Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 15

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 15
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 Vehicle5 yearsEquipment and construction in progress represent equipment received but the necessary installation has not been fully performed or building construction and leasehold improvements have been started but not yet completed.  Equipment and 

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construction in progress are stated at cost and transferred to the respective asset class when fully completed and ready for their intended use.Internal-use software development costs are capitalized to the extent that the costs are directly associated with the development of identifiable and unique software products controlled by the Company that are expected to generate economic benefits beyond one year.  Costs incurred during the application development stage are required to be capitalized.  The application development stage is characterized by software design and configuration activities, coding, testing and installation.  Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if such expenditures will result in additional functionality.  Costs include employee costs incurred and fees paid to outside consultants for the software development and implementation.  Internally developed software is amortized over its estimated useful life of three to five years starting from the date when it is ready for its intended use. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized as selling, general and administrative expenses in the consolidated statements of operations.  Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred.Government GrantsThe Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China.  These grants include reimbursements on interest expense on bank borrowings, payroll tax credits, credit for property, plant and equipment in a particular geographical location, employment credits as well as business expansion credits.  Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to it, and that the grant will be received.  The Company records such grants either as a reduction of the related expense, a reduction of the cost of the related asset, or as other income depending upon the nature of the grant.  As a result of such grants, during the fiscal year ended June 30, 2025 and 2024, the Company reduced property, plant and equipment by $0.7 million and $1.0 million, respectively.  During the fiscal year ended June 30, 2023, the Company reduced property, plant and equipment by $0.6 million and operating expenses by $0.1 million.  Long-lived AssetsThe Company reviews all long-lived assets whenever events or changes in circumstance indicate that these assets may not be recover