Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 62

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 62
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 as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Packaging and testing services revenue is recognized at a point in time upon shipment of serviced products to the customer.  License and Development Revenue Recognition In February 2023, the Company entered into a license agreement with a customer, pursuant to which the Company agreed to license its proprietary Silicon Carbide (SiC) technology to the customer and engineering and development services for 24 months for a total fee of $45.0 million, consisting of an upfront fee and various milestone payments over the 24 months.  In addition, the Company also entered into an accompanying supply agreement to provide limited wafer supply to the customer. The license and development fee was determined to be one performance obligation and was recognized over the 24 months during which the Company performs the engineering and development services.  The Company used the input method to measure progress and recognize revenue, based on the effort expended relative to the estimated total effort to satisfy the performance obligation.  The Company recognized a contract liability when payments were in excess of revenue recognized, which was presented as deferred revenue on the balance sheet.  When the Company’s performance under the contract preceded its receipt of consideration from the customer, and the receipt of consideration was conditional upon factors other than the passage of time, a contract asset was recorded.During the three and nine months ended March 31, 2025, the Company recorded license and development revenue of $2.8 million and $13.8 million, respectively.  During the three and nine months ended March 31, 2024, the Company recorded license and development revenue of $5.1 million and $16.2 million, respectively.  As of March 31, 2025, all revenue has been recognized and all consideration has been received associated with the license agreement.Restricted CashThe Company maintains restricted cash in connection with cash balances temporarily restricted by the local custom authority for regular business operations.  These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Condensed Consolidated Balance Sheets.  As of March 31, 2025 and June 30, 2024, the amount of restricted cash was $0.2 million and $0.4 million, respectively. 

8

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

Equity