Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 20

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 20
---
 taxes includes the impact of changes to reserves, as well as the related net interest and penalties.Share-based Compensation ExpenseThe Company maintains an equity-settled, share-based compensation plan to grant restricted share units.  The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant.  The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant.  For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-Carlo pricing model.  Share-based compensation expense is recognized on the accelerated attribution basis over the requisite service period of the award, which generally equals the vesting period.  In addition, judgment is also required in estimating the number of stock-based awards that are expected to be forfeited.  Forfeitures are estimated based on historical experience.The Employee Share Purchase Plan (the “ESPP”) is accounted for at fair value on the date of grant using the Black-Scholes option valuation model.  Advertising

77

Advertising expenditures are expensed as incurred.  Advertising expense was $0.5 million, $0.6 million and $0.5 million in the fiscal years ended June 30, 2025, 2024, and 2023, respectively.Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources.  The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Recent Accounting PronouncementsRecently Adopted Accounting StandardsIn November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures”, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU also expands disclosure requirements to enable users of financial statements to better understand the entity’s measurement and assessment of segment performance and resource allocation. The Company adopted the guidance during the three months ended June 30, 2025 and the adoption did not have a significant impact on the consolidated financial statements.Recently Issued Accounting Standards not yet adoptedIn December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures”, which enhances