Company: AOSL
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001387467-25-000066
Chunk: 56

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 56
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5,804 

8. Leases  

The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date.  The finance lease is related to the $5.1 million of a machinery lease financing with a vendor.  The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less. The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):Three Months Ended September 30,20252024Operating leases:     Fixed rent expense$1,629 $1,737      Variable rent expense270 270 Finance lease:     Amortization of equipment128 128      Interest41 59 Short-term leases     Short-term lease expenses46 32                Total lease expenses$2,114 $2,226 

17

ALPHA AND OMEGA SEMICONDUCTOR LIMITEDNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):September 30, 2025June 30, 2025Operating Leases:     Right-of-use assets associated with operating leases$24,212 $21,288 Finance Lease:     Property, plant and equipment, gross$5,133 $5,133      Accumulated depreciation(1,812)(1,684)          Property, plant and equipment, net$3,321 $3,449 Weighted average remaining lease term (in years)     Operating leases4.595.00     Finance lease2.002.25Weighted average discount rate     Operating leases4.91 %4.88 %     Finance lease7.51 %7.51 %Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):Three Months Ended September 30,20252024Cash paid for amounts included in the measurement of lease liabilities:     Operating cash flows from operating leases$1,557 $1,607      Operating cash flows from finance lease$41 $59      Financing cash flows from finance lease$245 $227 Non-cash investing and financing information:    Operating lease right-of-use assets