Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 110

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 110
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 to materially affect, our internal control over financial reporting.

Limitation on Effectiveness of Controls

While our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance that their respective objectives will be met, we do not expect that our disclosure controls and procedures or our internal control over financial reporting are or will be capable of preventing or detecting all errors and all fraud.  Any control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met.

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PART II. OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS 

As previously disclosed, the Company continues to cooperate with the Department of Commerce (“DOC”) in connection with its ongoing administrative investigation regarding certain transactions by the Company.  On April 16, 2025, the Company received a letter from the DOC, which included certain allegations of administrative violations of export control regulations.  The Company is evaluating the letter and held an initial meeting with DOC to discuss the alleged violations and resolution of the matter.   The discussion with DOC is ongoing and at this time, the Company is unable to determine the outcome or estimate possible loss and therefore cannot determine the likelihood of loss or estimate a range of possible loss, if any.

We have in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities.  The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, we could incur significant costs in the defense thereof or could suffer adverse effects on its operations.

ITEM 1A.   RISK FACTORS   

Item 1A of Part I of our Annual Report on Form 10-K for the year ended June 30, 2024, filed with the SEC on August 23, 2024, contains risk factors identified by the Company.  Except as noted below, there have been no material changes to the risk factors we previously disclosed in our filings with the SEC. Our operations could also be affected by additional factors that are not presently known to us or by factors that we currently consider immaterial to our business.

Changes in tariffs and international trade policies affecting imports and exports may have a material adverse effect on our business operations and financial performance.

The U.S. has recently proposed the implementation of a range of new tariffs and significant increases to existing tariffs. In response to such tariffs announced