Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 23

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 23
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 be paid in four installments, subject to satisfaction of certain conditions.The Company identified the negotiations of the equity transfer agreement throughout the fourth quarter of fiscal year 2025 as an impairment indicator and performed a quantitative impairment test as of June 30, 2025.  Based on the implied valuation of the JV Company per the transaction price in the equity transfer agreement, the fair value of the equity method investment was determined to be lower than its carrying value, and a $76.8 million other-than-temporary impairment of the equity method investment was recognized as of June 30, 2025.  The impairment loss is recorded within Equity method investment loss in the consolidated statement of operations for the year-ended June 30, 2025.The Company accounts for its investment in the JV Company as an equity method investment and reports its equity in earnings or loss of the JV Company on a three-month lag due to an inability to timely obtain financial information of the JV Company.  During the fiscal years ended June 30, 2025, 2024 and 2023, the Company recorded $77.8 million including the impairment loss, $4.8 million and $1.4 million of equity method investment loss, respectively, using lag reporting.  As of June 30, 2025, the percentage of outstanding JV equity interest beneficially owned by the Company was 39.2%. The difference between the investment’s carrying value on June 30, 2025 of $279.1 million and the underlying equity in net assets of approximately $107.1 million as of March 31, 2025 relates primarily to equity method goodwill. Summarized Financial Information The following table presents summarized financial information for the JV Company (in thousands): As of March 31, 2025As of March 31, 2024As of March 31, 2023Current assets$101,151 $86,280 $122,324 Non-current assets$315,420 $338,450 $333,165 Current liabilities$61,341 $70,776 $122,340 Non-current liabilities$82,124 $81,899 $36,525 For the period April 1, 2024 to March 31, 2025For the period April 1, 2023 to March 31, 2024For the period April 1, 2022 to March 31, 2023Revenue