What changed in AXCELIS TECHNOLOGIES INC's 2024 10-K compared to 2023?

Across the narrative sections we track, AXCELIS TECHNOLOGIES INC (ACLS) added 220 paragraphs, removed 222, and edited 197 between the 2023 and 2024 10-K filings. The biggest movers are Item 1C. Cybersecurity (+220/−222).

Did AXCELIS TECHNOLOGIES INC update its Cybersecurity disclosure (Item 1C) in 2024?

Item 1C Cybersecurity has 220 paragraph-level changes between the 2023 and 2024 filings.

Where does this ACLS 10-K diff come from?

The source filings are AXCELIS TECHNOLOGIES INC's official 2023 and 2024 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

ACLS 10-K Diff 2023 vs 2024 — AXCELIS TECHNOLOGIES INC Risk Factors & MD&A Changes

Biggest changeIncome Taxes Income before income taxes is as follows: Year ended December 31, 2023 2022 2021 (in thousands) United States $ 270,842 $ 198,028 $ 116,380 Foreign 7,757 6,857 4,048 Income before income taxes $ 278,599 $ 204,885 $ 120,428 Provision for income taxes is as follows: Year ended December 31, 2023 2022 2021 (in thousands) Current: United States Federal $ 46,871 $ 8,430 $ — State 1,985 1,716 82 Foreign 3,498 3,124 1,439 Total current 52,354 13,270 1,521 Deferred: Federal (18,526) 9,097 20,521 State (440) (102) 406 Foreign (1,052) (459) (670) Total deferred (20,018) 8,536 20,257 Income tax provision $ 32,336 $ 21,806 $ 21,778 Reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate of 11.6% is as follows: Year ended December 31, 2023 2022 2021 (in thousands) Income taxes at the United States statutory rate $ 58,506 $ 43,026 $ 25,290 State income taxes 1,033 1,075 387 Effect of change in valuation allowance 1,978 680 (1,443) Foreign income tax rate differentials 329 289 152 Stock-based compensation (6,718) (3,818) (3,658) Internal revenue code section 162(m) limitation 4,488 2,692 1,481 Credit expirations 784 1,181 2,342 Rate change 44 94 159 Credit generation (6,900) (4,764) (3,096) Discrete items, net 2,161 206 72 GILTI inclusion 45 69 301 Foreign-derived intangible income (24,052) (20,526) — Other, net 638 1,602 (209) Income tax provision $ 32,336 $ 21,806 $ 21,778 66 Significant components of long-term deferred income taxes are as follows: Year ended December 31, 2023 2022 (in thousands) Deferred tax assets: State net operating loss carryforwards $ 96 $ 291 Foreign net operating loss carryforwards 182 276 Federal tax credit carryforwards 1,999 — State tax credit carryforwards 9,560 8,683 Property, plant and equipment 6,979 8,755 Operating lease liability 5,564 1,564 Accrued compensation 242 276 Inventories 804 1,613 Stock compensation 1,790 1,620 Warranty 3,108 1,993 Deferred revenue 6,389 4,501 Capitalized research and development costs 38,036 18,067 Gross deferred tax assets 74,749 47,639 Valuation allowance (10,963) (8,370) Net deferred tax assets 63,786 39,269 Deferred tax liabilities: Intangible assets — (176) Right-of-use asset (9,155) (5,400) Other (1,203) (1,992) Gross deferred tax liabilities (10,358) (7,568) Deferred taxes, net $ 53,428 $ 31,701 Changes in tax rates and tax laws are accounted for in the period of enactment.

Biggest changeIncome Taxes Income before income taxes is as follows: Year ended December 31, 2024 2023 2022 (in thousands) United States $ 222,160 $ 270,842 $ 198,028 Foreign 8,114 7,757 6,857 Income before income taxes $ 230,274 $ 278,599 $ 204,885 Provision for income taxes is as follows: Year ended December 31, 2024 2023 2022 (in thousands) Current: United States Federal $ 38,963 $ 46,871 $ 8,430 State 2,026 1,985 1,716 Foreign 3,887 3,498 3,124 Total current 44,876 52,354 13,270 Deferred: Federal (13,758) (18,526) 9,097 State 205 (440) (102) Foreign (2,041) (1,052) (459) Total deferred (15,594) (20,018) 8,536 Income tax provision $ 29,282 $ 32,336 $ 21,806 Reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate of 12.7% is as follows: Year ended December 31, 2024 2023 2022 (in thousands) Income taxes at the United States statutory rate $ 48,358 $ 58,506 $ 43,026 State income taxes 1,136 1,062 1,075 Foreign-derived intangible income (20,439) (24,052) (20,526) Research and other tax credits (6,037) (5,955) (5,469) Stock-based compensation (2,765) (6,718) (3,818) Nondeductible compensation 2,834 4,488 2,692 Effect of change in valuation allowance 3,169 1,978 680 Unrecognized tax benefits 761 1,053 705 Other, net 2,265 1,974 3,441 Income tax provision $ 29,282 $ 32,336 $ 21,806 67 Table of Contents Deferred income taxes reflect the effect of temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes.

Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate.

We have granted restricted stock units to executive officers and other senior employees with performance vesting conditions, which may be subject to further service-based vesting terms. Unvested restricted stock unit awards expire upon termination of service to the Company. We settle restricted stock units upon vesting with newly issued common shares.

We have granted restricted stock units to executive officers and other senior employees with performance vesting conditions, which may be subject to further service-based vesting terms. Unvested restricted stock unit awards expire upon termination of service to the Company. We settle restricted stock units upon vesting with newly issued shares of common stock.

Our main concerns are (i) the unauthorized exfiltration of personal 18 information pertaining to Axcelis employees, (ii) the unauthorized exfiltration of confidential business or technical information, and (iii) an inability to use our business systems for a period of time following a cybersecurity event. Management has adopted a Cybersecurity Incident Response plan which lays out the roles of IT personnel, senior leadership, and legal resources in responding to a cybersecurity incident.

Our main concerns are (i) the unauthorized exfiltration of personal information pertaining to Axcelis employees, (ii) the unauthorized exfiltration of confidential business or technical information, and (iii) an inability to use our business systems for a period of time following a cybersecurity event. Management has adopted a Cybersecurity Incident Response plan which lays out the roles of IT personnel, senior leadership, and legal resources in responding to a cybersecurity incident.

During our risk assessment process, we identified a higher inherent risk related to revenue 38 primarily due to the size of the account, as well as the focus on revenue from readers of the financial statements. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s systems revenue recognition process, including controls designed to mitigate the risk of override of controls.

During our risk assessment process, we identified a higher inherent risk related to revenue primarily due to the size of the account, as well as the focus on revenue from readers of the financial statements. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s systems revenue recognition process, including controls designed to mitigate the risk of override of controls.

Exhibits and Financial Statement Schedules. (a) The following documents are filed as part of this Report: 1) Financial Statements: Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 38 Consolidated Statements of Operations — For the years ended December 31, 2023, 2022 and 2021 40 Consolidated Statements of Comprehensive Income — For the years ended December 31, 2023, 2022 and 2021 41 Consolidated Balance Sheets — December 31, 2023 and 2022 42 Consolidated Statements of Stockholders’ Equity — For the years ended December 31, 2023, 2022 and 2021 43 Consolidated Statements of Cash Flows — For the years ended December 31, 2023, 2022 and 2021 44 Notes to Consolidated Financial Statements 45 2) Financial Statement Schedules: Schedule II—Valuation and Qualifying Accounts for the years ended December 31, 2023, 2022 and 2021. 3) Exhibits The exhibits filed as part of this Annual Report on Form 10-K are listed on the Exhibit Index immediately preceding the signature page, which Exhibit Index is incorporated herein by reference. All other schedules for which provision is made in the applicable regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted. Item 16.

Exhibits and Financial Statement Schedules. (a) The following documents are filed as part of this Report: 1) Financial Statements: Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 38 Consolidated Statements of Operations — For the years ended December 31, 2024, 2023 and 2022 40 Consolidated Statements of Comprehensive Income — For the years ended December 31, 2024, 2023 and 2022 41 Consolidated Balance Sheets — December 31, 2024 and 2023 42 Consolidated Statements of Stockholders’ Equity — For the years ended December 31, 2024, 2023 and 2022 43 Consolidated Statements of Cash Flows — For the years ended December 31, 2024, 2023 and 2022 44 Notes to Consolidated Financial Statements 45 2) Financial Statement Schedules: Schedule II—Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022. 3) Exhibits The exhibits filed as part of this Annual Report on Form 10-K are listed on the Exhibit Index immediately preceding the signature page, which Exhibit Index is incorporated herein by reference. All other schedules for which provision is made in the applicable regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted. Item 16.

To determine the SSP for labor related performance obligations (such as the labor component of installation), we use 48 directly observable inputs based on the standalone sale prices for these services. 5) Recognize revenue when or as we have satisfied a performance obligation We satisfy performance obligations either over time or at a point in time.

To determine the SSP for labor related performance obligations (such as the labor component of installation), we use directly observable inputs based on the standalone sale prices for these services. 5) Recognize revenue when or as we have satisfied a performance obligation We satisfy performance obligations either over time or at a point in time.

Notes to Consolidated Financial Statements Note 1. Nature of Business Axcelis Technologies, Inc. (“Axcelis” or the “Company”) was incorporated in Delaware in 1995, and is a worldwide producer of ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia.

Notes to Consolidated Financial Statements Note 1. Nature of Business Axcelis Technologies, Inc. (“Axcelis” “We” or the “Company”) was incorporated in Delaware in 1995, and is a worldwide producer of ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia.

We will recognize an asset from costs incurred to fulfill a contract only if such costs relate directly to a contract with an entity that we can specifically identify, the costs incurred will generate or enhance resources that will be 49 used in satisfying performance obligations in the future, and the costs are expected to be recovered.

We will recognize an asset from costs incurred to fulfill a contract only if such costs relate directly to a contract with an entity that we can specifically identify, the costs incurred will generate or enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered.

For those lease agreements that do not indicate the applicable discount rate, we use our incremental borrowing rate. The value of the right-of-use asset is initially determined based on the net present value of the associated 55 liability, and is adjusted for deferred costs and possible impairments, if any.

For those lease agreements that do not indicate the applicable discount rate, we use our incremental borrowing rate. The value of the right-of-use asset is initially determined based on the net present value of the associated liability, and is adjusted for deferred costs and possible impairments, if any.

For additional accounting policies, see Note 2 to the consolidated financial statements for the year ended December 31, 2023 included in this Annual Report on Form 10-K. Revenue Recognition Our accounting policies relating to the recognition of revenue require management to make estimates, determinations and judgments based on historical experience and on various other assumptions, which include (i) the existence of a contract with the customer, (ii) the identification of the performance obligations in the contract, (iii) the value of any variable consideration in the contract, (iv) the standalone selling price of multiple obligations in the contract, for the purpose of allocating the consideration in the contract, and (v) determining when a performance obligation has been met.

For additional accounting policies, see Note 2 to the consolidated financial statements for the year ended December 31, 2024 included in this Annual Report on Form 10-K. Revenue Recognition Our accounting policies relating to the recognition of revenue require management to make estimates, determinations and judgments based on historical experience and on various other assumptions, which include (i) the existence of a contract with the customer, (ii) the identification of the performance obligations in the contract, (iii) the value of any variable consideration in the contract, (iv) the standalone selling price of multiple obligations in the contract, for the purpose of allocating the consideration in the contract, and (v) determining when a performance obligation has been met.

The guidance allows entities to choose between two methods to measure progress toward complete satisfaction of a performance obligation: Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract (e.g., surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered); and Input methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation. We have the right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (i.e., certain aftermarket contracts), as such we have elected a practical expedient to recognize revenue in the amount to which the entity has a right to invoice for such services. Product related revenues (whether for systems or aftermarket business) are recognized at a point in time, when they are shipped or delivered, depending on shipping terms. For installation services, revenue is recognized at a point in time, once the installation of the tool is complete.

The guidance allows entities to choose between two methods to measure progress toward complete satisfaction of a performance obligation: Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract (e.g., surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered); and Input methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation. We have the right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (i.e., certain aftermarket contracts), as such we have elected a practical expedient to recognize revenue in the amount to which the entity has a right to invoice for such services. Product related revenues (whether for systems or aftermarket business) are recognized at a point in time, when they are shipped or delivered, depending on shipping terms. 49 Table of Contents For installation services, revenue is recognized at a point in time, once the installation of the tool is complete.

For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and defer the portion of systems revenue attributable to the relative fair value of non-standard warranty. 24 Costs for non-standard warranty are expensed as incurred.

For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and defer the portion of systems revenue attributable to the relative fair value of non-standard warranty. Costs for non-standard warranty are expensed as incurred.

All intercompany balances and transactions have been eliminated in consolidation. Events occurring subsequent to December 31, 2023 have been evaluated for potential recognition or disclosure in the consolidated financial statements. (b) Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods.

All intercompany balances and transactions have been eliminated in consolidation. Events occurring subsequent to December 31, 2024 have been evaluated for potential recognition or disclosure in the consolidated financial statements. (b) Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods.

Based on the nature of our commission agreements, all commissions are expensed as incurred based upon the expectation that the amortization period would be one year or less. (k) Shipping and Handling Costs Shipping and handling costs are included in cost of revenue. (l) Stock-Based Compensation We generally recognize compensation expense for all stock-based payments to employees and directors, including grants of stock options and restricted stock units, based on the grant-date fair value of those stock-based payments.

Based on the nature of our commission agreements, all commissions are expensed as incurred based upon the expectation that the amortization period would be one year or less. (l) Shipping and Handling Costs Shipping and handling costs are included in cost of revenue. (m) Stock-Based Compensation We generally recognize compensation expense for all stock-based payments to employees and directors, including grants of stock options and restricted stock units, based on the grant-date fair value of those stock-based payments.

This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationships with significant customers. (h) Concentration of Risk and Off-Balance Sheet Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash equivalents, short-term investments and accounts receivable.

This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationships with significant customers. (i) Concentration of Risk and Off-Balance Sheet Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash equivalents, short-term investments and accounts receivable.

Short-term investments with maturities greater than 90 days but not greater than 365 days are included in short-term investments in the consolidated balance sheets. The following table sets forth Company’s assets which are measured at fair value by level within the fair value hierarchy. December 31, 2023 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents and other short-term investments: Cash equivalents (money market funds, U.S.

Short-term investments with maturities greater than 90 days but not greater than 365 days are included in short-term investments in the consolidated balance sheets. The following table sets forth Company’s assets which are measured at fair value by level within the fair value hierarchy. December 31, 2024 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents and other short-term investments: Cash equivalents (money market funds, U.S.

Other Information. During the quarter ended December 31, 2023, no director or officer adopted or terminated any contract, instrument or written plan for the purchase or sale of Axcelis securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any non-Rule 10b5-1 trading arrangement as defined in Item 408(c) of Regulation S-K.. Item 9C.

Other Information. During the quarter ended December 31, 2024, no director or officer adopted or terminated any contract, instrument or written plan for the purchase or sale of Axcelis securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any non-Rule 10b5-1 trading arrangement as defined in Item 408(c) of Regulation S-K. Item 9C.

Progress in the satisfaction of these performance obligations is measured using an input method of either time elapsed in the case of fixed period contracts, or labor hours expended, in the case of project-based contracts. (j) Recognizing Assets related to Recoverable Customer Contract Costs We recognize an asset related to incremental costs incurred by us to obtain a contract with a customer if we expect to recover those costs.

Progress in the satisfaction of these performance obligations is measured using an input method of either time elapsed in the case of fixed period contracts, or labor hours expended, in the case of project-based contracts. (k) Recognizing Assets related to Recoverable Customer Contract Costs We recognize an asset related to incremental costs incurred by us to obtain a contract with a customer if we expect to recover those costs.

To the extent a contract includes multiple promised goods and services, we must apply judgment to determine whether promised goods and services 47 are capable of being distinct and distinct in the context of the contract.

To the extent a contract includes multiple promised goods and services, we must apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract.

Recoverability is assessed by a comparison of the assets’ carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. We did not have any indicators of impairment during the period ending December 31, 2023.

Recoverability is assessed by a comparison of the assets’ carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. We did not have any indicators of impairment during the period ending December 31, 2024.

If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required. (f) Property, Plant and Equipment and Leased Assets Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. On January 30, 2015, we sold our corporate headquarters facility.

If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required. (g) Property, Plant and Equipment and Leased Assets Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. On January 30, 2015, we sold our corporate headquarters facility.

We did not record an impairment charge in the years ended December 31, 2023, 2022, or 2021. Actual performance could be materially different from our current forecasts, which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future.

We did not record an impairment charge in the years ended December 31, 2024, 2023, or 2022. Actual performance could be materially different from our current forecasts, which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future.

We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We and most foreign subsidiaries are subject to income tax examinations by tax authorities for all years dating back to 2009. Our policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses.

We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We and most foreign subsidiaries are subject to income tax examinations by tax authorities for all years dating back to 2021. Our policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses.

See Note 18 – Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized tax benefits. We consider the undistributed earnings of our foreign subsidiaries as of December 31, 2023, to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon.

See Note 18 – Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized tax benefits. We consider the undistributed earnings of our foreign subsidiaries as of December 31, 2024 to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon.

(the Company) as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”).

(the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”).

Incorporated by reference to Exhibit 10.4 of the Company’s report on Form 10-Q for the quarter ended June 30, 2012 filed with the Commission on August 7, 2012. 10.8* Named Executive Officer Base Compensation at February 15, 2024. Filed herewith. 10.9* Non-Employee Director Cash Compensation at February 15, 2024.

Incorporated by reference to Exhibit 10.4 of the Company’s report on Form 10-Q for the quarter ended June 30, 2012 filed with the Commission on August 7, 2012. 10.8* Named Executive Officer Base Compensation at February 15, 2025. Filed herewith. 10.9* Non-Employee Director Cash Compensation at February 15, 2025.

Quantitative and Qualitative Disclosures about Market Risk. Interest Rate Sensitivity Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio, which consists of cash equivalents and short-term investments at December 31, 2023. The primary objective of our investment activities is to preserve principal.

Quantitative and Qualitative Disclosures about Market Risk. Interest Rate Sensitivity Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio, which consists of cash equivalents and short-term investments at December 31, 2024. The primary objective of our investment activities is to preserve principal.

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. Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2023.

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. Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2024.

Total related matching contribution expense was $3.4 million, $2.7 million and $2.2 million, for 2023, 2022 and 2021, respectively. (b) Other Compensation Plans We operate in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination.

Total related matching contribution expense was $3.4 million, $3.4 million and $2.7 million, for 2024, 2023 and 2022, respectively. (b) Other Compensation Plans We operate in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination.

For the years ended December 31, 2023, 2022 and 2021, we used restricted stock units in our annual equity compensation program. The benefit of tax deductions in excess of recognized compensation cost is reported in the consolidated statements of cash flows as part of cash flows from operating activities.

For the years ended December 31, 2024, 2023 and 2022, we used restricted stock units in our annual equity compensation program. The benefit of tax deductions in excess of recognized compensation cost is reported in the consolidated statements of cash flows as part of cash flows from operating activities.

Restricted stock unit awards granted in 2023 included time vested share awards and awards with performance vesting conditions. Restricted stock awards are issued shares of common stock that are subject to forfeiture on terms described in the Award Agreement, and may be granted under the 2012 Equity Incentive Plan.

Restricted stock unit awards granted in 2024 included time vested share awards and awards with performance vesting conditions. Restricted stock awards are issued shares of common stock that are subject to forfeiture on terms described in the Award Agreement, and may be granted under the 2012 Equity Incentive Plan.

In making this assessment, management used the criteria set forth in the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) Internal Control—2013 Integrated Framework. Based on this assessment, management has concluded that, as of December 31, 2023, our internal control over financial reporting is effective based on those criteria. The independent registered public accounting firm of Ernst & Young LLP, as auditors of our consolidated financial statements, has issued an attestation report on its assessment of our internal control over financial reporting. 33 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Axcelis Technologies, Inc. Opinion on Internal Control Over Financial Reporting We have audited Axcelis Technologies, Inc.’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In making this assessment, management used the criteria set forth in the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) Internal Control—2013 Integrated Framework. Based on this assessment, management has concluded that, as of December 31, 2024, our internal control over financial reporting is effective based on those criteria. The independent registered public accounting firm of Ernst & Young LLP, as auditors of our consolidated financial statements, has issued an attestation report on its assessment of our internal control over financial reporting. 33 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Axcelis Technologies, Inc. Opinion on Internal Control Over Financial Reporting We have audited Axcelis Technologies, Inc.’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

Disruption to our supply source, resulting either from economic conditions or other factors, could affect our ability to deliver products to our customers. (i) Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers or (“ASC 606”).

Disruption to our supply source, resulting either from economic conditions or other factors, could affect our ability to deliver products to our customers. (j) Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers or (“ASC 606”).

Form 10-K Summary. Not applicable. 37 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Axcelis Technologies, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Axcelis Technologies, Inc.

Form 10-K Summary. Not applicable. 37 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Axcelis Technologies, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Axcelis Technologies, Inc.

Accounts Receivable and Allowance for Credit Losses All trade receivables are reported on the Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. Axcelis maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate.

Accounts Receivable and Allowance for Credit Losses All trade receivables are reported on the Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. Axcelis maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when 54 Table of Contents appropriate.

Directors, Executive Officers and Corporate Governance. A portion of the information required by Item 10 of Form 10-K is incorporated by reference from the information responsive thereto contained in the sections in Axcelis Proxy Statement for the Annual Meeting of Stockholders to be held May 9, 2024 (the “Proxy Statement”) captioned: ● “Proposal 1: Election of Directors,” ● “Board of Directors,” ● “Board Committees,” and ● “Corporate Governance.” The remainder of such information is set forth under the heading “Information about Our Executive Officers” at the end of Item 1 in Part I of this report and is incorporated herein by reference. Item 11.

Directors, Executive Officers and Corporate Governance. A portion of the information required by Item 10 of Form 10-K is incorporated by reference from the information responsive thereto contained in the sections in the Axcelis Proxy Statement for the Annual Meeting of Stockholders to be held May 7, 2025 (the “Proxy Statement”) captioned: ● “Proposal 1: Election of Directors,” ● “Board of Directors,” ● “Board Committees,” and ● “Corporate Governance.” The remainder of such information is set forth under the heading “Information about Our Executive Officers” at the end of Item 1 in Part I of this report and is incorporated herein by reference. Item 11.

Financial Statements and Supplementary Data. Response to this Item is submitted as a separate section of this report immediately following Item 15. 32 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None. Item 9A.

Financial Statements and Supplementary Data. Response to this Item is submitted as a separate section of this report immediately following Item 15. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None. 32 Table of Contents Item 9A.

No restricted stock awards were granted, or vested, during the years ended December 31, 2023, 2022 and 2021. The fair value of a restricted stock unit and restricted stock award is charged to expense ratably over the applicable service period.

No restricted stock awards were granted, or vested, during the years ended December 31, 2024, 2023 and 2022. The fair value of a restricted stock unit and restricted stock award is charged to expense ratably over the applicable service period.

Service revenue, which is the labor component of aftermarket revenues Aftermarket revenue reflects current fab utilization as opposed to System revenue, which reflects capital investment decisions by our customers, which have differing economic drivers; ● Revenue by geographic regions, since economic factors impacting customer purchasing decisions may vary by geographic region; and ● Revenue by our customers’ end markets, since they tend to be subject to different economic environments at different periods of time, impacting a customer’s likelihood of purchasing capital equipment during any particular period; currently, management uses three end market categories: Memory, mature process technology and leading edge foundry and logic. The CS&I/aftermarket revenue categories for the twelve month periods ended December 31, 2023 and 2022 are discussed below. CS&I/Aftermarket Revenue from our aftermarket business was $247.0 million in 2023, compared to $227.9 million for 2022.

Service revenue, which is the labor component of aftermarket revenues Aftermarket revenue reflects current fab utilization as opposed to System revenue, which reflects capital investment decisions by our customers, which have differing economic drivers; ● Revenue by geographic regions, since economic factors impacting customer purchasing decisions may vary by geographic region; and ● Revenue by our customers’ end markets, since they tend to be subject to different economic environments at different periods of time, impacting a customer’s likelihood of purchasing capital equipment during any particular period; currently, management uses three end market categories: Memory, mature process technology and leading edge foundry and logic. The CS&I/aftermarket revenue categories for the twelve month periods ended December 31, 2024 and 2023 are discussed below. CS&I/Aftermarket Revenue from our aftermarket business was $235.3 million in 2024, compared to $247.0 million for 2023.

Variable consideration has not been identified as a significant component of the transaction price for any of our transactions. For those transactions where all performance obligations will be satisfied within one year or less, we apply the practical expedient outlined in ASC 606-10-32-18.

Variable consideration has not been identified as a significant component of the transaction price for any of our transactions. For those transactions where all performance obligations will be satisfied within one year or less, we apply the 48 Table of Contents practical expedient outlined in ASC 606-10-32-18.

In addition to the cash and cash equivalent balance at December 31, 2023, we had $6.7 million in restricted cash which relates to a $5.9 million cash collateral relating to our lease for our headquarters in Beverly, Massachusetts, a $0.7 million letter of credit relating to workers’ compensation insurance and a $0.1 million deposit relating to customs activity.

In addition to the cash and cash equivalent balance at December 31, 2024, we had $7.6 million in restricted cash which relates to a $5.9 million cash collateral relating to our lease for our headquarters in Beverly, Massachusetts, a $0.9 million letter of credit for customs purposes, a $0.7 million letter of credit relating to workers’ compensation insurance and a $0.1 million deposit relating to customs activity.

Restricted stock units granted to employees generally vest over a service period of four years, while restricted stock units granted to non-employee members of the Company’s Board of Directors in 2023 vest over a service period of one year.

Restricted stock units granted to employees generally vest over a service period of four years, while restricted stock units granted to non-employee members of the Company’s Board of Directors in 2024 vest over a service period of one year.

No restricted stock was granted during the three year period ended December 31, 2023. As of December 31, 2023, there were 0.8 million shares available for grant under the 2012 Equity Plan. As of December 31, 2023, there were three thousand options outstanding and 0.5 million unvested restricted stock units outstanding under the 2012 Stock Plan. (b) Employee Stock Purchase Plan The 2020 Employee Stock Purchase Plan (the “2020 ESPP”) provides our employees an opportunity to purchase common stock of the Company at less than market prices.

No restricted stock was granted during the three year period ended December 31, 2024. As of December 31, 2024, there were 0.5 million shares available for grant under the 2012 Equity Plan. As of December 31, 2024, there were no options outstanding and 0.5 million unvested restricted stock units outstanding under the 2012 Stock Plan. (b) Employee Stock Purchase Plan The 2020 Employee Stock Purchase Plan (the “2020 ESPP”) provides our employees an opportunity to purchase common stock of the Company at less than market prices.

We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties within operating expense in the consolidated statements of operations. See Note 18 for additional information relating to income taxes. 50 (n) Computation of Net Income per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period.

We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties within operating expense in the consolidated statements of operations. See Note 18 for additional information relating to income taxes. (o) Computation of Net Income per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) for the period.

Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary. Income Taxes We record income taxes using the asset and liability method.

Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary. 24 Table of Contents Income Taxes We record income taxes using the asset and liability method.

(the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2023 consolidated financial statements of the Company and our report dated February 23, 2024 expressed an unqualified opinion thereon. 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.

(the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2024 consolidated financial statements of the Company and our report dated February 27, 2025 expressed an unqualified opinion thereon. 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.

The total number of shares reserved for issuance under the Plan is the sum of 7.76 million shares approved by the shareholders, and 1.78 million shares added in accordance with the terms of the Plan as a result of the expiration or forfeiture of awards granted under our prior equity plan.

The total number of shares reserved for issuance under the Plan is the sum of 7.76 million shares approved by the shareholders, and 1.78 million shares added in accordance with the terms of the Plan as a result of 60 Table of Contents the expiration or forfeiture of awards granted under our prior equity plan.

Although services revenue should increase with the expansion of the installed base of systems, it can fluctuate from period to period based on capacity utilization at customers’ manufacturing facilities, which affects the need for equipment service. Revenue Categories used by Management In addition to the line item revenue categories discussed above, management also uses revenue categorizations which break down revenue into other groupings.

Although services revenue typically increases with the expansion of the installed base of systems, it can fluctuate from period to period based on capacity utilization at customers’ manufacturing facilities, which affects the need for equipment service. Revenue Categories used by Management In addition to the line-item revenue categories discussed above, management also uses revenue categorizations which break down revenue into other groupings.

Management regularly disaggregates revenue in the following categories, which it finds relevant and useful: ● Systems and Customer Solutions and Innovation (also known as “aftermarket”) revenue, in which “CS&I” or “Aftermarket” revenue is A. The portion of Product revenue relating to spare parts, product upgrades and used systems combined with; B.

Management regularly disaggregates revenue in the following categories, which it finds relevant and useful: ● Systems and Customer Solutions and Innovation (“CS&I”, or “aftermarket”) revenue is A. The portion of Product revenue relating to spare parts, product upgrades and used systems combined with; B.

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/ Ernst & Young LLP Boston, Massachusetts February 23, 2024 34 Changes in Internal Control over Financial Reporting There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with the evaluation of our internal control that occurred during our fourth quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Item 9B.

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/ Ernst & Young LLP Boston, Massachusetts February 27, 2025 34 Table of Contents Changes in Internal Control over Financial Reporting There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with the evaluation of our internal control that occurred during our fourth quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Item 9B.

For each stock option or restricted stock unit grant with vesting based on a combination of time, market or performance conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period. See Note 13 for additional information relating to stock-based compensation. (m) Income Taxes We record income taxes using the asset and liability method.

For each stock option or restricted stock unit grant with vesting based on a combination of time, market or performance conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period. See Note 13 for additional information relating to stock-based compensation. 50 Table of Contents (n) Income Taxes We record income taxes using the asset and liability method.

In addition, Axcelis was named to both the 2023 and 2024 editions of Forbes’ List of America’s Best Mid-Cap Companies and to Fortune’s 2023 Top 100 Fastest Growing Companies. We continue to work diligently to ensure that manufacturing and operating expense levels remain well aligned to business conditions. 23 The market for our systems and aftermarket products and services is represented by a relatively small number of companies.

In addition, Axcelis was named to both the 2023 and 2024 editions of Forbes’ List of America’s Best Mid-Cap Companies and to both the Fortune Magazine’s 2023 and 2024 lists of the Top 100 Fastest Growing Companies. We continue to work diligently to ensure that manufacturing and operating expense levels remain well aligned to business conditions. The market for our systems and aftermarket products and services is represented by a relatively small number of companies.

Aftermarket transaction payment terms are such that payment is due either within 30 or 60 days of service provided or delivery of parts. Note 4.

Aftermarket transaction payment terms are such that payment is due either within 30 or 60 days of service provided or parts delivered. Note 4.

In 2023, 2022 and 2021, we provided an employer match of 50% of employees’ pre-tax contributions on the first 6% of eligible compensation.

In 2024, 2023 and 2022, we provided an employer match of 50% of employees’ pre-tax contributions on the first 6% of eligible compensation.

The Company accesses cybersecurity consultants and legal counsel to assist in the identification of vulnerabilities and advise on appropriate mitigation and preparedness actions. Overall, we devote significant resources to network security, data encryption, employee training and other measures to protect our systems and data from unauthorized access or misuse.

The 19 Table of Contents Company accesses cybersecurity consultants and legal counsel to assist in the identification of vulnerabilities and advise on appropriate mitigation and preparedness actions. Overall, we devote resources to network security, data encryption, employee training and other measures to protect our systems and data from unauthorized access or misuse.

Income related to these securities is recorded in interest income in the Consolidated Statements of Operations . 45 (e) Inventories Inventories are carried at the lower of cost or net realizable value, determined using the first-in, first-out (“FIFO”) method.

Income related to these securities is recorded in interest income in the Consolidated Statements of Operations . (f) Inventories Inventories are carried at the lower of cost or net realizable value, determined using the first-in, first-out (“FIFO”) method.

We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for our products or market conditions.

We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated 55 Table of Contents demand or is obsolete based upon assumptions about future demand for our products or market conditions.

An agreement contains a lease component if it provides the use of a specific physical space or a specific physical item. We recognize operating lease obligations under Accounting Standards Codification - Leases (Topic 842).

An agreement contains a lease component if it provides the use of a specific physical space or a specific physical item. 56 Table of Contents We recognize operating lease obligations under Accounting Standards Codification - Leases (Topic 842).

This represents the portion of the transaction price for contracts with customers allocated to the performance obligations that remain unsatisfied or partially unsatisfied. Short-term deferred revenue of $164.7 million as of December 31, 2023 represents performance obligations that are expected to be satisfied within the next 12 months.

This represents the portion of the transaction price for contracts with customers allocated to the performance obligations that remain unsatisfied or partially unsatisfied. Short-term deferred revenue of $94.7 million as of December 31, 2024 represents performance obligations that are expected to be satisfied within the next 12 months.

For the year ended December 31, 2023, no customers represented ten percent or more of total revenue. Critical Accounting Estimates Management’s discussion and analysis of our financial condition and results of operations are based upon Axcelis’ consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.

For the year ended December 31, 2024, no customers represented ten percent or more of total revenue. 23 Table of Contents Critical Accounting Estimates Management’s discussion and analysis of our financial condition and results of operations are based upon Axcelis’ consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.

Where required, an annual actuarial valuation of the benefit plans is obtained. We have recorded an unfunded liability of $3.2 million and $3.5 million at December 31, 2023 and 2022, respectively, for costs associated with these compensation plans in foreign jurisdictions.

Where required, an annual actuarial valuation of the benefit plans is obtained. We have recorded an unfunded liability of $3.1 million and $3.2 million at December 31, 2024 and 2023, respectively, for costs associated with these compensation plans in foreign jurisdictions.

At December 31, 2023 and 2022, inventories are stated net of inventory reserves of $5.2 million and $6.7 million, respectively. 54 During the years ended December 31, 2023, 2022 and 2021, we recorded charges to cost of sales of $5.2 million, $4.6 million and $3.8 million, respectively, to adjust inventories to their lower of cost or net realizable value. We have inventory on consignment at customer locations at December 31, 2023 and 2022, of $6.5 million and $6.4 million, respectively. Note 7.

At December 31, 2024 and 2023, inventories are stated net of inventory reserves of $5.8 million and $5.2 million, respectively. During the years ended December 31, 2024, 2023 and 2022, we recorded charges to cost of sales of $6.0 million, $5.2 million and $4.6 million, respectively, to adjust inventories to their lower of cost or net realizable value. We have inventory on consignment at customer locations at December 31, 2024 and 2023, of $5.6 million and $6.5 million, respectively. Note 7.

We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties as operating expense. 25 Results of Operations The following year-to-year comparative statements include the 2023 and 2022 year periods.

We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties as operating expense. Results of Operations The following year-to-year comparative statements include the 2024 and 2023 year periods.

The Company settles stock option exercises with newly issued common shares. Restricted stock units granted to employees during 2023 had both service-based vesting provisions and performance-based vesting provisions.

The Company settles stock option exercises with newly issued shares of common stock. Restricted stock units granted to employees during 2024 had both service-based vesting provisions and performance-based vesting provisions.

Our revenue recognition policies are set forth in section (i) of Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements for the year ended December 31, 2023 included in this Annual Report on Form 10-K.

Our revenue recognition policies are set forth in section (j) of Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements for the year ended December 31, 2024 included in this Annual Report on Form 10-K.

The following table presents the classification of these liabilities in the Consolidated Balance Sheets: Year ended December 31, 2023 2022 (in thousands) Long-term: Other long-term liabilities 3,160 3,516 Total liabilities $ 3,160 $ 3,516 The expense recorded in connection with these plans was $1.7 million, $1.5 million and $1.5 million during the years ended December 31, 2023, 2022 and 2021, respectively. 59 Note 13.

The following table presents the classification of these liabilities in the Consolidated Balance Sheets: Year ended December 31, 2024 2023 (in thousands) Long-term: Other long-term liabilities 3,117 3,160 Total liabilities $ 3,117 $ 3,160 The expense recorded in connection with these plans was $1.7 million, $1.7 million and $1.5 million during the years ended December 31, 2024, 2023 and 2022, respectively. Note 13.

These amounts were partially offset by $2.1 million in proceeds from our employee stock purchase plan.

These amounts were partially offset by $2.4 million in proceeds from our employee stock purchase plan.

Principal Accountant Fees and Services The information required by Item 14 of Form 10-K is incorporated by reference from the information responsive thereto contained in the section captioned “Proposal 2: Ratification of the Appointment of our Independent Registered Public Accounting Firm” in the Proxy Statement. 36 PART IV Item 15.

Principal Accountant Fees and Services The information required by Item 14 of Form 10-K is incorporated by reference from the information responsive thereto contained in the section captioned “Proposal 2: Ratification of the Appointment of our Independent Registered Public Accounting Firm” in the Proxy Statement. 36 Table of Contents PAR T IV Item 15.

We recognized $0.5 million in interest and penalty expenses for the year ended December 31, 2023 relating to these uncertain tax positions. These unrecognized tax benefits, if recognized, would reduce the effective tax rate and also reverse associated accrued interest and penalty expenses.

We recognized $0.7 million in interest and penalty expenses for the year ended December 31, 2024 relating to these uncertain tax positions. These unrecognized tax benefits, if recognized, would reduce the effective tax rate and also reverse associated accrued interest and penalty expenses.

We also assessed the historical accuracy of management’s estimates and performed sensitivity analyses over the significant assumptions to evaluate the changes in the excess inventory estimates that would result from changes in the underlying assumptions. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1999. Boston, Massachusetts February 23, 2024 39 Axcelis Technologies, Inc.

We also assessed the historical accuracy of management’s estimates and performed sensitivity analyses over the significant assumptions to evaluate the changes in the excess inventory estimates that would result from changes in the underlying assumptions. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1999. Boston, Massachusetts February 27, 2025 39 Table of Contents Axcelis Technologies, Inc.

Stockholders’ Equity We may issue up to 75 million shares of common stock without additional shareholder approval. At December 31, 2023 and 2022, there were 32.7 million and 32.8 million outstanding shares of common stock, respectively. Note 15.

Stockholders’ Equity We may issue up to 75 million shares of common stock without additional shareholder approval. At December 31, 2024 and 2023, there were 32.4 million and 32.7 million outstanding shares of common stock, respectively. Note 15.

Changes to the allowance for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. The following table shows changes of the allowances for credit losses related to trade receivables for the twelve months ended December 31, 2023 and 2022, respectively: Year ended December 31, 2023 2022 (in thousands) Balance, beginning of period $ — $ — Provision for credit losses 1,117 — Charge-offs (657) — Recoveries — — Balance, end of period $ 460 $ — The components of accounts receivable are as follows: December 31, 2023 2022 (in thousands) Trade receivables $ 218,424 $ 169,773 Allowance for doubtful accounts (460) — Trade receivables, net $ 217,964 $ 169,773 Note 6.

Changes to the allowance for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. The following table shows changes of the allowances for credit losses related to trade receivables for the twelve months ended December 31, 2024 and 2023, respectively: Year ended December 31, 2024 2023 (in thousands) Balance, beginning of period $ 460 $ — Provision for credit losses 3,446 1,117 Charge-offs (3,446) (657) Recoveries (460) — Balance, end of period $ — $ 460 The components of accounts receivable are as follows: December 31, 2024 2023 (in thousands) Trade receivables $ 203,149 $ 218,424 Allowance for doubtful accounts — (460) Trade receivables, net $ 203,149 $ 217,964 Note 6.

Short-term investments are h ighly liquid investments with original maturities of greater than 90 days but less than one year from date of purchase and are carried on the balance sheet at amortized cost. Our short-term investments consist primarily of U.S.

Cash equivalents are carried on the balance sheet at fair market value. Short-term investments are h ighly liquid investments with original maturities of greater than 90 days but less than one year from date of purchase and are carried on the balance sheet at amortized cost. Our short-term investments consist primarily of U.S.

Expenditures greater than $2.5 thousand for renewals and betterments are capitalized and depreciated over their useful lives. (g) Impairment of Long-Lived Assets We record impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable.

Expenditures greater than $2.5 thousand for renewals and betterments are capitalized and depreciated over their useful lives. 46 Table of Contents (h) Impairment of Long-Lived Assets We record impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable.

Incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed with the Commission on May 11, 2022 . 4.4 Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934.

Incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed with the Commission on May 9, 2024 . 4.4 Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934.

Filed herewith. 32.1 Certification of the Principal Executive Officer pursuant to Section 1350 of Chapter 63 of title 18 of the United States Code (Section 906 of the Sarbanes-Oxley Act), dated February 23, 2024.

Filed herewith. 32.1 Certification of the Principal Executive Officer pursuant to Section 1350 of Chapter 63 of title 18 of the United States Code (Section 906 of the Sarbanes-Oxley Act), dated February 27, 2025.

The table below shows our cash outflows, by lease type and related section of our statement of cash flows, as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets: Year ended December 31, Cash paid for amounts included in the measurement of lease liabilities 2023 2022 2021 (in thousands) Operating cash outflows from operating leases $ 10,669 $ 8,340 $ 6,009 Operating cash outflows from finance leases 4,874 4,992 5,086 Financing cash outflows from finance leases 1,240 987 763 Operating lease assets obtained in exchange for operating lease liabilities 26,890 6,173 8,670 Finance lease assets obtained in exchange for new finance lease liabilities — — — Note 10.

The table below shows our cash outflows, by lease type and related section of our statement of cash flows, as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets: Year ended December 31, Cash paid for amounts included in the measurement of lease liabilities 2024 2023 2022 (in thousands) Operating cash outflows from operating leases $ 10,328 $ 10,669 $ 8,340 Operating cash outflows from finance leases 4,727 4,874 4,992 Financing cash outflows from finance leases 1,525 1,240 987 Operating lease assets obtained in exchange for operating lease liabilities 5,324 26,890 6,173 Finance lease assets obtained in exchange for new finance lease liabilities — — — Note 10.

Based on a historical analysis, a forfeiture rate of 5% per year was applied to stock-based awards, including executive officer awards, for the years ended December 31, 2023, 2022 and 2021. For the years ended December 31, 2023, 2022 and 2021, we recognized stock-based compensation expense of $18.3 million, $13.4 million and $12.1 million, respectively.

Based on a historical analysis, a forfeiture rate of 5% per year was applied to stock-based awards, including executive officer awards, for the years ended December 31, 2024, 2023 and 2022. For the years ended December 31, 2024, 2023 and 2022, we recognized stock-based compensation expense of $21.0 million, $18.3 million and $13.4 million, respectively.

We do not have any off-balance sheet credit exposure related to our customers. Our customers consist of semiconductor chip manufacturers located throughout the world and net sales to our ten largest customers accounted for 51.7%, 59.4% and 69.5% of revenue in 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, we had no customers representing 10% or greater of total revenue.

We do not have any off-balance sheet credit exposure related to our customers. Our customers consist of semiconductor chip manufacturers located throughout the world and net sales to our ten largest customers accounted for 45.9%, 51.7% and 59.4% of revenue in 2024, 2023 and 2022, respectively. For the years ended December 31, 2024 and December 31, 2023, we had no customers representing 10% or greater of total revenue.

What changed in AXCELIS TECHNOLOGIES INC's 10-K — 2023 vs 2024

Top changes in AXCELIS TECHNOLOGIES INC's 2024 10-K

Item 1C. Cybersecurity

Other ACLS 10-K year-over-year comparisons