Company: COHU
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024281
Chunk: 23

Company: COHU INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 23
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 values of the tangible and intangible assets acquired and liabilities assumed and the related income tax effects are finalized during the remainder of the measurement period (which will not exceed 12 months from the acquisition closing date). The preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values is as follows (in thousands):

			Current assets, including cash received

			$
			293

			Property, plant and equipment

			19

			Other assets

			56

			Intangible assets

			2,900

			Goodwill

			33,688

			Total assets acquired

			36,956

			Liabilities assumed

			(349
			)

			Net assets acquired

			$
			36,607

The preliminary allocation of the intangible assets subject to amortization is as follows (in thousands):

			Estimated

			Fair Value

			Weighted

			Average

			Useful Life

			(years)

			Developed technology

			$
			2,300

			3.0

			Customer relationships

			500

			6.0

			Trademarks and trade names

			100

			4.0

			Total intangible assets

			$
			2,900

Acquired intangible assets reported above are being amortized using the straight-line method over their estimated useful lives which approximates the pattern of how the economic benefit is expected to be used. While high customer retention rates are common in the semiconductor capital equipment industry, amounts allocated to customer relationships are being amortized on an accelerated basis over their estimated useful lives due to the early-stage nature of Tignis’ business and historical customer turnover.

The value assigned to developed technology was determined by using the relief from royalty method under the income approach, which included assumptions related to revenue growth rates, royalty rates, and discount rates. Developed technology, which comprises products that have reached technological feasibility, includes the products in Tignis’ product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by Tignis and competitors. The estimated after-tax cash flows were based on a hypothetical royalty rate applied to the revenues for the developed technology. The discount rate utilized to discount the net cash flows of the developed technology to present value was