Note 15 - Strategic Partnership Agreement With Advantest and Related Party Transactions

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

15. STRATEGIC PARTNERSHIP AGREEMENT WITH ADVANTEST AND RELATED PARTY TRANSACTIONS

In July 2020, the Company entered into a long-term strategic partnership with Advantest Corporation through its wholly-owned subsidiary, Advantest America, Inc. (collectively referred to herein as “Advantest”), which includes: (i) a Securities Purchase Agreement wherein the Company issued and sold to Advantest America, Inc., an aggregate of 3,306,924 shares of its common stock, for aggregate gross proceeds of $65.2 million; (ii) a significant agreement for its assistance in development of cloud-based applications for Advantest tools that leverages our Exensio analytics software; (iii) a commercial agreement providing for the license to third parties of solutions that result from the development work that combine Advantest’s testing applications and our Exensio platform; and (iv) a 5-year cloud-based subscription that expired in July 2025 for Exensio analytics software and related services.

Platform revenue recognized from Advantest during the years ended December 31, 2025, 2024 and 2023 was $8.8 million, $12.7 million, and $9.0 million, respectively. Accounts receivable from Advantest were not material as of December 31, 2025 and 2024. Deferred revenue amounted to $0.7 million and $8.3 million as of December 31, 2025 and 2024, respectively.

The Company carries out transactions with Advantest on arm’s length commercial customary terms.