Ichor

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
_____________________________________________________________
FORM 10-K
_____________________________________________________________
(Mark One)
x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 26, 2025
or
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_______ to _______
Commission File Number 001-37961
_____________________________________________________________
ICHOR HOLDINGS, LTD.
(Exact name of registrant as specified in its charter)
_____________________________________________________________
Cayman Islands
Not Applicable
(State or other jurisdiction of
incorporation or organization)
(IRS Employer Identification No.)
3185 Laurelview Ct.
Fremont, California 94538
(Address of principal executive offices, including zip code)
(510) 897-5200
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Ordinary Shares, par value $0.0001 per share
ICHR
The NASDAQ Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act:
None
_____________________________________________________________
Indicate by check mark if the registrant is a well‑known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S‑T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
o
Non-accelerated filer
o
Smaller reporting company
o
Emerging Growth Company
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under
Section 404(b) of the Sarbanes‑Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. x
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to
previously issued financial statements. o
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive
officers during the relevant recovery period pursuant to §240.10D-1(b). o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Act). Yes o No x
There were 34,644,332 ordinary shares, $0.0001 par value, outstanding as of February 13, 2026.
The aggregate market value of voting ordinary shares held by non-affiliates of the registrant was $658,256,416 based on the closing price of the ordinary shares as reported on The Nasdaq
Global Select Market as of June 27, 2025, the last business day of the registrant's most recently completed second fiscal quarter. There are no non-voting ordinary shares held by non-
affiliates of the registrant.
DOCUMENTS INCORPORATED BY REFERENCE
The information required by Part III of Form 10‑K is incorporated herein by reference to portions of the registrant’s Definitive Proxy Statement relating to its 2026 Annual General Meeting of
Shareholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 26, 2025.


Table of Contents
TABLE OF CONTENTS
Page
PART I
ITEM 1.
BUSINESS
1
ITEM 1A.
RISK FACTORS
11
ITEM 1B.
UNRESOLVED STAFF COMMENTS
35
ITEM 1C.
CYBERSECURITY
35
ITEM 2.
PROPERTIES
37
ITEM 3.
LEGAL PROCEEDINGS
37
ITEM 4.
MINE SAFETY DISCLOSURES
37
PART II
ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
37
ITEM 6.
[RESERVED]
38
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
39
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
51
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
51
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
51
ITEM 9A.
CONTROLS AND PROCEDURES
52
ITEM 9B.
OTHER INFORMATION
52
ITEM 9C.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
53
PART III
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
53
ITEM 11.
EXECUTIVE COMPENSATION
53
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
53
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
53
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
53
PART IV
ITEM 15.
EXHIBIT AND FINANCIAL STATEMENT SCHEDULES
54
ITEM 16.
FORM 10-K SUMMARY
54
EXHIBIT INDEX
SIGNATURES

Table of Contents
CAUTIONARY STATEMENT CONCERNING FORWARD‑LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The words “anticipate,”
“believe,” “contemplate,” “designed,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “see,” “seek,”
“target,” “would” and similar expressions or variations or negatives of these words are intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Examples of forward-looking statements include statements relating to our future financial
condition, industry outlooks and trends, and operating results, plans, objectives and goals, as well as any other statement that does not directly relate to
any historical or current fact. These statements are contained in many sections of this Annual Report on Form 10-K, including those entitled Item 1. –
Business and Item 7. – Management’s Discussion and Analysis of Financial Condition and Results of Operations. Although we believe that our plans,
intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve
those plans, intentions or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ
materially from those that we expected.
Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, are disclosed under the sections
entitled Item 1A. – Risk Factors and Item 7. – Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Annual
Report on Form 10-K. You should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you
that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect
us or our operations in the way we expect. The forward-looking statements included in this Annual Report on Form 10-K are made only as of the date
hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise,
except as otherwise required by law.

Table of Contents
PART I
ITEM 1. BUSINESS
Unless expressly indicated or the context requires otherwise, the terms “Ichor,” “Company,” “we,” “us,” “our,” and similar terms in this Annual Report on
Form 10-K refer to Ichor Holdings, Ltd. and its consolidated subsidiaries.
We were originally incorporated as Celerity, Inc. (“Celerity”) in 1999. Ichor Holdings, Ltd., an exempt limited company incorporated in the Cayman
Islands, was formed in March 2012. We completed the initial public offering of our ordinary shares in December 2016.
We use a 52- or 53-week fiscal year ending on the last Friday in December. The following table details our fiscal periods included elsewhere in this
Annual Report on Form 10-K. All references to 2025, 2024, and 2023, including the quarters thereto, relate to our fiscal periods as so detailed.
Fiscal Period
Period Ending
Weeks in Period
Fiscal Year 2025:
December 26, 2025
52
First Quarter
March 28, 2025
13
Second Quarter
June 27, 2025
13
Third Quarter
September 26, 2025
13
Fourth Quarter
December 26, 2025
13
Fiscal Year 2024:
December 27, 2024
52
First Quarter
March 29, 2024
13
Second Quarter
June 28, 2024
13
Third Quarter
September 27, 2024
13
Fourth Quarter
December 27, 2024
13
Fiscal Year 2023:
December 29, 2023
52
First Quarter
March 31, 2023
13
Second Quarter
June 30, 2023
13
Third Quarter
September 29, 2023
13
Fourth Quarter
December 29, 2023
13
Company Overview
We are a leader in the design, engineering and manufacturing of critical fluid delivery subsystems and components primarily for semiconductor capital
equipment, as well as other industries such as defense/aerospace and medical. Our primary product offerings include gas and chemical delivery
subsystems, collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor
devices. Our gas delivery subsystems deliver, monitor and control precise quantities of the specialized gases used in semiconductor manufacturing
processes such as etch and deposition. Our chemical delivery subsystems precisely blend and dispense the reactive liquid chemistries used in
semiconductor manufacturing processes such as chemical-mechanical planarization, electroplating, and cleaning. We also provide precision-machined
components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other
proprietary products.
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Fluid delivery subsystems ensure accurate measurement and uniform delivery of specialty gases and chemicals at critical steps in the semiconductor
manufacturing processes. Any malfunction or material degradation in fluid delivery reduces yields and increases the likelihood of manufacturing defects
in these processes. Most OEMs outsource all or a portion of the design, engineering, and manufacturing of their gas delivery subsystems to a few
specialized suppliers, including us. Additionally, many OEMs are outsourcing the design, engineering, and manufacturing of their chemical delivery
subsystems due to the increased fluid expertise required to manufacture these subsystems. Outsourcing these subsystems allows OEMs to leverage
their suppliers’ highly specialized engineering, design, and production skills while focusing their internal resources on their own value-added processes.
Outsourcing enables OEMs to reduce their costs and development time, as well as provide growth opportunities for specialized subsystems suppliers
like us.
Our goal is to be a leading supplier of fluid delivery subsystems and components to OEMs engaged in manufacturing capital equipment to produce
semiconductors and to leverage our technology and products to expand the share of our addressable markets. To achieve this goal, we engage with our
customers early in their design and development processes and utilize our deep engineering resources and operating expertise, as well as our
expanded product portfolio, to jointly create, innovate, and advance solutions that are designed to meet the current and future needs of our customers.
We believe this approach enables us to design products that meet the precise specifications our customers demand, allows us to be the sole supplier of
these subsystems during the initial production ramp, and positions us to be the preferred supplier for the full lifespan of the process tool.
The broad technical expertise of our engineering team, coupled with our early customer engagement approach, enables us to offer innovative and
reliable solutions to complex fluid delivery challenges. With over two decades of experience developing complex fluid delivery subsystems and meeting
the constantly changing production requirements of leading semiconductor OEMs, we have developed expertise in fluid delivery that we offer to our OEM
customers. With an aim to provide superior customer service, we have a global footprint with many facilities strategically located in close proximity to our
customers. We have long standing relationships with top tier OEM customers, including Lam Research, Applied Materials, and ASML which were our
largest customers by sales in 2025.
We generated revenue of $947.7 million, $849.0 million, and $811.1 million in 2025, 2024, and 2023, respectively. We generated net income (loss) of
$(52.8) million, $(20.8) million, and $(43.0) million, calculated in accordance with generally accepted accounting principles in the United States (“GAAP”)
in 2025, 2024, and 2023, respectively, and $7.9 million, $5.9 million, and $12.3 million on a non-GAAP basis in 2025, 2024, and 2023, respectively. See
Item 7. – Management's Discussion and Analysis of Financial Condition and Results of Operations, Non-GAAP Results for a discussion of non-GAAP net
income, an accompanying presentation of the most directly comparable financial measure, GAAP net income, and a reconciliation of the differences
between non-GAAP net income and GAAP net income.
Our Competitive Strengths
As a leader in the fluid delivery industry, we believe that our key competitive strengths include the following:
Deep Fluids Engineering Expertise
We believe that our engineering team, comprised of chemical, mechanical, electrical, software, and systems engineers, has positioned us to expand the
scope of our solutions, provide innovative products and subsystems, and strengthen our incumbent position at our OEM customers. Our engineering
team works with our customers’ product development teams, providing our customers with technical expertise in fluid delivery system design.
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Early Engagement with Customers on Product Development
We seek to engage with our customers and potential customers very early in their process for new product development. We believe this approach
enables us to collaborate on product design, qualification, manufacturing, and testing in order to provide a comprehensive, customized solution. Through
early engagement during the complex design stages, our engineering team gains early insight into our customers’ technology roadmaps, which enables
us to pioneer innovative and advanced solutions. In many cases, our early engagement with our customers enables us to be the sole source supplier
when the product is initially introduced.
Long History and Strong Relationships with Top Tier Customers
We have established deep relationships with top tier OEMs, including Lam Research, Applied Materials, and ASML. Our customers are global leaders by
sales in the semiconductor capital equipment industry. Our existing relationships with our customers have enabled us to effectively compete for new fluid
delivery subsystems for our customers’ next generation products in development. We leverage our deep-rooted existing customer relationships with
these market leaders to penetrate new business opportunities created through industry consolidation. Our close collaboration with our global customers
has contributed to our established market position and several key supplier awards.
Operational Excellence with Scale to Support the Largest Customers
With over 20 years of experience in designing and building fluid delivery systems, we have developed deep capabilities in operations. We have
strategically located our manufacturing facilities near our customers’ locations in order to provide fast and efficient responses to new product
introductions and accommodate configuration or design changes late in the manufacturing process. We will continue adding capacity as needed to
support future growth. In addition to providing high quality and reliable fluid delivery subsystems and components, one of our principal strategies is
delivering lead-times that provide our customers with the required flexibility needed in their production processes. We have accomplished this by
investing in scalable manufacturing systems and processes and an efficient supply chain. Our focus on operational efficiency and flexibility allows us to
reduce manufacturing cycle times in order to respond quickly to customer requests.
Capital Efficient and Scalable Business Model
Our business requires modest levels of capital investments to support production capacity and new product development. The amount of necessary
investment fluctuates over time depending on business outlook, new product strategy, and timing of introductions. In 2025, 2024, and 2023, our total
capital expenditures were $36.2 million, $17.6 million, and $15.5 million, respectively, representing 3.8%, 2.1%, and 1.9%, of sales, respectively. The
semiconductor capital equipment market has historically been cyclical. We have structured our business to reduce fixed manufacturing overhead and
operating expenses to enable us to grow net income at a higher rate than sales during periods of growth.
Our Growth Strategy
Our objective is to leverage our position as a leader in high-precision engineering and manufacturing in the semiconductor, aerospace, and defense
industries to grow revenue at rates faster than the industries we serve. We provide fluid delivery solutions, subsystems, and complex machined
components to our customers, supporting their most advanced products. The key elements of our growth strategy are:
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Grow Our Market Share within Existing Semiconductor Customer Base
We intend to grow our position within our existing semiconductor customers by continuing to leverage our specialized engineering talent, early
collaboration approach with OEMs to foster long-term relationships, and expanded product offerings. Each of our customers produces many different
process tools for various semiconductor processing steps. At each semiconductor customer, we are an outsourced supplier of fluid delivery subsystems
and components for a subset of their entire process tool offerings. We are constantly looking to expand our market share at our existing customers. We
believe that our early collaborative approach with customers positions us to deliver innovative and dynamic solutions, offer timely deployment, and meet
competitive cost targets, further increasing our market share. Additionally, as semiconductor devices become more complex, atomic layer deposition
(“ALD”), etch, and chemical vapor deposition (“CVD”), and extreme ultraviolet (“EUV”) lithography require more precise gas control, with faster response
times, tighter repeatability, and cleaner, more corrosion-resistant systems. By leveraging our existing customer relationships and strong history of solving
these challenges, we believe this will enable us to achieve more design wins on our customers’ products and grow our market share.
Grow Our Total Available Market and Share of the Semiconductor Market with Expanded Product Offerings
We continue to work with our existing semiconductor customer base on additional opportunities, including machined products, proprietary components,
chemical delivery systems, and fluid control products. Our internally developed proprietary components can be integrated into our existing fluid delivery
systems as well as our next generation gas panels. We believe that the semiconductor industry has a growing need for the unique expertise we offer in
precision machining, fluid mechanics, controls, and the components needed for next generation processes. Utilizing our internally developed
components allows us to grow our total available market while offering our customers improved performance at competitive price points. We have
expanded our product offerings through both internal development and opportunistic acquisitions.
Expand Our Total Customer Base Beyond the Semiconductor Industry
We support a number of aerospace and defense related customers with advanced, high-precision manufacturing services. We are strengthening our
support for these customers to increase our new design win rate. The aerospace and defense sector represents a high-growth opportunity where our
current market share is low. We believe that additional focus on this industry segment will be a strong contributor to our future growth and profitability.
Continue to Improve Our Manufacturing Process Efficiency
We continually strive to improve our processes to reduce our manufacturing process cycle time, increase our ability to respond to short lead-time and
last-minute configuration changes, reduce our manufacturing costs, and improve our inventory efficiency requirements in order to improve profitability
and make our product offerings more attractive to new and existing customers.
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Our Products and Services
We are a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems and components. Our product and service offerings
are classified in the following categories:
Gas Delivery Subsystems
Gas delivery is among the most technologically complex functions in semiconductor capital equipment and is used to deliver, monitor, and control precise
quantities of the vapors and gases critical to the manufacturing process. Our gas delivery systems consist of a number of gas lines, each controlled by a
series of mass flow controllers, regulators, pressure transducers, valves, and an integrated electronic control system. Our gas delivery subsystems are
primarily used in “dry” manufacturing process tools, such as etch, chemical vapor deposition, physical vapor deposition, epitaxy, strip, and lithography.
Chemical Delivery Products and Subsystems
Our chemical delivery products and subsystems are used to precisely blend and dispense reactive chemistries and colloidal slurries critical to “wet” front-
end process, such as wet clean, electro chemical deposition, and chemical-mechanical planarization (“CMP”). In addition to the chemical delivery
subsystems, we also manufacture the process modules that apply chemicals directly to the wafer in a process- and application-unique manner to create
the desired chemical reaction.
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The image below shows a typical wet-process front end semiconductor tool, with a chemical delivery subsystem and corresponding application process
module highlighted:
Weldments and Specialty Joining
Our complete offering of weldments support the delivery of gases through the process tool. We have developed both automated and manual welding
processes to support world class workmanship on all types of metals needed to support fluid delivery within the semiconductor market. The welded
assemblies are used in both wet and dry processes, as well as non-semiconductor applications including in the aerospace, commercial space, defense,
medical device, and general industrial markets. We offer a wide range of specialty joining technologies including orbital, tungsten inert gas, e‑beam, and
laser welding, as well as hydrogen and vacuum brazing.
Valves
Ichor manufactures a full line of diaphragm valves, including conventional and modular diaphragm valves, modular metering valves, and check valves
that are engineered to meet or exceed all industry standards in performance and purity. We offer high reliability conventional diaphragm valves ("CDV")
for conventional mounting systems, as well as modular diaphragm valves ("MDV") for surface mount systems. All of our valves are engineered to meet
SEMI specifications, provide outstanding reliability and performance, and are compatible with all current competitive systems in the marketplace.
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Advanced Flow Control
Our advanced flow controller ("AFC") is our patented state-of-the-art mass flow technology manufactured to replace the mass flow controllers ("MFC") in
traditional fluid delivery subsystems. The AFC product line is the first to incorporate the flow restrictor in the downstream positive shut-off valve, allowing
for gas box size and component reduction while also improving performance specifications. Our AFC has the fastest on/off response, at less than
100ms, with no bursting and is insensitive to inlet/outlet pressure. It also provides the lowest flow, down to 0.01 sccm, for high-precision applications.
Precision Machining
For our semiconductor customers, precision machining enables us to serve as our own supplier for the components used in our gas delivery systems
and weldments, while also providing custom machined solutions throughout our customers’ equipment. Many of these items are used downstream of the
gas system in process-critical applications. Our precision machined products can be used in both wet and dry applications and include both small- and
large‑format machining applications.
For our aerospace and defense customers, we offer a variety of machined components to meet critical design requirements that typically incorporate
complex features and tight dimensional tolerances.
Customers, Sales, and Marketing
For the semiconductor industry, we primarily market and sell our products directly to equipment OEMs in the semiconductor equipment market. We are
dependent upon a small number of customers, as the semiconductor equipment manufacturer market is highly concentrated with five companies
accounting for over 70% of all semiconductor wafer fabrication equipment revenues. For 2025, two customers with individual sales over 10%, Lam
Research and Applied Materials, accounted for a combined 76% of total sales. We do not have long-term contracts that require customers to place
orders with us in fixed or minimum volumes, and we generally operate on a purchase order basis with customers.
We have established relationships with a number of aerospace and defense customers that have led to recurring work and collaboration on new design
activities. Currently, revenue from the aerospace and defense industry represent less than 10% of our total sales. Additional focus is being placed on
expanding our engagement in this industry as a source for future revenue growth.
Our sales and marketing efforts focus on fostering close business relationships with our customers. As a result, we locate many of our account managers
near the customers they support. Our sales process involves close collaboration between our account managers, engineering, and operations teams.
Account managers and engineers work together with customers, and in certain cases provide on-site support, including attending customers’ internal
meetings related to production and engineering design. Each customer project is supported by our account managers and customer support team who
ensure alignment with all of the customer’s quality, cost, and delivery expectations.
Operations, Manufacturing, and Supply Chain Management
We have developed a highly flexible manufacturing model with cost-effective locations situated nearby the manufacturing facilities of our largest
customers. We have facilities in the United States, Singapore, Malaysia, and Mexico.
Operations
Our product cycle engagements begin by working closely with our customers to outline the solution specifications before design and prototyping even
begin. Our design and manufacturing process is highly flexible, enabling our customers to make alterations to their final requirements throughout the
design, engineering, and manufacturing process. This flexibility results in significantly decreased order-to-delivery cycle times for our customers. For
instance, it can take as little as 20 to 30 days for us to manufacture a gas delivery system with fully evaluated performance metrics after receiving an
order.
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Manufacturing
We are ISO 9001 certified at our manufacturing locations, and our manufactured subsystems and modules adhere to strict design tolerances and
specifications. We operate clean rooms at our facilities in Singapore, Oregon, and Texas that meet Class 100 and Class 10,000 standards for customer-
specified testing, assembly, and integration of high-purity gas and chemical delivery systems. We operate additional facilities in Malaysia, Oregon, Texas,
and California for weldments and related components used in our gas delivery subsystems, and we operate facilities in Oregon and Malaysia for critical
components used in our chemical delivery subsystems. We operate facilities in California, Minnesota, and Mexico for precision machining of components
for sale to our customers and internal use, as well as specialty joining and plating technologies. Our quality management system is AS9100 certified and
we operate International Traffic in Arms Regulations ("ITAR") compliant facilities in Minnesota and California. Many of our facilities are located in close
proximity to our largest customers to allow us to collaborate with them on a regular basis and to aid us in delivering our products on a just-in-time basis,
regardless of order size or the degree of changes in the applicable configuration or specifications.
We qualify and test key components that are integrated into our subsystems and test our fluid delivery subsystems during the design process and again
prior to shipping. Our quality management system allows us to access real-time corrective action reports, non-conformance reports, customer
complaints, and controlled documentation. In addition, our senior management conducts quarterly reviews of our quality control system to evaluate
effectiveness. We actively solicit customer satisfaction through periodic business reviews with our strategic customer base.
Supply Chain Management
We use a wide range of components and materials in the production of our gas and chemical delivery systems, including filters, mass flow controllers,
regulators, pressure transducers, substrates, and valves. We obtain components and materials from a large number of sources, including single source
and sole source suppliers.
We use supplier-consigned material and just-in-time stocking programs for a portion of our inventories to effectively manage our component inventories
and better respond to changing customer requirements. These approaches are designed to reduce our inventory levels and maintain flexibility in
responding to changes in product demand. A key part of our strategy is to identify multiple suppliers with a strong global reach that are located within
close proximity to our manufacturing locations.
Technology Development and Engineering
We have a long history of engineering innovation and development. We continue to transition from being an integration engineering and components
company into a gas and chemical delivery subsystem leader with product development and systems engineering. Our industry continues to experience
rapid technological change, requiring us to continuously invest in technology and product development and regularly introduce new products and
features that meet our customers’ evolving requirements.
We have built a team of fluid delivery experts. Our engineering team consists of engineers and designers with chemical, mechanical, electrical, software,
systems, and manufacturing-engineering expertise. Our engineers are closely connected with our customers and often work at our customers’ sites and
operate as an extension of our customers’ design team. We engineer within our customers’ processes, design vaults, drawing standards, and part
numbering systems. These development efforts are designed to meet specific customer requirements in the areas of subsystem design, materials,
component selection, and functionality. The majority of our sales are generated from projects during which our engineers cooperated with our customer
early in the design cycle. Through this early collaborative process, we become an integral part of our customers’ design and development processes,
and we are able to quickly anticipate and respond to our customers’ changing requirements.
Our engineering team also works directly with our suppliers to help them identify new component technologies and make necessary changes in, and
enhancements to, the components that we integrate into our products. Our analytical and testing capabilities enable us to evaluate multiple supplier
component technologies and provide customers with a wide range of appropriate component and design choices for their gas and chemical delivery
systems and other critical subsystems. These capabilities also help us anticipate technological changes and the requirements in component features for
future gas delivery systems and other critical subsystems.
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Competition
The market for our products is very competitive. When we compete for new business, we face competition from other suppliers of gas or chemical
delivery subsystems, and in some cases with the internal manufacturing groups of OEMs. While many OEMs have outsourced the design and
manufacturing of their gas and chemical delivery systems, we would face additional competition if in the future these OEMs elected to develop and build
these systems internally.
The fluid delivery subsystem market is concentrated, and we face competition from Ultra Clean Technology, with additional competition from other
suppliers. The chemical delivery subsystem, weldment, and precision machining industries are fragmented, and we face competition from numerous
smaller suppliers. The primary competitive factors we emphasize include:
•
customer relationships;
•
early engagement with customers;
•
large and experienced engineering staff;
•
design-to-delivery cycle times; and
•
flexible manufacturing capabilities.
We expect our competitors to continue to improve the performance of their current products and to introduce new products or new technologies that
could adversely affect sales of our current and future products. In addition, the limited number of potential customers in our industry further intensifies
competition. We anticipate that increased competitive pressures may cause intensified price-based competition and we may have to reduce the prices of
our products. In addition, we expect to face new competitors as we enter new markets.
Intellectual Property
Our success depends, in part, upon our ability to develop, maintain, and protect our technology and products and to conduct our business without
infringing the proprietary rights of others. We continue to invest in securing intellectual property protection for our technology and products and protect
our technology by, among other things, filing patent applications. We also rely on a combination of trade secrets and confidentiality provisions, and to a
much lesser extent, copyrights and trademarks, to protect our proprietary rights. As of December 26, 2025, we had 103 granted patents and 105 pending
patent applications, of which 44 and 32, respectively, were filed in the U.S. The expiration dates of our granted patents range from 2027 to 2043. While
we consider our patents to be valuable assets, we do not believe the success of our business or our overall operations are dependent upon any single
patent or group of related patents. In addition, we do not believe that the loss or expiration of any single patent or group of related patents would
materially affect our business.
We develop intellectual property for our own use in our products, as well as for our customers. Intellectual property developed on behalf of our customers
is generally owned exclusively by those customers. In addition, we have agreed to indemnify certain of our customers against claims of infringement of
the intellectual property rights of others with respect to our products. Historically, we have not paid any claims under these indemnification obligations,
and we do not have any pending indemnification claims against us.
Human Capital Resources
Our ability to execute our strategy and deliver value to our customers and shareholders depends on attracting, developing, and retaining a highly skilled
global workforce. We are committed to responsible human management practices that support operational excellence, innovation, and long-term
business performance.
We operate with a global workforce strategically balanced between Singapore, Malaysia, and North America. This footprint aligns our talent base with
our customer demand, precision manufacturing capabilities, and cost-efficient operations. Our culture is grounded in our core values of innovation,
collaboration, honesty, operational excellence, and reliability, which guide how we operate, make decisions, and engage with one another.
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Workforce
As of December 26, 2025, we employed approximately 1,891 full‑time employees and 557 contingent/temporary employees worldwide. A significant
portion of our workforce supports manufacturing, engineering, and technical operations. Our workforce model is designed to support a dynamic,
demand-driven business, enabling us to scale capabilities while maintaining operational continuity, quality, and customer responsiveness across
geographies.
Total Rewards
We offer competitive total rewards programs designed to attract, motivate, and retain talent in the markets in which we operate. Our compensation
philosophy emphasizes market-aligned and pay-for-performance practices, with rewards differentiated based on individual performance and business
impact.
Our compensation programs include fixed and variable pay components tailored to functional and business needs. For select leaders and high-potential
employees, we provide equity-based long-term incentives aligned with our strategic objectives and long-term value creation. Our benefits offerings are
locally competitive and include health and wellness programs, retirement savings plans with company contributions, and an employee stock purchase
plan. We also provide recognition programs, including cash spot bonus and continuous improvement awards to reinforce performance and operational
excellence.
Learning and Development
We invest in developing the skills and capabilities needed to support our business today and into the future. Our learning and development approach
includes on-the-job training, digital learning platforms, tuition reimbursement, and targeted leadership development programs.
Our performance management framework emphasizes clear goal-setting, regular feedback through quarterly check-ins, and annual evaluations,
enabling alignment with business priorities and supporting employee development and accountability. These processes help managers identify growth
opportunities, build leadership capability, and strengthen succession readiness.
Health and Safety
The safety and well-being of our employees is a core priority. We maintain health and safety programs across our global manufacturing operations and
promote a strong safety culture, including site-based initiatives.
We maintain formal mechanisms for employee feedback and ethical reporting, including an annual core value survey, skip-level discussions, and a
confidential whistleblower hotline. Our human resources and compliance functions support adherence to applicable labor, employment, and workplace
safety regulations across the regions in which we operate.
Commitment
Through these practices, we seek to maintain a skilled, engaged, and resilient workforce capable of supporting our strategic objectives and long-term
success.
Environmental, Health, and Safety Regulations
Our operations and facilities are subject to a variety of federal, state, and local regulatory requirements and laws, as well as foreign laws and regulations.
These laws and regulations include regulations related to employment, tax, product, anti-bribery, environmental, waste management, and health and
safety matters, including those relating to the release, use, storage, treatment, transportation, discharge, disposal, and remediation of contaminants,
hazardous substances, and wastes, as well as practices and procedures applicable to the construction and operation of our facilities.
We believe that our business is operated in substantial compliance with applicable laws and regulations. In 2025, compliance with the governmental
regulations applicable to us, including environmental regulations, did not have a material effect on our capital expenditures, earnings, or competitive
position.
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However, in the future we could incur substantial costs, including cleanup costs, fines or civil or criminal sanctions, or third-party property damage, or
personal injury claims, in the event of violations or liabilities under these laws and regulations, or non-compliance with the environmental permits
required at our facilities. Potentially significant expenditures could be required in order to comply with environmental laws that may be adopted or
imposed in the future. We are not aware of any threatened or pending environmental investigations, lawsuits, or claims involving us, our operations, or
our current or former facilities, nor do we expect to incur material capital expenditures related to compliance with regulations during 2025.
Available Information
Our internet address is ichorsystems.com. We make a variety of information available, free of charge, at our investor relations website,
ir.ichorsystems.com. This information includes our Annual Reports on Form 10‑K, our Quarterly Reports on Form 10‑Q, our Current Reports on Form
8‑K, and any amendments to those reports as soon as reasonably practicable after we electronically file those reports with or furnish them to the SEC,
as well as our Code of Business Ethics and Conduct and other governance documents.
The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file documents
electronically with the SEC at sec.gov.
The contents of these websites, or the information connected to those websites, are not incorporated into this Annual Report on Form 10-K. References
to websites in this Annual Report on Form 10-K are provided as a convenience and do not constitute, and should not be viewed as, incorporation by
reference of the information contained on, or available through, the website.
ITEM 1A. RISK FACTORS
There are many factors that affect our business and the results of operations, some of which are beyond our control. The following is a description of
some important factors that may cause the actual results of operations in future periods to differ materially from those currently expected or desired.
Risk Factor Summary
The following is a summary of some important risk factors that could adversely affect our business, operations, and financial results.
Economic and Strategic Risks
•
Our business depends significantly on expenditures by manufacturers in the semiconductor capital equipment industry.
•
We rely on a very small number of OEM customers for a significant portion of our sales.
•
Our customers exert a significant amount of negotiating leverage over us.
•
The industries in which we participate are highly competitive and rapidly evolving.
•
We are exposed to risks associated with weakness in the global economy and geopolitical instability.
•
If we do not keep pace with developments in the industries we serve and with technological innovation generally, our products and services may
not be competitive.
•
We must design, develop, and introduce new products that are accepted by OEMs in order to retain our existing customers and obtain new
customers.
•
Acquisitions may present integration challenges, and the goodwill, indefinite-lived intangible assets, and other long-term assets recorded in
connection with such acquisitions may become impaired.
•
We are subject to fluctuations in foreign currency exchange rates.
Business and Operational Risks
•
The manufacturing of our products is highly complex.
•
Defects in our products could damage our reputation, decrease market acceptance of our products, and result in potentially costly litigation.
•
We may incur unexpected warranty and performance guarantee claims.
•
Our dependence on a limited number of suppliers may harm our production output and increase our costs.
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•
We may face supply chain disruptions, manufacturing interruptions or delays.
•
We are subject to order and shipment uncertainties.
•
Our customers generally require that they qualify our engineering, documentation, manufacturing and quality control procedures.
•
We may be subject to interruptions, failures, or cybersecurity breaches in our information technology systems.
•
Certain of our customers require that we consult with them in connection with specified fundamental changes in our business.
•
Our business is largely dependent on the know-how of our employees, and we generally do not have an intellectual property position that is
protected by patents.
•
Our business will suffer if we are unable to attract, hire, integrate, and retain key personnel and other necessary employees, particularly in the
highly competitive technology labor market, or if we experience labor disruptions at our facilities.
•
The technology labor market is very competitive, and labor disruptions could materially adversely affect our business.
•
Our business is subject to the risks of catastrophic events.
•
We may be classified as a passive foreign investment company (“PFIC”), which could result in adverse U.S. federal income tax consequences
for U.S. holders.
Legal and Regulatory Risks
•
Our business is subject to a variety of U.S. and international laws, rules, policies, and other obligations regarding privacy, data protection, and
other matters.
•
Third parties have claimed and may in the future claim we are infringing their intellectual property.
•
From time to time, we may become involved in other litigation and regulatory proceedings.
•
As a global company, we are subject to the risks of doing business internationally.
•
Changes in U.S. or international trade policy, tariffs, and import/export regulations may have a material adverse effect on our business.
•
We are subject to numerous environmental laws and regulations.
•
If we fail to maintain an effective system of internal controls and procedures, it may cause investors to lose confidence in our financial reporting.
•
Changes in tax laws, tax rates or tax assets and liabilities could materially adversely affect our financial condition and results of operations.
Liquidity and Capital Resources Risks
•
We have a substantial amount of indebtedness and are subject to restrictive covenants.
•
We are subject to interest rate risk associated with variable rates on our outstanding indebtedness.
Ordinary Share Ownership Risks
•
Our quarterly sales and operating results fluctuate significantly from period to period, and the price of our ordinary shares may fluctuate
substantially.
•
Our articles of association contain anti-takeover provisions that could adversely affect the rights of our shareholders.
•
The issuance of preferred shares could adversely affect holders of ordinary shares.
•
Our shareholders may face difficulties in protecting their interests under the laws of the Cayman Islands compared to the laws of the U.S.
•
If a U.S. person is treated as owning at least 10% of our shares, such person may be subject to adverse U.S. federal income tax consequences.
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Economic and Strategic Risks
Our business depends significantly on expenditures by manufacturers in the semiconductor capital equipment industry, which, in turn, is
dependent upon the semiconductor device industry. When that industry experiences cyclical downturns, demand for our products and
services generally decreases, resulting in decreased sales. We may also be forced to reduce our prices during cyclical downturns without
being able to proportionally reduce costs.
Our business, financial condition and results of operations depend significantly on expenditures by manufacturers in the semiconductor capital
equipment industry. In turn, the semiconductor capital equipment industry depends upon the current and anticipated market demand for semiconductor
devices. The semiconductor device industry is subject to cyclical and volatile fluctuations in supply and demand and in the past has experienced
significant downturns, including in the fourth quarter of 2022, which often occur in connection with declines in general economic conditions, and which
have resulted in significant volatility in the semiconductor capital equipment industry and resulted in weakened customer demand. The semiconductor
device industry has also experienced recurring periods of over-supply of products that have had a severe negative effect on the demand for capital
equipment used to manufacture such products. Even as the industry recovers from periods of downturns, inventory digestion at our customers and the
relative spending levels within our primary served markets, in particular lower spending levels for deposition and etch equipment, may result in
decreased demand from our customers, such as in 2023 and early 2024. Our revenue exposure to specific end markets and technology nodes may
amplify cyclicality, and downturns with respect to the demand for certain of our products may disproportionately impact our results even when other
products are experiencing growth. We anticipate that we will continue to experience significant fluctuations in customer orders for our products and
services as a result of such fluctuations and cycles, which may have a material adverse effect on our business, financial condition and results of
operations.
In addition, we must be able to appropriately align our cost structure with prevailing market conditions, effectively manage our supply chain and motivate
and retain employees, particularly during periods of decreasing demand for our products. We may be forced to reduce our prices during periods of
decreasing demand. During the third quarter of 2025, we initiated the Consolidation Restructuring Plan to better align our footprint with the demand
environment. While we operate under a low fixed cost model, we may not be able to proportionally reduce all of our costs if we are required to reduce our
prices. The cyclical and volatile nature of the semiconductor device industry and the absence of long-term fixed or minimum volume contracts make any
effort to project a material reduction in future sales volume difficult. If we overbuild inventory in a period of decreased demand, or we expand our
operations and workforce too rapidly, or procure excessive resources in anticipation of increased demand for our products, and that demand does not
materialize at the pace at which we expect, or declines, our operating results may be adversely affected as a result of underutilization of capacity,
charges related to excess or obsolete inventory, asset impairment or inventory write-downs, increased operating expenses or reduced margins. Further,
any future capacity expansion by us or our competitors could also lead to overcapacity and oversaturation in our target markets, which could lead to
price erosion that could adversely impact our operating results.
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We rely on a very small number of OEM customers for a significant portion of our sales. Any adverse change in our relationships with these
customers could materially adversely affect our business, financial condition and results of operations.
The semiconductor capital equipment industry is highly concentrated and has experienced significant consolidation in recent years. As a result, a
relatively small number of OEM customers have historically accounted for a significant portion of our sales, and we expect this trend to continue for the
foreseeable future. For 2025, two customers with individual sales over 10%, Lam Research and Applied Materials, accounted for a combined 76% of
total sales, and we expect that our sales will continue to be concentrated among a very small number of customers. We do not have any long-term
contracts that require customers to place orders with us in fixed or minimum volumes. Accordingly, the success of our business depends on the success
of our customers and those customers and other OEMs continuing to outsource the manufacturing of critical subsystems and process solutions to us.
Because of the small number of OEMs in the markets we serve, a number of which are already our customers, it is difficult to replace lost sales resulting
from the loss of, or the reduction, cancellation or delay in purchase orders by, any one of these customers, whether due to a reduction in the amount of
outsourcing they do, their giving orders to our competitors, an adverse change to their business or financial condition, their acquisition by an OEM who is
not a customer or with whom we do less business, or otherwise. We have in the past lost business from customers for a number of these reasons. If we
are unable to replace sales from customers who reduce the volume of products and services they purchase from us or terminate their relationship with
us entirely, such events could have a material adverse impact on our business, financial condition and results of operations.
Our ability to lessen the adverse effect of any loss of, or reduction in sales to, an existing customer through the rapid addition of one or more new
customers is limited because onboarding a new customer is a time-consuming process as our customers generally require that they qualify our
engineering, documentation, manufacturing and quality control procedures. Consequently, the risk that our business, financial condition and results of
operations would be materially adversely affected by the loss of, or any reduction in orders by, any of our significant customers is increased. Moreover, if
we lost our existing status as a qualified supplier to any of our customers, such customer could cancel its orders from us or otherwise terminate its
relationship with us, which could have a material adverse effect on our business, financial condition and results of operations.
Additionally, if one or more of the largest OEMs were to decide to single- or sole-source all or a significant portion of manufacturing and assembly work
to a single equipment manufacturer, such a development would heighten the risks discussed above.
Our customers exert a significant amount of negotiating leverage over us, which requires us to accept lower prices and gross margins or take
on increased liability risk in order to retain or expand our market share with them.
By virtue of our largest customers’ size and the significant portion of our sales that is derived from them, as well as the competitive landscape, our
customers exert significant influence and pricing pressure in the negotiation of our commercial arrangements and the conduct of our business with them.
Our customers often require price reductions and quality or delivery commitments as conditions to their purchasing from us, which have, among other
things, resulted in reduced gross margins in order for us to maintain or expand our market share. Our customers’ negotiating leverage also can result in
customer arrangements that contain significant liability risk to us. For example, some of our customers require that we provide them indemnification
against certain liabilities in our arrangements with them, including claims of losses by their customers caused by our products. Pursuant to certain of
these arrangements, we indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified
party for third party claims in connection with our breach of the agreement, our negligence or willful misconduct in connection with the agreement, or any
trade secret, copyright, patent or other intellectual property infringement claim with respect to our products. Any increase in our customers’ negotiating
leverage may expose us to increased liability risk in our arrangements with them, which, if realized, may have a material adverse effect on our business,
financial condition and results of operations. In addition, new products often carry lower gross margins than existing products for several quarters
following their introduction. If we are unable to retain and expand our business with our customers on favorable terms, or if we are unable to achieve
gross margins on new products that are similar to or more favorable than the gross margins we have historically achieved, our business, financial
condition and results of operations may be materially adversely affected.
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The industries in which we participate are highly competitive and rapidly evolving, and if we are unable to compete effectively, our business,
financial condition and results of operations could be materially adversely affected.
We face intense competition from other suppliers of gas or chemical delivery subsystems, as well as the internal manufacturing groups of OEMs.
Increased competition has in the past resulted, and could in the future result, in price reductions, reduced gross margins or loss of market share, any of
which would materially adversely affect our business, financial condition and results of operations. We are subject to significant pricing pressure as we
attempt to maintain and increase market share with our existing customers. Our competitors may offer reduced prices or introduce new products or
services for the markets currently served by our products and services. These products may have better performance, lower prices and achieve broader
market acceptance than our products. OEMs also typically own the design rights to their products. Further, if our competitors obtain proprietary rights to
these designs such that we are unable to obtain the designs necessary to manufacture products for our OEM customers, our business, financial
condition and results of operations could be materially adversely affected.
Certain of our competitors may have or may develop greater financial, technical, manufacturing and marketing resources than we do. As a result, they
may be able to respond more quickly to new or emerging technologies and changes in customer requirements, devote greater resources to the
development, promotion, sale and support of their products and services, and reduce prices to increase market share. In addition to organic growth by
our competitors, there may be merger and acquisition activity among our competitors and potential competitors that may provide our competitors and
potential competitors with an advantage over us by enabling them to expand their product offerings and service capabilities to meet a broader range of
customer needs. The introduction of new technologies and new market entrants may also increase competitive pressures.
Additionally, from time to time, governments around the world may provide incentives or make other investments that could benefit and give competitive
advantages to our competitors. For example, in August 2022, the U.S. government enacted the CHIPS and Science Act of 2022 to provide financial
incentives to the U.S. semiconductor industry. Government incentives, including any that may be offered in connection with the CHIPS Act, may not be
available to us on acceptable terms or at all and to the extent that the current administration modifies or repeals the CHIPS Act the availability of any
such incentives may be even less certain. If our competitors can benefit from such government incentives and we cannot, it could strengthen our
competitors’ relative position and have a material adverse effect on our business.
We are exposed to risks associated with weakness in the global economy and geopolitical instability.
Continuing uncertainty regarding the global economy and geopolitical instability continues to pose challenges to our business. Geopolitical instability,
including the conflict between Russia and Ukraine, the conflict in the Middle East, actual and potential shifts in U.S. (including as a result of the 2024
U.S. presidential and congressional elections) and foreign trade, economic and other policies, and rising trade tensions between the U.S. and China, as
well as other global events, have significantly increased macroeconomic uncertainty at a global level. The current macroeconomic environment is
characterized by high inflation, supply chain challenges, shortages of skilled labor and higher labor costs, high interest rates, foreign currency exchange
volatility, volatility in the global capital markets, and uncertainty in debt markets, which exacerbates negative trends in business and consumer spending
and causes certain of our customers to push out, cancel or refrain from placing orders for products or services, which may reduce sales, reduce our
backlog, increase our inventory and materially adversely affect our business, financial condition and results of operations. While inflation has slowed
from its peak in 2022 and the U.S. Federal Reserve decreased the federal funds rate in 2024 and 2025, the rate continues to be elevated and there can
be no assurances that the rate will continue to decrease or that it will not be increased in 2026 or beyond. Further, difficulties in obtaining capital,
uncertain market conditions or reduced profitability may also cause some customers to scale back operations, exit businesses, merge with other
manufacturers, or file for bankruptcy protection and potentially cease operations, leading to customers’ reduced research and development funding or
capital expenditures and, in turn, lower orders from our customers or additional slow moving or obsolete inventory or bad debt expense for us. These
conditions may also similarly affect our key suppliers, which could impair their ability to deliver parts and result in delays for our products or require us to
procure products from higher-cost suppliers, or if no additional suppliers exist, to reconfigure the design and manufacture of our products, and we may
be unable to fulfill some customer orders. Any of these conditions or events could have a material adverse effect on our business, financial condition and
results of operations.
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If we do not keep pace with developments in the industries we serve and with technological innovation generally, our products and services
may not be competitive.
Rapid technological innovation in the markets we serve requires us to anticipate and respond quickly to evolving customer requirements and could
render our current product offerings, services and technologies obsolete. In particular, the design and manufacturing of semiconductors is constantly
evolving and becoming more complex in order to achieve greater power, performance and efficiency with smaller devices. Capital equipment
manufacturers need to keep pace with these changes by refining their existing products and developing new products.
We believe that our future success will depend upon our ability to design, engineer and manufacture products that meet the changing needs of our
current and potential customers, including potentially through the incorporation or use of software or artificial intelligence technology, which as a novel
business model could expose us to new risks. This requires that we successfully anticipate and respond to technological changes in design, engineering
and manufacturing processes in a cost-effective and timely manner. If we are unable to integrate new technical specifications into competitive product
designs, develop the technical capabilities necessary to manufacture new products or make necessary modifications or enhancements to existing
products, our business, financial condition and results of operations could be materially adversely affected.
The timely development of new or enhanced products is a complex and uncertain process which requires that we:
•
design innovative and performance-enhancing features that differentiate our products from those of our competitors;
•
identify emerging technological trends in the industries we serve, including new standards for our products;
•
accurately identify and design new products to meet market needs;
•
collaborate with OEMs to design and develop products on a timely and cost-effective basis;
•
ramp-up production of new products, especially new subsystems, in a timely manner and with acceptable yields;
•
manage our costs of product development and the costs of producing the products that we sell;
•
successfully manage development production cycles; and
•
respond quickly and effectively to technological changes or product announcements by others.
If we are unsuccessful in keeping pace with technological developments for the reasons above or other reasons, our business, financial condition and
results of operations could be materially adversely affected.
We must design, develop, and introduce new products that are accepted by OEMs in order to retain our existing customers and obtain new
customers.
While we continue to invest in research and development initiatives for new products, the introduction of new products is inherently risky because it is
difficult to foresee the adoption of new standards, coordinate our technical personnel and strategic relationships and win acceptance of new products by
OEMs. Further, we cannot ensure that we will be able to successfully introduce, market and cost-effectively manufacture new products, or that we will be
able to develop new or enhanced products and processes that satisfy customer needs. In addition, new capital equipment typically has a lifespan of five
to ten years, and OEMs frequently specify which systems, subsystems, components and instruments are to be used in their equipment. Once a specific
system, subsystem, component or instrument is incorporated into a piece of capital equipment, it will often continue to be purchased for that piece of
equipment on an exclusive basis for 18 to 24 months before the OEM generates enough sales volume to consider adding alternative suppliers.
Accordingly, it is important that our products are designed into the new systems introduced by the OEMs. If any of the new products we develop are not
launched or successful in the market, our business, financial condition and results of operations could be materially adversely affected.
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Acquisitions may present integration challenges, and if the goodwill, indefinite-lived intangible assets, and other long-term assets recorded in
connection with such acquisitions become impaired, we would be required to record impairment charges, which may be significant.
We have acquired strategic businesses in the past and if we find appropriate opportunities in the future, we may acquire businesses, products or
technologies that we believe are strategic. The process of integrating an acquired business, product or technology may produce unforeseen operating
difficulties and expenditures, fail to result in expected synergies or other benefits or absorb significant attention of our management that would otherwise
be available for the ongoing development of our business. Our ability to realize anticipated benefits of acquisitions and other strategic initiatives may also
be affected by the incurrence of additional indebtedness in connection with financing; regulatory challenges; our ability to retain key employees and
customers of the acquired company; our ability to successfully integrate personnel from the acquired company; our ability to establish, integrate or
combine operations and systems; or our ability to retain the customers of an acquired business. In addition, we may record a portion of the assets we
acquire as goodwill, other indefinite-lived intangible assets or finite-lived intangible assets. We review goodwill for impairment on an annual basis or
whenever events or changes in circumstances indicate that its carrying value may not be recoverable. The recoverability of goodwill and indefinite-lived
intangible assets is dependent on our ability to generate sufficient future earnings and cash flows. Changes in estimates, circumstances or conditions,
resulting from both internal and external factors, could have a significant impact on our fair valuation determination, which could then have a material
adverse effect on our business, financial condition and results of operations.
We are subject to fluctuations in foreign currency exchange rates, which could cause operating results and reported financial results to vary
significantly from period to period.
The vast majority of our sales are denominated in U.S. dollars. Many of the costs and expenses associated with our Singapore, Malaysian, Korean, U.K.,
Mexico and European Union operations are paid in Singapore dollars, Malaysian ringgit, Korean won, British pounds, Mexican pesos or euros,
respectively, and we expect our exposure to these currencies to increase as we increase our operations in those jurisdictions. As a result, our risk
exposure from transactions denominated in non-U.S. currencies is primarily related to the Singapore dollar, Malaysian ringgit, Korean won, British pound,
Mexican peso and euro. In addition, because the majority of our sales are denominated in the U.S. dollar, if one or more of our competitors sells to our
customers in a different currency than the U.S. dollar, we are subject to the risk that the competitors’ products will be relatively less expensive than our
products due to exchange rate effects. We have not historically established transaction-based hedging programs. Foreign currency exchange risks
inherent in doing business in foreign countries could have a material adverse effect on our business, financial condition and results of operations.
Business and Operational Risks
The manufacturing of our products is highly complex, and if we are not able to manage our manufacturing and procurement process
effectively, our business, financial condition and results of operations may be materially adversely affected.
The manufacturing of our products is a highly complex process that involves the integration of multiple components and requires effective management
of our supply chain while meeting our customers’ design-to-delivery cycle time requirements. Through the course of the manufacturing process, our
customers may modify design and system configurations in response to changes in their own customers’ requirements. In order to rapidly respond to
these modifications and deliver our products to our customers in a timely manner, we must effectively manage our manufacturing and procurement
process. If we fail to manage this process effectively, we risk losing customers and damaging our reputation. We may also be subject to liability under our
agreements with our customers if we or our suppliers fail to re-configure manufacturing processes or components in response to these modifications. In
addition, the acquisition of inventory in excess of demand, or that does not meet customer specifications, causes us to incur excess or obsolete inventory
charges. We have from time to time experienced bottlenecks and production difficulties that have caused delivery delays and quality control problems.
These risks are even greater as we seek to expand our business into new subsystems. In addition, certain of our suppliers have been, and may in the
future be, forced out of business as a result of the economic environment. In such cases, we may be required to procure products from higher-cost
suppliers or, if no additional suppliers exist, reconfigure the design and manufacture of our products. This could materially limit our growth, adversely
impact our ability to win future business and have a material adverse effect on our business, financial condition and results of operations.
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Defects in our products could damage our reputation, decrease market acceptance of our products, and result in potentially costly litigation.
A number of factors, including design flaws, material and component failures, contamination in the manufacturing environment, impurities in the materials
used and unknown sensitivities to process conditions, such as temperature and humidity, as well as equipment failures, may cause our products to
contain undetected errors or defects. Errors, defects or other problems with our products may:
•
cause delays in product introductions and shipments;
•
result in increased costs and diversion of development resources;
•
cause us to incur increased charges due to unusable inventory;
•
require design modifications;
•
result in liability for the unintended release of hazardous materials;
•
result in product warranty liability;
•
create claims for rework, replacement or damages under our contracts with customers, as well as indemnification claims from customers;
•
decrease market acceptance of, or customer satisfaction with, our products, which could result in decreased sales and increased product
returns;
•
result in the loss of existing customers or impair our ability to attract new customers; or
•
result in lower yields for semiconductor manufacturers.
If any of our products contain defects or have reliability, quality or compatibility problems, our reputation may be damaged and customers may be
reluctant to buy our products. We may also face a higher rate of product defects as we increase our production levels in periods of significant growth. In
addition, we may not find defects or failures in our products until after they are installed in a manufacturer’s fabrication facility. We may have to invest
significant capital and other resources to correct these problems. Our customers also might seek to recover from us any losses resulting from defects or
failures in our products. In addition, hazardous materials flow through and are controlled by certain of our products and an unintended release of these
materials could result in serious injury or death. Liability claims could require us to spend significant time and money in litigation or pay significant
damages.
We may incur unexpected warranty and performance guarantee claims that could materially adversely affect our business, financial condition
and results of operations.
In connection with our products and services, we provide various product warranties, performance guarantees and indemnification rights. Warranty or
other performance guarantee or indemnification claims against us could cause us to incur significant expense to repair or replace defective products or
indemnify the affected customer for losses. In addition, quality issues have various other ramifications, including delays in the recognition of sales, loss of
sales, loss of future sales opportunities, increased costs associated with repairing or replacing products, and a negative impact on our reputation, all of
which could materially adversely affect our business, financial condition and results of operations.
Our dependence on a limited number of suppliers may harm our production output and increase our costs, and may prevent us from
delivering acceptable products on a timely basis.
Our ability to meet our customers’ demand for our products depends upon obtaining adequate supplies of quality components and other raw materials on
a timely basis. In addition, our customers often specify components from particular suppliers that we must incorporate into our products. We also use
consignment and just-in-time stocking programs, which means we carry very little inventory of components or other raw materials, and we rely on our
suppliers to deliver necessary components and raw materials in a timely manner. However, our suppliers are under no obligation to continue to provide
us with components or other raw materials. As a result, the loss of or failure to perform by any of our key suppliers could materially adversely affect our
ability to deliver products on a timely basis. In addition, if a supplier is unable to provide the volume of components we require on a timely basis and at
acceptable prices and quality, we would have to identify and qualify replacements from alternative sources of supply, and the process of qualifying new
suppliers for complex components is lengthy and could delay our production. We may also experience difficulty in obtaining sufficient supplies of
components and raw materials in times of significant growth in our business. If we are unable to procure sufficient quantities of components or raw
materials from suppliers, our customers may elect to delay or cancel existing orders or not place future orders, which could have a material adverse
effect on our business, financial condition and results of operations.
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Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand could affect our
ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
Our business depends on our timely supply of equipment, services and related products to meet the changing requirements of our customers, which
depends in part on the timely delivery of parts, materials and services from suppliers and contract manufacturers. Shortages of parts, materials and
services needed to manufacture our products, as well as delays in and unpredictability of shipments due to transportation interruptions, have adversely
impacted, and may continue to adversely impact, our manufacturing operations and our ability to meet customer demand. Ongoing supply chain
constraints may continue to increase costs of logistics and parts for our products and may cause us to pass on increased costs to our customers, which
may lead to reduced demand for our products and materially and adversely impact our operating results. Supply chain disruptions have caused and may
continue to cause delays in our equipment production and delivery schedules, which could have an adverse impact on our operating and financial
results.
We may experience supply chain disruptions, significant interruptions of our manufacturing operations, delays in our ability to deliver or install products
or services, increased costs, customer order cancellations or reduced demand for our products as a result of:
•
global trade issues and changes in and uncertainties with respect to trade and export regulations, trade policies and sanctions, tariffs (including
uncertainty around increased, new, or retaliatory tariffs and trade restrictions resulting from the current presidential administration), international
trade disputes and new and unchanging regulations for exports of certain technologies to China, where a portion of our supply chain is located,
and any retaliatory measures, that adversely impact us or our suppliers;
•
the failure or inability to accurately forecast demand and obtain quality parts on a cost-effective basis;
•
volatility in the availability and cost of parts, commodities, energy and shipping related to our products, including increased costs due to high
inflation or interest rates or other market conditions;
•
difficulties or delays in obtaining required import or export licenses and approvals;
•
shipment delays due to transportation interruptions or capacity constraints;
•
a worldwide shortage of manufacturing components as a result of sharp increases in demand for semiconductor products in general;
•
cybersecurity incidents or information technology or infrastructure failures, including those of a third-party supplier or service provider; and
•
natural disasters, the impacts of climate change or other events beyond our control (such as earthquakes, utility interruptions, tsunamis,
hurricanes, typhoons, floods, storms or extreme weather conditions, fires, regional economic downturns, regional or global health epidemics,
geopolitical turmoil, increased trade restrictions between the U.S. and China and other countries, social unrest, political instability, terrorism or
acts of war) in locations where we or our customers or suppliers have manufacturing, research, engineering, or other operations.
If we need to rapidly increase our business and manufacturing capacity to meet increases in demand or expedited shipment schedules, this may strain
our manufacturing and supply chain operations and negatively impact our working capital.
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We are subject to order and shipment uncertainties, and any significant reductions, cancellations or delays in customer orders could have a
material adverse effect on our business, financial condition and results of operations.
Our sales are difficult to forecast because we generally do not have a material backlog of unfilled orders and because of the short timeframe within which
we are often required to manufacture and deliver products to our customers. Most of our sales for a particular quarter depend on customer orders placed
during that quarter or shortly before it commences. Our contracts generally do not require our customers to commit to minimum purchase volumes. While
most of our customers provide periodic rolling forecasts for product orders, those forecasts do not become binding until a formal purchase order is
submitted, which generally occurs only a short time prior to shipment. As a result of the foregoing and the cyclicality and volatility of the industries we
serve, it is difficult to predict future orders with precision and we may incur unexpected or additional costs to align our business operations with changes
in demand. Occasionally, we order component inventory and build products in advance of the receipt of actual customer orders. Customers may cancel
order forecasts, change production quantities from forecasted volumes, change product specifications or delay production for reasons beyond our
control. Furthermore, reductions, cancellations or delays in customer order forecasts may occur from time to time without penalty to, or compensation
from, the customer. Reductions, cancellations or delays in forecasted orders could cause us to hold inventory longer than anticipated, which could
reduce our gross profit, restrict our ability to fund our operations, and result in unanticipated reductions or delays in sales. If we do not obtain orders as
we anticipate, we could have excess components for a specific product or finished goods inventory that we would not be able to sell to another customer,
likely resulting in inventory write-offs or selling inventory at lower margins, which could have a material adverse effect on our business, financial condition
and results of operations.
We may be subject to interruptions, failures, or cybersecurity breaches in our information technology systems.
We rely on our information technology systems to process transactions, summarize our operating results and manage our business. Our information
technology systems are subject to damage or interruption from power outages, computer and telecommunications failures, computer viruses, cyber-
attack or other security breaches, catastrophic events, such as fires, floods, earthquakes, tornadoes, hurricanes, severe weather, acts of war or
terrorism, and usage errors by our employees. If our information technology systems are damaged or cease to function properly, we may have to make a
significant investment to fix or replace them, and we may suffer loss of critical data and interruptions or delays in our operations.
We may be the target of attempted cyber-attacks, computer viruses, malicious code, phishing attacks, denial of service attacks and other information
security threats. In addition, artificial intelligence technologies are increasingly being used by malicious actors to identify vulnerabilities, automate
reconnaissance, generate sophisticated phishing and social engineering attacks, develop polymorphic malware that evades traditional detection
methods, and implement coordinated cyber-attacks at scale and speed that exceed human-directed attacks. As AI capabilities continue to advance, the
sophistication, scale, and frequency of AI-enhanced cyber-attacks are expected to increase significantly, potentially outpacing our ability to defend
against such threats using conventional cybersecurity measures. Our cybersecurity defenses may require substantial ongoing investment in AI-powered
security tools, threat intelligence, and skilled security personnel to address the evolving AI threat landscape.
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To date, cyber-attacks have not had a material impact on our financial condition, results or business; however, our efforts to maintain the security and
integrity of our information technology systems may not be effective and security breaches or disruptions could result in material financial or other losses
in the future, especially if we are not able to predict the probability and the severity of these attacks. Our risk and exposure to these matters remains
heightened because of, among other things, the evolving nature of these threats, the current global economic and political environment, our prominent
size and scale, the outsourcing of some of our business operations to foreign jurisdictions, the ongoing shortage of qualified cyber-security professionals,
and the interconnectivity and interdependence of third parties to our systems. The occurrence of a cyber-attack, breach, unauthorized access, misuse,
computer virus or other malicious code or other cyber-security event could jeopardize or result in the unauthorized disclosure, gathering, monitoring,
misuse, corruption, loss or destruction of confidential and other information that belongs to us, our customers, our counterparties, third-party service
providers or borrowers that is processed and stored in, and transmitted through, our computer systems and networks. The occurrence of such an event
could also result in damage to our software, computers or systems, or otherwise cause interruptions or malfunctions in our, our customers’, our
counterparties’ or third parties’ operations. This could result in significant losses, loss of customers and business opportunities, reputational damage,
litigation, regulatory fines, penalties or intervention, reimbursement or other compensatory costs, or otherwise materially adversely affect our business,
financial condition or results of operations. While we have purchased cyber-security insurance, there can be no assurance that the coverage will be
sufficient to cover all financial losses. Moreover, as cyber-security events increase in frequency and magnitude, we may be unable to obtain cyber-
security insurance in amounts and on terms we view as appropriate for our operations.
The reliability and capacity of our information technology systems is critical to our operations and the implementation of our growth initiatives. Any
material disruption in our information technology systems, or delays or difficulties in implementing or integrating new systems or enhancing current
systems, could have a material adverse effect on our business, financial condition, and results of operations.
Our customers' adoption of artificial intelligence and machine learning technologies for semiconductor manufacturing process optimization
and equipment control may create new technical requirements, interoperability challenges, and competitive risks.
Semiconductor equipment manufacturers and semiconductor device manufacturers are increasingly adopting artificial intelligence and machine learning
technologies for process optimization, predictive maintenance, equipment control, yield enhancement, and fab automation. These AI/ML capabilities may
become standard customer requirements for capital equipment and subsystems, requiring real-time data integration, edge computing capabilities,
sophisticated sensors and instrumentation, and software interfaces that enable AI-driven process control and optimization.
If we are unable to develop and integrate AI/ML capabilities into our gas and chemical delivery subsystems at the pace required by our OEM customers
and their end customers, we may be at a competitive disadvantage relative to suppliers who offer AI-enabled products. Developing AI/ML capabilities
may require significant investments in software engineering, data science, sensor technologies, and computing infrastructure, and we may lack the
internal expertise or resources to develop such capabilities as rapidly as the market demands. We may also face technical challenges in integrating
AI/ML capabilities with our existing product architectures, or in ensuring interoperability with our OEM customers' AI platforms and industry-standard
protocols.
Additionally, AI-enabled equipment and subsystems may create new data privacy, data security, and intellectual property issues, as process data,
recipes, and performance information may be collected, transmitted, and analyzed by AI systems, potentially creating risks of data breaches,
unauthorized access to confidential information, or disputes over ownership of AI-generated insights. Customer requirements for AI capabilities may also
increase product complexity, development costs, and time-to-market for new products, and may require ongoing software updates, maintenance, and
support that create new service obligations and cost structures.
Our failure to keep pace with customer AI adoption could result in loss of market share, reduced pricing power, or exclusion from next-generation
equipment platforms, which could have a material adverse effect on our business, financial condition and results of operations.
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Certain of our customers require that we consult with them in connection with specified fundamental changes in our business and that we
address any concerns or requests such customer may have in connection with a fundamental change.
Certain of our key customers require that we consult with them in connection with specified fundamental changes in our business, including, among
other things:
•
entering into any new line of business;
•
amending or modifying our organizational documents;
•
selling all or substantially all of our assets, or merging or amalgamating with a third party;
•
incurring borrowings in excess of a specific amount;
•
making senior management changes; and
•
entering into any joint venture arrangement.
These customers do not have contractual approval or veto rights with respect to any fundamental changes in our business. However, our failure to
consult with such customers or to satisfactorily respond to their requests in connection with any such fundamental change could potentially constitute a
breach of contract or otherwise be detrimental to our relationships with such customers, which could have a material adverse effect on our business,
financial condition and results of operations.
Our business is largely dependent on the know-how of our employees, and we generally do not have an intellectual property position that is
protected by patents.
We believe that the success of our business depends in part on our proprietary technology, information, processes and know-how and on our ability to
operate without infringing on the proprietary rights of third parties. We rely on a combination of trade secrets and contractual confidentiality provisions
and, to a much lesser extent, patents, copyrights and trademarks to protect our proprietary rights. Accordingly, our intellectual property position is more
vulnerable than it would be if it were protected primarily by patents. We cannot ensure that we have adequately protected or will be able to adequately
protect our technology, that our competitors will not be able to utilize our existing technology or develop similar technology independently, that the claims
allowed with respect to any patents held by us will be broad enough to protect our technology or that foreign intellectual property laws will adequately
protect our intellectual property rights. If we fail to protect our proprietary rights successfully, our competitive position could suffer. Any future litigation to
enforce patents issued to us, to protect trade secrets or know-how possessed by us or to defend ourselves or to indemnify others against claimed
infringement of the intellectual property rights of others could have a material adverse effect on our business, financial condition and results of
operations.
Our business will suffer if we are unable to attract, hire, integrate and retain key personnel and other necessary employees, particularly in the
highly competitive technology labor market, or if we experience labor disruptions at our facilities.
Our business will suffer if we are unable to attract, employ and retain highly skilled personnel as our future success depends in part on the continued
service of our key executive officers, as well as our research, engineering, sales and manufacturing personnel, most of whom are not subject to
employment or non-competition agreements. Competition for qualified personnel in the technology industry is particularly intense, and we operate in
geographic locations in which labor markets are competitive. Our management team has significant industry experience, substantial institutional
knowledge of our business and operations and deep customer relationships, and therefore would be difficult to replace. In addition, our business is
dependent to a significant degree on the expertise and relationships which only a limited number of engineers possess. Many of these engineers often
work at our customers’ sites and serve as an extension of our customers’ product design teams. The loss of any of our key executive officers or key
engineers and other personnel, including our engineers working at our customers’ sites, or the failure to attract additional personnel as needed, could
have a material adverse effect on our business, financial condition and results of operations and could lead to higher labor costs, the use of less-qualified
personnel and the loss of customers. We initiated labor cost reduction initiatives in the second quarter of 2025, continuing through the fourth quarter of
2025, which may adversely affect us as a result of decreased employee morale, the loss of institutional knowledge held by departing employees and the
allocation of resources to reorganize and reassign job roles and responsibilities. Furthermore, we do not maintain key person life insurance with respect
to any of our employees. In addition, if any of our key executive officers or other key employees were to join a competitor or form a competing company,
we could lose customers, suppliers, know-how and key personnel.
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As of December 26, 2025, we had approximately 1,891 full time employees and 557 contract/temporary employees worldwide. None of our employees
are unionized, but in various countries, local law requires our participation in works councils. While we have not experienced any material work
stoppages at any of our facilities, any stoppage or slowdown could cause material interruptions in manufacturing, and we cannot ensure that alternate
qualified personnel would be available on a timely basis, or at all. As a result, labor disruptions at any of our facilities could materially adversely affect our
business, financial condition and results of operations.
Our business is subject to the risks of severe weather, earthquakes, fire, power outages, floods, and other catastrophic events, including
weather events resulting from climate change, and to interruption by man-made disruptions, such as terrorism.
Our facilities could be subject to a catastrophic loss caused by natural disasters, including severe weather, fires, earthquakes or other events, including a
terrorist attack, a pandemic, epidemic or outbreak of a disease. Increasing concentrations of greenhouse gasses in the Earth’s atmosphere and climate
change may produce significant physical effects on weather conditions, such as increased frequency and severity of droughts, storms, floods, extreme
temperatures, and other climatic events. While we maintain disaster recovery plans, they might not adequately protect us. These events, including
terrorist attacks, pandemics, epidemics or outbreaks of a disease, hurricanes, fires, floods and ice and snow storms, could result in damage to and
closure of our or our customers’ facilities or the infrastructure on which such facilities rely. Additionally, it could delay production and shipments, reduce
sales, result in large expenses to repair or replace the facility, and we may experience extended power outages at our facilities. Disruption in supply
resulting from natural disasters or other causalities or catastrophic events may result in certain of our suppliers being unable to deliver sufficient
quantities of components or raw materials at all or in a timely manner, which could cause disruptions in our operations or disruptions in our customers’
operations. Although we carry business interruption insurance policies and typically have provisions in our contracts that protect us in certain events, our
coverage might not be adequate to compensate us for all losses that may occur. To the extent that natural disasters or other calamities or causalities
should result in delays or cancellations of customer orders, or the delay in the manufacture or shipment of our products, our business, financial condition
and results of operations would be materially adversely affected.
Government subsidy programs for semiconductor manufacturing may create artificial and unsustainable demand patterns for capital
equipment, and subsidy conditions may create competitive distortions or impose indirect obligations on us.
Governments in the United States, European Union, Japan, South Korea, China, and other countries have enacted substantial subsidy and incentive
programs to encourage domestic semiconductor manufacturing capacity. These programs, including the U.S. CHIPS and Science Act, the EU Chips Act,
and similar initiatives, provide grants, tax incentives, loan guarantees, and other financial support to semiconductor manufacturers who build or expand
fabrication facilities in specific jurisdictions.
Government subsidy programs may create demand volatility and distortions in the semiconductor capital equipment market:
•
Subsidized fabrication facility construction may create a near-term surge in capital equipment demand as multiple subsidized projects proceed
simultaneously, followed by a sharp decline in demand once subsidy-driven projects are completed, creating boom-bust cycles that are more
severe than normal industry cyclicality;
•
Subsidized facilities may not be economically sustainable without ongoing government support, and may operate at low utilization rates or may
be curtailed if subsidies are reduced or eliminated, resulting in lower ongoing demand for spare parts, upgrades, or capacity expansions;
•
Government subsidy priorities may favor certain types of semiconductor manufacturing (e.g., mature node manufacturing for automotive or
industrial applications versus leading-edge logic manufacturing), creating uneven demand across equipment categories and potentially reducing
demand for equipment types where we have strong positions;
•
Subsidized competitors in foreign markets may gain market share due to government support, while we may not have access to equivalent
subsidies, creating competitive disadvantages; and
•
Political changes or budget constraints may result in subsidy programs being reduced, delayed, or eliminated, causing sudden changes in
expected demand.
Additionally, semiconductor manufacturers who receive government subsidies may be subject to various conditions and restrictions that could indirectly
affect us:
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•
"Buy national" or domestic content requirements that encourage or require subsidized manufacturers to source equipment and subsystems from
domestic suppliers, potentially disadvantaging us if we do not have manufacturing presence in the subsidy jurisdiction or if our products do not
meet domestic content thresholds;
•
Restrictions on subsidized manufacturers' ability to expand manufacturing capacity in certain countries, which may limit end-market demand for
equipment in regions where we have sales or manufacturing presence;
•
Labor, environmental, or social requirements imposed on subsidy recipients that may flow down through the supply chain to us as indirect
requirements or customer expectations; and
•
Transparency and reporting requirements that may require subsidized customers to disclose information about their supply chains, potentially
affecting our confidential commercial information or competitive position.
We have limited visibility into how government subsidy programs will ultimately affect equipment demand patterns, customer behavior, or competitive
dynamics. Our inability to accurately forecast subsidy-driven demand could result in capacity mismatches, inventory imbalances, or missed market
opportunities. Subsidy-driven market distortions could have a material adverse effect on our business, financial condition and results of operations.
We may be classified as a passive foreign investment company (“PFIC”), which could result in adverse U.S. federal income tax consequences
for U.S. holders.
Based on the current and anticipated valuation of our assets and the composition of our income and assets, we do not expect to be considered a PFIC,
for U.S. federal income tax purposes for the foreseeable future. However, we must make a separate determination for each taxable year as to whether
we are a PFIC after the close of each taxable year and we cannot assure you that we will not be a PFIC for our 2025 taxable year or any future taxable
year. Under current law, a non-U.S. corporation will be considered a PFIC for any taxable year if either (1) at least 75% of its gross income is passive
income or (2) at least 50% of the value of its assets, generally based on an average of the quarterly values of the assets during a taxable year, is
attributable to assets that produce or are held for the production of passive income. PFIC status depends on the composition of our assets and income
and the value of our assets, including, among others, a pro rata portion of the income and assets of each subsidiary in which we own, directly or
indirectly, at least 25% by value of the subsidiary's equity interests, from time to time. Because we currently hold and expect to continue to hold a
substantial amount of cash or cash equivalents, and because the calculation of the value of our assets may be based in part on the value of our ordinary
shares, which may fluctuate considerably given that market prices of technology companies historically often have been volatile, we may be a PFIC for
any taxable year. If we were treated as a PFIC for any taxable year during which a U.S. holder held ordinary shares, certain adverse U.S. federal income
tax consequences could apply for such U.S. holder.
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Legal and Regulatory Risks
Our business is subject to a variety of U.S. and international laws, rules, policies, and other obligations regarding privacy, data protection,
and other matters.
We are subject to federal, state, and international laws relating to the collection, use, retention, security, and transfer of customer, employee, and
business partner personally identifiable information, including the European Union’s General Data Protection Regulation (“GDPR”), the California
Consumer Privacy Act (“CCPA”) and similar effective or proposed state legislation in the U.S. In many cases, these laws apply not only to third-party
transactions, but also to transfers of information between one company and its subsidiaries, and among the subsidiaries and other parties with which we
have commercial relations. The introduction of new products or expansion of our activities in certain jurisdictions may subject us to additional laws and
regulations. Foreign data protection, privacy, and other laws and regulations, including GDPR, can be more restrictive than those in the U.S. These U.S.
federal and state and foreign laws and regulations, including GDPR, which can be enforced by private parties or government entities, are constantly
evolving and can be subject to significant change. In addition, the application and interpretation of these laws and regulations, including GDPR, are often
uncertain, particularly in the new and rapidly evolving industry in which we operate, and may be interpreted and applied inconsistently from country to
country and inconsistently with our current policies and practices. These existing and proposed laws and regulations can be costly to comply with and
can delay or impede the development of new products, result in negative publicity, increase our operating costs, require significant management time
and attention, and subject us to inquiries or investigations, claims or other remedies, including fines, which may be significant, or demands that we
modify or cease existing business practices.
A failure by us, our suppliers, or other parties with whom we do business to comply with posted privacy policies or with other federal, state, or
international privacy-related or data protection laws and regulations, including GDPR and CCPA, could result in proceedings against us by governmental
entities or others, which could have a material adverse effect on our business, results of operations, and financial condition.
Third parties have claimed and may in the future claim we are infringing their intellectual property, which could subject us to litigation or
licensing expenses, and we may be prevented from selling our products if any such claims prove successful.
We have received claims, and may in the future, that our products, processes or technologies infringe the patents or other proprietary rights of third
parties. Any litigation regarding our patents or other intellectual property could be costly and time-consuming and divert our management and key
personnel from our business operations, any of which could have a material adverse effect on our business, financial condition and results of operations.
The complexity of the technology involved in our products, the uncertainty of intellectual property litigation, and the uncertainty of the intellectual property
rights of others that may be applicable to our products increase these risks. Claims of intellectual property infringement may also require us to enter into
costly license agreements which we may not be able to obtain on terms acceptable to us, or at all. We also may be subject to significant damages or
injunctions against the development, manufacture and sale of certain of our products if any such claims prove successful. We rely on design
specifications and other intellectual property of our customers in the manufacture of products for such customers. While our customer agreements
generally provide for indemnification of us by a customer if we are subjected to litigation for third-party claims of infringement of such customer’s
intellectual property, such indemnification provisions may not be sufficient to fully protect us from such claims, or our customers may breach such
indemnification obligations to us, which could result in costly litigation to defend against such claims or enforce our contractual rights to such
indemnification.
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From time to time, we may become involved in other litigation and regulatory proceedings, which could require significant attention from our
management and result in significant expense to us and disruptions in our business.
We may in the future be named as a defendant from time to time in other lawsuits and regulatory actions relating to our business, such as commercial
contract claims, employment claims and tax examinations, some of which may claim significant damages or cause us reputational harm. Due to the
inherent uncertainties of litigation and regulatory proceedings, we cannot predict the ultimate outcome of any such proceeding. An unfavorable outcome
could have a material adverse effect on our business, financial condition and results of operations or limit our ability to engage in certain of our business
activities. In addition, regardless of the outcome of any litigation or regulatory proceeding, such proceedings are often expensive, time-consuming and
disruptive to normal business operations and require significant attention from our management. As a result, any such lawsuits or proceedings could
materially adversely affect our business, financial condition and results of operations.
As a global company, we are subject to the risks of doing business internationally, including periodic foreign economic downturns and
political instability, which may adversely affect our sales and cost of doing business in those regions of the world.
Foreign economic downturns have adversely affected our business and results of operations in the past and could adversely affect our business and
results of operations in the future. In addition, other factors relating to the operation of our business outside of the U.S. may have a material adverse
effect on our business, financial condition and results of operations in the future, including:
•
the imposition of governmental controls or changes in government regulations, including tax regulations;
•
difficulties in enforcing our intellectual property rights;
•
difficulties in developing relationships with local suppliers;
•
difficulties in attracting new international customers;
•
difficulties in complying with foreign and international laws and treaties;
•
restrictions on the export of technology, including those based on positions taken by governmental agencies regarding possible national,
commercial or security issues posed by the development, sale or export of certain products and technologies;
•
compliance with U.S. and international laws involving international operations, including the Foreign Corrupt Practices Act, export control laws
and export license requirements;
•
difficulties in achieving headcount reductions due to unionized labor and works councils;
•
restrictions on transfers of funds and assets between jurisdictions;
•
geopolitical instability;
•
change in currency controls; and
•
trade restrictions and changes in taxes and tariffs.
In the future, we may seek to expand our presence in certain foreign markets or enter emerging markets. Evaluating or entering an emerging market
may require considerable management time, as well as start-up expenses for market development before any significant sales and earnings are
generated. Operations in new foreign markets may achieve low margins or may be unprofitable, and expansion in existing markets may be affected by
local political, economic and market conditions. As we continue to operate our business globally, our success will depend, in part, on our ability to
anticipate and effectively manage these and the other risks noted above. The impact of any one or more of these factors could materially adversely
affect our business, financial condition and results of operations.
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Changes in U.S. or international trade policy, tariffs, and import/export regulations may have a material adverse effect on our business,
financial condition and results of operations.
Our international operations and transactions depend upon favorable trade relations between the U.S. and the foreign countries in which our customers
and suppliers have operations. Changes in U.S. or international social, political, regulatory and economic conditions or in laws and policies governing
foreign trade, manufacturing, development and investment in the territories or countries where we currently sell our products or conduct our business, as
well as any negative sentiment toward the U.S. as a result of such changes, could adversely affect our business. Legislators in the U.S. may institute or
propose changes to trade policies that include the negotiation or termination of trade agreements, the imposition of higher tariffs on imports into the U.S.,
economic sanctions on individuals, corporations or countries, and other government regulations affecting trade between the U.S. and other countries
where we conduct our business. It may be time-consuming and expensive for us to alter our business operations in order to adapt to or comply with any
such changes, and we may face competition from companies that exist in a more favorable legal or regulatory environment than we do who are able to
sell products for certain applications to certain customers that we are prohibited from selling to under applicable export controls.
As a result of recent trade policy changes in the U.S., there may be greater restrictions and economic disincentives on international trade and a resulting
impact on our operations, sales and financial condition. For example, the Bureau of Industry and Security (“BIS") has issued multiple rules in the last
several years (the "BIS Rules") that restrict the export of advanced computing and semiconductor manufacturing items when provided for use in certain
semiconductor manufacturing activities in China, which have impacted and may continue to impact our sales and operations. We have had some delays
in export activity as we analyze available emergency authorizations and assess the new licensing requirements for our business. While we have applied
and received licenses from the BIS for our products, we recognize that the BIS could revise or expand the BIS Rules in response to public comments
and the BIS may issue guidance clarifying the scope of the BIS Rules. Such revisions, expansions or guidance could change the impact of the BIS Rules
on our business and require us to apply for additional licenses. If the BIS denies our license applications or there are delays in issuing licenses, we may
have to cease or delay exports, which would cause a reduction in revenue. Furthermore, to the extent any of our customers or counterparties are
designated on the Entity List or Unverified List maintained by the BIS, to which BIS may continue to add customers, we could suffer additional
disruptions to sales and operations.
More broadly, if customers do not view us as a reliable supplier because we cannot obtain the necessary licenses, we may lose business opportunities to
competitors. In particular, competitors outside the U.S. whose products are not subject to the BIS Rules may replace us if we cannot obtain licenses in a
timely manner. In the longer term, if our supply is less reliable due to the BIS Rules, Chinese entities that currently purchase our products may begin to
develop their own products instead. China's investments in technology development and manufacturing capability in support of its stated policy of
reducing its dependence on foreign semiconductor manufacturers and other technology companies has likely already resulted, and we expect will
continue to result, in reduced demand for our products in China and other key markets as well as reduced supply of critical materials for our products. To
the extent that the BIS or other relevant regulators impose additional export restrictions that apply to our business, it will have an adverse impact on our
revenues and operations as well.
This represents a structural, long-term threat to our revenue rather than merely a cyclical or regulatory compliance issue. Chinese government-backed
initiatives to achieve semiconductor self-sufficiency, including substantial state subsidies for domestic equipment manufacturers and semiconductor
device manufacturers, may erode our market position in China over a multi-year period even if current export control regulations are not further
tightened. We may experience permanent loss of market share in China as Chinese customers increasingly source equipment and subsystems from
domestic suppliers, and we may be unable to offset such losses with growth in other geographic markets due to limited semiconductor manufacturing
capacity outside of Asia.
In addition, geopolitical changes in China-Taiwan relations could disrupt the operations of companies in China or Taiwan that are suppliers to, or third-
party partners of, the Company, our customers and our customers’ other suppliers. Disruption of certain critical operations in China or Taiwan would
adversely affect our ability to manufacture certain products and would likely have substantial negative effects on the entire semiconductor industry.
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Tariffs and other changes in U.S. trade policy could trigger retaliatory actions by affected countries, and certain foreign governments have instituted or
are considering imposing trade sanctions on certain U.S. goods. For example, further U.S. government escalation of restrictions related to China and
increased restrictions on Chinese exports, such as those tariffs contemplated by the current U.S. administration on goods originating from China, may
lead to regulatory retaliation by the Chinese government and possibly further escalate geopolitical tensions, and any such scenarios may adversely
impact our business. Such changes have the potential to adversely impact the U.S. economy or certain sectors thereof, our industry and the global
demand for our products. We may not succeed in developing and implementing policies and strategies to counter the foregoing factors effectively in
each location where we do business and the foregoing factors may cause a reduction in our sales, profitability or cash flows, or cause an increase in our
liabilities.
U.S. export control regulations apply to "deemed exports" of controlled technology to foreign nationals, and the complexity of re-export
controls across our international operations may limit our ability to hire qualified personnel and may create compliance challenges.
U.S. export control regulations apply not only to the physical export of products and technology from the United States, but also to "deemed exports,"
which occur when controlled technology or source code is released to a foreign national within the United States. A foreign national is any person who is
not a U.S. citizen or lawful permanent resident. Deemed export rules mean that providing access to controlled technical data, software, or technology to
foreign national employees, contractors, or visitors in the United States may require an export license, depending on the person's nationality and the
classification of the technology.
Our business depends on our ability to hire and retain highly skilled engineers, many of whom may be foreign nationals, including individuals from China,
Taiwan, and other countries that are subject to heightened export control scrutiny. Deemed export restrictions may limit our ability to:
•
Recruit and hire qualified engineering talent, particularly in competitive labor markets where foreign nationals represent a significant portion of
available candidates;
•
Assign foreign national employees to work on projects involving controlled technologies, potentially creating inefficiencies in resource allocation
and project staffing;
•
Provide foreign national employees with access to technical information, training, or collaborative work environments necessary for effective
performance of their duties;
•
Utilize foreign national employees in customer-facing roles where exposure to customer proprietary information or controlled technologies may
occur; and
•
Compete for talent against companies that are not subject to deemed export restrictions or that have more permissive licensing arrangements.
Compliance with deemed export regulations requires careful tracking of employee nationalities, technology classifications, and license authorizations,
and violations can result in significant civil and criminal penalties. We may be required to implement costly administrative controls, facility access
restrictions, and information barriers to ensure deemed export compliance, and such measures may negatively impact operational efficiency, employee
morale, and our culture of collaboration and innovation.
In addition, our international operations create re-export control complexity. Products, software, and technology that are manufactured, developed, or
stored outside the United States but that incorporate U.S.-origin controlled content or that are produced using U.S.-origin technology may be subject to
U.S. re-export controls. This means that transfers of items or technology among our foreign subsidiaries, from our foreign subsidiaries to customers or
suppliers, or within the operations of our foreign subsidiaries may require U.S. export licenses or may be subject to U.S. export restrictions, even though
such transfers do not physically touch the United States.
Tracking U.S.-origin controlled content across complex, multi-jurisdictional supply chains and manufacturing operations is administratively burdensome
and creates risk of inadvertent violations. Re-export control requirements may limit our flexibility to optimize our global supply chain, to transfer
manufacturing or engineering resources among facilities, or to respond quickly to customer requirements. Foreign governments may also object to the
application of U.S. export controls to activities occurring outside U.S. territory, potentially creating conflicting legal obligations.
Our failure to comply with deemed export or re-export control regulations could result in loss of export privileges, significant fines and penalties,
reputational damage, and criminal liability for responsible individuals, and could have a material adverse effect on our business, financial condition and
results of operations.
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We are subject to numerous environmental laws and regulations, including laws and regulations addressing climate change, which could
require us to incur environmental liabilities, increase our manufacturing and related compliance costs or otherwise adversely affect our
business.
We are subject to a variety of federal, state, local and foreign laws and regulations governing the protection of the environment or addressing climate
change. These environmental laws and regulations include those relating to the use, storage, handling, discharge, emission, disposal and reporting of
toxic, volatile or otherwise hazardous materials (such as regulations imposed on the use or sale of polyfluoroalkyl substances ("PFAS") or PFAS-
containing products) used in our manufacturing processes. These materials may have been or could be released into the environment at properties
currently or previously owned or operated by us, at other locations during the transport of materials or at properties to which we send substances for
treatment or disposal. In addition, we may not be aware of all environmental laws or regulations that could subject us to liability in the U.S. or
internationally. If we were to violate or become liable under environmental laws and regulations or become non-compliant with permits required at some
of our facilities, we could be held financially responsible and incur substantial costs, including cleanup costs, fines and civil or criminal sanctions, third-
party property damage or personal injury claims. We could also be required to alter or discontinue our product design, manufacturing and operations in
certain jurisdictions and incur substantial expense in order to comply. In addition, our operations may be interrupted or restricted by the phase-out or ban
of certain substances, materials or processes, which may impact the sourcing, supply and pricing of materials used in manufacturing our products.
Concern over climate change may continue to result in new or increased legal and regulatory requirements to reduce or mitigate the effects of climate
change. Increased costs of energy or compliance with emissions standards due to legal or regulatory requirements related to climate change may cause
disruptions in or increased costs associated with manufacturing our products.
Evolving environmental, social and governance disclosure requirements and stakeholder expectations may increase our compliance costs,
expose us to reputational and litigation risks, and affect our ability to attract customers, investors, and employees.
We are subject to increasing requirements and expectations regarding environmental, social, and governance ("ESG") matters from regulators,
investors, customers, employees, and other stakeholders. The U.S. Securities and Exchange Commission ("SEC") has proposed rules that would
require public companies to provide detailed disclosures regarding climate-related risks, greenhouse gas emissions (including Scope 1, Scope 2, and in
some cases Scope 3 emissions), climate-related financial impacts, and oversight and governance of climate-related risks. Although the SEC's proposed
climate disclosure rules have faced legal and regulatory challenges and their final form and timing remain uncertain, we may ultimately be required to
comply with such rules or with similar disclosure requirements adopted by the SEC or other regulators.
In addition, international ESG disclosure frameworks are creating compliance obligations for companies operating globally. The European Union's
Corporate Sustainability Reporting Directive ("CSRD") requires detailed sustainability reporting covering environmental, social, employee, human rights,
anti-corruption, and diversity matters, with requirements that extend to non-EU companies with significant EU operations or revenue. Other jurisdictions,
including the United Kingdom, Singapore, and various other countries where we operate or sell products, have adopted or are considering mandatory
ESG disclosure regimes. These various frameworks are not fully harmonized, creating complexity and potential inconsistency in reporting obligations
across jurisdictions.
Compliance with evolving ESG disclosure requirements may require us to:
•
Implement new systems, processes, and internal controls to measure, track, and report ESG metrics, including greenhouse gas emissions
across our operations and supply chain;
•
Engage third-party consultants, auditors, or verification services to validate ESG data and disclosures;
•
Dedicate significant management time and attention to ESG strategy, governance, and reporting;
•
Make costly changes to operations, supply chain, or business practices to improve ESG performance or to meet stakeholder expectations;
•
Disclose information that we have historically treated as confidential or that may be competitively sensitive; and
•
Subject our ESG disclosures to the same liability standards as financial disclosures, creating potential for securities litigation or regulatory
enforcement if disclosures are deemed inaccurate or misleading.
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Beyond regulatory compliance, our customers, particularly large OEMs and semiconductor manufacturers, are increasingly requiring their suppliers to
meet specific ESG criteria as a condition of doing business. Customer requirements may include carbon neutrality commitments, renewable energy
usage targets, supply chain transparency and due diligence regarding conflict minerals and human rights, diversity and inclusion metrics, and adherence
to specific ESG standards or certifications. Our failure to meet customer ESG requirements could result in disqualification from bids, loss of business, or
reduced competitiveness, particularly as ESG performance becomes a more prominent factor in OEM supplier selection processes.
Similarly, investors are increasingly incorporating ESG factors into investment decisions and may penalize companies with unfavorable ESG profiles
through lower valuations, reduced access to capital, or higher cost of capital. Employees and prospective employees, particularly in competitive
technology labor markets, may consider our ESG commitments and performance in making employment decisions, and our failure to meet employee
expectations on ESG matters could affect our ability to attract and retain talent.
We may also face litigation or reputational risks related to our ESG disclosures or performance. "Greenwashing" litigation, in which companies are
accused of making misleading or unsubstantiated environmental claims, has increased in recent years. Activist shareholders, non-governmental
organizations, or other parties may publicly criticize our ESG performance or disclosures, potentially causing reputational harm. ESG-related litigation or
controversies could be costly to defend, could divert management attention, and could damage our reputation with customers, investors, and other
stakeholders.
The evolving and sometimes conflicting nature of ESG disclosure requirements and stakeholder expectations makes it difficult to predict the ultimate
costs and operational impacts of ESG compliance. Our ESG-related investments and commitments may not be sufficient to meet future regulatory
requirements or stakeholder expectations, and may not generate commensurate benefits in terms of customer retention, investor support, or competitive
advantage. ESG compliance costs and related business impacts could have a material adverse effect on our business, financial condition and results of
operations.
If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results, prevent fraud, or
file our periodic reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead
to a decline in our share price.
As a publicly traded company, we are required to comply with the SEC’s rules implementing Section 302 and 404 of the Sarbanes‑Oxley Act, which
require management to certify financial and other information in our quarterly and annual reports and to provide an annual management report on the
effectiveness of controls over financial reporting. Our independent registered public accounting firm is required to attest to the effectiveness of our
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act.
If we are unable to maintain effective internal control over financial reporting or disclosure controls and procedures, our ability to record, process, and
report financial information accurately and to prepare financial statements within required time periods could be adversely affected, which could subject
us to litigation, investigations, or penalties; negatively affect our liquidity, our access to capital markets, perceptions of our creditworthiness, our ability to
complete acquisitions, our ability to maintain compliance with covenants under our debt instruments or derivative arrangements regarding the timely filing
of periodic reports, or investor confidence in our financial reporting, any of which may divert management resources or cause our stock price to decline.
Changes in tax laws, tax rates or tax assets and liabilities could materially adversely affect our financial condition and results of operations.
As a global company, we are subject to taxation in the U.S. and various other countries. Significant judgment is required to determine and estimate
worldwide tax liabilities. Our future annual and quarterly tax rates could be affected by numerous factors, including changes in applicable tax laws, the
amount and composition of pre-tax income in countries with differing tax rates or valuation of our deferred tax assets and liabilities. We have significant
operations in the U.S. and our holding company structure includes entities organized in the Cayman Islands, Netherlands, Singapore and Scotland. As a
result, changes in applicable tax laws in these jurisdictions could have a material adverse effect on our financial condition and results of operations.
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We are also subject to regular examination by the Internal Revenue Service and other tax authorities, and from time to time we initiate amendments to
previously filed tax returns. We regularly assess the likelihood of favorable or unfavorable outcomes resulting from these examinations and amendments
to determine the adequacy of our provision for income taxes, which requires estimates and judgments. Although we believe our tax estimates are
reasonable, we cannot ensure that the tax authorities will agree with such estimates. We may have to engage in litigation to achieve the results reflected
in the estimates, which may be time-consuming and expensive. We cannot ensure that we will be successful or that any final determination will not be
materially different from the treatment reflected in our historical income tax provisions and accruals, which could materially and adversely affect our
financial condition and results of operations.
The U.S. enacted the Inflation Reduction Act of 2022 (“IRA”) in August 2022, which, among other provisions, creates a new corporate alternative
minimum tax ("CAMT") of at least 15% for certain large corporations that have at least an average of $1 billion in adjusted financial statement income
over a consecutive three-year period effective in tax years beginning after December 31, 2022. The IRA also includes a 1% excise tax on new corporate
stock repurchases beginning in 2023. We do not expect to meet the CAMT threshold in the near term nor expect the IRA to have a material impact on
our financial statements. On January 21, 2025, U.S. President Trump signed an executive order to immediately pause the disbursement of funds
appropriated under the IRA. The pause applies to specific programs or activities related to climate change mitigation. While this executive order is not
expected to materially adversely affect our operations, there can be no assurance that our customers, counterparties and suppliers will not be negatively
impacted. In addition, it is possible that the U.S. Congress could advance other tax legislation proposals in the future that could have a material impact
on our financial statements.
In October 2021, the Organization for Economic Co-operation and Development (“OECD”) issued model rules for a new global minimum tax framework,
commonly referred to as “Pillar Two,” which includes the introduction of a 15% global minimum tax. Certain jurisdictions in which we operate have
adopted rules locally consistent with the Pillar Two framework, including Singapore, a jurisdiction in which we earn significant profit and were granted a
tax holiday expiring in 2026. Additionally, prior decisions by tax authorities regarding corporate tax treatments and positions could change, resulting in a
change in tax policies or prior tax rulings. While we are still evaluating the impact of Pillar Two, these rules and/or changes to prior tax treatments and
positions may materially and adversely impact our provision for income taxes, net income, and cash flows.
Evolving artificial intelligence regulations may restrict our use of AI technologies, impose compliance costs, create liability risks, and affect
our competitiveness.
Governments and regulatory authorities worldwide are developing legal and regulatory frameworks specifically addressing artificial intelligence
technologies. The European Union has adopted the AI Act, which classifies AI systems into risk categories and imposes requirements for high-risk AI
systems including conformity assessments, risk management systems, data governance, transparency, human oversight, accuracy, and robustness. The
U.S. federal government has issued Executive Orders on AI that direct agencies to develop AI regulations and policies, and various U.S. states have
proposed or enacted AI-specific legislation. Other countries where we operate or sell products, have adopted or are developing AI regulatory
frameworks.
AI regulations may impose various requirements and restrictions on our development, deployment, and use of AI technologies, including:
•
Prohibitions or restrictions on certain AI applications deemed to be high-risk or unacceptable risk;
•
Mandatory impact assessments, testing, validation, and certification of AI systems before deployment;
•
Requirements for transparency and explainability of AI decision-making, which may be technically difficult to achieve for certain types of AI
models;
•
Human oversight and intervention requirements that may limit the efficiency benefits of AI automation;
•
Data governance requirements that restrict the types of data that can be used to train or operate AI systems;
•
Liability frameworks that impose strict liability or expanded liability for harms caused by AI systems; and
•
Varying and potentially inconsistent requirements across different jurisdictions, creating compliance complexity for our global operations.
Compliance with AI regulations may require us to implement costly governance structures, conduct extensive documentation and testing, modify or limit
our use of AI technologies, or forego certain AI applications altogether. We may face situations where AI use cases that are permissible in some
jurisdictions are prohibited
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or heavily restricted in others, forcing us to maintain multiple versions of products or processes or to limit AI deployment to the most restrictive common
denominator.
AI regulations may also create competitive dynamics that favor certain companies or technologies. Large technology companies with greater resources
may be better positioned to absorb AI compliance costs, while smaller companies or new entrants may face barriers to AI adoption. Alternatively, if our
competitors are subject to less stringent AI regulations in their home jurisdictions, they may be able to develop and deploy AI capabilities more rapidly or
at lower cost than we can.
The rapid pace of AI technology evolution and the nascent state of AI regulation create significant uncertainty regarding future compliance obligations.
Regulatory frameworks adopted today may become outdated as AI technology advances, potentially leading to frequent regulatory changes that require
ongoing adaptation. Our AI-related investments and product development decisions may be adversely affected by regulatory uncertainty, and we may
make investments in AI capabilities that are later restricted or prohibited by regulation.
Violations of AI regulations could result in significant fines and penalties, prohibition on AI system deployment, requirements to withdraw products from
the market, reputational damage, and potential criminal liability for responsible individuals. AI-related regulatory enforcement or compliance failures could
have a material adverse effect on our business, financial condition and results of operations.
Liquidity and Capital Resources Risks
We have a substantial amount of indebtedness, which could adversely affect us, including by decreasing our business flexibility. The
agreement that governs our indebtedness contains covenants that could impact our ability to perform certain transactions without obtaining
pre-approval from our lenders.
As of December 26, 2025, we had total principal outstanding of $125.0 million under our term loan facility and no outstanding balance under our
revolving credit facility (collectively “credit facilities”). We may incur additional indebtedness in the future. Our credit facilities contain certain restrictive
covenants and conditions, including limitations on our ability to, among other things:
•
incur additional indebtedness or contingent obligations;
•
create or incur liens, negative pledges or guarantees;
•
make investments;
•
make loans;
•
sell or otherwise dispose of assets;
•
merge, consolidate or sell substantially all of our assets;
•
make certain payments on indebtedness;
•
pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments;
•
enter into certain agreements that restrict distributions from restricted subsidiaries;
•
enter into transactions with affiliates;
•
change the nature of our business; and
•
amend the terms of our organizational documents.
As a result of these covenants, we may be restricted in our ability to pursue new business opportunities or strategies or to respond quickly to changes in
the industries that we serve. A violation of any of these covenants would be deemed an event of default under our credit facilities. In such event, upon
the election of the lenders, the loan commitments under our credit facilities would terminate and the principal amount of the loans and accrued interest
then outstanding would be due and payable immediately. A default may also result in the acceleration of any other debt to which a cross-acceleration or
cross-default provision applies. In the event our lenders accelerate the repayment of our borrowings, we cannot ensure that we and our subsidiaries
would have sufficient funds to repay such indebtedness or be able to obtain replacement financing on a timely basis or at all. These events could force
us into bankruptcy or liquidation, which could have a material adverse effect on our business, financial condition and results of operations.
We also may need to negotiate changes to the covenants in the agreements governing our credit facilities in the future if there are material changes in
our business, financial condition or results of operations, but we cannot ensure that we will be able to do so on terms favorable to us or at all.
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Furthermore, our ability to make scheduled payments on or to refinance our indebtedness, including under our credit facilities, depends on our financial
condition and results of operations, which are subject to prevailing economic and competitive conditions and other factors beyond our control. We may
be unable to maintain a level of cash flows from operating activities sufficient to permit us to fund our day-to-day operations or to pay the principal,
premium, if any, and interest on our indebtedness. If our cash flows and capital resources are insufficient to fund our debt service obligations, we could
face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to sell assets or operations, seek
additional capital or restructure or refinance our indebtedness. If we cannot make scheduled payments on our debt, we will be in default and, as a result,
the lenders under our credit facilities could terminate their commitments to loan money, or foreclose against the assets securing such borrowings, and
we could be forced into bankruptcy or liquidation, in each case, which would have a material adverse effect on our business, financial condition and
results of operations.
The interest expense associated with our indebtedness is subject to variable rates, and increased debt service costs as a result of higher
interest rates could adversely affect our business, financial condition and results of operations.
Borrowings under our credit facilities are generally subject to variable interest rates, which fluctuate depending on macroeconomic factors, and expose
us to interest rate risk. If interest rates increase, our debt service costs on these borrowings would also increase, even if the amount borrowed remains
the same, and would require us to use more of our available cash to service our indebtedness, resulting in decreased net income and cash flows,
including cash available for servicing our indebtedness. There can also be no assurance that we will be able to enter into swap agreements or other
hedging arrangements in the future if we desire to do so, or that any future hedging arrangements will offset increases in interest rates.
Ordinary Share Ownership Risks
Our quarterly sales and operating results fluctuate significantly from period to period, and this may cause volatility in our share price.
Our quarterly sales and operating results have fluctuated significantly in the past, and we expect them to continue to fluctuate in the future for a variety of
reasons, including the following:
•
demand for and market acceptance of our products as a result of the cyclical nature of the industries we serve or otherwise, often resulting in
reduced sales during industry downturns and increased sales during periods of industry recovery or growth;
•
overall economic conditions;
•
changes in the timing and size of orders by our customers;
•
strategic decisions by our customers to terminate their outsourcing relationship with us or give market share to our competitors;
•
consolidation by our customers;
•
cancellations and postponements of previously placed orders;
•
pricing pressure from either our competitors or our customers, resulting in the reduction of our product prices or loss of market share;
•
disruptions or delays in the manufacturing of our products or in the supply of components or raw materials that are incorporated into or used to
manufacture our products, thereby causing us to delay the shipment of products;
•
decreased margins for several or more quarters following the introduction of new products, especially as we introduce new subsystems or other
products or services;
•
changes in design-to-delivery cycle times;
•
inability to reduce our costs quickly in step with reductions in our prices or in response to decreased demand for our products;
•
changes in our mix of products sold;
•
write-offs of excess or obsolete inventory;
•
increased fixed overhead;
•
one-time expenses or charges; and
•
announcements by our competitors of new products, services or technological innovations, which may, among other things, render our products
less competitive.
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As a result of the foregoing, we believe that quarter-to-quarter comparisons of our sales and results of operations may not be meaningful and that these
comparisons may not be an accurate indicator of our future performance. Changes in the timing or terms of a small number of transactions could
disproportionately affect our results of operations in any particular quarter. Moreover, our results of operations in one or more future quarters may fail to
meet our guidance or the expectations of securities analysts or investors. If this occurs, we would expect to experience an immediate and significant
decline in the trading price of our ordinary shares.
Further, if the market for stocks in our industry or industries related to our industry, or the stock market in general, experiences a loss of investor
confidence, the trading price of our ordinary shares could decline for reasons unrelated to our business, financial condition and results of operations. If
any of the foregoing occurs, it could cause our share price to fall and may expose us to lawsuits that, even if unsuccessful, could be costly to defend and
a distraction to management.
Our amended and restated memorandum and articles of association contains anti-takeover provisions that could adversely affect the rights of
our shareholders.
Our amended and restated memorandum and articles of association contains provisions to limit the ability of others to acquire control of the Company or
cause us to engage in change-of-control transactions, including, among other things:
•
provisions that authorize our Board of Directors, without action by our shareholders, to issue additional ordinary shares and preferred shares
with preferential rights determined by our Board of Directors;
•
provisions that permit only a majority of our Board of Directors or the chairman of our Board of Directors to call shareholder meetings and
therefore do not permit shareholders to call shareholder meetings; and
•
provisions that impose advance notice requirements, grant the Board of Directors the right to decline to register any transfer of shares, and
ownership thresholds, and other requirements and limitations on the ability of shareholders to propose matters for consideration at shareholder
meetings.
These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing market prices by
discouraging third parties from seeking to obtain control of the Company in a tender offer or similar transaction.
The issuance of preferred shares could adversely affect holders of ordinary shares.
Our Board of Directors is authorized to issue preferred shares without any action on the part of holders of our ordinary shares. Our Board of Directors
also has the power, without shareholder approval, to set the terms of any such preferred shares that may be issued, including voting rights, dividend
rights, and preferences over our ordinary shares with respect to dividends or if we liquidate, dissolve or wind up our business and other terms. If we
issue preferred shares in the future that have preference over our ordinary shares with respect to the payment of dividends or upon our liquidation,
dissolution or winding up, or if we issue preferred shares with voting rights that dilute the voting power of our ordinary shares, the rights of holders of our
ordinary shares or the price of our ordinary shares could be adversely affected.
Our shareholders may face difficulties in protecting their interests as a shareholder, as Cayman Islands law provides substantially less
protection when compared to the laws of the U.S.
Our corporate affairs are governed by our amended and restated memorandum and articles of association and by the Companies Law (2013 Revision)
and common law of the Cayman Islands. The rights of shareholders to take legal action against our directors and us, actions by minority shareholders
and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman
Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from
English common law, which has persuasive, but not binding, authority on a court in the Cayman Islands. The rights of our shareholders and the fiduciary
responsibilities of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in the
U.S. In particular, the Cayman Islands have a less exhaustive body of securities laws as compared to the U.S. In addition, Cayman Islands companies
may not have standing to initiate a shareholder derivative action before the U.S. federal courts.
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Furthermore, since we are a Cayman Islands company with a portion our assets located outside of the U.S., it may be difficult or impossible for
shareholders to bring an action against us in the U.S. in the event that shareholders believe that their rights have been infringed under U.S. federal
securities laws or otherwise. Even if shareholders are successful in bringing an action of this kind, the laws of the Cayman Islands may render
shareholders unable to enforce a judgment against our assets. There is no statutory recognition in the Cayman Islands of judgments obtained in the
U.S..
As a result of all of the above, our shareholders may have more difficulty in protecting their interests through actions against us or our officers, directors
or major shareholders than would shareholders of a corporation incorporated in a jurisdiction in the U.S..
If a U.S. person is treated as owning at least 10% of our shares, such person may be subject to adverse U.S. federal income tax
consequences.
If a U.S. person is treated as owning (directly, indirectly, or constructively) at least 10% of the value or voting power of our shares, such person may be
treated as a “United States shareholder” with respect to each “controlled foreign corporation” in our group (if any). Because our group includes one or
more U.S. subsidiaries, in certain circumstances we could be treated as a controlled foreign corporation or certain of our non-U.S. subsidiaries could be
treated as controlled foreign corporations (regardless of whether we are or are not treated as a controlled foreign corporation).
A U.S. shareholder of a controlled foreign corporation may be required to annually report and include in its U.S. taxable income its pro rata share of
“Subpart F income,” “global intangible low-taxed income” and investments in U.S. property by controlled foreign corporations, whether or not we make
any distributions. An individual that is a U.S. shareholder with respect to a controlled foreign corporation generally would not be allowed certain tax
deductions or foreign tax credits that would be allowed to a U.S. shareholder that is a U.S. corporation. A failure to comply with these reporting
obligations may subject a U.S. shareholder to significant monetary penalties and may prevent starting of the statute of limitations with respect to such
shareholder’s U.S. federal income tax return for the year for which reporting was due. We do not intend to monitor whether we are or any of our current
or future non-U.S. subsidiaries is treated as a controlled foreign corporation or whether any investor is treated as a U.S. shareholder with respect to us or
any of our controlled foreign corporation subsidiaries. In addition, we cannot provide assurances that we will furnish to any U.S. shareholders information
that may be necessary to comply with the aforementioned reporting and tax paying obligations.
A U.S. investor should consult its tax advisors regarding the potential application of these rules to an investment in our shares in its particular
circumstances.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 1C. CYBERSECURITY
Risk Management and Strategy
Our cybersecurity program is designed from a risk- and compliance-based approach to achieve system-wide resilience and protection across our
operations. We regularly assess risks from cybersecurity threats and monitor our information systems for potential vulnerabilities. We model our
cybersecurity program after the National Institute of Standards and Technology Cybersecurity Framework to deliver clear and proactive processes, multi-
layered defenses, and relevant technologies that are designed to control, audit, monitor, and protect access to sensitive information. Our cybersecurity
program includes physical, administrative, and technical safeguards, and we maintain plans and procedures the objective of which is to help us prevent,
detect and timely and effectively respond to, and as necessary, recover from, cybersecurity incidents. Through our cybersecurity risk management
program, we have established operational processes to address issues including monitoring and patching of vulnerabilities, regularly updating our
information systems, and evaluating new countermeasures made to defend against an evolving landscape of threats. This process is overseen by the
Audit Committee of our Board of Directors.
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In addition, we periodically engage third-party consultants and providers to assist us in assessing, testing, enhancing and monitoring our cybersecurity
risk management programs and responding to any incidents. These third parties work in conjunction with our information security team in an effort to
continuously improve our cyber risk posture. Examples of third-party actions include the engagement of a security operations center for real-time
monitoring and response to incidents, independent audits, risk assessments and security certifications. We have established processes to help identify
and manage cybersecurity risks associated with the use of these third-party consultants and providers, which include the completion of due diligence
before engaging with a third-party and assessments and reviews throughout the relationship.
We believe cybersecurity awareness is important in helping prevent cyber threats. To that end, we provide monthly cybersecurity awareness training and
regular phishing awareness exercises to our tech-enabled employees. We monitor and assess the success rate of employees reporting phishing scams,
and the results inform the development of our security trainings, systems and programs. Additionally, role-based security training is provided to
employees in certain higher-risk positions (including those who handle sensitive information, technology or funds), which is tailored to the heightened
cybersecurity risks they face.
We have experienced, and may in the future experience, whether directly or through our third-party service providers or other channels, cybersecurity
incidents. While prior incidents have not had a material impact on us, future incidents could have a material impact on our business, operations and
reputation. Although our processes are designed to help prevent, detect, respond to and mitigate the impact of such incidents, there is no guarantee that
they will be sufficient to prevent or mitigate the risk of a cyberattack or the potentially serious reputational, operational, legal or financial impacts that may
result. Refer to “Item 1A. – Risk Factors” in this Annual Report on Form 10-K, including, “We may be subject to interruptions or failures in our information
technology systems,” for additional discussion on our cybersecurity related risks.
Cybersecurity Governance
Cybersecurity is an important part of our risk management and strategy activities and an area of focus for our Board of Directors and management. Our
Board of Directors has delegated to the Audit Committee oversight of our cybersecurity and information security policies and our internal controls
regarding cybersecurity and information security. Our Audit Committee receives regular reports from members of our senior management and other
personnel that include assessments and potential mitigation of the risks and exposures to cybersecurity incidents.
Our cybersecurity risk management and strategy activities are overseen by executive management, made up of the IT Steering Committee and Chief
Information Officer. Our Chief Information Officer has over 25 years of experience in information technology and security as well as extensive experience
working in and leading our information systems and technology function. The IT Steering Committee and Chief Information Officer receive regular
updates on cybersecurity matters, results of mitigation efforts and cybersecurity incident response and remediation through the management of, and
participation in, the cybersecurity risk management and strategy activities described above, and report to the Audit Committee quarterly on any
appropriate items.
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ITEM 2. PROPERTIES
Our principal executive offices are located at 3185 Laurelview Ct., Fremont, California 94538. As of December 26, 2025, our principal manufacturing and
administrative facilities, including our executive offices, are comprised of approximately 1,038,600 square feet. All of our facilities are leased, which
allows for flexibility as business conditions and geographic demand change. The table below sets forth the approximate square footage of each of our
facilities.
Location
Approximate
Square
Footage
Malaysia
271,500
California
262,200
Oregon
150,700
Minnesota
133,300
Singapore
97,700
Mexico
62,900
Texas
47,800
Nevada
12,500
We do not anticipate difficulty in either retaining occupancy of any of our facilities through lease renewals prior to expiration or through month-to-month
occupancy or replacing them with equivalent facilities. We believe that our existing facilities and equipment are well maintained, in good operating
condition, and are adequate to meet our currently anticipated requirements.
ITEM 3. LEGAL PROCEEDINGS
We may be subject to various legal claims and proceedings involving claims incidental to our business, including employment-related claims. We are
presently not a party to any material litigation or regulatory proceeding and are not aware of any pending or threatened litigation or regulatory proceeding
against us which, individually or in the aggregate, could have a material adverse effect on our business, financial condition, or results of operations.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
Market Information and Holders of Record
Our ordinary shares are listed for trading on The NASDAQ Global Select Market under the symbol “ICHR.”
As of February 13, 2026, there were 2 holders of record of our ordinary shares. This number does not include shareholders for whom shares are held in
“nominee” or “street” name or in our treasury account.
Dividends
We do not anticipate that we will pay any cash dividends on our ordinary shares for the foreseeable future. Any determination to pay dividends in the
future will be at the discretion of our Board of Directors and will depend upon our financial condition, results of operations, contractual restrictions
(including those under our credit facilities and any potential indebtedness we may incur in the future), restrictions imposed by applicable law, tax
considerations, and other factors our Board of Directors deems relevant.
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Stock Performance Graph
The information included under the heading Item 5. – Stock Performance Graph is “furnished” and not “filed” for purposes of Section 18 of the Exchange
Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be “soliciting material” subject to Regulation 14A or incorporated by
reference in any filing under the Securities Act of 1933, as amended or the Exchange Act regardless of any general incorporation language in such filing,
except as shall be expressly set forth by specific reference in such filing.
The Stock Price Performance Graph set forth below plots the cumulative total shareholder return on a quarterly basis of our ordinary shares from
December 25, 2020 through December 26, 2025, with the cumulative total return of the Nasdaq Composite Index and the PHLX Semiconductor Sector
Index over the same period. The comparison assumes $100 was invested on December 25, 2020 in the ordinary shares of Ichor Holdings, Ltd., in the
Nasdaq Composite Index, and in the PHLX Semiconductor Sector Index and assumes reinvestment of dividends, if any.
The stock price performance shown on the graph above is not necessarily indicative of future price performance. Information used in the graph was
obtained from the Nasdaq Stock Market, a source believed to be reliable, but we are not responsible for any errors or omissions in such information.
Recent Sales of Unregistered Securities
None.
Issuer Purchase of Equity Securities
None.
ITEM 6. [RESERVED]
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial
statements and related notes included elsewhere in this Annual Report on Form 10-K. The following discussion contains forward-looking statements
based upon our current plans, expectations and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated
in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this
Annual Report on Form 10-K, particularly in the section entitled Item 1A. – Risk Factors. For a comparison of our financial condition, results of
operations, and cash flows for 2024 to 2023, refer to Part II, Item 7. in our 2024 Annual Report on Form 10‑K, which was filed with the SEC on
February 21, 2025.
Overview
We are a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems and components primarily for semiconductor capital
equipment, as well as other industries such as defense/aerospace and medical. Our product offerings include gas and chemical delivery subsystems,
collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. Our
gas delivery subsystems deliver, monitor and control precise quantities of the specialized gases used in semiconductor manufacturing processes such
as etch and deposition. Our chemical delivery subsystems precisely blend and dispense the reactive liquid chemistries used in semiconductor
manufacturing processes such as chemical-mechanical planarization, electroplating, and cleaning. We also provide precision-machined components,
weldments, e‑beam and laser welded components, precision vacuum and hydrogen brazing and surface treatment technologies, and other proprietary
products.
Fluid delivery subsystems ensure accurate measurement and uniform delivery of specialty gases and chemicals at critical steps in the semiconductor
manufacturing processes. Any malfunction or material degradation in fluid delivery reduces yields and increases the likelihood of manufacturing defects
in these processes. Most OEMs outsource all or a portion of the design, engineering, and manufacturing of their gas delivery subsystems to a few
specialized suppliers, including us. Additionally, many OEMs are outsourcing the design, engineering, and manufacturing of their chemical delivery
subsystems due to the increased fluid expertise required to manufacture these subsystems. Outsourcing these subsystems allows OEMs to leverage
their suppliers’ highly specialized engineering, design, and production skills while focusing their internal resources on their own value-added processes.
Outsourcing enables OEMs to reduce their costs and development time, as well as provide growth opportunities for specialized subsystems suppliers
like us.
We have a global footprint with production facilities in California, Minnesota, Oregon, Texas, Singapore, Malaysia, and Mexico.
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The following table summarizes key financial information for the periods indicated. Amounts are presented in accordance with GAAP unless explicitly
identified as being a non-GAAP metric. For a description of our non-GAAP metrics and reconciliations to the most comparable GAAP metrics, please
refer to Item 7. – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Results within this
Annual Report on Form 10-K.
Year Ended
December 26,
2025
December 27,
2024
(dollars in thousands, except per share amounts)
Net sales
$
947,652 
$
849,040 
Gross margin
9.3 %
12.2 %
Gross margin, non-GAAP
12.2 %
12.7 %
Operating margin
(4.1)%
(0.9)%
Operating margin, non-GAAP
2.2 %
2.2 %
Net loss
$
(52,781)
$
(20,820)
Net income, non-GAAP
$
7,915 
$
5,888 
Diluted EPS
$
(1.54)
$
(0.64)
Diluted EPS, non-GAAP
$
0.23 
$
0.18 
Key Factors Affecting Our Business
Investment in Semiconductor Manufacturing Equipment
The design and manufacturing of semiconductor devices is constantly evolving and becoming more complex in order to achieve greater performance
and efficiency. To keep pace with these changes, OEMs need to refine their existing products and invest in developing new products. In addition,
semiconductor device manufacturers will continue to invest in new wafer fabrication equipment to expand their production capacity and to support new
manufacturing processes.
Outsourcing of Subsystems by Semiconductor OEMs
Faced with increasing manufacturing complexities, more complex subsystems, shorter product lead times, shorter industry spend cycles, and significant
capital requirements, outsourcing of subsystems and components by OEMs has continued to grow. In the past two decades, OEMs have outsourced
most of their gas delivery systems to suppliers such as us. OEMs have also started to outsource their chemical delivery systems in recent years. Our
results will be affected by the degree to which outsourcing of these fluid delivery systems by OEMs continues to grow.
Cyclicality of Semiconductor Capital Equipment Industry
Our business is subject to the cyclicality of the capital expenditures of the semiconductor industry, which drives cyclicality in the semiconductor capital
equipment industry in which we operate. In 2025, we derived over 90% of our sales from the semiconductor capital equipment industry. Demand for
semiconductor capital equipment can fluctuate significantly based on changes in regulatory intervention and general economic conditions, including
consumer spending, increased tariffs and trade restrictions, demand for semiconductor products, pricing, and other factors. In the past, these fluctuations
have resulted in significant variations in the levels of spending within the semiconductor capital equipment industry, and as a result, our results of
operations. The cyclicality of the semiconductor industry will continue to impact our results of operations in the future.
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Customer Concentration
The number of capital equipment manufacturers for the semiconductor device industry is significantly consolidated, resulting in a small number of large
manufacturers. Our customers are a significant component of this consolidation, resulting in our sales being concentrated in a few customers. For 2025,
two customers with individual sales over 10%, Lam Research and Applied Materials, accounted for a combined 76% of total sales. Our customers often
require reduced prices or other pricing, quality, or delivery commitments as a condition to their purchasing from us or increasing their purchase volume,
which can, among other things, result in reduced gross margins in order to maintain or expand our market share. Although we do not have any long-term
contracts that require customers to place certain order quantities with us, Lam Research and Applied Materials have been our customers for over 20
years.
Macroeconomic Conditions
The semiconductor capital equipment industry is inherently cyclical. Overall semiconductor equipment spending in 2025 increased compared to 2024
levels, characterized by healthy demand in our primary markets of etch and deposition. During fiscal year 2025, our revenue grew 11.6% to $947.7
million, driven by sustained demand from our primary customers, including Lam Research and Applied Materials. To better align our global operations
with evolving customer demand and drive operational efficiencies, we initiated a geographic footprint rationalization and restructuring plan in 2025. As
part of this realignment, we began transitioning certain manufacturing activities and relocating machining assets to our expanded high-volume facilities,
while concurrently consolidating our footprint through the closure of our facilities in Scotland and Korea. During fiscal year 2025, we incurred
restructuring, exit, severance, and related asset impairment charges of approximately $35 million in connection with these activities.
While we continue to benefit from the broader growth and cyclical recovery in the semiconductor equipment industry, our operations and financial results
remain subject to significant risks and uncertainties within the global trade and regulatory landscape. Specifically, the global trade environment remains
complex. The outcome of ongoing negotiations between the United States and other countries regarding "reciprocal tariffs" and national security-based
trade measures remains uncertain and could materially affect our material costs, product pricing, and overall demand. To date, although we have
experienced modest increases in the costs of certain materials, tariffs have not had a material adverse impact on our overall demand or cost structure.
Additionally, our operations in Mexico currently benefit from exemptions under the U.S.-Mexico-Canada Agreement; however, we cannot provide any
assurance that these exclusions and exemptions will remain in place indefinitely, particularly as the USMCA undergoes its scheduled joint review in July
2026. Any new, expanded, or reciprocal tariffs could have a material adverse impact on our business, financial condition, and results of operations in the
future. The U.S. government also continues to expand and refine export controls and similar regulations aimed at restricting access to advanced
semiconductor technology, particularly in China. These controls, which require specific export licenses for many of our customers' products, create
ongoing market uncertainty, could reduce demand for our equipment, and may disrupt our global supply chain.
While challenging macroeconomic and geopolitical conditions may persist in the near and intermediate term, we remain confident in our belief that the
long-term demand for semiconductors, semiconductor capital equipment, and our products will continue to grow, driven by an increasing need for
expanded semiconductor productive capacity and advanced manufacturing process technologies.
Components of Our Results of Operations
The following discussion sets forth certain components of our statements of operations as well as significant factors impacting those items.
Net sales
We generate sales primarily from the design, manufacture, and sale of subsystems and components for semiconductor capital equipment. Sales are
recognized when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be
entitled to in exchange for those goods or services. Sales are recognized at a point-in-time, upon "delivery," as such term is defined within the contract,
which is generally at the time of shipment, as that is when control of the promised good has transferred.
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Cost of sales, gross profit, and gross margin
Cost of sales consists primarily of purchased materials, direct labor, indirect labor, factory overhead cost, and depreciation expense for our
manufacturing facilities and equipment. Our business has a variable cost structure, with fixed costs comprising a smaller percentage of cost of sales
compared to variable costs. Our existing global manufacturing plant capacity is scalable, and we are able to adjust to increased customer demand for
our products without significant additional capital investment. We operate our business in this manner to avoid having excessive fixed costs during a
cyclical downturn, while retaining flexibility to expand our production volumes during periods of growth. However, during a cyclical downturn, fixed costs
become a larger percentage of cost of sales, which could result in a decrease to gross margin. Additionally, since the gross margin on each of our
products can differ, our overall gross margin as a percentage of our sales can change based on the mix of products we sell in any period.
Operating expenses
Our operating expenses primarily include research and development and sales, general, and administrative expenses. Personnel costs are the most
significant component of operating expenses and consist of salaries, benefits, bonuses, and share-based compensation. Operating expenses also
include overhead costs for facilities, IT, and depreciation. In addition, our operating expenses include amortization expense of acquired intangible assets.
Research and development – Research and development expense consists primarily of activities related to product design and other
development activities, new component testing and evaluation, and test equipment and fixture development. We expect research and
development expense will continue to increase in absolute dollars due to continued development of our own intellectual property and product
offerings for existing and new customer markets and increases in our customers’ demand for new product designs.
Selling, general, and administrative – Selling expense consists primarily of salaries and commissions paid to our sales and sales support
employees and other costs related to the sales of our products. General and administrative expense consists primarily of salaries, professional
fees, and overhead associated with our administrative staff. We expect selling expenses to increase in absolute dollars as we continue to invest
in expanding our markets and as we expand our international operations. We expect general and administrative expenses to also increase in
absolute dollars as our business grows, due to an increase in employee-related costs, regulatory compliance, and accounting-related expenses.
Amortization of intangibles – Amortization of intangible assets is related to our finite-lived intangible assets and is computed using the straight-
line method over the estimated economic life of the asset.
Interest expense, net
Interest expense, net of interest income on our cash deposits, consists of interest on our outstanding debt under our credit facilities, including
amortization of debt issuance costs, and any other indebtedness we may incur in the future. Borrowings under our credit facilities are generally subject to
variable interest rates, which fluctuate depending on macroeconomic factors and can result in increased interest expense in periods of rising interest
rates.
Other expense, net
The functional currency of our international operations is the U.S. dollar. Transactions denominated in currencies other than the functional currency
generate foreign exchange gains and losses that are included in other expense, net on the accompanying consolidated statements of operations.
Substantially all of our sales contracts, and most of our agreements with third-party suppliers, provide for pricing and payment in U.S. dollars.
Accordingly, these transactions are not subject to material exchange rate fluctuations.
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Income tax expense
Income tax expense consists primarily of taxes on our taxable income related to our domestic and foreign operations, offset by the benefit of our tax
holiday in Singapore, which expires in 2026. In 2025, the tax benefit resulting from our Singapore tax holiday, compared to the Singapore statutory tax
rate, was approximately $3.4 million. During 2025, we maintained a valuation allowance against our U.S. state and federal deferred tax assets; therefore,
we are not recording income tax benefits related to our U.S. GAAP losses. Income tax is also impacted by certain withholding taxes, Pillar 2 top-up
taxes, stock option and restricted share unit (“RSU”) activity, and credit generation.
Critical Accounting Estimates
Our consolidated financial statements have been prepared in accordance with GAAP. The preparation of these consolidated financial statements
requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosures. We base
our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our
estimates and assumptions on an ongoing basis. Actual results may differ from these estimates. To the extent that there are material differences between
these estimates and our actual results, our future financial statements will be affected.
The critical accounting policies requiring estimates, assumptions, and judgments that we believe have the most significant impact on our consolidated
financial statements are described below.
Inventory Valuation
Inventories are stated at the lower of cost or net realizable value. The majority of our inventories are valued on a standard cost basis, which
approximates actual costs on a first-in, first-out basis. The remainder of our inventories are valued on an average cost basis, which approximates actual
costs on a first-in, first-out basis. Quarterly, we assess the value of our inventory and periodically write it down for excess quantities or obsolescence to
its estimated net realizable value. This assessment is based on estimated future consumption compared to inventory quantities on-hand. The estimate
for future consumption is based on how assumptions of historical consumption, recency of purchases, backlog, and other factors indicate future
consumption. Once the value of inventory is adjusted, the original cost of our inventory, less the write-down, represents its new cost basis. During 2025,
2024, and 2023, we wrote down inventory determined to be excessive or obsolete by $3.6 million, $8.6 million, and $9.8 million, respectively. We believe
the accounting estimate related to excess and obsolete inventory is a critical accounting estimate because it requires us to make assumptions about
future inventory consumption and recoverability of cost, which can be uncertain. Changes in these estimates can have a material impact on our financial
statements.
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Results of Operations
The following table sets forth our results of operations for the periods presented. The period-to-period comparison of results is not necessarily indicative
of results for future periods.
Year Ended
December 26,
2025
December 27,
2024
(in thousands)
Net sales
$
947,652 
$
849,040 
Cost of sales
859,877 
745,706 
Gross profit
87,775 
103,334 
Operating expenses:
Research and development
23,086 
23,018 
Selling, general, and administrative
95,650 
79,384 
Amortization of intangible assets
8,311 
8,572 
Total operating expenses
127,047 
110,974 
Operating loss
(39,272)
(7,640)
Interest expense, net
6,620 
9,266 
Other expense, net
1,674 
1,148 
Loss before income taxes
(47,566)
(18,054)
Income tax expense
5,215 
2,766 
Net loss
$
(52,781)
$
(20,820)
The following table sets forth our results of operations as a percentage of our total net sales for the periods presented.
Year Ended
December 26, 2025
December 27, 2024
Net sales
100.0 
100.0 
Cost of sales
90.7 
87.8 
Gross profit
9.3 
12.2 
Operating expenses:
Research and development
2.4 
2.7 
Selling, general, and administrative
10.1 
9.3 
Amortization of intangible assets
0.9 
1.0 
Total operating expenses
13.4 
13.1 
Operating loss
(4.1)
(0.9)
Interest expense, net
0.7 
1.1 
Other expense, net
0.2 
0.1 
Loss before income taxes
(5.0)
(2.1)
Income tax expense
0.6 
0.3 
Net loss
(5.6)
(2.5)
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Comparison of 2025 and 2024
Net sales
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Net sales
$
947,652 
$
849,040 
$
98,612 
11.6 %
The increase in net sales from 2024 to 2025 was primarily due to increased customer demand stemming from increased spending within the
semiconductor capital equipment industry. Further detail is provided above under the section entitled "Key Factors Affecting Our Business".
Gross margin
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Cost of sales
$
859,877 
$
745,706 
$
114,171 
15.3 %
Gross profit
$
87,775 
$
103,334 
$
(15,559)
(15.1 %)
Gross margin
9.3 %
12.2 %
-290  bps 
The decrease in gross margin from 2024 to 2025 was primarily due to increased restructuring, country exit, and reduction-in-force related costs;
increased supplies and tooling, employee, and occupancy costs; and unfavorable sales mix, partially offset by lower excess and obsolete inventory
expense.
Research and development
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Research and development
$
23,086 
$
23,018 
$
68 
0.3 %
Research and development expenses remained approximately unchanged from 2024 to 2025.
Selling, general, and administrative
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Selling, general, and administrative
$
95,650 
$
79,384 
$
16,266 
20.5 %
The increase in selling, general, and administrative expenses from 2024 to 2025 was primarily due to increased non-recurring restructuring, country exit,
and reduction-in-force related costs of $9.4 million, increased employee-related costs of $2.8 million, increased legal and professional consulting costs of
$1.3 million, increased outside service provider costs of $1.0 million, increased costs associated with software and IT services of $0.8 million, and
increased share-based compensation of $1.7 million, partially offset by reduced transaction-related costs associated with our acquisitions pipeline of
$0.8 million.
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Amortization of intangible assets
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Amortization of intangibles assets
$
8,311 
$
8,572 
$
(261)
(3.0)%
The decrease in amortization expense from 2024 to 2025 was primarily due to certain intangible assets becoming fully amortized in the fourth quarter of
2024.
Interest expense, net
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Interest expense, net
$
6,620 
$
9,266 
$
(2,646)
(28.6 %)
Weighted average borrowings outstanding
$
125,508 
$
159,427 
$
(33,919)
(21.3 %)
Weighted average borrowing rate
6.16 %
7.31 %
-115  bps 
The decrease in interest expense, net from 2024 to 2025 was primarily due to decreases in the weighted average amounts borrowed and decreases in
our weighted average borrowing rate. The reduction in our weighted average borrowings outstanding was primarily due to paying off our revolving credit
facility in the first quarter of 2024. The decrease in our weighted average borrowing rate was due to lower average Secured Overnight Financing Rate
("SOFR") rates (-93bps), the variable component of our borrowing rate, and lower applicable margin (-22bps), the fixed component of our borrowing rate,
as a result of lower average leverage ratios in 2025.
Other expense, net
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Other expense, net
$
1,674 
$
1,148 
$
526 
45.8 %
The change in other expense, net from 2024 to 2025 was primarily due to debt issuance and modification costs connected to amending our credit
agreement.
Income tax expense
Year Ended
Change
December 26,
2025
December 27,
2024
Amount
%
(dollars in thousands)
Income tax expense
$
5,215 
$
2,766 
$
2,449 
88.5 %
Loss before income taxes
$
(47,566)
$
(18,054)
$
(29,512)
163.5 %
Effective tax rate
(11.0)%
(15.3)%
+430  bps 
The increase in income tax expense from 2024 to 2025 was primarily due to the impact of Organization for Economic Co-operation and Development
("OECD") Global Anti-Base Erosion Model Rules ("Pillar Two") on our Singapore operations, resulting in an increased tax accrual of $2.0 million.
Because we have a valuation allowance recorded against our U.S. state and federal deferred income taxes, we did not record tax benefits from our U.S.
taxable losses during 2025.
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Non-GAAP Financial Results
Management uses certain non-GAAP metrics to evaluate our operating and financial results. We believe the presentation of non-GAAP results is useful
to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view our results from
management’s perspective. All non-GAAP adjustments are presented on a gross basis. Non-GAAP gross profit, operating income, and net income (loss)
are defined as: gross profit, operating income (loss), or net income (loss), respectively, excluding (1) amortization of intangible assets, share-based
compensation expense, and discrete or infrequent charges and gains that are outside of normal business operations, including transaction-related costs,
contract and legal settlement gains and losses, facility shutdown costs, inventory impairment charges, and severance costs associated with reduction-in-
force programs, to the extent they are present in gross profit, operating income (loss), and net income (loss), respectively; and (2) with respect to non-
GAAP net income (loss), the tax impacts associated with these non-GAAP adjustments, as well as non-recurring discrete tax items, including deferred
tax asset valuation allowance charges. All non-GAAP adjustments are presented on a gross basis; the related income tax effects, including current and
deferred income tax expense, are included in the adjustment line under the heading "Tax adjustments related to non-GAAP adjustments". Non-GAAP
diluted earnings per share ("EPS") is defined as non-GAAP net income divided by weighted average diluted ordinary shares outstanding during the
period. Non-GAAP gross margin and non-GAAP operating margin are defined as non-GAAP gross profit and non-GAAP operating income, respectively,
divided by net sales.
Non-GAAP results have limitations as an analytical tool, and you should not consider them in isolation or as a substitute for our results reported under
GAAP. Other companies may calculate non-GAAP results differently or may use other measures to evaluate their performance, both of which could
reduce the usefulness of our non-GAAP results as a tool for comparison.
Because of these limitations, you should consider non-GAAP results alongside other financial performance measures and results presented in
accordance with GAAP. In addition, in evaluating non-GAAP results, you should be aware that in the future we will incur expenses such as those that are
the subject of adjustments in deriving non-GAAP results and you should not infer from our presentation of non-GAAP results that our future results will
not be affected by these expenses or other discrete or infrequent charges and gains that are outside of normal business operations.
The following table presents our unaudited non‑GAAP gross profit and non-GAAP gross margin and a reconciliation from gross profit, the most
comparable GAAP measure, for the periods indicated:
Year Ended
December 26,
2025
December 27,
2024
(dollars in thousands)
U.S. GAAP gross profit
$
87,775 
$
103,334 
Non-GAAP adjustments:
Restructuring plan costs (1)
20,711 
— 
Share-based compensation
2,856 
3,360 
Facility shutdown costs (2)
2,760 
— 
Other (3)
1,171 
908 
Non-GAAP gross profit
$
115,273 
$
107,602 
U.S. GAAP gross margin
9.3 %
12.2 %
Non-GAAP gross margin
12.2 %
12.7 %
(1) Represents the costs associated with our Consolidation Restructuring Plan. Included in this amount for the twelve months ended December
26, 2025 are: (i) inventory impairment costs of $19.8 million; and (ii) severance costs associated with affected employees of $0.9 million.
(2) Represents costs associated with the exit from our Scotland and Korea operations. Included in this amount for the twelve months ended
December 26, 2025 are: (i) inventory write-off charges of $1.7 million; and (ii) severance costs associated with affected employees of $1.1
million.
(3) Represents severance costs associated with our global reduction-in-force programs (other than severance costs associated with the exit from
our Scotland and Korea operations, as described above).
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The following table presents our unaudited non‑GAAP operating income and non-GAAP operating margin and a reconciliation from operating loss, the
most comparable GAAP measure, for the periods indicated:
Year Ended
December 26,
2025
December 27,
2024
(dollars in thousands)
U.S. GAAP operating loss
$
(39,272)
$
(7,640)
Non-GAAP adjustments:
Restructuring plan costs (1)
26,644 
— 
Share-based compensation
16,728 
15,576 
Amortization of intangible assets
8,311 
8,572 
Facility shutdown costs (2)
6,726 
— 
Other (3)
1,408 
1,600 
Transaction-related costs (4)
— 
785 
Non-GAAP operating income
$
20,545 
$
18,893 
U.S. GAAP operating margin
(4.1)%
(0.9)%
Non-GAAP operating margin
2.2 %
2.2 %
(1) Represents the costs associated with our Consolidation Restructuring Plan. Included in this amount for the twelve months ended December
26, 2025 are: (i) inventory impairment costs of $19.8 million; (ii) fixed asset charges of $3.1 million; (iii) severance costs associated with
affected employees of $1.7 million; (iv) other direct and incremental restructuring related costs of $1.2 million; and (v) operating lease ROU
asset impairment charges of $0.9 million.
(2) Represents costs associated with the exit from our Scotland and Korea operations. Included in this amount for the twelve months ended
December 26, 2025 are: (i) severance costs associated with affected employees of $1.8 million; (ii) inventory write-off charges of $1.7 million;
(iii) operating lease ROU asset impairment charges of $1.3 million; (iv) other direct and incremental facility exit-related costs of $1.3 million;
and (v) accelerated depreciation charges of $0.6 million.
(3) Represents severance costs associated with our global reduction-in-force programs (other than severance costs associated with the exit from
our Scotland and Korea operations, as described above).
(4) Represents transaction-related costs incurred in connection with our acquisitions pipeline.
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The following table presents our unaudited non‑GAAP net income and non-GAAP diluted EPS and a reconciliation from net income (loss), the most
comparable GAAP measure, for the periods indicated. All non-GAAP adjustments are presented on a gross basis; the related income tax effects,
including current and deferred income tax expense, are included in the adjustment line under the heading "Tax adjustments related to non-GAAP
adjustments."
Year Ended
December 26,
2025
December 27,
2024
(dollars in thousands, except per share
amounts)
U.S. GAAP net loss
$
(52,781)
$
(20,820)
Non-GAAP adjustments:
Restructuring plan costs (1)
26,644 
— 
Share-based compensation
16,728 
15,576 
Amortization of intangible assets
8,311 
8,572 
Facility shutdown costs (2)
6,726 
— 
Other (3)
1,408 
1,600 
Transaction-related costs (4)
— 
785 
Loss on extinguishment of debt (5)
667 
— 
Tax adjustments related to non-GAAP
adjustments (6)
129 
175 
Tax expense (benefit) from valuation allowance
(7)
83 
— 
Non-GAAP net income
$
7,915 
$
5,888 
U.S. GAAP diluted EPS
$
(1.54)
$
(0.64)
Non-GAAP diluted EPS
$
0.23 
$
0.18 
Shares used to compute non-GAAP diluted EPS
34,358,211
33,135,552
(1) Represents the costs associated with our Consolidation Restructuring Plan. Included in this amount for 2025 are: (i) inventory impairment
costs of $19.8 million; (ii) fixed asset charges of $3.1 million; (iii) severance costs associated with affected employees of $1.7 million; (iv) other
direct and incremental restructuring related costs of $1.2 million; and (v) operating lease ROU asset impairment charges of $0.9 million.
(2) Represents costs associated with the exit from our Scotland and Korea operations. Included in this amount for the twelve months ended
December 26, 2025 are: (i) severance costs associated with affected employees of $1.8 million; (ii) inventory write-off charges of $1.7 million;
(iii) operating lease ROU asset impairment charges of $1.3 million; (iv) other direct and incremental facility exit-related costs of $1.3 million;
and (v) accelerated depreciation charges of $0.6 million.
(3) Represents severance costs associated with our global reduction-in-force programs (other than severance costs associated with the exit from
our Scotland and Korea operations, as described above).
(4) Represents transaction-related costs incurred in connection with our acquisitions pipeline.
(5) In September 2025, we entered into an amended and restated credit agreement, which includes a group of financial institutions as direct
lenders underlying the agreement. Under the debt modification literature codified in ASC 470, a portion of the refinance was treated as an
extinguishment. Accordingly, $0.2 million of existing capitalized deferred issuance costs were written off as a loss on extinguishment of debt
and $0.5 million of third-party and lender fees were expensed as incurred.
(6) Adjusts GAAP income tax expense for the impact of our non-GAAP adjustments, which are presented on a gross basis.
(7) During the first quarter of 2025, we recorded a valuation allowance against the deferred tax assets of our Korea operations.
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Liquidity and Capital Resources
The following section discusses our liquidity and capital resources, including our primary sources of liquidity and our material cash requirements. Our
cash and cash equivalents are maintained in highly liquid and accessible accounts with no significant restrictions.
Material Cash Requirements
Our primary liquidity requirements arise from: (i) working capital requirements, including procurement of raw materials inventory for use in our factories
and employee-related costs, (ii) business acquisitions, (iii) interest and principal payments under our credit facilities, (iv) research and development
investments and capital expenditures, (v) payment of income taxes, and (vi) payments associated with our noncancellable leases and related occupancy
costs. We have no significant long-term purchase commitments related to procuring raw materials inventory. Our ability to fund these requirements will
depend, in part, on our future cash flows, which are determined by our future operating performance and are therefore subject to prevailing global
macroeconomic conditions, such as interest rates, increased tariffs and retaliatory trade policies, geopolitical events, and financial, business, and other
factors, some of which are beyond our control.
We believe that our cash and cash equivalents, the amounts available under our credit facilities, and our operating cash flow will be sufficient to fund our
business and our current obligations for at least the next 12 months and beyond.
Sources and Conditions of Liquidity
Our ongoing sources of liquidity to fund our material cash requirements are primarily derived from: (i) sales to our customers and the related changes in
our net operating assets and liabilities and (ii) proceeds from our credit facilities and equity offerings, when applicable.
Summary of Cash Flows
We ended 2025 with cash and cash equivalents of $98.3 million, a decrease of $10.4 million from 2024, which was primarily due to capital expenditures
of $36.2 million and net payments on our credit facilities of $4.4 million, partially offset by cash provided by operating activities of $29.9 million.
The following table sets forth a summary of operating, investing, and financing activities for the periods presented:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
(in thousands)
Cash provided by operating activities
$
29,886 
$
27,880 
$
57,632 
Cash used in investing activities
(36,169)
(17,636)
(15,496)
Cash provided by (used in) financing activities
(4,096)
18,470 
(48,651)
Net increase (decrease) in cash
$
(10,379)
$
28,714 
$
(6,515)
Our cash provided by operating activities of $29.9 million during 2025 consisted of net non-cash charges of $73.7 million, which consisted primarily of
depreciation and amortization of $33.5 million, inventory impairment of $19.8 million, and share-based compensation expense of $16.7 million, and a
decrease in our net operating assets and liabilities of $9.0 million, partially offset by a net loss of $52.8 million.
The decrease in our net operating assets and liabilities of $9.0 million during 2025 was primarily due to a decrease in accounts receivable of
$16.1 million and a decrease in prepaid assets of $7.9 million, partially offset by a decrease in accrued and other liabilities of $7.1 million and a decrease
in accounts payable of $6.4 million.
Cash used in investing activities during 2025 and 2024 consisted of capital expenditures.
Cash used in financing activities during 2025 consisted of net payments on our credit facilities of $4.4 million. The decrease in cash provided by
financing activities from 2024 to 2025 was primarily due to net proceeds from our issuance of shares in the prior year.
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Recent Accounting Pronouncements
From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements.
Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update (“ASU”).
To understand the impact of recently issued guidance, whether adopted or to be adopted, please review the information provided in Note 1 –
Organization and Summary of Significant Accounting Policies of our consolidated financial statements in Part IV, Item 15 of this Annual Report on Form
10-K.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to financial market risks, including changes in currency exchange rates and interest rates.
Foreign Currency Exchange Risk
Substantially all of our sales arrangement with customers, and the significant majority of our arrangements with third-party suppliers, provide for pricing
and payment in U.S. dollars and, therefore, are not subject to material exchange rate fluctuations. As a result, we do not expect foreign currency
exchange rate fluctuations to have a material effect on our results of operations. However, increases in the value of the U.S. dollar relative to other
currencies would make our products more expensive relative to competing products priced in such other currencies, which could negatively impact our
ability to compete. Conversely, decreases in the value of the U.S. dollar relative to other currencies could result in our foreign suppliers raising their
prices in order to continue doing business with us.
We have certain operating expenses that are denominated in currencies of the countries in which our operations are located, and may be subject to
fluctuations due to foreign currency exchange rates, particularly the Singapore dollar, Malaysian ringgit, British pound, euro, Korean won, and Mexican
peso. Fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our statement of operations. To date,
foreign currency transaction gains and losses have not been material to our financial statements, and we have not engaged in any foreign currency
hedging transactions.
Interest Rate Risk
We had total indebtedness of $125.0 million as of December 26, 2025, exclusive of $1.5 million in debt issuance costs, of which $6.3 million was payable
within the next 12 months. We do not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to
manage our interest rate risk exposure. We have not been, nor do we anticipate being exposed to, material risks due to changes in interest rates. As of
December 26, 2025, the interest rate on our outstanding debt was based on SOFR, plus an applicable rate depending on our leverage ratio. A
hypothetical 100 basis point change in the interest rate on our outstanding debt would have resulted in a $1.3 million change to interest expense on an
annualized basis.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary financial information required to be filed under this Item 8 are presented beginning on page F‑1 in Part IV,
Item 15 of this Annual Report on Form 10‑K and are incorporated herein by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
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ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief
Financial Officer (the certifying officers), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules
13a‑15(e) and 15d‑15(e) under the Exchange Act) as of December 26, 2025. There are inherent limitations to the effectiveness of any system of
disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.
Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based on
this evaluation, our certifying officers concluded that our disclosure controls and procedures were effective as of December 26, 2025.
Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a‑15(f) and
15d‑15(f) under the Exchange Act). With the participation of our certifying officers, our management, under the oversight of our Board of Directors,
evaluated the effectiveness of our internal control over financial reporting as of December 26, 2025, using the framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework (2013). Our internal control over financial
reporting is designed to provide reasonable assurance with U.S. GAAP and includes those policies and procedures that: (1) pertain to the maintenance
of records that in reasonable detail accurately and fairly reflect our transactions and the dispositions of our assets; (2) provide reasonable assurance that
our transactions are recorded as necessary to permit preparation of the financial statements in accordance with GAAP and that our receipts and
expenditures are being made in accordance with appropriate authorizations; and (3) provide reasonable assurance regarding the prevention or timely
detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements. Based on that
evaluation, management concluded that our internal control over financial reporting was effective as of December 26, 2025.
The effectiveness of our internal control over financial reporting as of December 26, 2025 has been audited by KPMG LLP, an independent registered
accounting firm, as stated in their attestation report which appears in Item 15 of this Annual Report on Form 10-K.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rules 13a‑15(f) or 15d‑15(f) of the Exchange Act) that occurred
during the fourth quarter ended December 26, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
Inherent Limitations on Effectiveness of Controls and Procedures
A company’s internal control over financial reporting is a process designed by, or under the supervision of, a company’s principal executive and principal
financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements in accordance with GAAP. Because of its inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. If we cannot provide reliable
financial information, our business, operating results, and share price could be negatively impacted.
ITEM 9B. OTHER INFORMATION
During the fourth quarter of 2025, none of our directors or officers (as defined in Section 16 of the Exchange Act), adopted or terminated a "Rule 10b5-1
trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (each as such term is defined in Item 408 of Regulation S-K).
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ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
None.
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
Code of Conduct
We have adopted a code of business ethics and conduct (the “Code of Conduct”) that applies to all employees, officers, and directors, including the
principal executive officer, principal financial officer, and principal accounting officer. The Code of Conduct is available on our investor relations website at
ir.ichorsystems.com. We intend to post on our investor relations website all disclosures that are required by law or NASDAQ listing rules regarding any
amendment to, or a waiver of, any provision of the Code of Conduct for the principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions.
All other information required by this item is incorporated by reference to our Definitive Proxy Statement for our 2026 Annual General Meeting of
Shareholders (the “Proxy Statement”) to be filed with the SEC within 120 days after the close of the year ended December 26, 2025.
ITEM 11. EXECUTIVE COMPENSATION
The information required by this item is incorporated by reference to our Proxy Statement to be filed with the SEC within 120 days after the close of the
year ended December 26, 2025.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information required by this item is incorporated by reference to our Proxy Statement to be filed with the SEC within 120 days after the close of the
year ended December 26, 2025.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this item is incorporated by reference to our Proxy Statement to be filed with the SEC within 120 days after the close of the
year ended December 26, 2025.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is incorporated by reference to our Proxy Statement to be filed with the SEC within 120 days after the close of the
year ended December 26, 2025.
PART IV
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ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES
(a) The following documents are filed as a part of this Annual Report on Form 10-K:
(1) Financial Statements.
The following Consolidated Financial Statements are filed as part of this Annual Report on Form 10-K under Item 8. – Financial
Statements and Supplementary Data.
Reports of Independent Registered Public Accounting Firm (KPMG LLP, Portland, Oregon,
PCAOB ID: 185)
F-1
Consolidated Balance Sheets
F‑4
Consolidated Statements of Operations
F-5
Consolidated Statements of Shareholders’ Equity
F‑6
Consolidated Statements of Cash Flows
F‑7
Notes to Consolidated Financial Statements
F‑8
(2) Financial Statement Schedules. All financial statement schedules are omitted because they are not applicable or the required
information is shown in the financial statements or the notes thereto.
(3) Exhibits. Exhibits are listed on the Exhibit Index at the end of this Annual Report on Form 10-K.
ITEM 16. FORM 10-K SUMMARY
None.
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Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Ichor Holdings, Ltd.:
Opinion on Internal Control over Financial Reporting
We have audited Ichor Holdings, Ltd. and subsidiaries' (the Company) internal control over financial reporting as of December 26, 2025, based on
criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 26, 2025,
based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated
balance sheets of the Company as of December 26, 2025 and December 27, 2024, the related consolidated statements of operations, shareholders’
equity, and cash flows for each of the years in the three-year period ended December 26, 2025, and the related notes (collectively, the consolidated
financial statements), and our report dated February 20, 2026 expressed an unqualified opinion on those consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness
of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our
responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm
registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for
our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal
control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures
of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material
effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
/s/ KPMG LLP
Portland, Oregon
February 20, 2026
F-1

Table of Contents
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Ichor Holdings, Ltd.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Ichor Holdings, Ltd. and subsidiaries (the Company) as of December 26, 2025 and
December 27, 2024, the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the years in the three-year
period ended December 26, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial
statements present fairly, in all material respects, the financial position of the Company as of December 26, 2025 and December 27, 2024, and the
results of its operations and its cash flows for each of the years in the three-year period ended December 26, 2025, in conformity with U.S. generally
accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s
internal control over financial reporting as of December 26, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued
by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 20, 2026 expressed an unqualified opinion
on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent
with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits
included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable
basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the
consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit
matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
F-2

Table of Contents
Evaluation of excess and obsolete inventory
As discussed in Notes 1 and 2 to the consolidated financial statements, the Company reported inventories of $231.8 million as of December 26, 2025,
including an adjustment for excess and obsolete inventory of $37.5 million. The Company states its inventories at the lower of cost or net realizable
value. The Company records an adjustment to the cost basis of inventory when evidence exists that the net realizable value of inventory is lower than its
cost, which occurs when the Company has excess and/or obsolete inventory. The Company’s model to estimate excess and/or obsolete inventory is
based on an analysis of existing inventory quantities on-hand compared to estimated future consumption. Future consumption is estimated based upon
assumptions about how historical consumption, recent purchases, backlog, and other factors indicate future consumption.
We identified the evaluation of excess and obsolete inventory as a critical audit matter. There was subjective auditor judgment in evaluating whether
historical consumption reasonably indicates future consumption used by the Company in their determination that inventory is recorded at the lower of its
cost or net realizable value.
The following are the primary procedures we performed to address the critical audit matter. We evaluated the design and tested the operating
effectiveness of certain internal controls related to the Company’s excess and obsolete inventory process, including controls over the determination of
the assumptions used to estimate future consumption of inventory. We evaluated whether historical consumption reasonably indicates future
consumption by (1) examining historical write-down trends; (2) inspecting publicly available industry and market information to assess relevant changes
to the overall business environment; and (3) selected a sample of inventory items and for each selection we evaluated whether the historical data
accurately supported the Company’s estimate of future consumption.
/s/ KPMG LLP
We have served as the Company's auditor since 2011.
Portland, Oregon
February 20, 2026
F-3

Table of Contents
ICHOR HOLDINGS, LTD.
Consolidated Balance Sheets
(dollars in thousands, except per share data)
December 26,
2025
December 27,
2024
Assets
Current assets:
Cash and cash equivalents
$
98,290 
$
108,669 
Accounts receivable, net
70,514 
86,619 
Inventories
231,794 
250,102 
Prepaid expenses and other current assets
9,531 
7,230 
Total current assets
410,129 
452,620 
Property and equipment, net
103,922 
94,867 
Operating lease right-of-use assets
35,046 
44,461 
Other non-current assets
13,638 
15,182 
Deferred tax assets, net
4,337 
4,316 
Intangible assets, net
40,405 
48,716 
Goodwill
335,402 
335,402 
Total assets
$
942,879 
$
995,564 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable
$
84,007 
$
91,719 
Accrued liabilities
17,479 
15,992 
Other current liabilities
10,602 
8,965 
Current portion of long-term debt
6,250 
7,500 
Current portion of lease liabilities
11,250 
11,494 
Total current liabilities
129,588 
135,670 
Long-term debt, less current portion, net
117,278 
121,023 
Lease liabilities, less current portion
25,413 
34,189 
Deferred tax liabilities, net
1,961 
1,555 
Other non-current liabilities
4,753 
4,791 
Total liabilities
278,993 
297,228 
Shareholders’ equity:
Preferred shares ($0.0001 par value; 20,000,000 shares authorized; zero shares issued and outstanding)
— 
— 
Ordinary shares ($0.0001 par value; 200,000,000 shares authorized; 34,433,776 and 33,859,542 shares
outstanding, respectively; 38,871,215 and 38,296,981 shares issued, respectively)
3 
3 
Additional paid in capital
624,391 
606,060 
Treasury shares at cost (4,437,439 shares)
(91,578)
(91,578)
Retained earnings
131,070 
183,851 
Total shareholders’ equity
663,886 
698,336 
Total liabilities and shareholders’ equity
$
942,879 
$
995,564 
See accompanying notes to consolidated financial statements.
F-4

Table of Contents
ICHOR HOLDINGS, LTD.
Consolidated Statements of Operations
(dollars in thousands, except per share data)
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Net sales
$
947,652 
$
849,040 
$
811,120 
Cost of sales
859,877 
745,706 
707,724 
Gross profit
87,775 
103,334 
103,396 
Operating expenses:
Research and development
23,086 
23,018 
20,223 
Selling, general, and administrative
95,650 
79,384 
79,334 
Amortization of intangible assets
8,311 
8,572 
14,734 
Total operating expenses
127,047 
110,974 
114,291 
Operating loss
(39,272)
(7,640)
(10,895)
Interest expense, net
6,620 
9,266 
19,379 
Other expense, net
1,674 
1,148 
804 
Loss before income taxes
(47,566)
(18,054)
(31,078)
Income tax expense
5,215 
2,766 
11,907 
Net loss
$
(52,781)
$
(20,820)
$
(42,985)
Net loss per share
Basic
$
(1.54)
$
(0.64)
$
(1.47)
Diluted
$
(1.54)
$
(0.64)
$
(1.47)
Shares used to compute Net loss per share:
Basic
34,232,198
32,759,896
29,200,796
Diluted
34,232,198
32,759,896
29,200,796
See accompanying notes to consolidated financial statements.
F-5

Table of Contents
ICHOR HOLDINGS, LTD.
Consolidated Statements of Shareholders’ Equity
(dollars in thousands)
Ordinary Shares
Additional
Paid-In
Capital
Treasury
Shares
Retained
Earnings
Total
Shareholders'
Equity
Shares
Amount
Shares
Amount
Balance at December 30, 2022
28,861,949 $
3  $ 431,415 
4,437,439 $ (91,578) $ 247,656  $ 587,496 
Ordinary shares issued from exercise of
stock options
215,884
— 
4,467 
— 
— 
— 
4,467 
Ordinary shares issued from vesting of
restricted share units
259,944
— 
(3,672)
— 
— 
— 
(3,672)
Ordinary shares issued from employee
share purchase plan
97,621
— 
2,033 
— 
— 
— 
2,033 
Share-based compensation expense
—
— 
17,338 
— 
— 
— 
17,338 
Net income
—
— 
— 
— 
— 
(42,985)
(42,985)
Balance at December 29, 2023
29,435,398
3 
451,581 
4,437,439
(91,578)
204,671 
564,677 
Ordinary shares issued, net of
transaction costs
3,833,334
— 
136,738 
— 
— 
— 
136,738 
Ordinary shares issued from exercise of
stock options
216,439
— 
5,301 
— 
— 
— 
5,301 
Ordinary shares issued from vesting of
restricted share units
293,331
— 
(5,443)
— 
— 
— 
(5,443)
Ordinary shares issued from employee
share purchase plan
81,040
— 
2,307 
— 
— 
— 
2,307 
Share-based compensation expense
—
— 
15,576 
— 
— 
— 
15,576 
Net loss
—
— 
— 
— 
— 
(20,820)
(20,820)
Balance at December 27, 2024
33,859,542
3 
606,060 
4,437,439
(91,578)
183,851 
698,336 
Ordinary shares issued from exercise of
stock options
137,080
— 
3,404 
— 
— 
— 
3,404 
Ordinary shares issued from vesting of
restricted share units
322,456
— 
(4,134)
— 
— 
— 
(4,134)
Ordinary shares issued from employee
share purchase plan
114,698
— 
2,333 
— 
— 
— 
2,333 
Share-based compensation expense
—
— 
16,728 
— 
— 
— 
16,728 
Net loss
—
— 
— 
— 
(52,781)
(52,781)
Balance at December 26, 2025
34,433,776 $
3  $ 624,391 
4,437,439 $ (91,578) $ 131,070  $ 663,886 
See accompanying notes to consolidated financial statements.
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ICHOR HOLDINGS, LTD.
Consolidated Statements of Cash Flows
(in thousands)
Year Ended
December 26,
2025
 
December 27,
2024
 
December 29,
2023
Cash flows from operating activities:
Net loss
$
(52,781)
$
(20,820)
$
(42,985)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
33,505 
30,744 
34,577 
Inventory Impairment
19,811 
— 
— 
Share-based compensation
16,728 
15,576 
17,338 
Impairment of lease right-of-use assets
2,158 
— 
— 
Deferred income taxes
385 
(782)
9,314 
Loss on disposal of equipment
475 
— 
— 
Amortization of debt issuance costs
426 
465 
465 
Loss on extinguishment of debt
169 
— 
— 
Changes in operating assets and liabilities:
Accounts receivable, net
16,105 
(19,898)
69,600 
Inventories
(1,503)
(4,217)
37,775 
Prepaid expenses and other assets
7,866 
2,343 
10,204 
Accounts payable
(6,377)
29,110 
(50,974)
Accrued liabilities
1,596 
929 
(9,766)
Other liabilities
(8,677)
(5,570)
(17,916)
Net cash provided by operating activities
29,886 
27,880 
57,632 
Cash flows from investing activities:
Capital expenditures
(36,169)
(17,636)
(15,496)
Net cash used in investing activities
(36,169)
(17,636)
(15,496)
Cash flows from financing activities:
Issuance of ordinary shares, net of fees
— 
136,738 
— 
Issuance of ordinary shares under share-based compensation plans
5,628 
7,800 
7,521 
Employees' taxes paid upon vesting of restricted share units
(4,134)
(5,443)
(3,672)
Debt issuance and modification costs
(1,215)
— 
— 
Repayments on revolving credit facility
— 
(115,000)
(45,000)
Proceeds from term loan
57,003 
— 
— 
Repayments on term loan
(61,378)
(5,625)
(7,500)
Net cash provided by (used in) financing activities
(4,096)
18,470 
(48,651)
Net increase (decrease) in cash
(10,379)
28,714 
(6,515)
Cash at beginning of period
108,669 
79,955 
86,470 
Cash at end of period
$
98,290 
$
108,669 
$
79,955 
Supplemental disclosures of cash flow information:
Cash paid during the period for interest
$
8,503 
$
11,650 
$
20,368 
Cash paid during the period for taxes, net of refunds
$
3,009 
$
3,333 
$
3,877 
Supplemental disclosures of non-cash activities:
Capital expenditures included in accounts payable
$
3,626 
$
4,961 
$
625 
Right-of-use assets obtained in exchange for new operating lease liabilities, including
those acquired through acquisitions
$
1,256 
$
16,418 
$
4,789 
See accompanying notes to consolidated financial statements.
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Table of Contents
ICHOR HOLDINGS, LTD.
Notes to Consolidated Financial Statements
(dollar figures in tables in thousands, except per share data)
Note 1 – Organization and Summary of Significant Accounting Policies
Organization and Operations of the Company
Ichor Holdings, Ltd. and Subsidiaries (“we”, “us”, “our”, the “Company”) are a leader in the design, engineering and manufacturing of critical fluid delivery
subsystems and components primarily for semiconductor capital equipment, as well as other industries such as defense/aerospace and medical. Our
primary product offerings include gas and chemical delivery subsystems, collectively known as fluid delivery subsystems, which are key elements of the
process tools used in the manufacturing of semiconductor devices. Our gas delivery subsystems deliver, monitor and control precise quantities of the
specialized gases used in semiconductor manufacturing processes such as etch and deposition. Our chemical delivery subsystems precisely blend and
dispense the reactive liquid chemistries used in semiconductor manufacturing processes such as chemical-mechanical planarization, electroplating, and
cleaning. We also provide precision-machined components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing,
surface treatment technologies, and other proprietary products. We are headquartered in Fremont, California and have operations in the United States,
Singapore, Malaysia, and Mexico.
On December 30, 2011, Ichor Systems Holdings, LLC consummated a sales transaction with Icicle Acquisition Holdings, LLC, a Delaware limited liability
company. Shortly after consummation of the sale transaction, Icicle Acquisition Holdings, LLC changed its name to Ichor Holdings, LLC.
In March 2012, Ichor Holdings, LLC completed a reorganization of its legal structure, forming Ichor Holdings, Ltd., a Cayman Islands entity. Ichor
Holdings, Ltd. is now the reporting entity and the ultimate parent company of the operating entities.
Basis of Presentation
These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All
intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated
financial statements are in thousands, except per share amounts.
Year End
We use a 52‑ or 53‑week fiscal year ending on the last Friday in December. The years ended December 26, 2025, December 27, 2024, and
December 29, 2023 were each 52 weeks. All references to 2025, 2024, and 2023 are references to the fiscal years then ended.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on
various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management.
Significant estimates include inventory valuation, valuation allowance on deferred tax assets, and impairment analyses for both definite‑lived intangible
assets and goodwill.
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Change in Accounting Estimate
In the second quarter of 2025, we changed our accounting estimate for the expected useful lives of Computer Numerical Control ("CNC") machinery,
which was applied prospectively. We evaluated our current asset base and reassessed the estimated useful lives of the CNC machinery in connection
with our recent usage of older machinery, including considering the technological and physical obsolescence of such machinery. Based on this
evaluation, we determined the expected useful life of the CNC machinery should be increased from seven to ten years to more closely reflect the
estimated economic life of those assets. For 2025, the change resulted in a decrease to depreciation expense in cost of sales of $3.0 million, which
reduced operating loss and net loss by the same amount, and net loss per share by $0.09.
Cash and Cash Equivalents
Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or
less at the time of acquisition.
Revenue Recognition
We recognize revenue when control of promised goods or services is transferred to our customers in an amount that reflects the consideration we expect
to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations.
Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the
duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes
variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we
include variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration
estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer
relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales.
Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid
delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed
within 12 months. Product sales are recognized at a point-in-time, upon "delivery," as such term is defined within the contract, which is generally at the
time of shipment, which is when control of products has transferred. Products are covered by a standard assurance warranty, generally extended for a
period of one to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account
for such warranties under ASC 460, Guarantees, and not as a separate performance obligation.
Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried
at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within
15 to 60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our
consolidated balance sheets in any of the periods presented.
Commitments and Contingencies
We are periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. The ultimate
resolution of these actions is not expected to have a material adverse effect on our financial position or results of operations.
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We periodically enter into contractual arrangements with third parties that include indemnification obligations. Under these agreements, we may be
required to indemnify, hold harmless, and reimburse the indemnified parties for losses suffered or incurred by the indemnified party for third party claims.
These claims may arise from our breach of the agreement, our negligence or willful misconduct in connection with the agreement, or from any claims
related to trade secret, copyright, patent, or other intellectual property infringement with respect to our products. The maximum potential amount of future
payments under these indemnification obligations is difficult to determine or reasonably estimate due to the varying terms of these obligations, the
absence of a history of prior indemnification claims, the unique facts and circumstances surrounding each contractual arrangement, and the contingency
of potential liabilities, which depend on events that are not reasonably determinable. We do not expect the potential indemnification obligations to have a
material adverse effect on our financial position or results of operations.
Concentrations
Financial instruments that subject us to concentration risk consist of accounts receivable, accounts payable, and long-term debt. At December 26, 2025
and December 27, 2024, three and four customers (with each single customer representing 10% or more of the balance of accounts receivable)
represented, in the aggregate, approximately 66% and 77%, respectively, of the balance of accounts receivable.
We establish an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends, and other information. We require
collateral, typically cash, in the normal course of business if customers do not meet our criteria established for offering credit. If the financial condition of
our customers were to deteriorate and result in an impaired ability to make payments, additions to the allowance may be required. Accounts receivable
are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded to income when received. Activity and
balances related to our allowance for doubtful accounts was not significant during any period presented.
We use qualified manufacturers to supply many components and subassemblies of our products. We obtain the majority of our components from a
limited group of suppliers. A majority of the purchased components used in our products are customer specified. An interruption in the supply of a
particular component would have a temporary adverse impact on our operating results.
We maintain cash balances at global systemically important banks in both United States and internationally. Cash balances in the United States exceed
amounts that are insured by the Federal Deposit Insurance Corporation. The majority of the cash maintained in foreign-based commercial banks is
insured by the government where the foreign banking institutions are based. Cash held in foreign-based commercial banks totaled $52.9 million and
$47.1 million at December 26, 2025 and December 27, 2024, respectively, and at times exceeds insured amounts. No losses have been incurred as of
December 26, 2025 or December 27, 2024 for amounts exceeding the insured limits.
Fair Value Measurements
We estimate the fair value of financial assets and liabilities based upon comparison of such assets and liabilities to the current market values for
instruments of a similar nature and degree of risk. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of
unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or
liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair
value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
▪
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement
date
▪
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for
substantially the full term of the asset or liability
▪
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available,
thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date
There were no changes to our valuation techniques during 2025. We estimate the recorded value of our financial assets and liabilities approximates fair
value as of December 26, 2025 and December 27, 2024.
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The carrying values of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate their fair
values due to their short-term maturities. The carrying value of amounts borrowed under our credit facilities approximate their fair values because the
interest rates on these borrowings are floating.
We estimate the value of acquired intangible assets, on a nonrecurring basis, based on an income approach utilizing discounted cash flows. Under this
approach, we estimate the future cash flows from our asset groups and discount the income stream to its present value to arrive at fair value. Future
cash flows are based on recently prepared operating forecasts. Operating forecasts and cash flows include, among other things, revenue growth rates
that are calculated based on management’s forecasted sales projections. A discount rate is utilized to convert the forecasted cash flows to their present
value equivalent. The discount rate applied to the future cash flows includes a subject-company risk premium, an equity market risk premium, a beta,
and a risk-free rate. As this approach contains unobservable inputs, the measurement of fair value for intangible assets is classified as Level 3.
Inventories
Inventories are stated at the lower of cost or net realizable value. The majority of our inventories are valued on a standard cost basis, which
approximates actual costs on a first-in, first-out basis. The remainder of our inventories are valued on an average cost basis, which approximates actual
costs on a first-in, first-out basis. Quarterly, we assess the value of our inventory and periodically write it down for excess quantities or obsolescence to
its estimated net realizable value. This assessment is based on estimated future consumption compared to inventory quantities on-hand. The estimate
for future consumption is based on how assumptions of historical consumption, recency of purchases, backlog, and other factors indicate future
consumption. Once the value of inventory is adjusted, the original cost of our inventory, less the write-down, represents its new cost basis.
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the following
estimated useful lives:
Estimated useful lives
of property &
equipment
Machinery
5-10 years
Leasehold improvements
10 years
Computer software, hardware, and equipment
3-5 years
Office furniture, fixtures, and equipment
5-7 years
Vehicles
5 years
Maintenance and repairs that neither add material value to the asset nor appreciably prolong its useful life are charged to expense as incurred. Gains or
losses on the disposal of property and equipment are included in selling, general, and administrative expenses on the consolidated statements of
operations.
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Leases
We determine if an arrangement is a lease, or contains a lease, at the inception of the arrangement. If we determine the arrangement is a lease, or
contains a lease, at lease inception, we then determine whether the lease is an operating lease or a finance lease. Operating and finance leases result in
recording a right-of-use (“ROU”) asset and lease liability on our consolidated balance sheets. ROU assets represent our right to use an underlying asset
for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities
are recognized at the commencement date based on the present value of lease payments over the lease term. For purposes of calculating operating
lease ROU assets and operating lease liabilities, we use the non-cancellable lease term plus options to extend that we are reasonably certain to take.
Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Our leases generally do not provide an implicit
rate. As such, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of
lease payments. This rate is generally consistent with the interest rate we pay on borrowings under our credit facilities, as this rate approximates our
collateralized borrowing capabilities over a similar term of lease payments. We utilize the consolidated group incremental borrowing rate for all leases, as
we have centralized treasury operations. We have elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or
less) leases for any class of underlying asset. We have elected not to separate lease and non-lease components for any class of underlying asset.
Intangible Assets
We account for intangible assets that have a definite life and are amortized on a basis consistent with their expected cash flows over the following
estimated useful lives:
Estimated useful lives
of intangible assets
Customer relationships
6-10 years
Developed technology
10 years
Impairment of Long-Lived Assets
Long-lived assets, which include property and equipment, ROU assets and amortizable intangible assets are reviewed for impairment whenever events
or changes in circumstances indicate, in management’s judgment, that the carrying amount of an asset (or asset group) may not be recoverable. In
analyzing potential impairments, projections of future cash flows from the asset group are used to estimate fair value. If the sum of the expected future
undiscounted cash flows is less than the carrying amount of the asset group, a loss is recognized for the difference between the estimated fair value and
the carrying value of the asset group. During 2025, we identified and recognized fixed asset accelerated depreciation $3.2 million and operating lease
ROU asset impairment charges of $2.2 million, both of which are included in selling, general, and administrative expenses within the accompanying
consolidated statement of operations. During 2024, and 2023, we did not identify any triggering events that would indicate impairment.
Goodwill
Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and
separately recognized. We review goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of
goodwill may not be recoverable. We first make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than
its carrying amount before applying a quantitative goodwill impairment test. Under the quantitative test, the fair value of the reporting unit is compared to
its carrying value and an impairment loss is recognized for any excess of carrying amount over the reporting unit’s fair value. Fair value of the reporting
unit is determined using a discounted cash flow analysis. For purposes of testing goodwill for impairment, we have concluded that we operate as one
reporting unit.
We performed a qualitative goodwill assessment at December 26, 2025 and December 27, 2024. This assessment indicated that it was more likely than
not our reporting unit’s fair value exceeded its carrying value.
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Table of Contents
Research and Development Costs
Research and development costs are expensed as incurred.
Income Taxes
We recognize deferred income taxes using the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred
income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect
for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period
that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be
realized.
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others may
be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax
position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is
more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions
taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the
largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the
benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax
benefits in our consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon
examination. We recognize interest and penalties as a component of income tax expense.
Foreign Operations
The functional currency of our international operations is the U.S. dollar. Transactions denominated in currencies other than the functional currency
generate foreign exchange gains and losses that are included in other expense, net on our consolidated statements of operations. Substantially all of our
sales contracts, and most of our agreements with third-party suppliers, provide for pricing and payment in U.S. dollars. Accordingly, these transactions
are not subject to material exchange rate fluctuations.
Accounting Pronouncements Recently Adopted
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income
Tax Disclosures (Topic 740). The ASU is intended to enhance the transparency, decision usefulness, and effectiveness of income tax disclosures. The
ASU requires a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. The ASU also
requires a public entity to provide a qualitative description of the states and local income tax category and the net amount of income taxes paid,
disaggregated by federal, state, and foreign taxes as well as by individual jurisdictions. The ASU is effective on a prospective basis for annual periods
beginning after December 15, 2024, and early adoption and retrospective application are permitted. We adopted this standard in the fourth quarter of
2025 for the annual period ended December 26, 2025, and applied it retrospectively to all periods presented. It did not have a material impact on our
consolidated financial statements. The standard is effective for our interim periods beginning in 2026.
Accounting Pronouncements Recently Issued
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires disaggregation
of certain expense captions into specified natural expense categories in the disclosures within the notes to the financial statements. In addition, it
requires disclosure of selling expenses and its definition. The ASU is effective for fiscal years beginning after December 15, 2026, and interim reporting
periods beginning after December 15, 2027, with early adoption permitted. The guidance can be applied either prospectively or retrospectively. We are
currently evaluating the effect that the adoption of this ASU may have on our consolidated financial statements.
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Table of Contents
Note 2 – Inventories
Inventories consist of the following:
December 26,
2025
December 27,
2024
Raw materials
$
204,166 
$
197,975 
Work in process
39,595 
45,075 
Finished goods
45,393 
43,445 
Excess and obsolete adjustment
(37,549)
(36,393)
Impairment of inventory
(19,811)
— 
Total inventories
$
231,794 
$
250,102 
The following table presents changes to our excess and obsolete adjustment and inventory impairment balance:
Excess and obsolete
adjustment
Impairment of
inventory
Balance at December 30, 2022
$
(17,543)
$
— 
Charge to cost of sales
(9,784)
— 
Disposition of inventory
(1,113)
— 
Balance at December 29, 2023
(28,440)
— 
Charge to cost of sales
(8,584)
— 
Disposition of inventory
631 
— 
Balance at December 27, 2024
(36,393)
— 
Charge to cost of sales
(3,566)
(19,811)
Disposition of inventory
2,410 
— 
Balance at December 26, 2025
$
(37,549)
$
(19,811)
Note 3 – Property and Equipment
Property and equipment consist of the following:
December 26,
2025
December 27,
2024
Machinery
$
141,095 
$
123,509 
Leasehold improvements
48,955 
48,487 
Computer software, hardware, and equipment
9,548 
8,707 
Office furniture, fixtures, and equipment
1,529 
1,593 
Vehicles
365 
395 
Construction-in-process
21,955 
12,612 
223,447 
195,303 
Less accumulated depreciation
(119,525)
(100,436)
Total property and equipment, net
$
103,922 
$
94,867 
Depreciation expense for 2025, 2024, and 2023 was $23.5 million, $21.0 million, and $18.8 million, respectively.
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Table of Contents
Cloud Computing Implementation Costs
We incur costs to implement cloud computing arrangements that are service contracts. In accordance with ASC 350-40, Goodwill and other, Internal-Use
Software, for cloud computing arrangements that meet the definition of a service contract, we capitalize qualifying implementation costs incurred during
the application development stage which are recorded in other non-current assets. To-date, these costs represent those incurred to implement a new
company-wide ERP system. The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $12.4 million and
$11.2 million as of December 26, 2025 and December 27, 2024, respectively, and is included in other non-current assets on our consolidated balance
sheets. The related amortization expense was $1.7 million, $1.2 million, and $1.1 million during 2025, 2024, and 2023, respectively, and is included in
selling, general, and administrative expense on our consolidated statements of operations.
Note 4 – Intangible Assets
Definite-lived intangible assets consist of the following:
December 26, 2025
Gross value
Accumulated
amortization
Accumulated
impairment
charges
Carrying
amount
Weighted
average
useful life
Customer relationships
$
71,583 
$
(34,457)
$
— 
$
37,125 
9.9 years
Developed technology
11,047 
(7,767)
— 
3,280 
10.0 years
Total intangible assets
$
82,630 
$
(42,224)
$
— 
$
40,405 
December 27, 2024
Gross value
Accumulated
amortization
Accumulated
impairment
charges
Carrying
amount
Weighted
average
useful life
Customer relationships
$
73,142 
$
(28,779)
$
— 
$
44,363 
9.9 years
Developed technology
11,047 
(6,694)
— 
4,353 
10.0 years
Total intangible assets
$
84,189 
$
(35,473)
$
— 
$
48,716 
Fully amortized finite-lived intangible assets are removed from the presentation of gross intangible assets along with the related accumulated
amortization.
Future projected annual amortization expense consists of the following:
Future
amortization
expense
2026
$
7,729 
2027
7,290 
2028
7,055 
2029
6,579 
2030
6,240 
Thereafter
5,512 
$
40,405 
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Note 5 – Leases
We lease facilities under various non-cancellable operating leases expiring through 2037. In addition to base rental payments, we are generally
responsible for our proportionate share of operating expenses, including facility maintenance, insurance, and property taxes. As these amounts are
variable, they are not included in lease liabilities. As of December 26, 2025, we had no operating leases executed for which the rental period had not yet
commenced.
The components of lease expense are as follows:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Operating lease cost
$
11,206 
$
10,009 
$
9,656 
Supplemental cash flow information related to leases is as follows:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
11,571 
$
9,834 
$
9,494 
Supplemental balance sheet information related to leases is as follows:
December 26,
2025
December 27,
2024
Weighted-average remaining lease term of operating leases
5.7 years
6.1 years
Weighted-average discount rate of operating leases
4.9%
4.7%
Future minimum lease payments under non-cancellable leases as of December 26, 2025 are as follows:
2026
$
11,248 
2027
10,405 
2028
5,571 
2029
3,122 
2030
2,808 
Thereafter
9,900 
Total future minimum lease payments
43,054 
Less imputed interest
(6,391)
Total lease liabilities
36,663 
Less current portion
(11,250)
Total lease Liabilities, less current portion
$
25,413 
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Table of Contents
Note 6 – Income Taxes
Loss before provision of income taxes consisted of the following:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
United States
$
(65,843)
$
(58,245)
$
(69,040)
Foreign
18,277 
40,191 
37,962 
Loss before tax
$
(47,566)
$
(18,054)
$
(31,078)
Significant components of income tax expense consist of the following:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Current:
Federal
$
(220)
$
(115)
$
(56)
State
572 
585 
16 
Foreign
4,733 
3,078 
2,633 
Total current tax expense
5,085 
3,548 
2,593 
Deferred:
Federal
326 
326 
8,471 
State
80 
62 
1,529 
Foreign
(276)
(1,170)
(686)
Total deferred tax expense (benefit)
130 
(782)
9,314 
Income tax expense
$
5,215 
$
2,766 
$
11,907 
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Table of Contents
Deferred income taxes reflect the net tax effects of (i) temporary differences between the carrying amounts of assets and liabilities for the financial
reporting purposes and the amounts used for income tax purposes, and (ii) operating losses and tax credit carryforwards.
December 26,
2025
December 27,
2024
Deferred tax assets:
Inventory
$
6,717 
$
8,701 
Share-based compensation
2,600 
3,103 
Accrued payroll
1,555 
1,580 
Net operating loss carryforwards
34,833 
16,817 
Tax credits
8,478 
6,678 
Interest carryforwards
7,056 
6,298 
Capitalized research expenses
7,810 
9,838 
Intercompany interest
3,144 
2,906 
Operating lease liabilities
4,858 
11,140 
Other assets
1,070 
534 
Deferred tax assets
78,121 
67,595 
Valuation allowance
(58,321)
(42,281)
Total deferred tax assets
19,800 
25,314 
Deferred tax liabilities:
Intangible assets
(6,997)
(5,438)
Property, plant and equipment
(5,778)
(5,851)
Operating lease right-of-use assets
(4,649)
(10,890)
Other liabilities
— 
(374)
Total deferred tax liabilities
(17,424)
(22,553)
Net deferred tax asset
$
2,376 
$
2,761 
At December 26, 2025, we had federal, state, and foreign net operating loss carryforwards ("NOLs") of $139.7 million, $63.1 million and $6.8 million,
respectively. The federal NOLs carry forward indefinitely. The state and foreign NOLs, if not utilized, will begin to expire in 2028 and 2039, respectively.
At December 26, 2025, we had federal and state research and development credits of $3.1 million and $0.4 million, respectively, which, if not utilized, will
begin to expire in 2042 and 2029, respectively. At December 26, 2025, we had foreign tax credits of $3.2 million, which, if not utilized, will begin to expire
in 2033.
We have determined the amount of our valuation allowance based on our estimates of taxable income by jurisdiction in which we operate over the
periods in which the related deferred tax assets will be recoverable. As of December 26, 2025, we believe it is not more-likely-than-not that our U.S.
entities will generate sufficient taxable income to offset reversing deductible timing differences and to fully utilize carryforward tax attributes. Accordingly,
we have recorded a valuation allowance against U.S. federal and state deferred tax assets, net of deferred tax liabilities related to indefinite-lived
intangible assets for which no future realization can be expected. The valuation allowance increased by $16.0 million and $14.2 million during the years
ended December 26, 2025 and December 27, 2024, respectively.
We were granted a tax holiday for our Singapore operations, which expires in 2026. The net impact of the tax holiday in Singapore as compared to the
Singapore statutory rate was a benefit of $3.4 million, $7.1 million, and $5.0 million during 2025, 2024, and 2023, respectively. Our income tax fluctuates
based on the geographic mix of earnings and is calculated quarterly based on actual results pursuant to ASC Topic 740‑270.
We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination. As of
December 26, 2025, we had reserves of $3.2 million related to these uncertain tax positions, which are included in the balance of other non-current
liabilities on the accompanying consolidated balance sheet. If recognized, $1.4 million of this amount would impact our effective tax rate.
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We recognize estimated accrued interest and penalties related to these unrecognized tax benefits in income tax expense. In 2025, we recognized no
increase in estimated interest and penalties. At December 26, 2025, we had approximately zero and $0.6 million of accrued estimated interest and
penalties, which are excluded from the unrecognized tax benefits table below.
The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense consist of the following:
Year Ended
December 26, 2025
December 27, 2024
December 29, 2023
Amount
Percent
Amount
Percent
Amount
Percent
Effective rate reconciliation:
US federal statutory tax rate
$
(9,989)
21.0%
$
(3,791)
21.0%
$
(6,526)
21.0%
State and local income taxes, net of federal income tax
effect (1)
515 
(1.1)%
(648)
3.6%
(1,994)
6.4%
Tax credits
Research and development tax credits
(603)
1.3%
(869)
4.8%
(1,530)
4.9%
Foreign tax credit on withholding
(1,085)
2.3%
(815)
4.5%
(717)
2.3%
Change in valuation allowance
13,833 
(29.1)%
14,243 
(78.9)%
27,940 
(89.9)%
Nondeductible items
Limitation on officers compensation
511 
(1.1)%
1,225 
(6.8)%
597 
(1.9)%
Stock compensation
1,513 
(3.2)%
(372)
2.1%
85 
(0.3)%
Other
41 
(0.1)%
177 
(1.0)%
336 
(1.1)%
Worldwide changes in unrecognized tax benefits
(48)
0.1%
475 
(2.6)%
(331)
1.1%
Other reconciling items
(31)
0.1%
158 
(0.9)%
44 
(0.1)%
Foreign tax effects
Other
90 
(0.2)%
68 
(0.4)%
(92)
0.3%
Singapore
Statutory tax rate difference
(846)
1.8%
(1,112)
6.2%
(1,415)
4.6%
Tax holiday
(3,446)
7.2%
(7,078)
39.2%
(4,962)
16.0%
Withholding tax
1,083 
(2.3)%
815 
(4.5)%
717 
(2.3)%
Other
— 
—%
126 
(0.7)%
— 
—%
Malaysia
Statutory tax rate difference
114 
(0.2)%
290 
(1.6)%
52 
(0.2)%
Permanent differences
322 
(0.7)%
(336)
1.9%
(365)
1.2%
Return to provision
278 
(0.6)%
225 
(1.2)%
(224)
0.7%
Other
52 
(0.1)%
— 
—%
— 
—%
United Kingdom
Change in valuation allowance
1,665 
(3.5)%
— 
—%
— 
—%
Benefit from carry back claim
(509)
1.1%
— 
—%
— 
—%
Other
(266)
0.6%
(15)
0.1%
292 
(0.9)%
Netherlands
Domestic top-up tax
2,021 
(4.2)%
— 
—%
— 
—%
Income tax expense
$
5,215 
(11.0)%
$
2,766 
(15.3)%
$
11,907 
(38.3)%
(1) State taxes in California make up the majority of the tax effect in this category.
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Table of Contents
The cash paid for taxes, net of refunds, are as follows:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Federal
$
4 
$
— 
$
(483)
State and local
California
352 
490 
(226)
Oregon
130 
71 
315 
Texas
153 
80 
199 
Other
1 
16 
24 
Foreign
Singapore
1,166 
794 
1,037 
Malaysia
1,203 
1,068 
1,350 
Korea
— 
188 
55 
United Kingdom
— 
626 
1,606 
Cash paid for taxes, net of refunds
$
3,009 
$
3,333 
$
3,877 
The following table summarizes the activity related to our unrecognized tax benefits:
Unrecognized
tax benefits
Balance at December 30, 2022
$
3,595 
Increase related to current year tax positions
488 
Decrease in tax positions related to lapse of statute of limitations
(10)
Decrease in tax positions related to settlements
(916)
Balance at December 29, 2023
3,157 
Increase related to current year tax positions
435 
Decrease in tax positions related to lapse of statute of limitations
(336)
Balance at December 27, 2024
3,256 
Increase related to current year tax positions
149 
Decrease in tax positions related to lapse of statute of limitations
(197)
Balance at December 26, 2025
$
3,208 
We assert indefinite reinvestment of our U.S. and Netherlands unremitted earnings. With regard to these unremitted earnings, we have not, nor do we
anticipate the need to repatriate funds from the U.S. to the Netherlands or from the Netherlands to the Cayman entity to satisfy liquidity needs.
Determination of the amount of unrecognized withholding tax liability related to the indefinitely reinvested earnings is not practicable.
Our three major filing jurisdictions are the United States, Singapore, and Malaysia. We are no longer subject to U.S. Federal examination for tax years
ending before 2022, to state examinations before 2021, or to foreign examinations before 2021. However, to the extent allowed by law, the tax
authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make
adjustments up to the amount of the net operating losses or credit carryforward. As of December 26, 2025, we were under examination by the California
tax authorities for fiscal years 2020-2022.
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Table of Contents
Note 7 – Employee Benefit Programs
401(k) Plan
We sponsor a 401(k) plan available to employees of our U.S.‑based subsidiaries. Participants may make salary deferral contributions not to exceed 50%
of a participant’s annual compensation or the maximum amount otherwise allowed by law. Eligible employees receive a discretionary matching
contribution equal to 50% of a participant’s deferral, up to an annual maximum of 4% of a participant’s annual compensation. For 2025, 2024, and 2023,
matching contributions were $2.7 million, $2.6 million, and $2.7 million, respectively.
Note 8 – Long-Term Debt
Long-term debt consists of the following:
December 26,
2025
December 27,
2024
Term loan
$
125,000 
$
129,375 
Revolving credit facility
— 
— 
Total principal amount of long-term debt
125,000 
129,375 
Less unamortized debt issuance costs
(1,472)
(852)
Total long-term debt, net
123,528 
128,523 
Less current portion
(6,250)
(7,500)
Total long-term debt, less current portion, net
$
117,278 
$
121,023 
Term loan principal payments are due quarterly on the last business day of each calendar quarter, commencing on December 31, 2025. The credit
agreement matures on September 26, 2030. Maturities of long-term debt consist of the following:
2026
$
6,250 
2027
7,813 
2028
7,813 
2029
7,813 
2030
95,311 
Total
$
125,000 
The weighted average interest rate across our credit facilities was 6.16%, 7.31%, and 6.80% during 2025, 2024, and 2023, respectively.
On September 26, 2025, we entered into an amended and restated credit agreement, which includes a group of financial institutions as direct lenders
under the agreement (the "credit agreement"). The credit agreement includes a $125.0 million term loan facility and a $100.0 million revolving credit
facility (together, “credit facilities”). The revolving credit facility also contains a $20.0 million letter of credit sub-facility and a $10.0 million swingline sub-
facility. We incurred debt issuance costs of approximately $1.7 million in connection with the amendment and restatement. Of this amount, $1.2 million of
the debt issuance costs are accounted for as a reduction to the carrying value of our long-term debt, and we amortize these costs to interest expense
over the term of the credit agreement. The remaining $0.5 million in debt issuance costs were expensed as incurred, which is included in other expense,
net on our consolidated statements of operations. Under the debt modification literature codified in ASC 470, a portion of the amendment and
restatement was treated as an extinguishment. Accordingly, $0.2 million of existing capitalized debt issuance costs were written off as a loss on
extinguishment of debt, which is included in other expense, net on our consolidated statements of operations.
Our credit agreement is secured by our tangible and intangible assets and includes customary representations, warranties, and covenants. We are
required to maintain a minimum fixed charge coverage ratio of 1.25 : 1 and a maximum leverage ratio of 3.50 : 1. We were in compliance with both as of
December 26, 2025.
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Table of Contents
As of December 26, 2025, interest is charged at either the Base Rate or SOFR (as such terms are defined in the credit agreement) at our option, plus an
applicable margin. The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.50%, or iii) SOFR plus 1.00%. The
applicable margin on Base Rate and SOFR loans is 0.750% to 1.750% and 1.750% to 2.750% per annum, respectively, depending on our leverage ratio,
which is based on trailing 12-month consolidated EBITDA, as defined in our credit agreement. We are also charged a commitment fee of 0.175% to
0.350%, depending on our leverage ratio, on the unused portion of our revolving credit facility. Base Rate interest payments and commitment fees are
due quarterly. SOFR interest payments are due on the last day of the applicable interest period, or quarterly for applicable interest periods longer than
three months. As of December 26, 2025, our credit facilities bore interest under the SOFR option at 6.17%.
Note 9 – Share-Based Compensation
2025 Plan
On March 26, 2025, the Human Capital Committee of our Board of Directors approved the Ichor Holdings, Ltd. 2025 Omnibus Incentive Plan (the "2025
Plan"). The 2025 Plan was approved by our stockholders on May 14, 2025 and allows for the issuance of 2,963,471 shares to be used for awards under
the Plan, subject to the applicable adjustment and share recycling provisions set forth in the 2025 plan. The 2025 Plan replaces the Ichor Holdings, Ltd.
2016 Omnibus Incentive Plan (the "2016 Plan") in its entirety, except with respect to awards granted under the 2016 Plan prior to the effective date of the
2025 Plan.
The 2025 Omnibus Incentive Plan provides for grants of share‑based awards to employees, directors, and consultants. Awards may be in the form of
stock options (“options”), tandem and non‑tandem stock appreciation rights, restricted share awards or restricted share units (“RSUs”), performance
awards, and other share‑based awards. We have elected to account for forfeitures of all share-based awards in share-based compensation expense
prospectively as they occur. Forfeited or expired awards are returned to the incentive plan pool for future grants. Awards generally vest over four years,
25% on the first anniversary of the date of grant and quarterly thereafter over the remaining three years. Upon vesting of RSUs, shares are withheld to
cover statutory minimum withholding taxes. Shares withheld are not reflected as an issuance of ordinary shares within our consolidated statements of
shareholders’ equity, as the shares are never issued, and the associated tax payments are reflected as financing activities within our consolidated
statements of cash flows.
Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $16.7 million, $15.6 million, and $17.3
million during 2025, 2024, and 2023, respectively.
Stock Options
Options are valued based on the Black-Scholes-Merton model on the date of grant. The risk-free interest rate is based on U.S. Treasury rates in effect
on the date of grant. Estimated volatility is based on the historical volatility of our ordinary shares. Options generally vest over 4 years, with 25% vesting
on the first grant-date anniversary and the remaining vesting on a quarterly basis over the remaining 3 years. Options granted under the 2016 Plan have
a contractual term of 7 years. No options have been granted under the 2025 Plan.
The following table summarizes option activity:
Number of Stock
Options
Service
condition
Weighted average
exercise price
per share
Weighted average
remaining
contractual term
Aggregate intrinsic
value
Outstanding, December 27, 2024
365,085 $
24.28 
Exercised
(137,080) $
24.83 
Forfeited or expired
(14,880) $
22.28 
Outstanding, December 26, 2025
213,125 $
24.07 
0.7 years
$
— 
Exercisable, December 26, 2025
213,125 $
24.07 
0.7 years
$
— 
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Table of Contents
The intrinsic value of options exercised are as follows:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Total intrinsic value of options exercised
$
1,013 
$
3,276 
$
3,041 
At December 26, 2025, there was no unrecognized share-based compensation expense relating to options.
Restricted Share Units
RSUs that vest pursuant to a service condition and performance condition are valued based on the closing market price of our ordinary shares on the
date of grant. RSUs that vest pursuant to a service condition only generally vest over 4 years, with 25% vesting on the first grant-date anniversary and
the remaining vesting on a quarterly basis over the remaining 3 years. RSUs that vest pursuant to a performance condition are generally earned over 3
years, depending on the achievement of certain financial and non-financial targets, and vest at the end of the three year measurement period. RSUs that
vest pursuant to a market condition are valued based on a Monte Carlo simulation model as of the date of grant, are generally earned over 3 years
based on a relative total shareholder return model, and vest at the end of the three year measurement period. Upon vesting of RSUs, employees may
elect to have shares withheld to cover statutory minimum withholding taxes. Shares withheld are not reflected as an issuance of ordinary shares within
our consolidated statements of shareholders’ equity, as the shares were never issued, and the associated tax payments are reflected as financing
activities within our consolidated statements of cash flows.
The following table summarizes RSU activity:
Number of RSUs
Service
condition
Performance
condition
Market
condition
Weighted average
grant-date fair
value per share
Unvested, December 27, 2024
1,031,455
178,610
201,841 $
33.92 
Granted
843,706
109,946
109,951 $
18.17 
Vested
(439,868)
(23,150)
(44,191) $
32.25 
Forfeited
(165,182)
(14,418)
(13,459) $
28.25 
Unvested, December 26, 2025
1,270,111
250,988
254,142 $
25.57 
Fair value information for RSUs granted and vested is as follows:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Weighted average grant-date fair value per share of RSUs granted
$
18.17 
$
39.61 
$
30.70 
Total grant-date fair value of shares vested
$
16,356 
$
14,177 
$
11,550 
At December 26, 2025, total unrecognized share-based compensation expense relating to RSUs was $30.1 million, with a weighted average remaining
service period of 2.5 years.
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Table of Contents
The table below sets forth the weighted average assumptions in the Monte Carlo simulation model used to measure the fair value of RSUs that vest
pursuant to a market condition. Expected volatility is based on the historical volatility of our ordinary shares and our peer group for the relative expected
term. We believe this approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free
interest rate is based on U.S. government treasury rates in effect on the date of grant with a term equal to the expected term of the award, which is equal
to the period of time between the grant date and the date the award is expected to vest.
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Weighted average expected term
2.4 Years
2.6 Years
2.6 Years
Risk-free interest rate
3.8%
4.5%
4.0%
Dividend yield
0.0%
0.0%
0.0%
Volatility
67.3%
59.2%
61.4%
2017 ESPP
In May 2017, we adopted the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). The 2017 ESPP grants employees the ability to designate a
portion of their base-pay to purchase ordinary shares at a price equal to 85% of the fair market value of our ordinary shares on the first or last day of
each 6 month purchase period. Purchase periods begin on January 1 or July 1 and end on June 30 or December 31, or the next business day if such
date is not a business day. Shares are purchased on the last day of the purchase period. As of December 26, 2025, 2.0 million ordinary shares remained
eligible for issuance under the 2017 ESPP.
The table below sets forth the weighted average assumptions used to measure the fair value of 2017 ESPP rights:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Weighted average expected term
0.5 years
0.5 years
0.5 years
Risk-free interest rate
4.3%
5.3%
5.1%
Dividend yield
0.0%
0.0%
0.0%
Volatility
63.1%
60.4%
63.4%
We recognize share-based compensation expense associated with the 2017 ESPP over the duration of the purchase period. We recognized $1.3 million,
$1.0 million, and $0.9 million of share-based compensation expense associated with the 2017 ESPP during 2025, 2024, and 2023, respectively. At
December 26, 2025, there was no unrecognized share-based compensation expense related to the 2017 ESPP.
Note 10 – Segment Information
We operate as a single business operating segment, which includes all activities related to the design, engineering, and manufacturing of critical fluid
delivery subsystems and components for semiconductor capital equipment. Accordingly, we report as one reportable segment. The determination of a
single business operating segment is consistent with the consolidated financial information regularly provided to our chief operating decision maker
(“CODM”). The consolidated financial information provided to our CODM does not contain significant disaggregated expenses outside of what is already
disclosed in our statements of operations and notes thereto included in these consolidated financial statements. Our CODM is our Chief Executive
Officer, and the CODM reviews and evaluates consolidated net income for purposes of assessing performance, making operating decisions, allocating
resources, and planning and forecasting for future periods.
Foreign operations are conducted primarily through our wholly owned subsidiaries in Singapore and Malaysia, and Mexico. Our principal markets include
North America, Asia, and to a lesser degree, Europe.
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Table of Contents
The following table sets forth sales by geographic area, which represents sales to unaffiliated customers based upon the location to which the products
were shipped:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Singapore
$
431,539 
$
353,219 
$
318,790 
United States of America
295,010 
268,946 
281,298 
Europe
98,046 
98,855 
116,316 
Other
123,057 
128,020 
94,716 
Total net sales
$
947,652 
$
849,040 
$
811,120 
The following table sets forth our major customers with 10% or more of sales, which comprised 76%, 73%, and 82% of net sales in 2025, 2024, and
2023, respectively:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Applied Materials
$
371,697 
$
300,263 
$
295,082 
Lam Research
$
351,418 
$
319,099 
$
286,836 
ASML (1)
—
$
— 
$
85,589 
(1) ASML did not represent 10% or more of sales in 2025 and 2024.
Foreign long-lived assets, exclusive of deferred tax assets, were $71.3 million and $62.5 million at December 26, 2025 and December 27, 2024,
respectively.
Note 11 – Earnings per Share
The following table sets forth the computation of our basic and diluted net loss per share and a reconciliation of the numerator and denominator used in
the calculation:
Year Ended
December 26,
2025
December 27,
2024
December 29,
2023
Numerator:
Net loss
$
(52,781)
$
(20,820)
$
(42,985)
Denominator:
Basic weighted average ordinary shares outstanding
34,232,198
32,759,896
29,200,796
Dilutive effect of options
— 
— 
— 
Dilutive effect of RSUs
— 
— 
— 
Dilutive effect of ESPP
— 
— 
— 
Diluted weighted average ordinary shares outstanding
34,232,198
32,759,896
29,200,796
Securities excluded from the calculation of diluted weighted average ordinary shares
outstanding (1)
2,841,000
2,557,000
2,632,000
Earnings per share:
Net loss per share:
Basic
$
(1.54)
$
(0.64)
$
(1.47)
Diluted
$
(1.54)
$
(0.64)
$
(1.47)
(1) Represents potentially dilutive options and RSUs that were excluded from the calculation of net income per share, because including them would
have been antidilutive under the treasury stock method.
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Table of Contents
Note 12 - Restructuring
In the third quarter of 2025, and amended in the fourth quarter of 2025, our Board of Directors approved the Consolidation Restructuring Plan (the
"Plan"). The Plan includes activities and plans to align our geographic footprint with our long-term strategic plan. The amended restructuring plan
expanded the scope of our initial plan to consolidate our footprint at additional sites. Key components of the Plan as of December 26, 2025 are as
follows:
Impairment of inventory
As of December 26, 2025, total expected inventory impairment costs under the Plan are $19.8 million, all of which were recognized during 2025. These
costs were recognized within cost of sales on our consolidated statement of operations and as a contra-asset valuation account within inventories on our
consolidated balance sheet as of December 26, 2025.
Fixed asset charges
As of December 26, 2025, total expected fixed asset charges under the Plan are approximately $3.1 million, all of which were recognized during 2025.
These costs were recognized within selling, general, and administrative expenses on our consolidated statement of operations.
Impairment of operating right-of-use assets
As of December 26, 2025, total expected operating lease ROU asset impairment charges under the Plan are approximately $1.8 million, of which
$0.9 million were recognized during 2025. These charges were recognized within selling, general, and administrative expenses on our consolidated
statement of operations. We expect to incur approximately an additional $0.9 million of operating lease ROU asset impairment charges under the Plan.
Severance charges
As of December 26, 2025, total expected severance charges under the Plan are approximately $1.7 million, all of which were recognized during 2025. Of
the this amount recognized, $0.9 million and $0.8 million were recognized within cost of sales and selling, general, and administrative expenses,
respectively, on our consolidated statement of operations. These charges were accrued within accrued liabilities, net of payments made of $0.7 million,
on our consolidated balance sheet as of December 26, 2025.
Other Costs
Other costs includes other direct and incremental costs incurred as result of the Plan, which primarily includes legal expenses, facility exit costs, and
fixed asset transportation costs. As of December 26, 2025, total expected other costs under the Plan are approximately $3.7 million, of which $1.3 million
were recognized during 2025. These costs were recognized within selling, general, and administrative expenses on our consolidated statement of
operations. We expect to incur approximately an additional $2.4 million of other costs under the Plan.
We expect the Plan to be substantially complete by the end of 2026. We may incur additional expenses due to unanticipated events or changes in plan
scope.
F-26

Table of Contents
EXHIBIT INDEX
The following exhibits are filed with this Form 10‑K or are incorporated herein by reference:
Exhibit
Number
Description of Exhibit
2.1
Agreement and Plan of Merger, dated November 11, 2021, by and among Ichor Systems, Inc., Incline Merger Sub, LLC, IMG Companies, LLC, and
Brian J. Miller (solely in his capacity as the Equity holders’ Representative thereunder) (Incorporated by reference to Exhibit 10.1 to the Current
Report on Form 8‑K filed with the SEC on November 16, 2021).
3.1
Amended and Restated Memorandum and Articles of the Company, effective as of May 24, 2022 (Incorporated by reference to Exhibit 3.1 to the
Annual Report on Form 10-K filed with the SEC on February 24, 2023).
4.1
Description of Securities of the Company. (Incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K filed with the SEC on
February 24, 2023).
10.1
Second Amended and Restated Credit Agreement, dated as of October 29, 2021, by and among Icicle Acquisition Holding B.V., Ichor Holdings, LLC,
and Ichor Systems, Inc. as borrowers, Bank of America, N.A., as administrative agent, and the financial institutions party thereto, as lenders
(Incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10‑K filed with the SEC on February 28, 2022).
10.2
First Amendment to Second Amended and Restated Credit Agreement, dated as of September 30, 2024, by and among Ichor Systems, Inc., as
borrower representative, and Bank of America, N.A., as administrative agent (Incorporated by reference to Exhibit 10.2 to the Annual Report on Form
10-K filed with the SEC on February 2, 2021).
10.3
Third Amended and Restated Credit Agreement, dated as of September 26, 2025, by and among Icicle Acquisition Holding B.V, Ichor Systems, Inc.,
Ichor Holdings, LLC, IMG Companies, LLC, IMG Inta, LLC, IMG Larkin, LLC, IMG, LLC, Applied Fusion, LLC, and IMG Altair, LLC as borrowers,
Bank of America, N.A., as administrative agent, and the financial institutions party thereto, as lenders (Incorporated by reference to Exhibit 10.1 to
the Current Report on Form 8-K filed with the SEC on September 30, 2025).
10.4+
Ichor Holdings, Ltd. 2016 Omnibus Incentive Plan (Incorporated by reference to Exhibit 10.11 to Amendment No. 2 to Registration Statement on
Form S‑1 filed with the SEC on November 29, 2016).
10.5+
Form of Incentive Stock Option Agreement (Incorporated by reference to Exhibit 10.12 to Amendment No. 2 to Registration Statement on Form S‑1
filed with the SEC on November 29, 2016).
10.6+
Form of Restricted Stock Agreement (Incorporated by reference to Exhibit 10.13 to Amendment No. 2 to Registration Statement on Form S‑1 filed
with the SEC on November 29, 2016).
10.7+
Form of Nonqualified Stock Option Agreement (Incorporated by reference to Exhibit 10.14 to Amendment No. 2 Registration Statement on Form S‑1
filed with the SEC on November 29, 2016).
10.8+*
Ichor Holdings, Ltd. 2025 Omnibus Incentive Plan
10.9+
Form of Performance Restricted Stock Unit Agreement Pursuant to the Ichor Holdings, Ltd. 2025 Omnibus Incentive Plan (Incorporated by reference
to Exhibit 10.1 to the Quarterly Report on Form 10-Q, filed with the SEC on August 5, 2025)
10.10+
Form of Restricted Stock Unit Agreement Pursuant to the Ichor Holdings, Ltd. 2025 Omnibus Incentive Plan (Incorporated by reference to Exhibit
10.2 to the Quarterly Report on Form 10-Q, filed with the SEC on August 5, 2025).
10.11+
Offer Letter, dated as of January 8, 2013, by and between Ichor Systems, Inc. and Philip Barros (Incorporated by reference to Exhibit 10.16 to the
Registration Statement on Form S‑1 filed with the SEC on November 14, 2016).
10.12+
Offer Letter, dated as of September 30, 2015, by and between Ichor Systems, Inc. and Philip Barros (Incorporated by reference to Exhibit 10.17 to
the Registration Statement on Form S‑1 filed with the SEC on November 14, 2016).
10.13+
Offer Letter, dated as of October 29, 2025, by and between Ichor Systems, Inc. and Philip Barros (Incorporated by reference to Exhibit 10.1 to the
Current Report on Form 8-K filed with the SEC on November 3, 2025).
10.14+
Amended and Restated Select Severance Plan, dated as of November 22, 2024, by and among the Company and certain officers and directors
party thereto. (Incorporated by reference to Exhibit 10.10 to the Annual Report on Form 10-K filed with the SEC on February 21, 2025).
10.15+
Offer Letter, dated November 20, 2019, between Ichor Systems, Inc. and Jeffrey Andreson (Incorporated by reference to Exhibit 10.13 to the Annual
Report on Form 10-K filed with the SEC on March 6, 2020).

Table of Contents
10.16+
Transition Agreement, dated as of August 3, 2025, by and between the Company and Jeffrey Andreson (Incorporated by reference to Exhibit 10.1 to
the Current Report on Form 8-K filed with the SEC on August 4, 2025).
10.17+
Offer Letter, dated November 15, 2022, between the Company and Bruce Ragsdale (Incorporated by reference to Exhibit 10.1 to the Current Report
on Form 8‑K filed with the SEC on November 28, 2022).
10.18+
Offer Letter, dated July 6, 2023, between Ichor Systems, Inc. and Gregory F. Swyt (Incorporated by reference to Exhibit 10.1 to the Current Report
on Form 8-K filed with the SEC on July 10, 2023).
10.19*+
Transition Agreement, dated as of August 13, 2025, by and between the Company and Christopher Smith.
19.1*
Ichor Holdings, Ltd. Insider Trading Policy, dated November 10, 2025.
21.1*
List of subsidiaries.
23.1*
Consent of KPMG LLP.
31.1*
Certifications of Chief Executive Officer of the Company under Rule 13a‑14(a) of the Securities Exchange Act of 1934, as amended, as adopted
pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
31.2*
Certifications of Chief Financial Officer of the Company under Rule 13a‑14(a) of the Securities Exchange Act of 1934, as amended, as adopted
pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
32.1**
Certifications of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
This certification accompanies this report and shall not, except to the extent required by the Sarbanes‑Oxley Act of 2002, be deemed filed for
purposes of §18 of the Securities Exchange Act of 1934, as amended.
32.2**
Certifications of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
This certification accompanies this report and shall not, except to the extent required by the Sarbanes‑Oxley Act of 2002, be deemed filed for
purposes of §18 of the Securities Exchange Act of 1934, as amended.
97.1
Ichor Holdings, Ltd. Clawback Policy (Incorporated by reference to Exhibit 97.1 to Ichor Holdings, Ltd.'s Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 23, 2024).
101.INS*
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the
Inline XBRL document.
101.SCH*
Inline XBRL Taxonomy Extension Schema Document.
101.CAL*
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*
Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101).
_____________________________________________
*    Filed herewith
**    Furnished herewith
+     A management contract or compensatory arrangement required to be filed as an exhibit pursuant to Item 601 of Regulation S‑K

Table of Contents
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Dated: February 20, 2026
ICHOR HOLDINGS, LTD.
By:
/s/ Philip Barros
Philip Barros
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
Signature
Name and Title
Date
 
/s/ Philip Barros
Chief Executive Officer and Director (Principal Executive
Officer)
February 20, 2026
Philip Barros
/s/ Greg Swyt
Chief Financial Officer (Principal Accounting and Financial
Officer)
February 20, 2026
Greg Swyt
/s/ Iain MacKenzie
Executive Chairman and Director
February 20, 2026
Iain MacKenzie
/s/ Jorge Titinger
Lead Independent Director
February 20, 2026
Jorge Titinger
/s/ Marc Haugen
Director
February 20, 2026
Marc Haugen
/s/ John Kispert
Director
February 20, 2026
John Kispert
/s/ Laura Black
Director
February 20, 2026
Laura Black
/s/ Wendy Arienzo
Director
February 20, 2026
Wendy Arienzo
/s/ Thomas M. Rohrs
Director
February 20, 2026
Thomas M. Rohrs
/s/ Yuval Wasserman
Director
February 20, 2026
Yuval Wasserman

Exhibit 10.8
2025 Omnibus Incentive Plan
ICHOR HOLDINGS, LTD.
2025 OMNIBUS INCENTIVE PLAN
ARTICLE I
PURPOSE
The purpose of this Ichor Holdings, Ltd. 2025 Omnibus Incentive Plan (this “Plan”) is to promote the success of the Company’s business for the
benefit of its stockholders by enabling the Company to offer Eligible Individuals cash and stock-based incentives in order to attract, retain, and reward
such individuals and strengthen the mutuality of interests between such individuals and the Company’s stockholders. This Plan is effective as of the date
set forth in Article XIV.
As of the Effective Date, this Plan shall supersede and replace the Ichor Holdings, Ltd. 2016 Omnibus Incentive Plan, as amended from time to
time (the “Prior Plan”) in its entirety. Awards may not be granted under the Prior Plan on or following the Effective Date. Awards granted under the Prior
Plan prior to the Effective Date will remain subject to the terms and conditions set forth in the Prior Plan.
ARTICLE II
DEFINITIONS
For purposes of this Plan, the following terms shall have the following meanings:
2.1
“Affiliate” means a corporation or other entity controlled by, controlling, or under common control with the Company. The term “control”
(including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of management and policies of such Person, whether through the ownership of voting or
other securities, by contract or otherwise.
2.2
“Applicable Law” means the requirements relating to the administration of equity-based awards and the related shares under U.S. state
corporate law, U.S. federal and state securities laws, the rules or requirements of any stock exchange or quotation system on which the shares are listed
or quoted, and any other applicable laws, including tax laws, of any U.S. or non-U.S. jurisdictions where Awards are, or will be, granted under this Plan.
2.3
“Award” means any award under this Plan of any Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Units,
Performance Award, Other Stock-Based Award, or Cash Award. All Awards shall be evidenced by and subject to the terms of an Award Agreement.
2.4
“Award Agreement” means the written or electronic agreement, contract, certificate, or other instrument or document evidencing the
terms and conditions of an individual Award. Each Award Agreement shall be subject to the terms and conditions of this Plan.
2.5
“Board” means the Board of Directors of the Company.
2.6
“Cash Award” means an Award granted to an Eligible Individual pursuant to Section 9.3 of this Plan and payable in cash at such time or
times and subject to such terms and conditions as determined by the Committee in its sole discretion.

Exhibit 10.8
2.7
“Cause” means, unless otherwise determined by the Committee in the applicable Award Agreement, with respect to a Participant’s
Termination of Service, the following: (a) in the case where there is no employment agreement, offer letter, consulting agreement, change in control
agreement, or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award (or where there is
such agreement in effect but it does not define “cause” (or words of like import)), the Participant’s (i) commission of, or plea of guilty or no contest to, a
felony or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material fiduciary breach with respect to
the Company or an Affiliate; (ii) substantial and repeated failure to perform duties as reasonably directed by the person to whom the Participant reports;
(iii) conduct that brings or is reasonably likely to bring the Company or an Affiliate negative publicity or into public disgrace, embarrassment, or disrepute;
(iv) gross negligence or willful misconduct with respect to the Company or an Affiliate; (v) material violation of or willful disregard for the Company’s
policies or codes of conduct, including policies related to discrimination, harassment, performance of illegal or unethical activities, or ethical misconduct;
or (vi) any breach of any non-competition, non-solicitation, no-hire, confidentiality covenant or other agreement between the Participant and the
Company or an Affiliate; or (b) in the case where there is an employment agreement, offer letter, consulting agreement, change in control agreement, or
similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award that defines “cause” (or words of
like import), “cause” as defined under such agreement; provided, however, that with regard to any agreement under which the definition of “cause” only
applies on occurrence of a change in control, such definition of “cause” shall not apply until a change in control (as defined in such agreement) actually
takes place and then only with regard to a termination thereafter.
2.8
“Change in Control” means and includes each of the following, unless otherwise determined by the Committee in the applicable Award
Agreement or other written agreement with a Participant approved by the Committee:
(a)
any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or
other fiduciary holding securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the
shareholders of the Company in substantially the same proportions as their ownership of Common Stock of the Company), becoming the
beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or
more of the combined voting power of the Company’s then outstanding securities;
(b)
during any period of two consecutive years, individuals who at the beginning of such period constitute the Board, and any new
director (other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in
paragraph (a), (c), or (d) of this Section 2.8 or a director whose initial assumption of office occurs as a result of either an actual or threatened
election contest or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board) whose election
by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in
office who either were directors at the beginning of the two-year period or whose election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority of the Board;
(c)
a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or
such surviving entity outstanding immediately after such merger or consolidation; provided, however, that a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no Person (other than those covered by the exceptions in Section
2.8(a)) acquires more than 50% of the combined voting power of the Company’s then outstanding securities shall not constitute a Change in
Control of the Company; or
 

Exhibit 10.8
(d)
a complete liquidation or dissolution of the Company or the consummation of a sale or disposition by the Company of all or
substantially all of the Company’s assets other than the sale or disposition of all or substantially all of the assets of the Company to a Person or
Persons who beneficially own, directly or indirectly, 50% or more of the combined voting power of the outstanding voting securities of the
Company at the time of the sale.
(e)
Notwithstanding the foregoing, with respect to any Award that is characterized as “nonqualified deferred compensation” within
the meaning of Section 409A of the Code, an event shall not be considered to be a Change in Control under this Plan for purposes of payment of
such Award unless such event is also a “change in ownership,” a “change in effective control,” or a “change in the ownership of a substantial
portion of the assets” of the Company within the meaning of Section 409A of the Code.
2.9
“Change in Control Price” means the highest price per Share paid in any transaction related to a Change in Control as determined by the
Committee in its discretion.
2.10
“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. Any reference to any section of the Code shall
also be a reference to any successor provision and any guidance and treasury regulation promulgated thereunder.
2.11
“Committee” means any committee of the Board duly authorized by the Board to administer this Plan; provided, however, that unless
otherwise determined by the Board, the Committee shall consist solely of two or more members of the Board who are each (a) a “non-employee director”
within the meaning of Rule 16b-3(b), and (b) “independent” under the listing standards or rules of the securities exchange upon which the Common
Stock is traded, but only to the extent such independence is required in order to take the action at issue pursuant to such standards or rules. If no
committee is duly authorized by the Board to administer this Plan, the term “Committee” shall be deemed to refer to the non-employee members of the
Board for all purposes under this Plan. The Board may abolish any Committee or re-vest in itself any previously delegated authority from time to time,
and will retain the right to exercise the authority of the Committee to the extent consistent with Applicable Law.
2.12
“Common Stock” means the ordinary shares, $0.0001 par value per share, of the Company.
2.13
“Company” means Ichor Holdings, Ltd., a Cayman Islands exempted company, and its successors by operation of law.
2.14
“Consultant” means any natural person who is an advisor or consultant or other service provider to the Company or any of its Affiliates.
2.15
“Disability” means, unless otherwise determined by the Committee in the applicable Award Agreement, with respect to a Participant’s
Termination of Service, a permanent and total disability as defined in Section 22(e)(3) of the Code. A Disability shall only be deemed to occur at the time
of the determination by the Committee of the Disability. Notwithstanding the foregoing, for Awards that are subject to Section 409A of the Code, Disability
shall mean that a Participant is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code.
2.16
“Dividend Equivalent Rights” means a right granted to a Participant under this Plan to receive the equivalent value (in cash or Shares) of
dividends paid on Shares.
2.17
“Effective Date” means the effective date of this Plan as defined in Article XIV.
2.18
“Eligible Employee” means each employee of the Company or any of its Affiliates. An employee on a leave of absence may be an
Eligible Employee.
2.19
“Eligible Individual” means an Eligible Employee, Non-Employee Director, or Consultant who is designated by the Committee in its
discretion as eligible to receive Awards subject to the terms and conditions set forth herein.

Exhibit 10.8
2.20
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. Reference to a specific section of the
Exchange Act or regulation thereunder shall include such section or regulation, any valid regulation or interpretation promulgated under such section,
and any comparable provision of any future legislation or regulation amending, supplementing, or superseding such section or regulation.
2.21
“Fair Market Value” means, for purposes of this Plan, unless otherwise required by any applicable provision of the Code or any
regulations issued thereunder, as of any date and except as provided below, the last sales price reported for the Common Stock on the applicable date:
(a) as reported on the principal national securities exchange in the United States on which it is then traded, listed or otherwise reported or quoted or (b) if
the Common Stock is not traded, listed, or otherwise reported or quoted, the Committee shall determine in good faith the Fair Market Value in whatever
manner it considers appropriate, taking into account the requirements of Section 409A of the Code. For purposes of the grant of any Award, the
applicable date shall be the trading day immediately prior to the date on which the Award is granted. For purposes of the exercise of any Award, the
applicable date shall be the date a notice of exercise is received by the Committee or, if not a date on which the applicable market is open, the next day
that it is open.
2.22
“Family Member” means “family member” as defined in Section A.1.(a)(5) of the general instructions of Form S-8.
2.23
“Incentive Stock Option” means any Stock Option granted to an Eligible Employee who is an employee of the Company, its Parents or its
Subsidiaries under this Plan and that is intended to be, and is designated as, an “Incentive Stock Option” within the meaning of Section 422 of the Code.
2.24
“Non-Employee Director” means a director on the Board who is not an employee of the Company.
2.25
“Non-Qualified Stock Option” means any Stock Option granted under this Plan that is not an Incentive Stock Option.
2.26
“Other Stock-Based Award” means an Award granted under Article IX of this Plan that is valued in whole or in part by reference to, or is
payable in or otherwise based on, Shares, but may be settled in the form of Shares or cash.
2.27
“Parent” means any parent corporation of the Company within the meaning of Section 424(e) of the Code.
2.28
“Participant” means an Eligible Individual to whom an Award has been granted pursuant to this Plan.
2.29
“Performance Award” means an Award granted under Article VIII of this Plan.
2.30
“Performance Goals” means goals established by the Committee as contingencies for Awards to vest and/or become exercisable or
distributable.
2.31
“Performance Period” means the designated period during which the Performance Goals must be satisfied with respect to the Award to
which the Performance Goals relate.
2.32
“Person” means any “person” as such term is used in Sections 13(d) and 14(d) of the Exchange Act.
2.33
“Prior Plan Award” means an award outstanding under the Prior Plan as of the Effective Date.
2.34
“Restricted Stock” means an Award of Shares granted under Article VII of this Plan.
2.35
“Restricted Stock Unit” means an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in
cash or other consideration determined by the Committee to be of equal value as of such settlement date, subject to certain vesting conditions and other
restrictions.

Exhibit 10.8
2.36
“Rule 16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor provision.
2.37
“Section 409A of the Code” means the nonqualified deferred compensation rules under Section 409A of the Code and any applicable
treasury regulations and other official guidance thereunder.
2.38
“Securities Act” means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Reference to a
specific section of the Securities Act or regulation thereunder shall include such section or regulation, any valid regulation or interpretation promulgated
under such section, and any comparable provision of any future legislation or regulation amending, supplementing, or superseding such section or
regulation.
2.39
“Shares” means shares of Common Stock.
2.40
“Stock Appreciation Right” means a stock appreciation right granted under Article VI of this Plan.
2.41
“Stock Option” or “Option” means any option to purchase Shares granted pursuant to Article VI of this Plan.
2.42
“Subsidiary” means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code.
2.43
“Ten Percent Stockholder” means a Person owning stock representing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company, its Parent or its Subsidiaries.
2.44
“Termination of Service” means the termination of the applicable Participant’s employment with, or performance of services for, the
Company and its Affiliates. Unless otherwise determined by the Committee, (a) if a Participant’s employment or services with the Company and its
Affiliates terminates but such Participant continues to provide services to the Company and its Affiliates in a non-employee capacity, such change in
status shall not be deemed a Termination of Service with the Company and its Affiliates and (b) a Participant employed by, or performing services for an
Affiliate that ceases to be an Affiliate shall also be deemed to have incurred a Termination of Service provided the Participant does not immediately
thereafter become an employee of the Company or another Affiliate. Notwithstanding the foregoing provisions of this definition, with respect to any Award
that constitutes a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code, a Participant shall not be considered to
have experienced a “Termination of Service” unless the Participant has experienced a “separation from service” within the meaning of Section 409A of
the Code.
ARTICLE III
ADMINISTRATION
3.1
Authority of the Committee. This Plan shall be administered by the Committee. Subject to the terms of this Plan and Applicable Law, the
Committee shall have full authority to grant Awards to Eligible Individuals under this Plan. In particular, the Committee shall have the authority to:
(a)
determine whether and to what extent Awards, or any combination thereof, are to be granted hereunder to one or more Eligible
Individuals;
(b)
determine the number of Shares to be covered by each Award granted hereunder;
(c)
determine the terms and conditions, not inconsistent with the terms of this Plan, of any Award granted hereunder (including, but
not limited to, the exercise or purchase price (if any), any restriction or limitation, any vesting schedule or acceleration thereof, or any forfeiture
restrictions or waiver thereof, regarding any Award and the Shares, if any, relating thereto, based on such factors, if any, as the Committee shall
determine, in its sole discretion);
(d)
determine the amount of cash to be covered by each Award granted hereunder;

Exhibit 10.8
(e)
determine whether, to what extent, and under what circumstances grants of Options and other Awards under this Plan are to
operate on a tandem basis and/or in conjunction with or apart from other awards made by the Company outside of this Plan;
(f)
determine whether and under what circumstances an Award may be settled in cash, Shares, other property, or a combination of
the foregoing;
(g)
determine whether, to what extent and under what circumstances cash, Shares, or other property and other amounts payable
with respect to an Award under this Plan shall be deferred either automatically or at the election of the Participant;
(h)
modify, waive, amend, or adjust the terms and conditions of any Award, at any time or from time to time, including but not limited
to Performance Goals;
(i)
determine whether a Stock Option is an Incentive Stock Option or Non-Qualified Stock Option;
(j)
determine whether to require a Participant, as a condition of the granting of any Award, to not sell or otherwise dispose of
Shares acquired pursuant to the exercise or vesting of an Award for a period of time as determined by the Committee, in its sole discretion,
following the date of the acquisition of such Award or Shares;
(k)
modify, extend, or renew an Award, subject to Article XI and Section 6.8(g) of this Plan; and
(l)
determine how the Disability, death, retirement, authorized leave of absence or any other change or purported change in a
Participant’s status affects an Award and the extent to which, and the period during which, the Participant, the Participant’s legal representative,
conservator, guardian or beneficiary may exercise rights under the Award, if applicable.
3.2
Guidelines. Subject to Article XI of this Plan, the Committee shall have the authority to adopt, alter, and repeal such administrative rules,
guidelines, and practices governing this Plan and perform all acts, including the delegation of its responsibilities (to the extent permitted by Applicable
Law and applicable stock exchange rules), as it shall, from time to time, deem advisable; to construe and interpret the terms and provisions of this Plan
and any Award issued under this Plan (and any agreements or sub-plans relating thereto); and to otherwise supervise the administration of this Plan.
The Committee may correct any defect, supply any omission, or reconcile any inconsistency in this Plan or in any agreement relating thereto in the
manner and to the extent it shall deem necessary to effectuate the purpose and intent of this Plan. The Committee may adopt special rules, sub-plans,
guidelines, and provisions for persons who are residing in or employed in, or subject to, the taxes of any domestic or foreign jurisdictions to satisfy or
accommodate applicable foreign laws or to qualify for preferred tax treatment of such domestic or foreign jurisdictions.
3.3
Decisions Final. Any decision, interpretation, or other action made or taken in good faith by or at the direction of the Company, the
Board, or the Committee (or any of its members) arising out of or in connection with this Plan shall be within the absolute discretion of all and each of
them, as the case may be, and shall be final, binding, and conclusive on the Company and all employees and Participants and their respective heirs,
executors, administrators, successors, and assigns.
3.4
Designation of Consultants/Liability; Delegation of Authority.

Exhibit 10.8
(a)
The Committee may employ such legal counsel, consultants, and agents as it may deem desirable for the administration of this
Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or
agent. Expenses incurred by the Committee or the Board in the engagement of any such counsel, consultant, or agent shall be paid by the
Company. The Committee, its members, and any person designated pursuant to this Section 3.4 shall not be liable for any action or
determination made in good faith with respect to this Plan. To the maximum extent permitted by Applicable Law, no officer of the Company or
member or former member of the Committee or of the Board shall be liable for any action or determination made in good faith with respect to this
Plan or any Award granted under it.
(b)
The Committee may delegate any or all of its powers and duties under this Plan to a subcommittee of directors or to any officer
of the Company, including the power to perform administrative functions (including executing agreements or other documents on behalf of the
Committee) and grant Awards; provided, that such delegation does not (i) violate Applicable Law, or (ii) result in the loss of an exemption under
Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company. Upon any such
delegation, all references in this Plan to the “Committee,” shall be deemed to include any subcommittee or officer of the Company to whom such
powers have been delegated by the Committee. Any such delegation shall not limit the right of such subcommittee members or such an officer to
receive Awards; provided, however, that such subcommittee members and any such officer may not grant Awards to himself or herself, a
member of the Board, or any executive officer of the Company or an Affiliate, or take any action with respect to any Award previously granted to
himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate. The Committee may also designate employees
or professional advisors who are not executive officers of the Company or members of the Board to assist in administering this Plan, provided,
however, that such individuals may not be delegated the authority to grant or modify any Awards that will, or may, be settled in Shares.
3.5
Indemnification. To the maximum extent permitted by Applicable Law and to the extent not covered by insurance directly insuring such
person, each current and former officer or employee of the Company or any of its Affiliates and member or former member of the Committee or the
Board shall be indemnified and held harmless by the Company against any cost or expense (including reasonable fees of counsel acceptable to the
Committee) or liability (including any sum paid in settlement of a claim with the approval of the Committee), and advanced amounts necessary to pay the
foregoing at the earliest time and to the fullest extent permitted, arising out of any act or omission to act in connection with the administration of this Plan,
except to the extent arising out of such officer’s, employee’s, member’s, or former member’s own fraud or bad faith. Such indemnification shall be in
addition to any right of indemnification that the current or former employee, officer or member may have under Applicable Law or under the by-laws of
the Company or any of its Affiliates. Notwithstanding anything else herein, this indemnification will not apply to the actions or determinations made by an
individual with regard to Awards granted to such individual under this Plan

Exhibit 10.8
ARTICLE IV
SHARE LIMITATION
4.1
Shares. The aggregate number of Shares that may be issued pursuant to this Plan (subject to any increase or decrease pursuant to this
Article IV) shall not exceed the sum of (i) 1,000,000 Shares, plus (ii) the number of Shares reserved for issuance pursuant to the Prior Plan but not
issued thereunder as of the Effective Date. Shares issued pursuant to the Plan may be either authorized and unissued Shares or Shares held in or
acquired for the treasury of the Company or both. The aggregate number of Shares that may be issued or used with respect to any Incentive Stock
Option shall not exceed 2,963,471 Shares (subject to any increase or decrease pursuant to Section 4.3). Any Award under this Plan settled in cash shall
not be counted against the foregoing maximum share limitations. Notwithstanding anything to the contrary contained herein, Shares subject to an Award
under this Plan or a Prior Plan Award shall again be made available for issuance or delivery under this Plan if such Shares are (i) Shares delivered,
withheld or surrendered in payment of the exercise or purchase price of an Award, (ii) Shares delivered, withheld, or surrendered to satisfy any tax
withholding obligation or (iii) Shares subject to a stock-settled Award that expires or is canceled, forfeited, or terminated without issuance of the full
number of Shares to which the Award related.
4.2
Substitute Awards. In connection with an entity’s merger or consolidation with the Company or the Company’s acquisition of an entity’s
property or stock, the Committee may grant Awards in substitution for any options or other stock or stock-based awards granted before such merger or
consolidation by such entity or its affiliate (“Substitute Awards”). Substitute Awards may be granted on such terms as the Committee deems appropriate,
notwithstanding limitations on Awards in this Plan. Substitute Awards will not count against the Shares authorized for grant under this Plan (nor shall
Shares subject to a Substitute Award be added to the Shares available for Awards under this Plan as provided under Section 4.1 above), except that
Shares acquired by exercise of substitute Incentive Stock Options will count against the maximum number of Shares that may be issued pursuant to the
exercise of Incentive Stock Options under this Plan, as set forth in Section 4.1 above. Additionally, in the event that a Person acquired by the Company
or any Subsidiary or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by stockholders and
not adopted in contemplation of such acquisition or combination, the shares available for grants pursuant to the terms of such pre-existing plan (as
adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to
determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards
under this Plan and shall not reduce the Shares authorized for grant under this Plan (and Shares subject to such Awards shall not be added to the
Shares available for Awards under this Plan as provided under Section 4.1 above); provided that Awards using such available shares shall not be made
after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be
made to individuals who were not Eligible Employees or Non-Employee Directors prior to such acquisition or combination.
4.3
Adjustments.
(a)
The existence of this Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the
stockholders of the Company to make or authorize (i) any adjustment, recapitalization, reorganization, or other change in the Company’s capital
structure or its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance of bonds, debentures, or preferred or
prior preference stock ahead of or affecting the Shares, (iv) the dissolution or liquidation of the Company or any Affiliate, (v) any sale or transfer
of all or part of the assets or business of the Company or any Affiliate, or (vi) any other corporate act or proceeding.
(b)
Subject to the provisions of Section 10.1:

Exhibit 10.8
(i)If the Company at any time subdivides (by any split, recapitalization or otherwise) the outstanding Shares into a greater number
of Shares, or combines (by reverse split, combination, or otherwise) its outstanding Shares into a lesser number of Shares, then the
respective exercise prices for outstanding Awards that provide for a Participant-elected exercise and the number of Shares covered by
outstanding Awards shall be appropriately adjusted by the Committee to prevent dilution or enlargement of the rights granted to, or
available for, Participants under this Plan; provided, that the Committee in its sole discretion shall determine whether an adjustment is
appropriate.
(ii)Excepting transactions covered by Section 4.3(b)(i), if the Company effects any merger, consolidation, statutory exchange, spin-
off, reorganization, sale or transfer of all or substantially all the Company’s assets or business, or other corporate transaction or event in
such a manner that the Company’s outstanding Shares are converted into the right to receive (or the holders of Common Stock are
entitled to receive in exchange therefor), either immediately or upon liquidation of the Company, securities or other property of the
Company or other entity, then, subject to the provisions of Section 10.1, (A) the aggregate number or kind of securities that thereafter
may be issued under this Plan, (B) the number or kind of securities or other property (including cash) to be issued pursuant to Awards
granted under this Plan (including as a result of the assumption of this Plan and the obligations hereunder by a successor entity, as
applicable), or (C) the exercise or purchase price thereof, shall be appropriately adjusted by the Committee to prevent dilution or
enlargement of the rights granted to, or available for, Participants under this Plan.
(iii)If there shall occur any change in the capital structure of the Company other than those covered by Section 4.3(b)(i) or 4.3(b)(ii),
any conversion, any adjustment, or any issuance of any class of securities convertible or exercisable into, or exercisable for, any class of
equity securities of the Company, then the Committee shall adjust any Award and make such other adjustments to this Plan to prevent
dilution or enlargement of the rights granted to, or available for, Participants under this Plan.
(iv)In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other
distribution (other than normal cash dividends) of Company assets to stockholders, or any other extraordinary transaction or change
affecting the Shares or the Share price, including any securities offering or other similar transaction, for administrative convenience, the
Committee may refuse to permit the exercise of any Award for up to sixty (60) days before or after such transaction.
(v)The Committee may adjust the Performance Goals applicable to any Awards to reflect any unusual or non-recurring events and
other extraordinary items, impact of charges for restructurings, discontinued operations, and the cumulative effects of accounting or tax
changes, each as defined by generally accepted accounting principles or as identified in the Company’s financial statements, notes to
the financial statements, management’s discussion and analysis, or other Company public filing.
(vi)Any such adjustment determined by the Committee pursuant to this Section 4.3(b) shall be final, binding, and conclusive on the
Company and all Participants and their respective heirs, executors, administrators, successors, and permitted assigns. Any adjustment
to, or assumption or substitution of, an Award under this Section 4.3(b) shall be intended to comply with the requirements of Section
409A of the Code and Treasury Regulation §1.424-1 (and any amendments thereto), to the extent applicable. Except as expressly
provided in this Section 4.3 or in the applicable Award Agreement, a Participant shall have no additional rights under this Plan by reason
of any transaction or event described in this Section 4.3.

Exhibit 10.8
4.4
Annual Limit on Non-Employee Director Compensation.  In each calendar year during any part of which this Plan is in effect, a Non-
Employee Director may not receive Awards for such individual’s service on the Board that, taken together with any cash fees paid to such Non-Employee
Director during such calendar year for such individual’s service on the Board, have a value in excess of $750,000 (calculating the value of any such
Awards based on the grant date fair value of such Awards for financial reporting purposes); provided, that (a) the Committee may make exceptions to
this limit, except that the Non-Employee Director receiving such additional compensation may not participate in the decision to award such compensation
or in other contemporaneous decisions involving compensation for Non-Employee Directors and (b) for any calendar year in which a Non-Employee
Director (i) first commences service on the Board, (ii) serves on a special committee of the Board, or (iii) serves as lead director or non-executive chair of
the Board, such limit shall be increased to $1,000,000; provided, further, that the limit set forth in this Section 4.4 shall be applied without regard to
Awards or other compensation, if any, provided to a Non-Employee Director during any period in which such individual was an employee of the Company
or any Affiliate or was otherwise providing services to the Company or to any Affiliate other than in the capacity as a Non-Employee Director.
ARTICLE V
ELIGIBILITY
5.1
General Eligibility. All current and prospective Eligible Individuals are eligible to be granted Awards. Eligibility for the grant of Awards and
actual participation in this Plan shall be determined by the Committee in its sole discretion. No Eligible Individual will automatically be granted any Award
under this Plan.
5.2
Incentive Stock Options. Notwithstanding the foregoing, only Eligible Employees who are employees of the Company, its Parents or its
Subsidiaries are eligible to be granted Incentive Stock Options under this Plan. Eligibility for the grant of an Incentive Stock Option and actual
participation in this Plan shall be determined by the Committee in its sole discretion.
5.3
General Requirement. The vesting and exercise of Awards granted to a prospective Eligible Individual are conditioned upon such
individual actually becoming an Eligible Employee, Consultant, or Non-Employee Director, as applicable.
ARTICLE VI
STOCK OPTIONS; STOCK APPRECIATION RIGHTS
6.1
General. Stock Options or Stock Appreciation Rights may be granted alone or in addition to other Awards granted under this Plan Each
Stock Option granted under this Plan shall be of one of two types: (a) an Incentive Stock Option or (b) a Non-Qualified Stock Option. Stock Options and
Stock Appreciation Rights granted under this Plan shall be evidenced by an Award Agreement and subject to the terms, conditions and limitations in this
Plan, including any limitations applicable to Incentive Stock Options.
6.2
Grants. The Committee shall have the authority to grant to any Eligible Individual one or more Incentive Stock Options, Non-Qualified
Stock Options, and/or Stock Appreciation Rights; provided, however, that Incentive Stock Options may only be granted to an Eligible Employee who is an
employee of the Company, its Parents or its Subsidiaries. To the extent that any Stock Option does not qualify as an Incentive Stock Option (whether
because of its provisions or the time or manner of its exercise or otherwise), such Stock Option or the portion thereof which does not so qualify shall
constitute a separate Non-Qualified Stock Option.
1

Exhibit 10.8
6.3
Exercise Price. The exercise price per Share subject to a Stock Option or Stock Appreciation Right shall be determined by the
Committee at the time of grant, provided that the per share exercise price of a Stock Option or Stock Appreciation Right shall not be less than 100% (or,
in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, 110%) of the Fair Market Value at the time of grant. Notwithstanding the
foregoing, in the case of a Stock Option or Stock Appreciation Right that is a Substitute Award, the exercise price per Share for such Stock Option or
Stock Appreciation Right may be less than the Fair Market Value on the date of grant; provided, that, such exercise price is determined in a manner
consistent with the provisions of Section 409A of the Code and, if applicable, Section 424(a) of the Code.
6.4
Term. The term of each Stock Option or Stock Appreciation Right shall be fixed by the Committee, provided that no Stock Option or
Stock Appreciation Right shall be exercisable more than ten (10) years (or, in the case of an Incentive Stock Option granted to a Ten Percent
Stockholder, five (5) years) after the date on which the Stock Option or Stock Appreciation Right, as applicable, is granted.
6.5
Exercisability. Unless otherwise provided by the Committee in accordance with the provisions of this Section 6.5, Stock Options and
Stock Appreciation Rights granted under this Plan shall be exercisable at such time or times and subject to such terms and conditions as shall be
determined by the Committee at the time of grant. The Committee may, but shall not be required to, provide for an acceleration of vesting and
exercisability upon the occurrence of a specified event. Unless otherwise determined by the Committee, if the exercise of a Non-Qualified Stock Option
or Stock Appreciation Right within the permitted time periods is prohibited because such exercise would violate the registration requirements under the
Securities Act or any other Applicable Law or the rules of any securities exchange or interdealer quotation system, the Company’s insider trading policy
(including any blackout periods) or a “lock-up” agreement entered into in connection with the issuance of securities by the Company, then the expiration
of such Non-Qualified Stock Option or Stock Appreciation Right shall be extended until the date that is thirty (30) days after the end of the period during
which the exercise of the Non-Qualified Stock Option or Stock Appreciation Right would be in violation of such registration requirement or other
Applicable Law or rules, blackout period or lock-up agreement, as determined by the Committee; provided, however, that in no event shall any such
extension result in any Non-Qualified Stock Option or Stock Appreciation Right remaining exercisable after the ten (10)-year term of the applicable Non-
Qualified Stock Option or Stock Appreciation Right.
6.6
Method of Exercise. Subject to any applicable waiting period or exercisability provisions under Section 6.5, to the extent vested, Stock
Options and Stock Appreciation Rights may be exercised in whole or in part at any time during the term of the applicable Stock Option or Stock
Appreciation Right, by giving written notice of exercise (which may be electronic) to the Company specifying the number of Stock Options or Stock
Appreciation Rights, as applicable, being exercised. Such notice shall be accompanied by payment in full of the exercise price (which shall equal the
product of such number of Shares to be purchased multiplied by the applicable exercise price). The exercise price for the Stock Options may be paid
upon such terms and conditions as shall be established by the Committee and set forth in the applicable Award Agreement. Without limiting the
foregoing, the Committee may establish payment terms for the exercise of Stock Options pursuant to which the Company may withhold a number of
Shares that otherwise would be issued to the Participant in connection with the exercise of the Stock Option having a Fair Market Value on the date of
exercise equal to the exercise price, or that permit the Participant to deliver cash or Shares with a Fair Market Value equal to the exercise price on the
date of payment, or through a simultaneous sale through a broker of Shares acquired on exercise, all as permitted by Applicable Law. No Shares shall
be issued until payment therefor, as provided herein, has been made or provided for. Upon the exercise of a Stock Appreciation Right a Participant shall
be entitled to receive, for each right exercised, up to, but no more than, an amount in cash and/or Shares (as chosen by the Committee in its sole
discretion) equal in value to the excess of the Fair Market Value of one (1) Share on the date that the right is exercised over the Fair Market Value of one
(1) Share on the date that the right was awarded to the Participant.

Exhibit 10.8
6.7
Non-Transferability. No Stock Option or Stock Appreciation Right shall be transferable by the Participant other than by will or by the laws
of descent and distribution, and all Stock Options and Stock Appreciation Rights shall be exercisable, during the Participant’s lifetime, only by the
Participant. Notwithstanding the foregoing, the Committee may determine, in its sole discretion, at the time of grant or thereafter that a Non-Qualified
Stock Option that is otherwise not transferable pursuant to this Section 6.7 is transferable to a Family Member of the Participant in whole or in part and in
such circumstances, and under such conditions, as specified by the Committee. A Non-Qualified Stock Option that is transferred to a Family Member
pursuant to the preceding sentence (a) may not be subsequently transferred other than by will or by the laws of descent and distribution and (b) remains
subject to the terms of this Plan and the applicable Award Agreement. Any Shares acquired upon the exercise of a Non-Qualified Stock Option by a
permissible transferee of a Non-Qualified Stock Option or a permissible transferee pursuant to a transfer after the exercise of the Non-Qualified Stock
Option shall be subject to the terms of this Plan and the applicable Award Agreement.
6.8
Termination. Unless otherwise determined by the Committee at grant or, if no rights of the Participant are reduced, thereafter, subject to
the provisions of the applicable Award Agreement and this Plan, upon a Participant’s Termination of Service for any reason, Stock Options and Stock
Appreciation Rights may remain exercisable following a Participant’s Termination of Service as follows:
(a)
Termination by Death or Disability. Unless otherwise provided in the applicable Award Agreement, or otherwise determined by
the Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, if a Participant’s Termination of Service is by reason
of death or Disability, all Stock Options and Stock Appreciation Rights that are held by such Participant that are vested and exercisable at the
time of the Participant’s Termination of Service may be exercised by the Participant (or in the case of the Participant’s death, by the legal
representative of the Participant’s estate) at any time within a period of one (1) year from the date of such Termination of Service, but in no event
beyond the expiration of the stated term of such Stock Options and Stock Appreciation Rights; provided, however, that, in the event of a
Participant’s Termination of Service by reason of Disability, if the Participant dies within such exercise period, all unexercised Stock Options and
Stock Appreciation Rights held by such Participant shall thereafter be exercisable, to the extent to which they were exercisable at the time of
death, for a period of one (1) year from the date of such death, but in no event beyond the expiration of the stated term of such Stock Options
and/or Stock Appreciation Rights.
(b)
Involuntary Termination Without Cause. Unless otherwise provided in the applicable Award Agreement or otherwise determined
by the Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, if a Participant’s Termination of Service is by
involuntary termination by the Company without Cause, all Stock Options and Stock Appreciation Rights that are held by such Participant that
are vested and exercisable at the time of the Participant’s Termination of Service may be exercised by the Participant at any time within a period
of ninety (90) days from the date of such Termination of Service, but in no event beyond the expiration of the stated term of such Stock Options
or Stock Appreciation Rights.
(c)
Voluntary Resignation. Unless otherwise provided in the applicable Award Agreement or otherwise determined by the
Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, if a Participant’s Termination of Service is voluntary (other
than a voluntary termination described in Section 6.8(d) hereof), all Stock Options and Stock Appreciation Rights that are held by such
Participant that are vested and exercisable at the time of the Participant’s Termination of Service may be exercised by the Participant at any time
within a period of thirty (30) days from the date of such Termination of Service, but in no event beyond the expiration of the stated term of such
Stock Options or Stock Appreciation Rights.

Exhibit 10.8
(d)
Termination for Cause. Unless otherwise provided in the applicable Award Agreement or determined by the Committee at the
time of grant, or if no rights of the Participant are reduced, thereafter, if a Participant’s Termination of Service (i) is for Cause or (ii) is a voluntary
Termination of Service (as provided in Section 6.8(c)) after the occurrence of an event that would be grounds for a Termination of Service for
Cause, all Stock Options and Stock Appreciation Rights, whether vested or not vested, that are held by such Participant shall thereupon
immediately terminate and expire as of the date of such Termination of Service.
(e)
Unvested Stock Options and Stock Appreciation Rights. Unless otherwise provided in the applicable Award Agreement or
determined by the Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, Stock Options and Stock Appreciation
Rights that are not vested as of the date of a Participant’s Termination of Service for any reason shall terminate and expire as of the date of such
Termination of Service.
(f)
Incentive Stock Option Limitations. To the extent that the aggregate Fair Market Value (determined as of the time of grant) of the
Shares with respect to which Incentive Stock Options are exercisable for the first time by an Eligible Employee during any calendar year under
this Plan and/or any other stock option plan of the Company, any Parent or any Subsidiary exceeds $100,000, such Options shall be treated as
Non-Qualified Stock Options. In addition, if an Eligible Employee does not remain employed by the Company, any Parent or any Subsidiary at all
times from the time an Incentive Stock Option is granted until three (3) months prior to the date of exercise thereof (or such other period as
required by Applicable Law), such Stock Option shall be treated as a Non-Qualified Stock Option. Should any provision of this Plan not be
necessary in order for the Stock Options to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee
may amend this Plan accordingly, without the necessity of obtaining the approval of the stockholders of the Company.
(g)
Modification, Extension and Renewal of Stock Options. The Committee may (i) modify, extend, or renew outstanding Stock
Options granted under this Plan (provided that the rights of a Participant are not reduced without such Participant’s consent and provided, further
that such action does not subject the Stock Options to Section 409A of the Code without the consent of the Participant), and (ii) accept the
surrender of outstanding Stock Options (to the extent not theretofore exercised) and authorize the granting of new Stock Options in substitution
therefor (to the extent not theretofore exercised). Notwithstanding the foregoing, (i) an outstanding Option may not be modified to reduce the
exercise price thereof nor may a new Option at a lower price be substituted or exchanged for a surrendered Option(other than adjustments or
substitutions in accordance with Article IV), or (ii) an underwater Option cancelled in exchange for a stock award, or cash, or be subject to a cash
buyout program, unless in each instance such action is approved by the stockholders of the Company.
6.9
Automatic Exercise. The Committee may include a provision in an Award Agreement providing for the automatic exercise of a Non-
Qualified Stock Option or Stock Appreciation Right on a cashless basis on the last day of the term of such Option or Stock Appreciation Right if the
Participant has failed to exercise the Non-Qualified Stock Option or Stock Appreciation Right as of such date, with respect to which the Fair Market Value
of the Shares underlying the Non-Qualified Stock Option or Stock Appreciation Right exceeds the exercise price of such Non-Qualified Stock Option or
Stock Appreciation Right on the date of expiration of such Option or Stock Appreciation Right, subject to Section 13.4.
6.10
Dividends. No dividends or Dividend Equivalent Rights shall be granted with respect to Stock Options or Stock Appreciation Rights.
6.11
Other Terms and Conditions. As the Committee shall deem appropriate, Stock Options and Stock Appreciation Rights may be subject to
additional terms and conditions or other provisions, which shall not be inconsistent with any of the terms of this Plan.

Exhibit 10.8
ARTICLE VII
RESTRICTED STOCK; RESTRICTED STOCK UNITS
7.1
Awards of Restricted Stock and Restricted Stock Units. Shares of Restricted Stock and Restricted Stock Units may be granted alone or
in addition to other Awards granted under this Plan. The Committee shall determine the Eligible Individuals to whom, and the time or times at which,
grants of Restricted Stock and/or Restricted Stock Units shall be made, the number of shares of Restricted Stock or Restricted Stock Units to be
awarded, the price (if any) to be paid by the Participant (subject to Section 7.2), the time or times within which such Awards may be subject to forfeiture,
the vesting schedule and rights to acceleration thereof, and all other terms and conditions of the Awards. The Committee shall determine and set forth in
the Award Agreement the terms and conditions for each Award of Restricted Stock and Restricted Stock Units, subject to the conditions and limitations
contained in this Plan, including any vesting or forfeiture conditions.
The Committee may condition the grant or vesting of Restricted Stock and Restricted Stock Units upon the attainment of specified
Performance Goals or such other factor as the Committee may determine in its sole discretion.
7.2
Awards and Certificates. Restricted Stock and Restricted Stock Units granted under this Plan shall be evidenced by an Award
Agreement and subject to the following terms and conditions and shall be in such form and contain such additional terms and conditions not inconsistent
with the terms of this Plan, as the Committee shall deem desirable:
(a)
Restricted Stock.
(i)Purchase Price. The purchase price of Restricted Stock shall be fixed by the Committee. The purchase price for shares of
Restricted Stock may be zero to the extent permitted by Applicable Law, and, to the extent not so permitted, such purchase price may
not be less than par value.
(ii)Legend. Each Participant receiving Restricted Stock shall be issued a stock certificate in respect of such shares of Restricted
Stock, unless the Committee elects to use another system, such as book entries by the Company’s transfer agent, as evidencing
ownership of shares of Restricted Stock. Such certificate shall be registered in the name of such Participant, and shall, in addition to
such legends required by Applicable Law, bear an appropriate legend referring to the terms, conditions, and restrictions applicable to
such Restricted Stock.
(iii)Custody. If stock certificates are issued in respect of shares of Restricted Stock, the Committee may require that any stock
certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a
condition of any grant of Restricted Stock, the Participant shall have delivered a duly signed stock power or other instruments of
assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate by
the Company, which would permit transfer to the Company of all or a portion of the shares subject to the Award of Restricted Stock in the
event that such Award is forfeited in whole or part.
(iv)Rights as a Stockholder. Except as provided in Section 7.3(a) and this Section 7.2(a) or as otherwise determined by the
Committee in an Award Agreement, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a holder
of Shares, including, without limitation, the right to receive dividends, the right to vote such shares, and, subject to and conditioned upon
the full vesting of shares of Restricted Stock, the right to tender such shares; provided that the Award Agreement shall specify on what
terms and conditions the applicable Participant shall be entitled to dividends payable on the Shares.

Exhibit 10.8
(v)Lapse of Restrictions. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock, the certificates
for such Shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery to the
Participant, except as otherwise required by Applicable Law or other limitations imposed by the Committee.
(b)
Restricted Stock Units.
(i)Settlement. The Committee may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably
practical after the Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Participant’s election, in a
manner intended to comply with Section 409A of the Code.
(ii)Rights as a Stockholder. A Participant will have no rights of a stockholder with respect to Shares subject to any Restricted Stock
Unit unless and until Shares are delivered in settlement of the Restricted Stock Units.
(iii)Dividend Equivalent Rights. If the Committee so provides, a grant of Restricted Stock Units may provide a Participant with the
right to receive Dividend Equivalent Rights.
7.3
Restrictions and Conditions.
(a)
Restriction Period.
(i)The Participant shall not be permitted to transfer shares of Restricted Stock awarded under this Plan or vest in Restricted Stock
Units during the period or periods set by the Committee (the “Restriction Period”) commencing on the date of such Award, as set forth in
the applicable Award Agreement and such agreement shall set forth a vesting schedule and any event that would accelerate vesting of
the Restricted Stock and/or Restricted Stock Units. Within these limits, based on service, attainment of Performance Goals pursuant to
Section 7.3(a)(i), and/or such other factors or criteria as the Committee may determine in its sole discretion, the Committee may
condition the grant or provide for the lapse of such restrictions in installments in whole or in part, or may accelerate the vesting of all or
any part of any Award of Restricted Stock or Restricted Stock Units and/or waive the deferral limitations for all or any part of any Award
of Restricted Stock or Restricted Stock Units.
(ii)If the grant of shares of Restricted Stock or Restricted Stock Units or the lapse of restrictions or vesting schedule is based on
the attainment of Performance Goals, the Committee shall establish the objective Performance Goals and the applicable vesting
percentage applicable to each Participant or class of Participants in the applicable Award Agreement prior to the beginning of the
applicable fiscal year or at such later date as otherwise determined by the Committee and while the outcome of the Performance Goals
are substantially uncertain. Such Performance Goals may incorporate provisions for disregarding (or adjusting for) changes in
accounting methods, corporate transactions (including, without limitation, dispositions and acquisitions), and other similar types of
events or circumstances.
(b)
Termination. Unless otherwise provided in the applicable Award Agreement or determined by the Committee at grant or, if no
rights of the Participant are reduced, thereafter, upon a Participant’s Termination of Service for any reason during the relevant Restriction Period,
all Restricted Stock or Restricted Stock Units still subject to restriction will be forfeited in accordance with the terms and conditions established
by the Committee at grant or thereafter.

Exhibit 10.8
ARTICLE VIII
PERFORMANCE AWARDS
The Committee may grant a Performance Award to a Participant payable upon the attainment of specific Performance Goals either alone or in
addition to other Awards granted under this Plan. The Performance Goals to be achieved during the Performance Period and the length of the
Performance Period shall be determined by the Committee upon the grant of each Performance Award. The conditions for grant or vesting and the other
provisions of Performance Awards (including, without limitation, any applicable Performance Goals) need not be the same with respect to each
Participant. Performance Awards may be paid in cash, Shares, other property, or any combination thereof, in the sole discretion of the Committee as set
forth in the applicable Award Agreement.
ARTICLE IX
OTHER STOCK-BASED COMPENSATION
9.1
Other Stock-Based Awards. The Committee is authorized to grant to Eligible Individuals Other Stock-Based Awards that are payable in,
valued in whole or in part by reference to, or otherwise based on or related to Shares, including but not limited to, Shares awarded purely as a bonus
and not subject to restrictions or conditions, Shares in payment of the amounts due under an incentive or performance plan sponsored or maintained by
the Company, stock equivalent units, and Awards valued by reference to the book value of Shares. Other Stock-Based Awards may be granted either
alone or in addition to or in tandem with other Awards granted under this Plan.
Subject to the provisions of this Plan, the Committee shall have authority to determine the Eligible Individuals, to whom, and the time or
times at which, such Other Stock-Based Awards shall be made, the number of Shares to be awarded pursuant to such Awards, and all other conditions
of the Awards. The Committee may also provide for the grant of Shares under such Awards upon the completion of a specified Performance Period. The
Committee may condition the grant or vesting of Other Stock-Based Awards upon the attainment of specified Performance Goals as the Committee may
determine, in its sole discretion.
9.2
Terms and Conditions. Other Stock-Based Awards made pursuant to this Article IX shall be evidenced by an Award Agreement and
subject to the following terms and conditions and shall be in such form and contain such additional terms and conditions not inconsistent with the terms
of this Plan, as the Committee shall deem desirable:
(a)
Non-Transferability. Subject to the applicable provisions of the Award Agreement and this Plan, Shares subject to Other Stock-
Based Awards may not be transferred prior to the date on which the Shares are issued or, if later, the date on which any applicable restriction,
performance, or deferral period lapses.
(b)
Dividends. Unless otherwise determined by the Committee at the time of the grant of an Other Stock-Based Award, subject to
the provisions of the Award Agreement and this Plan, the recipient of an Other Stock-Based Award shall not be entitled to receive, currently or on
a deferred basis, dividends or Dividend Equivalent Rights in respect of the number of Shares covered by the Other Stock-Based Award.
(c)
Vesting. Any Other Stock-Based Award and any Shares covered by any such Other Stock-Based Award shall vest or be forfeited
to the extent so provided in the Award Agreement, as determined by the Committee, in its sole discretion.
(d)
Price. Shares under this Article IX may be issued for no cash consideration. Shares purchased pursuant to a purchase right
awarded pursuant to an Other Stock-Based Award shall be priced, as determined by the Committee in its sole discretion.

Exhibit 10.8
9.3
Cash Awards. The Committee may from time to time grant Cash Awards to Eligible Individuals in such amounts, on such terms and
conditions, and for such consideration, including no consideration or such minimum consideration as may be required by Applicable Law, as it shall
determine in its sole discretion. Cash Awards may be granted subject to the satisfaction of vesting conditions or may be awarded purely as a bonus and
not subject to restrictions or conditions, and if subject to vesting conditions, the Committee may accelerate the vesting of such Awards at any time in its
sole discretion. The grant of a Cash Award shall not require a segregation of any of the Company’s assets for satisfaction of the Company’s payment
obligation thereunder.
ARTICLE X
CHANGE CONTROL PROVISIONS
10.1
Benefits. In the event of a Change in Control of the Company, and except as otherwise provided by the Committee in an Award
Agreement or any applicable employment agreement, offer letter, consulting agreement, change in control agreement, or similar agreement in effect
between the Company or an Affiliate and the Participant, a Participant’s unvested Awards shall not vest automatically and a Participant’s Awards shall be
treated in accordance with one or more of the following methods as determined by the Committee:
(a)
Awards, whether or not then vested, shall be continued, be assumed, or have new rights substituted therefor, as determined by
the Committee in a manner consistent with the requirements of Section 409A of the Code, and restrictions to which shares of Restricted Stock or
any other Award granted prior to the Change in Control are subject shall not lapse upon a Change in Control and the Restricted Stock or other
Award shall, where appropriate in the sole discretion of the Committee, receive the same distribution as other Shares on such terms as
determined by the Committee; provided that the Committee may decide to award additional Restricted Stock or other Awards in lieu of any cash
distribution. Notwithstanding anything to the contrary herein, for purposes of Incentive Stock Options, any assumed or substituted Stock Option
shall comply with the requirements of Treasury Regulation Section 1.424-1 (and any amendment thereto).
(b)
The Committee, in its sole discretion, may provide for the purchase of any Awards by the Company for an amount of cash equal
to the excess (if any) of the Change in Control Price of the Shares covered by such Awards, over the aggregate exercise price of such Awards;
provided, however, that if the exercise price of an Option or Stock Appreciation Right exceeds the Change in Control Price, such Award may be
cancelled for no consideration.
(c)
The Committee may, in its sole discretion, terminate all outstanding and unexercised Stock Options, Stock Appreciation Rights,
or any Other Stock-Based Award that provides for a Participant-elected exercise, effective as of the date of the Change in Control, by delivering
notice of termination to each Participant at least twenty (20) days prior to the date of consummation of the Change in Control, in which case
during the period from the date on which such notice of termination is delivered to the consummation of the Change in Control, each such
Participant shall have the right to exercise in full all of such Participant’s Awards that are then outstanding (without regard to any limitations on
exercisability otherwise contained in the Award Agreements), but any such exercise shall be contingent on the occurrence of the Change in
Control, and, provided that, if the Change in Control does not take place within a specified period after giving such notice for any reason
whatsoever, the notice and exercise pursuant thereto shall be null and void.
(d)
Notwithstanding any other provision herein to the contrary, the Committee may, in its sole discretion, provide for accelerated
vesting or lapse of restrictions, of an Award at any time.

Exhibit 10.8
ARTICLE XI
TERMINATION OR AMENDMENT OF PLAN
Notwithstanding any other provision of this Plan, the Board or the Committee may at any time, and from time to time, amend, in whole or in part,
any or all of the provisions of this Plan (including any amendment deemed necessary to ensure that the Company may comply with any Applicable Law),
or suspend or terminate it entirely, retroactively or otherwise; provided, however, that, unless otherwise required by Applicable Law or specifically
provided herein, the rights of a Participant with respect to Awards granted prior to such amendment, suspension, or termination may not be materially
impaired without the consent of such Participant and, provided, further, that without the approval of the holders of the Shares entitled to vote in
accordance with Applicable Law, no amendment may be made that would (a) increase the aggregate number of Shares that may be issued under this
Plan (except by operation of Section 4.1); or (b) change the classification of individuals eligible to receive Awards under this Plan. Notwithstanding
anything herein to the contrary, the Board or the Committee may amend this Plan or any Award Agreement at any time without a Participant’s consent to
comply with Applicable Law, including Section 409A of the Code. The Committee may amend the terms of any Award theretofore granted, prospectively
or retroactively, but, subject to Article IV or as otherwise specifically provided herein, no such amendment or other action by the Committee shall
materially impair the rights of any Participant without the Participant’s consent.
ARTICLE XII
UNFUNDED STATUS OF PLAN
This Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payment as to which a
Participant has a fixed and vested interest but which is not yet made to a Participant by the Company, nothing contained herein shall give any such
Participant any right that is greater than those of a general unsecured creditor of the Company.
ARTICLE XIII
GENERAL PROVISIONS
13.1
Lock-Up; Legend. The Committee may require each person receiving Shares pursuant to a Stock Option or other Award under this Plan
to represent to and agree with the Company in writing that the Participant is acquiring the Shares without a view to distribution thereof. The Company
may, in connection with registering the offering of any Company securities under the Securities Act, prohibit Participants from, directly or indirectly, selling
or otherwise transferring any Shares or other Company securities during any period determined by the underwriter or the Company. In addition to any
legend required by this Plan, the certificates for such Shares may include any legend that the Committee deems appropriate to reflect any restrictions on
transfer. All certificates for Shares delivered under this Plan shall be subject to such stop transfer orders and other restrictions as the Committee may
deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the
Common Stock is then listed or any national securities exchange system upon whose system the Common Stock is then quoted, and any Applicable
Law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. If the
Shares are held in book-entry form, then the book-entry will indicate any restrictions on such Shares.
13.2
Other Plans. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements,
subject to stockholder approval if such approval is required, and such arrangements may be either generally applicable or applicable only in specific
cases.

Exhibit 10.8
13.3
No Right to Employment/Directorship/Consultancy. Neither this Plan nor the grant of any Award hereunder shall give any Participant or
other employee, Consultant or Non-Employee Director any right with respect to continuance of employment, consultancy or directorship by the Company
or any Affiliate, nor shall there be a limitation in any way on the right of the Company or any Affiliate by which an employee is employed or a Consultant
or Non-Employee Director is retained to terminate such employment, consultancy, or directorship at any time.
13.4
Withholding of Taxes. A Participant shall be required to pay to the Company or one of its Affiliates, as applicable, or make arrangements
satisfactory to the Company regarding the payment of, any income tax, social insurance contribution or other applicable taxes that are required to be
withheld in respect of an Award. The Committee may (but is not obligated to), in its sole discretion, permit or require a Participant to satisfy all or any
portion of the applicable taxes that are required to be withheld with respect to an Award by (a) the delivery of Shares (which are not subject to any pledge
or other security interest) that have been both held by the Participant and vested for at least six (6) months (or such other period as established from
time to time by the Committee in order to avoid adverse accounting treatment under applicable accounting standards) having an aggregate Fair Market
Value equal to such withholding liability (or portion thereof); (b) having the Company withhold from the Shares otherwise issuable or deliverable to, or
that would otherwise be retained by, the Participant upon the grant, exercise, vesting, or settlement of the Award, as applicable, a number of Shares with
an aggregate Fair Market Value equal to the amount of such withholding liability; or (c) by any other means specified in the applicable Award Agreement
or otherwise determined by the Committee.
13.5
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to this Plan. The Committee shall determine whether cash,
additional Awards, or other securities or property shall be used or paid in lieu of fractional Shares or whether any fractional shares should be rounded,
forfeited, or otherwise eliminated.
13.6
No Assignment of Benefits. No Award or other benefit payable under this Plan shall, except as otherwise specifically provided in this
Plan or under Applicable Law or permitted by the Committee, be transferable in any manner, and any attempt to transfer any such benefit shall be void,
and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements, or torts of any person who shall be
entitled to such benefit, nor shall it be subject to attachment or legal process for or against such person.
13.7
Clawbacks. All awards, amounts, or benefits received or outstanding under this Plan will be subject to clawback, cancellation,
recoupment, rescission, payback, reduction, or other similar action in accordance with any Company clawback or similar policy or any Applicable Law
related to such actions, and the applicable terms of such clawback or similar policy and any amendment thereto, regardless of when adopted, are
deemed incorporate by reference in all Award agreements entered into under this Plan, unless determined otherwise by the Committee. A Participant’s
acceptance of an Award will constitute the Participant’s acknowledgement of and consent to the Company’s application, implementation, and
enforcement of any applicable Company clawback or similar policy that may apply to the Participant, whether adopted before or after the Effective Date,
and any Applicable Law relating to clawback, cancellation, recoupment, rescission, payback, or reduction of compensation, and the Participant’s
agreement that the Company may take any actions that may be necessary to effectuate any such policy or Applicable Law, without further consideration
or action.
13.8
Listing and Other Conditions.
(a)
Unless otherwise determined by the Committee, as long as the Common Stock is listed on a national securities exchange or
system sponsored by a national securities association, the issuance of Shares pursuant to an Award shall be conditioned upon such Shares
being listed on such exchange or system. The Company shall have no obligation to issue such Shares unless and until such Shares are so
listed, and the right to exercise any Option or other Award with respect to such Shares shall be suspended until such listing has been effected.

Exhibit 10.8
(b)
If at any time counsel to the Company advises the Company that any sale or delivery of Shares pursuant to an Award is or may
in the circumstances be unlawful or result in the imposition of excise taxes on the Company under Applicable Law, the Company shall have no
obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the
Securities Act or otherwise, with respect to Shares or Awards, and the right to exercise any Option or other Award shall be suspended until,
based on the advice of said counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company.
(c)
Upon termination of any period of suspension under this Section 13.8, any Award affected by such suspension which shall not
then have expired or terminated shall be reinstated as to all Shares available before such suspension and as to Shares which would otherwise
have become available during the period of such suspension, but no such suspension shall extend the term of any Award.
(d)
A Participant shall be required to supply the Company with certificates, representations, and information that the Company
requests and otherwise cooperate with the Company in obtaining any listing, registration, qualification, exemption, consent, or approval that the
Company deems necessary or appropriate.
13.9
Governing Law. This Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the
State of Delaware, without reference to principles of conflict of laws.
13.10
Construction. Wherever any words are used in this Plan in the masculine gender they shall be construed as though they were also used
in the feminine gender in all cases where they would so apply, and wherever words are used herein in the singular form they shall be construed as
though they were also used in the plural form in all cases where they would so apply.
13.11
Other Benefits. No Award granted or paid out under this Plan shall be deemed compensation for purposes of computing benefits under
any retirement plan of the Company or its Affiliates or affect any benefit or compensation under any other plan now or subsequently in effect under which
the availability or amount of benefits is related to the level of compensation.
13.12
Costs. The Company shall bear all expenses associated with administering this Plan, including expenses of issuing Shares pursuant to
Awards hereunder.
13.13
No Right to Same Benefits. The provisions of Awards need not be the same with respect to each Participant, and such Awards to
individual Participants need not be the same in subsequent years.
13.14
Death/Disability. The Committee may in its discretion require the transferee of a Participant to supply it with written notice of the
Participant’s death or Disability and to supply it with a copy of the will (in the case of the Participant’s death) or such other evidence as the Committee
deems necessary to establish the validity of the transfer of an Award. The Committee may also require the agreement of the transferee to be bound by
all of the terms and conditions of this Plan.
13.15
Section 16(b) of the Exchange Act. It is the intent of the Company that this Plan satisfy, and be interpreted in a manner that satisfies, the
applicable requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule
16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16 of the
Exchange Act. Accordingly, if the operation of any provision of this Plan would conflict with the intent expressed in this Section 13.15, such provision to
the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

Exhibit 10.8
13.16
Deferral of Awards. The Committee may establish one or more programs under this Plan to permit selected Participants the opportunity
to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would
entitle the Participant to payment or receipt of Shares or other consideration under an Award. The Committee may establish the election procedures, the
timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so
deferred, and such other terms, conditions, rules, and procedures that the Committee deems advisable for the administration of any such deferral
program.
13.17
Section 409A of the Code. This Plan and Awards are intended to comply with or be exempt from the applicable requirements of Section
409A of the Code and shall be limited, construed, and interpreted in accordance with such intent. To the extent that any Award is subject to Section 409A
of the Code, it shall be paid in a manner that will comply with Section 409A of the Code. Notwithstanding anything herein to the contrary, any provision in
this Plan that is inconsistent with Section 409A of the Code shall be deemed to be amended to comply with or be exempt from Section 409A of the Code
and, to the extent such provision cannot be amended to comply therewith or be exempt therefrom, such provision shall be null and void. The Company
shall have no liability to a Participant, or any other party, if an Award that is intended to be exempt from, or compliant with, Section 409A of the Code is
not so exempt or compliant or for any action taken by the Committee or the Company and, in the event that any amount or benefit under this Plan
becomes subject to penalties under Section 409A of the Code, responsibility for payment of such penalties shall rest solely with the affected Participants
and not with the Company. Notwithstanding any contrary provision in this Plan or Award Agreement, any payment(s) of “nonqualified deferred
compensation” (within the meaning of Section 409A of the Code) that are otherwise required to be made under this Plan to a “specified employee” (as
defined under Section 409A of the Code) as a result of such employee’s separation from service (other than a payment that is not subject to Section
409A of the Code) shall be delayed for the first six (6) months following such separation from service (or, if earlier, until the date of death of the specified
employee) and shall instead be paid (in a manner set forth in the Award Agreement) upon expiration of such delay period.

Exhibit 10.8
13.18
Data Privacy. As a condition of receipt of any Award, each Participant explicitly and unambiguously consents to the collection, use, and
transfer, in electronic or other form, of personal data as described in this Section 13.18 by and among, as applicable, the Company and its Affiliates, for
the exclusive purpose of implementing, administering, and managing this Plan and Awards and the Participant’s participation in this Plan. In furtherance
of such implementation, administration, and management, the Company and its Affiliates may hold certain personal information about a Participant,
including, but not limited to, the Participant’s name, home address, telephone number, date of birth, social security or insurance number or other
identification number, salary, nationality, job title(s), information regarding any securities of the Company or any of its Affiliates, and details of all Awards
(the “Data”). In addition to transferring the Data amongst themselves as necessary for the purpose of implementation, administration, and management
of this Plan and Awards and the Participant’s participation in this Plan, the Company and its Affiliates may each transfer the Data to any third parties
assisting the Company in the implementation, administration, and management of this Plan and Awards and the Participant’s participation in this Plan.
Recipients of the Data may be located in the Participant’s country or elsewhere, and the Participant’s country and any given recipient’s country may have
different data privacy laws and protections. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain, and
transfer the Data, in electronic or other form, for the purposes of assisting the Company in the implementation, administration, and management of this
Plan and Awards and the Participant’s participation in this Plan, including any requisite transfer of such Data as may be required to a broker or other third
party with whom the Company or the Participant may elect to deposit any shares of Common Stock. The Data related to a Participant will be held only as
long as is necessary to implement, administer, and manage this Plan and Awards and the Participant’s participation in this Plan. A Participant may, at any
time, view the Data held by the Company with respect to such Participant, request additional information about the storage and processing of the Data
with respect to such Participant, recommend any necessary corrections to the Data with respect to the Participant, or refuse or withdraw the consents
herein in writing, in any case without cost, by contacting his or her local human resources representative. The Company may cancel the Participant’s
eligibility to participate in this Plan, and in the Committee’s discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or
withdraws the consents described herein. For more information on the consequences of refusal to consent or withdrawal of consent, Participants may
contact their local human resources representative.
13.19
Successor and Assigns. This Plan shall be binding on all successors and permitted assigns of a Participant, including, without limitation,
the estate of such Participant and the executor, administrator, or trustee of such estate.
13.20
Severability of Provisions. If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included.
13.21
Headings and Captions. The headings and captions herein are provided for reference and convenience only, shall not be considered
part of this Plan, and shall not be employed in the construction of this Plan.
ARTICLE XIV
EFFECTIVE DATE OF PLAN
This Plan shall become effective on April 3, 2025, which is the date of its adoption by the Board, subject to the approval of this Plan by the
stockholders of the Company in accordance with the requirements of the laws of the State of Delaware. If this Plan is not approved by the Company’s
stockholders, this Plan will not become effective and no Awards will be granted under this Plan and the Prior Plan will continue in full force and effect in
accordance with its terms.

Exhibit 10.8
ARTICLE XV
TERM OF PLAN
No Award shall be granted pursuant to this Plan on or after the tenth (10th) anniversary of the earlier of the date that this Plan is adopted by the
Board or the date of stockholder approval, but Awards granted prior to such tenth (10th) anniversary may extend beyond that date.

Exhibit 10.19        
August 4, 2025
Chris Smith
[Address Redacted]
Dear Chris,
In recognition of your intent to resign your position as Ichor’s Chief Commercial Officer, on September 1, 2025, Ichor’s Human Capital Committee ratified
this change, and further, we would like to formally change your position to Strategic Advisor, effective September 2, 2025, reporting to me. This
assignment is expected to be in place for approximately 6 months, with a targeted end date of February 27, 2026.
As Strategic Advisor, you will remain a full-time, regular employee and executive of Ichor Systems, and will be paid an annualized salary of $120K. As a
regular employee, you will remain on all of Ichor’s benefits, including equity programs, with no change and continue to be subject to all of Ichor’s policies
and procedures. You will continue to be eligible under the company’s MBO program, with no change in your individual target, which will continue at 70%
of your current annualized salary on the date of signing this agreement, assuming you remain employed by Ichor at the time of any payout, which is
planned to be near or about February 20, 2026.
This position and commensurate salary will allow you to be available to me and your successor, for questions that may arise from time to time in the
transition, in addition to the following specific projects:
Project #1 AMAT Contract renewal strategy and advisor to new head of Sales and Marketing
Project #2 ASML Contract renewal strategy and advisor to new head of Sales and Marketing
Project#3 Advisor as needed to the new head of Sales and Marketing
Furthermore, this Strategic Advisor role is considered a remote position, and no business travel is anticipated. However, should travel be required, all
travel and related expenses will be reimbursable by Ichor according to its business travel policy, with the exception that business class travel will be
reimbursed for the Strategic Advisor and in the case of international travel, Ichor will pay for your spouse to accompany your travel, also covered at
business class.
Should we determine the need for additional strategic work for which you are interested in performing, we will discuss additional compensation on a
project basis, at a rate of $225/hour.
We expect this Strategic Advisor position to take effect immediately following the date on which you have stepped down from your CCO position. Nothing
in this Agreement shall be construed to alter the at-will nature of your employment.
Thank you for your outstanding service, contributions, and continued dedication to Ichor Systems!
Sincerely,
Jeff Andreson, CEO
Cc: Diana Finucane, CHRO
Acceptance of this Agreement:
/s/ Christopher Smith 08/13/2025
Name, Date

Exhibit 19.1
Effective: November 10, 2025
ICHOR HOLDINGS, LTD.
INSIDER TRADING POLICY
PURPOSE
Ichor Holdings, Ltd. (and together with its subsidiaries, the “Company,” “we,” or “our”) opposes the unauthorized disclosure of
any nonpublic information acquired in the course of your service with the Company and the misuse of material nonpublic information in
securities trading. Any such actions will be deemed violations of this Insider Trading Policy (the “Policy”).
Legal prohibitions on insider trading
The antifraud provisions of U.S. federal securities laws prohibit directors, officers, employees and other individuals who possess
material nonpublic information from trading on the basis of that information. Transactions will be considered “on the basis of” material
nonpublic information if the person engaged in the transaction was aware of the material nonpublic information at the time of the
transaction. It is not a defense that the person did not “use” the information for purposes of the transaction.
Disclosing material nonpublic information directly or indirectly to others who then trade based on that information or making
recommendations or expressing opinions as to transactions in securities while aware of material nonpublic information (which is
sometime referred to as “tipping”) is also illegal. Both the person who provides the information, recommendation or opinion and the
person who trades based on it may be liable.
These illegal activities are commonly referred to as “insider trading.” State securities laws and securities laws of other
jurisdictions also impose restrictions on insider trading.
In addition, a company, as well as individual directors, officers and other supervisory personnel, may be subject to liability as
“controlling persons” for failure to take appropriate steps to prevent insider trading by those under their supervision, influence or control.
Detection and prosecution of insider trading
The U.S. Securities and Exchange Commission (the “SEC”), the Financial Industry Regulatory Authority and other authorities use
sophisticated electronic surveillance techniques to investigate and detect insider trading, and the SEC and the U.S. Department of Justice
pursue insider trading violations vigorously. Cases involving trading through foreign accounts, trading by family members and friends and
trading involving only a small number of shares have been successfully prosecuted.
Penalties for violation of insider trading laws and this Policy
Civil and criminal penalties. As of the effective date of this Policy, potential penalties for
1

Exhibit 19.1
insider trading violations under U.S. federal securities laws include:
•
damages in a private lawsuit;
•
disgorging any profits made or losses avoided;
•
imprisonment;
•
substantial criminal fines;
•
substantial civil fines based on the profit gained or loss avoided (up to three times of the profits earned or losses avoided);
•
a bar against serving as an officer or director of a public company; and
•
an injunction against future violations.
Civil and criminal penalties also apply to tipping. The SEC has imposed large penalties in tipping cases even when the disclosing
person did not trade or gain any benefit from another person’s trading.
Controlling person liability. As of the effective date of this Policy, the penalty for “controlling person” liability includes civil
fines, as well as potential criminal fines and imprisonment.
Company disciplinary actions. If the Company has a reasonable basis to conclude that an employee, officer, director, consultant or
contractor has failed to comply with this Policy, such person may be subject to disciplinary action by the Company, up to and including
dismissal for cause if the person is an employee or officer, or subject to termination of services if the person is a director, consultant or
contractor, regardless of whether or not failure to comply with this Policy results in a violation of law. It is not necessary for the Company
to wait for the filing or conclusion of any civil or criminal action against an alleged violator before taking disciplinary action. In addition,
the Company may give stop transfer and other instructions to the Company’s transfer agent to enforce compliance with this Policy.
Compliance Officer
Please direct any questions or requests as to any of the matters discussed in this Policy to the chief financial officer of the
Company and/or another officer as may be designated from time to time by the chief financial officer (“Compliance Officer”). The
Compliance Officer is generally responsible for the administration of this Policy. The Compliance Officer may select others to assist with
the execution of his or her duties.
Reporting violations
It is your responsibility to help enforce this Policy. You should be alert to possible violations and should promptly report violations
or suspected violations of this Policy.
You may report suspected violations of this Policy as follows:
1. Via email toichorinsidertrading@ichorsystems.com; or
2. Via regular mail to the Compliance Officer at the Company’s principal executive
2

Exhibit 19.1
offices located at 3185 Laurelview Ct., Fremont, California 94538.
Permitted reports to the Compliance Officer may be made anonymously or by identifying oneself. Because it may be more
difficult to thoroughly investigate reports that are made anonymously, you are encouraged to share your identity when reporting rather
than reporting anonymously. If you make an anonymous report, please provide as much detail as possible, including any evidence that
you believe may be relevant to the issue. All reports, whether identified or anonymous, will be treated confidentially to the extent
consistent with applicable law.
Personal responsibility
The ultimate responsibility for complying with this Policy and applicable laws and regulations rests with you. Any action on the
part of the Company, the Compliance Officer or any other employee or director pursuant to this Policy (or otherwise) does not in any way
constitute legal advice or insulate an individual from liability under applicable securities laws. You should use your best judgment at all
times and consult with your personal legal and financial advisors, as needed. We advise you to seek assistance if you have any questions
at all. The rules relating to insider trading can be complex, and a violation of insider trading laws can carry severe consequences.
PERSONS AND TRANSACTIONS SUBJECT TO THIS POLICY
Persons subject to this Policy
This Policy applies to all directors, officers, employees and agents (such as consultants and independent contractors) of the
Company. This Policy also applies to any entities that you influence or control, including any corporations, partnerships or trusts. Further,
this policy applies, and applicable insider trading laws may apply, to members of the Company’s directors’, officers’, employees’ and
agents’ immediate family, persons with whom they share a household, persons that are their economic dependents and any other family
members with whom they do not share a household but whose transactions in securities they influence, direct or control (collectively,
“related parties”). You are responsible to ensure that your related parties comply with the applicable provisions of this Policy. This Policy
does not, however, apply to personal securities transactions of related parties where the purchase or sale decision is made by a third party
not controlled by, influenced by or related to you or your related parties.
Types of transactions covered by this Policy
Except as discussed in the section entitled “Limited Exceptions,” this Policy applies to all transactions involving the securities of
the Company or the securities of other companies as to which you possess material nonpublic information obtained in the course of your
service with the Company. This Policy therefore applies to transactions in the Company’s securities, including of the Company’s common
stock, options to purchase common stock or any other types of securities that the Company may issue, including (but not limited to),
warrants, preferred shares, debt securities (such as debentures, bonds and notes) and other securities of the Company. This Policy also
applies to any arrangements that affect economic exposure to changes in the prices of these
3

Exhibit 19.1
securities. These arrangements may include, among other things, transactions in derivative securities (such as exchange-traded put or call
options or swaps relating to securities of the Company), hedging transactions, short sales and certain decisions with respect to
participation in benefit plans. Transactions subject to this Policy include purchases and sales of Company securities as well as bona fide
gifts of Company securities to persons and entities who are not covered by this Policy. This Policy also applies to any offers with respect
to the transactions discussed above. You should note that there are no exceptions from insider trading laws or this Policy based on the size
of the transaction.
Responsibilities regarding the nonpublic information of other companies
This Policy prohibits the unauthorized disclosure or other misuse of any nonpublic information of other companies, such as the
Company’s distributors, vendors, customers, collaborators, suppliers and competitors. This Policy also prohibits insider trading and
tipping based on the material nonpublic information of such other companies.
Applicability of this Policy after your departure
You are expected to comply with this Policy until such time as you are no longer affiliated with the Company and you no longer
possess any material nonpublic information subject to this Policy. In addition, if you are listed on Schedule I attached hereto and subject
to a trading blackout under this Policy at the time you cease to be affiliated with the Company, you are expected to abide by the applicable
trading restrictions until at least the end of the relevant blackout period.
No exceptions based on personal circumstances
There may be instances where you suffer financial harm or other hardship or are otherwise required to forego a planned
transaction because of the restrictions imposed by this Policy. Personal financial emergency or other personal circumstances are not
mitigating factors under securities laws and will not excuse a failure to comply with this Policy.
COMPLIANCE WITH SECTION 16 OF THE SECURITIES EXCHANGE ACT
Obligations under Section 16
Section 16 of the Securities Exchange Act, and the related rules and regulations, set forth (i) beneficial ownership reporting
obligations, (ii) limitations on “short-swing” transactions and (iii) limitations on short sales and other transactions applicable to directors,
officers, large shareholders and certain other persons.
The Board of Directors regularly affirms that certain executive officers are required to comply with Section 16 of the Securities
Exchange Act, and the related rules and regulations, because of their positions with the Company.
Notification requirements to facilitate Section 16 reporting
To facilitate timely reporting of transactions pursuant to Section 16 requirements, each person subject to Section 16 reporting
requirements must provide, or must ensure that his or her
4

Exhibit 19.1
broker provides, the Company with detailed information (e.g., trade date, number of shares, exact price, etc.) regarding his or her
transactions involving the Company’s securities, including gifts, transfers, pledges and transactions pursuant to a trading plan, both prior
to (to confirm compliance with pre-clearance procedures, if applicable) and promptly following execution.
Specific Obligations under Section 16(b)
Section 16(b) of the Exchange Act (“Section 16”) prohibits Company directors, certain executive officers as designated by the
Board of Directors from time to time (“Section 16 Officers”), and greater than 10% shareholders (all such directors, Section 16 Officers
and greater than 10% shareholders referred to herein as “Insiders”), from profiting on direct or indirect short-term trading in Company
securities.
Section 16(a) Reporting: To provide plaintiffs with the information necessary to pursue recoveries and enforce Section 16(b),
Section 16(a) requires Insiders to file beneficial ownership reports on Form 4 within two business days of any transactions in Company
securities, including the giving or receiving of gifts of Company securities. The SEC actively enforces this deadline so it is very important
that you promptly notify the Company of any transactions in order to enable timely compliance.
Section 16(b) Liability: Section 16(b) provides the Company with the right to recover any “profit” received by an Insider in
connection with a purchase and sale (or sale and purchase) within a six-month window (generally referred to as ‘short swing trading’). To
calculate such profit, the lowest price purchase of Company securities (including any derivatives thereon) is “matched” against the highest
price sale of Company securities within the prior or succeeding six months, on a share-by-share basis. Actual economic profit is irrelevant
to 16(b) claims.
Section 16(a) and 16(b) Exemptions: Certain transactions are exempt from reporting and/or matching under Section 16. Most
commonly relied on is Rule 16b-3 which exempts transactions directly with the Company that were pre-approved by the Board of
Directors, such as awards issued under equity compensation plans or arrangements. It is important to note that transactions effected by
Insiders pursuant to Rule 10b5-1 trading plans are not exempt and are both reportable and matchable under Section 16.
Section 16(b) Short-Swing Enforcement: The Compliance Officer monitors for potential short-swing violations through the
mandated trade pre-clearance process for the individuals identified in Schedule II.
•
Disgorgement procedure. If a short-swing profit is identified, the Compliance Officer will notify the Insider, who must
remit the profit to the Company within 30 days of notice. Non-payment will be escalated to the Audit Committee.
•
Plaintiff Claims. Section 16(b) is enforced by an aggressive and highly effective private plaintiffs’ bar that monitors
Section 16(a) filings and any other source of publicly available information and will promptly notify the Company of
potential 16(b) liability and expect a portion of the ‘profit’ recovered by the Company. If the Company does not pursue the
claim within 60 days after written demand, the
5

Exhibit 19.1
plaintiff has 2 years after the ‘profit’ was realized to file suit against the Insider and the Company.
Personal responsibility
Although the Company may assist Insiders with their Section 16(a) reporting, the obligation to file Section  16 reports and
potential liability for short swing trading is personal. As such, the Company is not responsible for the failure to comply with Section 16(a)
reporting requirements, however, such failures are required to be disclosed in the Company’s annual proxy statement to shareholders.
MATERIAL NONPUBLIC INFORMATION
“Material” information
Information is considered “material” if there is a substantial likelihood that a reasonable investor would consider it important in
deciding whether to buy, hold or sell securities or would view the information as significantly altering the total mix of information in the
marketplace about the issuer of the security. Any information that could be expected to affect the market price of a security, whether
positive or negative, is likely to be material. There is no bright-line standard for assessing materiality; rather, materiality is based on an
assessment of all of the facts and circumstances, and is often evaluated by enforcement authorities with the benefit of hindsight.
It is not possible to define all categories of “material” information. However, some examples of information that could be regarded
as material include information with respect to:
•
Financial results, financial condition, earnings pre-announcements, guidance, projections or forecasts, particularly if
inconsistent with the Company’s guidance or the expectations of the investment community;
•
Restatements of financial results, or material impairments, write-offs or restructurings;
•
Changes in independent auditors, or notification that the Company may no longer rely on an audit report;
•
Business plans or budgets;
•
Creation of significant financial obligations, or any significant default under or acceleration of any financial obligation;
•
Impending bankruptcy or financial liquidity problems;
•
Significant developments involving business relationships, including execution, modification or termination of significant
agreements or orders with customers, suppliers, distributors, manufacturers or other business partners;
•
Product and service introductions, modifications, issues or significant pricing changes, or cost structure or other product or
service announcements of a significant nature;
•
A significant cybersecurity incident;
6

Exhibit 19.1
•
Major marketing changes;
•
Significant developments in research and development or relating to intellectual property;
•
Significant legal or regulatory developments, whether actual or threatened;
•
Major events involving the Company’s securities, including calls of securities for redemption, adoption of share repurchase
programs, option repricings, share splits, changes in dividend policies, public or private securities offerings, modification
to the rights of security holders or notice of delisting;
•
Significant corporate events, such as a pending or proposed merger, joint venture or tender offer, a significant investment,
significant related party transactions, the acquisition or disposition of a significant business or asset or a change in control
of the company;
•
The existence of a special blackout period in the Company’s securities or the securities of another company; and
•
Major personnel changes, such as changes in senior management or lay-offs.
If you have any questions as to whether information should be considered “material,” you should consult with the Compliance
Officer. In general, it is advisable to resolve any close questions as to the materiality of any information by assuming that the information
is material.
“Nonpublic” information
Information is considered nonpublic if the information has not been broadly disseminated to the public for a sufficient period to be
reflected in the price of the security. As a general rule, information should be considered nonpublic until at least two full trading days
have elapsed after the information is broadly distributed to the public in a press release, a public filing with the SEC, a pre-announced
public webcast or another broad, non-exclusionary form of public communication. However, depending upon the form of the
announcement and the nature of the information, it is possible that information may not be fully absorbed by the marketplace until a later
time. Any questions as to whether information is nonpublic should be directed to the Compliance Officer.
The term “trading day” means a day on which U.S. national stock exchanges are open for trading. A “full” trading day has elapsed
when, after the public disclosure, trading in the relevant security has opened and then closed. If, for example, the Company were to make
an announcement on a Monday, you should not trade in securities of the Company until Thursday.
POLICIES REGARDING MATERIAL NONPUBLIC INFORMATION
Confidentiality of nonpublic information
The unauthorized use or disclosure of nonpublic information relating to the Company or other companies is prohibited. All
nonpublic information you acquire in the course of your service with the Company may only be used for legitimate Company business
purposes. In addition,
7

Exhibit 19.1
nonpublic information of others should be handled in accordance with the terms of any relevant nondisclosure agreements, and the use of
any such nonpublic information should be limited to the purpose for which it was disclosed.
You must use all reasonable efforts to safeguard nonpublic information in the Company’s possession. You may not disclose
nonpublic information about the Company or any other company, unless required by law, or unless (i) disclosure is required for legitimate
Company business purposes, (ii) you are authorized to disclose the information and (iii) appropriate steps have been taken to prevent
misuse of that information (including entering an appropriate nondisclosure agreement that restricts the disclosure and use of the
information, if applicable). This restriction also applies to internal communications within the Company and to communications with
agents of the Company. In cases where disclosing nonpublic information to third parties is required, you should coordinate with the
Compliance Officer.
No trading on material nonpublic information
Except as discussed in the section entitled “Limited Exceptions”, you may not, directly or indirectly through others, engage in any
transaction involving the Company’s securities while aware of material nonpublic information relating to the Company. It is not an excuse
that you did not “use” the information in your transaction.
Similarly, you may not engage in transactions involving the securities of any other company if you are aware of material
nonpublic information about that company (except to the extent the transactions are analogous to those presented in the section entitled
“Limited Exceptions”). For example, you may be involved in a proposed transaction involving a prospective business relationship or
transaction with another company. If information about that transaction constitutes material nonpublic information for that other company,
you would be prohibited from engaging in transactions involving the securities of that other company (as well as transactions involving
Company securities, if that information is material to the Company). It is important to note that “materiality” is different for different
companies. Information that is not material to the Company may be material to another company.
No disclosing material nonpublic information for the benefit of others
You may not disclose material nonpublic information concerning the Company or any other company to friends, family members
or any other person or entity not authorized to receive such information where such person or entity may benefit by trading on the basis of
such information. In addition, you may not make recommendations or express opinions on the basis of material nonpublic information as
to trading in the securities of companies to which such information relates. You are prohibited from engaging in these actions whether or
not you derive any profit or personal benefit from doing so. This prohibition against disclosure of material nonpublic information includes
disclosure (even anonymous disclosure) via the internet, blogs, social media, investor forums or chat rooms.
Obligation to disclose material nonpublic information to the Company
You may not enter into any transaction, including those discussed in the section entitled
8

Exhibit 19.1
“Limited Exceptions”, unless you have disclosed any material nonpublic information that you become aware of in the course of your
service with the Company, and that senior management is not aware of, to the Compliance Officer. If you are a member of senior
management, the information must be disclosed to the Chief Executive Officer, and if you are the Chief Executive Officer or a director,
you must disclose the information to the Board of Directors of the Company, before any transaction is permissible.
Responding to outside inquiries for information
In the event you receive an inquiry from someone outside of the Company, such as a stock analyst, for information, you should
refer the inquiry to the Chief Financial Officer. The Company is required under Regulation FD (Fair Disclosure) of the U.S. federal
securities laws to avoid the selective disclosure of material nonpublic information. In general, the regulation provides that when a public
company discloses material nonpublic information, it must provide broad, non- exclusionary access to the information. Violations of this
regulation can subject the company to SEC enforcement actions, which may result in injunctions and severe monetary penalties. The
Company has established procedures for releasing material information in a manner that is designed to achieve broad public
dissemination of the information immediately upon its release in compliance with applicable law.
TRADING BLACKOUT PERIODS
To limit the likelihood of trading at times when there is a significant risk of insider trading exposure, the Company has instituted
quarterly trading blackout periods and may institute special trading blackout periods from time to time. The Company may shorten,
suspend, extend or terminate any blackout period at such time and for such duration as it deems appropriate given the relevant
circumstances. Any persons affected by such a modification will be notified accordingly.
It is important to note that whether or not you are subject to blackout periods, you remain subject to the prohibitions on trading on
the basis of material nonpublic information and any other applicable restrictions in this Policy.
Quarterly blackout periods
Except as discussed in the section entitled “Limited Exceptions”, the individuals listed on Schedule I and related parties (as
defined above) of such individuals (“Covered Persons”) must refrain from conducting transactions involving the Company’s securities
during quarterly blackout periods. Even if you are not a Covered Person, you should exercise caution when engaging in transactions
during quarterly blackout periods because of the heightened risk of insider trading exposure.
Quarterly blackout periods begin three (3) weeks prior to the end of each fiscal quarter and end upon the completion of the second
(2nd) full trading day following the public disclosure of the financial results for that fiscal quarter. This period is a particularly sensitive
time for transactions involving the Company’s securities from the perspective of compliance with applicable securities laws due to the
fact that, during this period, individuals may often possess or have access to material nonpublic information relevant to the expected
financial results for the quarter.
9

Exhibit 19.1
From time to time, the Company may identify other persons who should be subject to quarterly blackout periods, and the
Compliance Officer may update and revise Schedule I as appropriate.
Special blackout periods
From time to time, the Company may also prohibit Covered Persons from engaging in transactions involving the Company’s
securities when, in the judgment of the Compliance Officer, a trading blackout is warranted. The Company will generally impose special
blackout periods when there are material developments known to the Company that have not yet been disclosed to the public. For
example, the Company may impose a special blackout period in anticipation of announcing interim earnings guidance or a significant
transaction or business development. However, special blackout periods may be declared for any reason.
The Company will notify those Covered Persons subject to a special blackout period, without having to disclose the reason for the
restriction. Each person who has been so identified and notified by the Company may not engage in any transaction involving the
Company’s securities until instructed otherwise by the Compliance Officer, and should not disclose to others the fact of such suspension
of trading. Even if the Company has not designated you as a person who should not trade due to an event-specific restriction, you should
not trade while aware of material nonpublic information.
No “safe harbors”
There are no unconditional “safe harbors” for trades made at particular times, and all persons subject to this Policy should exercise
good judgment at all times. Even when a quarterly blackout period is not in effect, you may be prohibited from engaging in transactions
involving the Company’s securities because you possess material nonpublic information, are subject to a special blackout period or are
otherwise restricted under this Policy.
PRE-CLEARANCE OF TRADES
Except as discussed in the section entitled “Limited Exceptions”, the persons identified in Schedule II may not engage in any
transaction involving the Company’s securities without first obtaining pre-clearance of the transaction from the Compliance Officer. The
Compliance Officer may not engage in a transaction involving the Company’s securities unless the Chief Executive Officer has pre-
cleared the transaction.
A request for pre-clearance on the form attached to this Policy as Appendix A should be submitted to the Compliance Officer at
least two business days in advance of the proposed transaction. The Compliance Officer is under no obligation to approve a transaction
submitted for pre-clearance and may determine not to permit the transaction if there is an insider trading risk or other legal restriction on
trading the Company’s securities. If a person seeks pre-clearance and permission to engage in the transaction is denied, then he or she
should refrain from initiating any transaction in Company securities and should not inform any other person of the restriction.
10

Exhibit 19.1
If a person seeks pre-clearance and permission to engage in the transaction is granted, then such trade must be effected within
three business days of receipt of pre-clearance unless an exception is granted. Such person must promptly notify the Compliance Officer
following the completion of the transaction. A person who has not effected a transaction within the time limit may not engage in such
transaction without again obtaining pre-clearance of the transaction from the Compliance Officer.
These pre-clearance procedures are intended to decrease insider trading risks associated with transactions by individuals with
regular or special access to material nonpublic information. In addition, requiring pre-clearance of transactions by directors and officers
facilitates compliance with Rule 144 resale restrictions under the Securities Act of 1933, as amended and the liability and reporting
provisions of Section 16 under the Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”). Pre-clearance of a
trade, however, is not a defense to a claim of insider trading and does not excuse you from otherwise complying with insider trading laws
or this Policy. Further, pre-clearance of a transaction does not constitute an affirmation by the Company or the Compliance Officer that
you are not in possession of material nonpublic information.
ADDITIONAL RESTRICTIONS AND GUIDANCE
This section addresses certain types of transactions that may expose you and the Company to significant risks. You should
understand that, even though a transaction may not be expressly prohibited by this section, you are responsible for ensuring that the
transaction otherwise complies with other provisions in this Policy that may apply to the transaction, such as the general prohibition
against insider trading as well as pre-clearance procedures and blackout periods, to the extent applicable.
Short sales
Short sales (i.e., the sale of a security that must be borrowed to make delivery) and “selling short against the box” (i.e., a sale with a
delayed delivery) with respect to Company securities are prohibited under this Policy. Short sales may signal to the market possible bad
news about the Company or a general lack of confidence in the Company’s prospects, and an expectation that the value of the Company’s
securities will decline. In addition, short sales are effectively a bet against the Company’s success and may reduce the seller’s incentive to
improve the Company’s performance. Short sales may also create a suspicion that the seller is engaged in insider trading. In addition,
Section 16(c) of the Exchange Act prohibits officers and directors from engaging in short sales.
Derivative securities and hedging transactions
You are prohibited from engaging in transactions in publicly-traded options, such as puts and calls, and other derivative securities
with respect to the Company’s securities. This prohibition extends to any hedging or similar transaction designed to decrease the risks
associated with holding Company securities, including, but not limited to, through the use of financial instruments such as prepaid
variable forwards, equity swaps, collars and exchange funds. Stock options, stock appreciation rights and other securities issued pursuant
to Company benefit plans or other compensatory arrangements with the Company are also subject to this prohibition; provided,
11

Exhibit 19.1
however, as described in the “Limited Exceptions” section of this Policy, you are not prohibited from exercising any stock options issued
under any of the Company’s benefit plans or other compensatory arrangements in accordance with the terms of such plans or
arrangements.
Such hedging transactions would permit a director, officer, employee or agent to continue to own Company securities obtained
through employee benefit plans or otherwise, but without the full risks and rewards of ownership. When that occurs, the director, officer,
employee or agent may no longer have the same objectives as the Company’s other shareholders. Therefore, the Company prohibits you
from engaging in any such hedging or similar transactions.
Placing open orders with brokers
Except in accordance with an approved trading plan (as discussed below), you should exercise caution when placing open orders,
such as limit orders or stop orders, with brokers, particularly where the order is likely to remain outstanding for an extended period of
time. Open orders may result in the execution of a trade at a time when you are aware of material nonpublic information or otherwise are
not permitted to trade in Company securities, which may result in inadvertent insider trading violations and Section 16 violations (for
officers and directors), violations of this Policy and unfavorable publicity for you and the Company. If you are subject to blackout periods
or pre-clearance requirements, you should so inform any broker with whom you place any open order at the time it is placed.
Margin accounts and pledged securities
Securities held in a margin account as collateral for a margin loan may be sold by the broker without the customer’s consent if the
customer fails to meet a margin call. Similarly, securities pledged (or hypothecated) as collateral for a loan may be sold in foreclosure if
the borrower defaults on the loan. Because a margin sale or foreclosure sale may occur at a time when the pledgor is aware of material
nonpublic information or otherwise is not permitted to trade in Company securities, directors, officers and other employees are prohibited
from holding Company securities in a margin account or otherwise pledging Company securities as collateral for a loan.
Short Term Trading
Short-term trading of Company securities may be distracting to the person and may unduly focus the person on the Company’s
short-term stock market performance instead of the Company’s long-term business objectives. For these reasons, any director, officer or
other employee of the Company who purchases Company securities in the open market may not sell any Company securities of the same
class during the three (3) months following the purchase (or vice versa) unless approved by the Compliance Officer. Notwithstanding the
foregoing, directors, officers and other employees are expressly permitted to sell Company securities acquired upon the exercise or
conversion of equity awards granted under the Company’s equity incentive plans.
LIMITED EXCEPTIONS
The following are certain limited exceptions to the restrictions imposed by the Company under this Policy. Please be aware that
even if a transaction is subject to an exception to this
12

Exhibit 19.1
Policy, you will need to separately assess whether the transaction complies with applicable law. For example, even if a transaction is
indicated as exempt from this Policy, you may need to comply with the “short-swing” trading restrictions under Section 16 of the
Exchange Act, to the extent applicable. You are responsible for complying with applicable law at all times.
Transactions pursuant to an approved 10b5-1 trading plan
Covered Persons may frequently be in possession of material nonpublic information and thus effectively be prevented from most
types of trading. In such cases, the Company, in its sole discretion may authorize in the future the use of Rule 10b5-1 plans. Such plans
must (i) meet the requirements set forth in Rule 10b5-1 of the Securities Exchange Act; (ii) be entered into when you were not aware of
material non-public information and not during a blackout period; and (iii) be approved in advance by the Compliance Officer.
Rule 10b5-1 under the Exchange Act provides an affirmative defense to insider trading liability by allowing persons subject to this
Policy to adopt a plan for engaging in transactions in Company securities in compliance with Rule 10b5-1 (a “Rule 10b5-1 Plan”). If the
Rule 10b5-1 Plan complies with Rule 10b5-1, persons adopting such plan may engage in transactions in Company securities without
application of certain restrictions in this Policy.
The adoption, modification or early termination of all Rule 10b5-1 Plans must be approved by the Compliance Officer, and all
such Rule 10b5-1 Plans must meet the requirements of Rule 10b5-1. Any Rule 10b5-1 Plan must be submitted for approval three (3)
business days before entering into such Rule 10b5-1 Plan, and any modifications or terminations to such Rule 10b5-1 Plans must be
submitted for approval at least three (3) business days prior to such modification or termination. The Compliance Officer maintains
discretion to increase the amount of time to approve beyond three (3) business days, respectively, in its sole discretion. The Compliance
Officer retains the discretion to reject any proposed Rule 10b5-1 Plan submitted for pre-clearance. No further pre-approval of transactions
conducted pursuant to the Rule 10b5-1 Plan will be required once such Rule 10b5-1 Plan has been approved.
Modifications of Rule 10b5-1 Plans may be made only (i) when the person entering into or modifying the plan is not aware of
material nonpublic information about the Company or Company securities and (ii) in the case of Covered Persons, outside of a blackout
period. Once a Rule 10b5-1 Plan is adopted, the person must not have discretion regarding the amount of securities to be traded, the price
at which they are to be traded or the date of the trade. The Rule 10b5-1 Plan must either specify the amount, pricing and timing of
transactions in advance (including by use of a formula) or delegate discretion on these matters to an independent third party in accordance
with the requirements of Rule 10b5-1.
Adopted or modified Rule 10b5-1 Plans are subject to a “cooling-off” period before transactions may be engaged in under the
plan. The “cooling-off” period for directors and officers subject to Section 16 ends on the later of: (1) 90 days following the Rule 10b5-1
Plan adoption or modification or (2) two business days following the disclosure in Form 10-Q or Form 10-K of the Company’s financial
results for the fiscal quarter in which the Rule 10b5-1 Plan was adopted or modified (however, the cooling-off period will not exceed 120
days following plan adoption or modification). For all other individuals, a 30-day cooling-off period is required.
13

Exhibit 19.1
Overlapping Rule 10b5-1 Plans are not permitted (subject to certain exceptions) and only one Rule 10b5-1 Plan may be adopted
during any 12-month period (subject to certain exceptions). All Rule 10b5-1 Plans for persons subject to Section 16 must certify that: (i)
they are not aware of any material nonpublic information; and (ii) the Rule 10b5-1 Plan is being adopted in good faith and not as part of a
plan or scheme to evade the prohibitions in Rule 10b-5.
All persons adopting a Rule 10b5-1 Plan must act in good faith with respect to that plan.
Receipt and vesting of stock options, restricted share units, restricted shares and stock appreciation rights
The trading restrictions under this Policy do not apply to the grant or award to you of stock options, restricted share units,
restricted shares or stock appreciation rights by the Company. The trading restrictions under this Policy also do not apply to the vesting,
cancellation or forfeiture of stock options, restricted share units, restricted shares or stock appreciation rights in accordance with
applicable plans and agreements. However, the trading restrictions do apply to any subsequent sales of any such securities.
Exercise of stock options for cash
The trading restrictions under this Policy do not apply to the exercise of stock options for cash under the Company’s stock option
plans. Likewise, the trading restrictions under this Policy do not apply to the exercise of stock options in a stock-for-stock exercise with
the Company or an election to have the Company withhold securities to cover tax obligations in connection with an option exercise.
However, the trading restrictions under this Policy do apply to (i) the sale of any securities issued upon the exercise of a stock option, (ii)
a cashless exercise of a stock option through a broker, since this involves selling a portion of the underlying shares to cover the costs of
exercise, and (iii) any other market sale for the purpose of generating the cash needed to pay the exercise price of an option.
Purchases from the Employee Stock Purchase Plan
The trading restrictions in this Policy will not apply to purchases of Company securities resulting from your periodic or lump sum
contribution of money to the 2017 Employee Stock Purchase Plan, any employee stock purchase plan adopted in the future. However, the
trading restrictions will apply to your initial election to participate in such plan, changes to your election to participate in such plan for
any enrollment period any subsequent sales of any securities purchased pursuant to such plan.
Stock splits, stock dividends and similar transactions
The trading restrictions under this Policy do not apply to a change in the number of securities held as a result of a stock split or
stock dividend applying equally to all securities of a class, or similar transactions.
Bona fide gifts and inheritance
14

Exhibit 19.1
Bona fide gifts of securities of the Company are not transactions subject to this Policy, unless the person making the gift knows or
is reckless in not knowing that the recipient intends to sell such securities while the person making the gift is aware of material nonpublic
information.
Change in form of ownership
Transactions that involve merely a change in the form in which you own securities are permissible. For example, you may transfer
shares to an inter vivos trust of which you are the sole beneficiary during your lifetime.
Other exceptions
Any other exception from this Policy must be approved by the Board of Directors.
ADDITIONAL INFORMATION
Delivery of Policy
This Policy will be delivered to all directors, officers, employees and agents of the Company when they commence service with the
Company. In addition, this Policy (or a summary of this Policy) will be circulated periodically. Each director, officer, employee and agent
of the Company is required to acknowledge that he or she understands this Policy.
Amendments
We are committed to continuously reviewing and updating our policies and procedures. The Company therefore reserves the right to
amend, alter or terminate this Policy at any time and for any reason, subject to applicable law. A current copy of the Company’s policies
regarding insider trading may be obtained by contacting the Compliance Officer.
*    *    *
The policies in this Insider Trading Policy do not constitute a complete list of Company policies or a complete list of the types of
conduct that can result in discipline, up to and including discharge.
15

Exhibit 19.1
SCHEDULE I
INDIVIDUALS SUBJECT TO QUARTERLY BLACKOUT PERIODS
Board Members
Executive Officers
Administrative Personnel that report directly to Executive Officers
Designated Finance and Accounting Personnel Designated Human Resources Personnel
Designated IT Personnel
Designated Marketing Designated Operations Personnel Designated Sales
Personnel
 Individuals will be designated by the Compliance Officer.
1
1

Exhibit 19.1
SCHEDULE II
INDIVIDUALS SUBJECT TO
PRE-CLEARANCE REQUIREMENTS
Board Members
Section 16 Officers
Vice Presidents and above that report directly to the Chief Executive Officer
FORM OF ACKNOWLEDGEMENT OF INSIDER TRADING POLICY
I have received and read the Ichor Holdings, Ltd. Insider Trading Policy. I understand the standards and policies contained in
the Policy and understand that there may be additional policies or laws specific to my position with Ichor Holdings, Ltd. I agree to
comply with the Policy.
If I have questions concerning the meaning or application of the Policy, any other Ichor Holdings, Ltd. policies or procedures,
or the legal and regulatory requirements applicable to my position with, or services to, Ichor Holdings, Ltd., I know that I can consult
with the Company’s Compliance Officer, knowing that my questions will be maintained in confidence, consistent with applicable law.
Print Name
Signature
Date
Please sign and return this form to the Human Resources Department via email at ichorinsidertrading@ichorsystems.com.
 Individuals designated on this schedule are subject to change at the direction of the Compliance Officer.
2
2

Exhibit 19.1
Appendix A
INSIDER TRADING COMPLIANCE CLEARANCE
To: Ichor Systems
Pursuant to the Ichor Systems Insider Trading Policy, I am requesting pre-clearance for the following proposed transactions in securities
of the Company:
Type and Amount of Security Purchase or Sale:
Security Type
Checkbox
# of Shares
Purchase
Sell
RSU
☐
☐
☐
Option
☐
☐
☐
ESPP
☐
☐
☐
Shares
☐
☐
☐
I understand this pre-clearance is effective until the earliest of three (3) business days from the date of the pre-clearance or such
earlier date as may be specified by the Compliance Officer. Pre-clearance may be rescinded prior to my effecting the above
transaction if I become in possession of material nonpublic information regarding the Company and, in the reasonable judgment of the
Company, the completion of my trade would be inadvisable. I also understand that the ultimate responsibility for compliance with our
Insider Trading Policy and federal securities law’s rests with me, and that clearance of any proposed transaction should not be construed
as a guarantee that I will not later be found to have been in possession of material nonpublic information.
Requested By:
Compliance Officer Approval:
Signature:
Signature:
Print Name:
Print Name:
Date:
Date:
If approved, signed authorization will be returned to you via email.

Exhibit 21.1
Name of Subsidiary
Jurisdiction of Incorporation, Organization, or Formation
Ichor Intermediate Holdings, Ltd.
 
Cayman Islands
Icicle Acquisition Holding Co-op
 
Netherlands
Icicle Acquisition Holding B.V.
 
Netherlands
Ichor Holdings Ltd.
 
Scotland
Ichor Systems Ltd.
 
Scotland
Ichor Holdings, LLC
 
Delaware
Ichor Systems, Inc.
 
Delaware
IMG Companies, LLC
 
Delaware
IMG, LLC
 
Delaware
IMG Altair, LLC
 
Delaware
IMG INTA, LLC
 
Delaware
IMG Larkin, LLC
 
Delaware
Applied Fusion, LLC
 
Delaware
Ichor Systems Korea Ltd.
 
Korea
Ichor Systems Malaysia Sdn Bhd
 
Malaysia
Ichor Systems Singapore, PTE Ltd.
 
Singapore

Exhibit 23.1
KPMG LLP
Suite 3800
1300 South West Fifth Avenue
Portland, OR 97201
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the registration statements (No. 333-215984, No. 333-219846, and No. 333-287267) on Form S-8 and
(No. 333-240294 and No. 333-273825) on Form S-3 of our reports dated February 20, 2026, with respect to the consolidated financial statements of
Ichor Holdings, Ltd. and the effectiveness of internal control over financial reporting.
/s/ KPMG LLP
Portland, Oregon
February 20, 2026

Exhibit 31.1
CEO CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Philip Barros, certify that:
1.
I have reviewed this annual report on Form 10-K for the year ended December 26, 2025 of Ichor Holdings, Ltd.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and
15d‑15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control
over financial reporting.
Date: February 20, 2026
By:
/s/ Philip Barros
Philip Barros
Chief Executive Officer

Exhibit 31.2
CFO CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Greg Swyt, certify that:
1.
I have reviewed this annual report on Form 10-K for the year ended December 26, 2025 of Ichor Holdings, Ltd.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and
15d‑15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control
over financial reporting.
Date: February 20, 2026
By:
/s/ Greg Swyt
Greg Swyt
Chief Financial Officer

Exhibit 32.1
CEO CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of Ichor Holdings, Ltd. (the “Company”) on Form 10-K for the year ended December 26, 2025 as filed with the
Securities and Exchange Commission on the date hereof (the “Report”), I certify, to my knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to
§ 906 of the Sarbanes‑Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended;
and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
Date: February 20, 2026
By:
/s/ Philip Barros
Philip Barros
Chief Executive Officer

Exhibit 32.2
CFO CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of Ichor Holdings, Ltd. (the “Company”) on Form 10-K for the year ended December 26, 2025 as filed with the
Securities and Exchange Commission on the date hereof (the “Report”), I certify, to my knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to
§ 906 of the Sarbanes‑Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended;
and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
Date: February 20, 2026
By:
/s/ Greg Swyt
Greg Swyt
Chief Financial Officer