Company: AOSL
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001387467-25-000066
Chunk: 49

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 49
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 transaction in accordance with the equity transfer agreement, plus other administrative actions.  As a result of the sales transaction, the Company evaluated the factors that indicate the ability to exercise its significant influence to the JV Company, including but not limited to representation on the board, material intra-entity transactions, and participation in policy making process.  The Company concluded that it continues to have the ability to exercise significant influence over the operating and financial policies of the JV Company and accordingly accounts for the investment using the equity method of accounting.The Company 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 months ended September 30, 2025 and 2024, the Company recorded a $1.4 million gain, including the $1.1 million on the related sale of a portion of its interest in the equity method investment and $1.0 million loss of its equity share of the JV Company, respectively, using lag reporting.

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

3. Related Party Transactions

As of September 30, 2025, the Company owned approximately 18.9% 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. The JV Company reimbursed AOS for purchases made on its behalf of $0.1 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively.  The purchases by AOS for the three months ended September 30, 2025 and 2024 were $30.4 million and $28.3 million, respectively.  Due to the right of offset of receivables and payables with the JV Company, as of September 30, 2025 and June 30, 2025, AOS recorded the net amount of $21.2 million and $15.8 million, respectively, as a payable related to equity investee, net, on the Condensed Consolidated Balance Sheet.  During the three months ended September 30, 2025, the Company also recorded approximately $1.9 million other income for certain service the Company provided to the JV Company.

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AL