Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 45

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 45
---
 $13.8 million for the basis difference related to our investment in the JV Company.  A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2022 to June 30, 2025 is as follows: Year Ended June 30,  202520242023(in thousands)Balance at beginning of year$10,088 $9,335 $8,609 Additions based on tax positions related to the current year826 764 804 Reductions based on tax positions related to prior years(5)(11)(68)Reductions due to lapse of applicable statute of limitations(167)— (10)Balance at end of year$10,742 $10,088 $9,335 At June 30, 2025, the total unrecognized tax benefits of $10.7 million included $7.3 million of unrecognized tax benefits that have been netted against the related deferred tax assets.  The remaining $3.4 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2025.  The Company cannot reasonably estimate the timing and amount of potential cash settlements on the unrecognized tax benefits.The total unrecognized tax benefits of $10.7 million at June 30, 2025 included $7.4 million that, if recognized, would reduce the effective income tax rate in future periods.  It is reasonably possible that the Company will recognize approximately $0.2 million reduction to its uncertain tax positions during the next twelve months due to a lapse in the applicable statute of limitations.The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.  To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made.  The amount of interest and penalties accrued at June 30, 2025 was $0.8 million, of which $0.2 million was recognized in the year ended June 30, 2025.  The amount of interest and penalties accrued at June 30, 2024 was $0.5 million, of which $0.2 million was recognized in the year ended June 30, 2024.The Company files its income tax returns in the United States and in various foreign jurisdictions.  The tax years 2004 to 2025 remain open to examination by U.S