MACOM Technology Solutions MTSI Subscription Agreement Amount

On May 28, 2026, we completed an investment in IQE plc (“Investee”), which included entering into a Subscription Agreement to purchase newly-issued ordinary shares of Investee (representing approximately 12% of Investee’s issued and outstanding ordinary shares on the date of issuance), for £30.0 million ($40.4 million) (“Equity Investment”), a five-year Convertible Loan Note Agreement with a principal balance of £15.0 million ($20.2 million) (“Debt Investment”, collectively, “Long-Term Investments”) and long-term supply agreements. The Debt Investment has a zero-coupon rate and is expected to be repaid beginning on the third anniversary of the issuance. The Debt Investment is convertible into Investee ordinary shares at a conversion price equal to the same price per share as was paid in the Equity Investment. The conversion option is available if the Debt Investment is repaid prior to the contractual maturity date, based on the occurrence of certain contingent events. Warrants for shares of Investee’s ordinary shares were issued as part of the Debt Investment, which become exercisable in lieu of conversion under the early repayment terms. In accordance with ASC 323, Investments - Equity Method and Joint Ventures, and upon consideration of the totality of our agreements, including our right to appoint two members to Investee’s board of directors, we concluded the Equity Investment is an equity method investment. We have elected to account for the Long-Term Investments using the fair value option for simplification. The Long-Term Investments are recorded within “Long-term investments” on the condensed consolidated balance sheet, and changes in fair value are recorded through “Gain on investment fair value” within the condensed consolidated statement of operations. The Equity Investment is valued using a market approach and the Debt Investment is valued using an income approach based on contractual future cash flows discounted to present value as of the last day of our fiscal quarter.