Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 44

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 44
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$(25,867)The Company’s valuation allowance related to deferred income taxes as reflected in the consolidated balance sheets was $8.8 million and $7.3 million as of June 30, 2025 and 2024, respectively.  The change in valuation allowance for June 30, 2025 and 2024 was an increase of $1.5 million and an increase of $0.6 million, respectively.

97

At June 30, 2025 and 2024, the Company provided a valuation allowance for its state research and development credit carryforward deferred tax assets of $8.8 million and $7.3 million, respectively, as it generated more state tax credits each year than it can utilize.  The Company intends to maintain a valuation allowance equal to the state research and development credit carryforwards in excess of the state net deferred tax liabilities on all other state book and tax differences and net operating loss carryforward. At June 30, 2025, the Company had federal research and development tax credit carryforwards of approximately $8.1 million.  The federal tax credits begin to expire in 2042, if not utilized.  At June 30, 2025, the Company had state tax credit carryforwards of approximately $11.1 million, of which $9.9 million carryforward indefinitely, $0.9 million have a 10 to 15 year life (beginning to expire in 2033) and $0.3 million with a 20 year life, (beginning to expire in 2038).   The Company intends to reinvest the undistributed earnings of its foreign subsidiaries indefinitely, except for Alpha and Omega Semiconductor (Cayman) Ltd. and AOS International LP.  As of June 30, 2025, Alpha and Omega Semiconductor (Cayman) and AOS International LP have a cumulative loss.  As of June 30, 2025, the cumulative amount of undistributed earnings of its foreign entities considered permanently reinvested is $433.5 million.  Should the Company decide to remit this income to its Bermuda parent company in a future period, its provision for income taxes may increase materially in that period. The determination of the unrecognized deferred tax liability on these earnings is not practicable due to the complexity and variety of assumptions necessary to estimate the tax.  As of June 30, 2025, the Company has recorded a deferred tax liability of