Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 13

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 13
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 primarily consist of cash on hand and short-term bank deposits with original maturities of three months or less.  Cash equivalents are highly liquid investments with stated maturities of three months or less as of the dates of purchase.  The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities.  Cash and cash equivalents are maintained with reputable major financial institutions.  If, due to current economic conditions or other factors, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk.  Deposits with these banks may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk.The 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 Company’s consolidated balance sheets.  As of June 30, 2025 and 2024, the amount of restricted cash was $0.4 million and $0.4 million, respectively. Accounts Receivable, netThe allowance for expected credit loss is based on assessment of the expected collectability of accounts receivable from customers.  The Company reviews the allowance by considering factors such as historical collection experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay.  The 

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Company writes off a receivable and charges against its recorded allowance when it has exhausted its collection efforts without success. Fair Value Measurements    Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.  The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: •Level 1 - Quoted prices in active markets for identical assets or liabilities. •Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not