Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 11

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 11
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  During the three and nine months ended March 31, 2024, the Company recorded license and development revenue of $5.1 million and $16.2 million, respectively.  As of March 31, 2025, all revenue has been recognized and all consideration has been received associated with the license agreement.Restricted CashThe Company maintains restricted cash in connection with cash balances temporarily restricted by the local custom authority for regular business operations.  These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Condensed Consolidated Balance Sheets.  As of March 31, 2025 and June 30, 2024, the amount of restricted cash was $0.2 million and $0.4 million, respectively. 

8

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

Equity method investmentOn March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture (the “JV Company”).The Company uses the equity method of accounting when it has the ability to exercise significant influence, but not control, as determined in accordance with generally accepted accounting principles, over the operating and financial policies of the investee.  Effective December 1, 2021, the Company reduced its equity interest in the JV Company and no longer controlled the JV Company.  As a result, beginning December 2, 2021, the Company recorded its investment under the equity method of accounting.  Since the Company is unable to obtain accurate financial information from the JV Company in a timely manner, the Company records its share of earnings or losses of such affiliate on a one quarter lag.  The Company discloses and recognizes intervening events at the JV Company in the lag period that could materially affect its consolidated financial statements, if applicable.The Company records its interest in the net earnings of the equity method investee, along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within earnings or loss from equity interests in the Condensed Consolidated Statements of Income (Loss).  Profits or losses related to intra-entity sales with the equity method investee are eliminated until realized by the investor and investee.