Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 16

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 16
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. Dollar on December 31, 2024) in the JV Company.  The funding of the investment will be made in three installments.  The JV Company received the first installment of RMB 40 million (or $5.5 million) on December 31, 2024.  The remaining installments are expected to be paid by July 31, 2025.  This transaction was closed on January 15, 2025, at which time, the percentage of outstanding JV Company’s equity interest owned by the Company was reduced to approximately 39.2%.  During the three and nine months ended March 31, 2025, the Company recorded a gain of $0.5 million on the change of equity interest in the JV Company.  As of March 31, 2025, the percentage of outstanding JV equity interest beneficially owned by the Company was 39.2%.

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 three and nine months ended March 31, 2025, the Company recorded a $0.3 million loss and $1.8 million loss of its equity share of the JV Company, respectively, using lag reporting.  During the three and nine months ended March 31, 2024, the Company recorded a $0.7 million loss and $4.1 million loss, respectively, of its equity share of the JV Company, using lag reporting. 

12

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

3. Related Party Transactions

As of March 31, 2025, the Company owned a 39.2% equity interest in the JV Company, which, by definition, is a related party to the Company.  The JV Company supplies 12-inch wafers and provides assembly and testing services to AOS.  AOS previously sold 8-inch wafers to the JV Company for further assembly and testing services until January 1, 2023, when it changed to consigning the 8-inch wafers to the JV Company.  Due to the right of offset of receivables and payables with the JV Company, as of March 31, 2025,