which includes observable market inputs and other data from identified comparable companies. The same estimates are also used internally for our capital budgeting process, and for long-term and short-term business planning and forecasting. We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available comparable market data, and we also perform a reconciliation of our total market capitalization to the estimated fair value of all of our reporting units. The market approach is based on the application of appropriate market-derived multiples selected from (i) comparable publicly-traded companies and/or (ii) the implied transaction multiples derived from identified merger and acquisition activity in the market. Multiples are then selected based on a comparison of the reviewed data to that of the reporting unit and applied to relevant historical and forecasted financial parameters such as levels of revenues, EBITDA, EBIT or other metrics. The calculation of fair value falls under Level 3 of the fair value hierarchy. If the future performance of these reporting units fall short of our expectations, if there are significant changes in operations due to changes in market conditions or if our stock price declines, we could be required to recognize additional material impairment charges in future periods. Intangible Assets The Company’s intangible assets, net consists of the following, in thousands:
|  |  |  | June 30, |  |  | September 30, |
|  | Amortization Period |  | 2026 |  |  | 2025 |
Customer relationships |  | 6-10 years |  | $ | 4,409 |  |  | $ | 4,409 |
Trade names |  | 3-15 years |  |  | 2,679 |  |  |  | 2,679 |
|  |  |  |  | 7,088 |  |  |  | 7,088 |
Accumulated amortization |  |  |  |  | (3,171 | ) |  |  | (3,039 | )
Less asset impairments: |  |  |  |  |  |  |  |
Customer relationships |  |  |  |  | (2,111 | ) |  |  | (2,111 | )
Trade names |  |  |  |  | (847 | ) |  |  | (847 | )
Intangible assets, net |  |  |  | $ | 959 |  |  | $ | 1,091 |
The estimated aggregate amortization expense for each of the five succeeding fiscal years as of June 30, 2026 is as follows, in thousands:
Year ending September 30: |  | Amount |
2026 |  | $ | 44 |
2027 |  |  | 177 |
2028 |  |  | 177 |
2029 |  |  | 177 |
2030 |  |  | 138 |
Thereafter |  |  | 246 |
Total |  | $ | 959 |
The aggregate amortization expense during the three months ended June 30, 2026 and 2025 was $44,000 a nd $0.1 million, respectively. The aggregate amortization expense during the nine months ended June 30, 2026 and 2025 w as $0.1 million and $0.3 million, respectively. We review our intangible assets for impairment when events or circumstances indicate the carrying value may not be recoverable. For the period ended March 31, 2025, the Company lowered its guidance for the second quarter of fiscal year 2025 and reset projections for the rest of the year due to a prolonged weakness in the mature node semiconductor market driven by high inventory, tepid demand, and geopolitical tensions. As disclosed in the Goodwill section above, this resulted in a triggering event for impairment of goodwill. The results of the goodwill impairment test indicated that the book value of our Semiconductor Fabrication Solutions segment and Thermal Processing Solutions segment was in excess of fair value and was impaired. Prior to recognizing any impairment of goodwill, we tested the related long-lived assets for impairment in our Semiconductor Fabrication Solutions and Thermal Processing Solutions segments. We tested each identified asset group within each segment by first performing a recoverability test, comparing projected undiscounted cash flows from the use and eventual disposition of each asset group to its carrying value. This test indicated that the undiscounted cash flows were not sufficient to recover the carrying value of certain asset groups within our Semiconductor Fabrication Solutions segment. We then compared the carrying value of the individual long-lived assets within those asset groups against their fair value in order to determine if impairment existed. Determining the fair value of those asset groups involves the use of significant estimates and assumptions, including projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends, and estimated discount rates based on the asset group's weighted average return on assets, as derived from various methods. The fair value of the intangible assets was estimated using various valuation methodologies, including the multi-period excess earnings method and the relief from royalty method and the distributor method. These fair value measurements fall under Level 3 of the fair value hierarchy. As a result, we recorded a total impairment charge for intangible assets in our Semiconductor Fabrication Solutions segment of $2.6 million during the quarter ended March 31, 2025. The $2.6 million impairment consists of $1.8 million for customer relationships and $0.8 million for trade names primarily at Entrepix.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for intangible asset and goodwill. Includes, but is not limited to, finite- and indefinite-lived intangible assets, capitalized cost for internal-use software and software to be sold, leased, or marketed. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration