Company: AOSL
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001387467-25-000017
Chunk: 35

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 35
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 Huawei, and the Company complied with such request.  The Company has not shipped any product to Huawei after December 31, 2019.  On January 19, 2024, the DOJ informed the Company that it has closed such investigation without any charges.  The Company continues to cooperate with the DOC in the ongoing civil investigation.  The DOC has not informed the Company of any specific timeline or schedule under which the DOC will complete its review.The Company is a party to a variety of agreements contracted with various third parties.  Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters.  Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes.  In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s  claim.  Further, the Company's obligations under these agreements may be limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements.  The Company has not historically paid or recorded any material indemnifications, and no accrual was made at December 31, 2024 and June 30, 2024. The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its By-laws, and has entered into indemnification agreements with its directors and executive officers.  The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations.  Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains.  However, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay.  In addition, the Company may not be able to maintain such insurance coverage at a reasonable cost.

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ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Except for the historical information contained herein, the matters addressed in this Item 2 constitute “forward-looking statements” within the meaning of