Company: AOSL
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001387467-25-000066
Chunk: 18

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 18
---
 ValueNonvested at June 30, 20251,491,926 $28.50 1.66$38,282,821 Granted92,084 $27.93 Vested(59,873)$33.09 Forfeited(32,165)$26.77 Nonvested at September 30, 20251,491,972 $28.31 1.52$41,715,537 Market-based Restricted Stock Units (“MSUs”)In December 2021, the Company granted 1.0 million market-based restricted stock units (“MSUs”) to certain personnel.  The number of shares to be earned at the end of performance period was determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2022 to December 31, 2024 as well as the 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.  The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model.  In September 2023, the Company determined it was no longer probable that it would achieve the minimum revenue threshold specified in the awards. Therefore, the Company reversed all of the previously recognized expenses of $6.4 million for these MSUs.  In addition, on September 19, 2023, the Compensation Committee of the Board approved a modification of the terms of MSUs to extend the performance period through December 31, 2025, changed the commencement date for the four-year time-based service period to January 1, 2026, and reduced the achievement of specified stock prices and revenue thresholds.  The fair value of these MSUs was revalued to reflect the change using a Monte-Carlo simulation model.  In June 2024, the Company determined it was no longer probable that the revenue thresholds for the modified MSU would be achieved. Therefore, the Company reversed $2.4 million in the June 2024 quarter that was recorded during the fiscal year 2024 related to the modification on September 19, 2023.  On August 8, 2024, the Compensation Committee of the Board approved a modification of the terms of MSUs to extend the performance period through December 31, 2026, change the commencement date for the four-year time-based service period to January 1,