Pdf Solutions Inc.

Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, amortization of debt issuance costs and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, finance, integration and other costs, recovery from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items.

SEC original ↗Pdf Solutions Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, amortization of debt issuance costs, and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, finance, integration and other costs, loss on damaged equipment in-transit, net of (recovery) from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items.

SEC original ↗Pdf Solutions Inc. — Presentation / slide deck (8-K exhibit)EX-99Aug 7, 2025

The Credit Agreement provides for (a) a revolving credit facility in an aggregate principal amount of $ 45.0 million (the Revolving Credit Facility ) and (b) a term loan facility in an aggregate principal amount of $ 25.0 million (the Term Loan and together with the Revolving Credit Facility, the Credit Facilities ).

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026

The principal of the Revolving Credit Facility is due as a balloon payment of $ 45.0 million in March 2030.

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026

The principal of the Term Loan is due in the amount of $ 0.6 million quarterly and a balloon payment of $ 13.1 million in March 2030.

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026

20 Table of Contents Borrowings under the Credit Facilities will accrue interest at rates equal, at the Company s election, to (i) the alternate base rate, which is defined as the highest of (a) the federal funds effective rate in effect from time to time plus 0.50 %, (b) the prime commercial lending rate in effect from time to time, and (c) the daily simple secured overnight financing rate ( SOFR ) plus 1.00 % or (ii) SOFR, plus, in each case, the applicable margin.

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026

The Company s ongoing risk management strategy for residual assets includes performing regular reviews of estimated residual values.

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026

Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, amortization of debt issuance costs and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, finance, integration and other costs, recovery from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items.

SEC original ↗Pdf Solutions Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

PDF Solutions management believes that these non-GAAP measures provide useful supplemental information to investors regarding the Company s ongoing operations in light of the fact that none of these categories of expense and income has a current effect on the future uses of cash (with the exception of expenses related to certain legal proceedings and non-recurring legal, finance, integration and other costs) nor do they impact the generation of current or future revenues.

SEC original ↗Pdf Solutions Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, amortization of debt issuance costs, and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, finance, integration and other costs, loss on damaged equipment in-transit, net of (recovery) from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items.

SEC original ↗Pdf Solutions Inc. — Presentation / slide deck (8-K exhibit)EX-99Aug 7, 2025

Legal Proceedings 41 Item 1A.

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026

Significant estimates in these interim unaudited condensed consolidated financial statements include revenue recognition, the estimated useful lives of property and equipment and intangible assets, fair value of convertible note receivable, assumptions made in analysis of allowance for credit losses, impairment of goodwill and long-lived assets, realization of deferred tax assets ( DTAs ), and accounting for lease obligations, stock-based compensation expense, and income tax uncertainties and contingencies.

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026

From time to time, the Company may enter into contingent fee arrangements with external legal firms that may represent the Company in legal proceedings related to disputes.

SEC original ↗Pdf Solutions Inc. — 10-Q Quarterly report10-QAug 6, 2026