|3 Months Ended
Dec. 31, 2019
|Subsequent Events [Abstract]
12. Subsequent Events
Sale of Tempress
Effective January 22, 2020, Amtech completed the sale of Tempress for nominal consideration to a third party located in the Netherlands. In connection with this sale transaction, Amtech agreed to provide an unsecured term loan to Tempress in the principal sum of $2.25 million, to be used to fund Tempress’ working capital requirements and to facilitate the restructuring of Tempress’ operations. The loan contains repayment provisions specifying amounts due and payable upon future events, including the sale of the equity or a material portion of the assets of Tempress in a future transaction. To date, we have received repayment of $0.5 million of the loan balance. Amtech expects to record a pre-tax loss on deconsolidation of approximately $12.5 million to $13.0 million, of which approximately $7.3 million is the recognition of previously recorded accumulated foreign currency translation losses. The total pre-tax loss is not expected to have a material effect on our cash balances at our continuing operations. We also expect to recognize a significant tax benefit relating to this loss, which can be carried over to future years.
Executive Officer Updates
On January 28, 2020, we announced the promotion of Mr. Michael Whang to Chief Executive Officer, effective immediately. We also announced the retirement of Mr. Robert Hass, 70, Executive Vice President, effective February 17, 2020. Mr. J.S. Whang, our former Chief Executive Officer, will continue in his capacity as Executive Chairman.
In connection with Mr. Michael Whang’s promotion to Chief Executive Officer, he received an increase in his base salary to $280,000, effective immediately. Mr. Michael Whang does not currently have an employment agreement with the Company.
In connection with the foregoing, the terms of Mr. J.S. Whang’s employment agreement were amended to reflect the elimination of the unilateral right to restore his base salary to $400,000 and the elimination of his annual car allowance of $18,000. As a result, Mr. J.S. Whang’s salary will remain at $250,000.