Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 38

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 38
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’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2019 to December 31, 2021 as well as the 

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recipients remaining in continuous service with the Company through such period.  The MSUs vest in four equal annual installments after the end of performance period.  On August 31, 2020, the Compensation Committee of the Board approved a modification of the terms of MSU to (i) extend the performance period through December 31, 2022 and (ii) change the commencement date for the four-year time-based service period to January 1, 2023.  The modified MSUs were valued immediately before and after the modification, using Monte-Carlo simulation pricing model. The Monte-Carlo simulation pricing model applied the following assumptions for pre-modification conditions:  risk-free interest rate of 0.13%, expected term of 1.3 years, expected volatility of 66.7% and dividend yield of 0%; and for post-modification conditions: risk-free interest rate of 0.14%, expected term of 2.3 years, expected volatility of 59.1% and dividend yield of 0%.  The fair value of these MSUs was recalculated to reflect the change as of August 31, 2020 and the unrecognized compensation amount was adjusted to reflect the increase in fair value.  The Company recorded approximately $0.6 million, $1.0 million and $3.9 million of expense for these MSUs during the years ended June 30, 2025, 2024 and 2023, respectively.  The total fair value of MSUs vested during the years ended June 30, 2025, 2024 and 2023 was $1.4 million, $1.4 million and $0.5 million, respectively.The following table summarizes the Company’s MSUs activities:Number of Market-based Restricted StockUnitsWeighted AverageGrant Date FairValue Per ShareWeighted AverageRemainingRecognitionPeriod (Years)Aggregate Intrinsic ValueNonvested at June 30, 20222,206,000 $25.10 $73,548,040 Vested(90,000)$5.17 Forfeited(8,000)$48.44 Nonvested at June 30, 20232,108,000 $25.86 $69,142,400 Vested