SemiLEDs Corp
For the period ended Nov 30, 2024. Filed Jan 13, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 30, 2024 · Filed Jan 13, 2025
LEDS$2.36+6.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-05-31; filed 2024-07-11.
0000950170-24-082869
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-11-30; filed 2025-01-13.
0000950170-25-004508
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 177 previous paragraphs and 155 current paragraphs.
93 unchanged; 52 reworded; 9 added; 26 removed; 6 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
developing small format AI sensors having a light source and photodetector in cooperation with our Japanese partners for various applications such as dot projectors and photoplethysmogram (PPG) sensors.
Current report
Recent Developments
Current report
In the second quarter of fiscal 2025, we received buy-sell purchase orders; the first set of purchase orders are approximately $13.3 million pursuant to which we will purchase machinery and equipment and then resell the goods to our customer. We have received $7.0 million of deposits, and the balance is due upon the completion of installation and testing of the machinery and equipment at the customer’s site. The revenue relating to these purchase orders is currently expected to be recognized in the second quarter of fiscal 2025, and the associated cost of revenue is estimated to be approximately $12.7 million. However, if shipment is delayed, the revenue could be recognized in the third quarter of fiscal 2025. As a result of these purchase orders and associated uncertainty of the business, we anticipate that our revenue, cost of revenues and inventories over the next several quarters may be varied significantly over recent periods. We cannot assure you when, or if, the revenue will be recognized, when payments will be received, or if we will receive other orders in the future.
Current report
Revenues attributable to the sales of our LED chips were $65 thousand and $58 thousand, representing 5% and 4% of our revenues for the three months ended November 30, 2024 and 2023, respectively. The increase in sales of LED chips was primarily due to varying volumes sold for the LED chips.
Current report
Revenues attributable to the sales of lighting products were $59 thousand and $49 thousand, representing 5% and 3% of our revenues for the three months ended November 30, 2024 and 2023, respectively. The increase in sales of lighting products was primarily due to higher volumes sold.
Current report
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial conditions, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to our common stock.
Current report
Net cash used in operating activities for the three months ended November 30, 2024 and 2023 was $158 thousand and $79 thousand, respectively. The increase in cash flows used in operating activities was primarily due to an increase in inventories of $398 thousand, a decrease in accrued expenses of $157 thousand, partially offset by an increase in accounts payable of $228 thousand, a decrease in accounts receivable of $191 thousand, and a decrease in gain on sale of property, plant and equipment of $50 thousand.
Current report
Net cash used in investing activities for the three months ended November 30, 2024 and 2023 was $122 thousand and $12 thousand, respectively. The increase in cash flows used in investing activities was primarily due to an increase in purchases of property, plant and equipment of $65 thousand, and a decrease in proceeds from sales of property, plant and equipment of $50 thousand.
Current report
Net cash used in financing activities for the three months ended November 30, 2024 and 2023 was $244 thousand and $114 thousand, respectively. The increase in cash flows used in financing activities was primarily due to an increase in acquisition of noncontrolling interest of $132 thousand.
Removed paragraphs (26)
Previous report
Revenues attributable to the sales of our LED chips were $33 thousand and $35 thousand, representing both 2% of our revenues for the three months ended May 31, 2024 and 2023. The decrease was primarily due to fewer LED chips sold.
Previous report
Revenues attributable to the sales of our LED components were $520 thousand and $1,080 thousand, representing 39% and 64%, respectively, of our revenues for the three months ended May 31, 2024 and 2023. Revenues attributable to sales of LED components were lower for the three months ended May 31, 2024 primarily due to fewer volumes sold.
Previous report
Revenues attributable to the sales of lighting products represented 5% and 6% of our revenues for the three months ended May 31, 2024 and 2023, respectively. Revenues attributable to the sales of lighting products were lower for the three months ended May 31, 2024 primarily due to decreased demand for LED lighting products.
Previous report
Our cost of revenues was $780 thousand and $1.4 million for the three months ended May 31, 2024 and 2023, respectively. The decrease in cost of revenues was due to the decrease in the volume of products sold.
Previous report
Our gross profit increased from $241 thousand for the three months ended May 31, 2023 to $543 thousand for the three months ended May 31, 2024 as a consequence of an increase in the sales of products with higher margins.
Previous report
Selling, general and administrative Our selling, general and administrative expenses decreased from $850 thousand for the three months ended May 31, 2023 to $696 thousand for the three months ended May 31, 2024. The decrease was mainly attributable to a decrease in payroll and stock-based compensation, professional service fees and various other expenses.
Previous report
Income Tax Expense
Previous report
Net Income Attributable to Noncontrolling Interests
Previous report
Revenues, net
Previous report
Our revenues decreased from $4.5 million for the nine months ended May 31, 2023 to $3.9 million for the nine months ended May 31, 2024. The $667 thousand decrease in revenues reflects a $156 thousand decrease in sales of LED components, a $138 thousand decrease in sales of lighting products, a $13 thousand decrease in sales of LED chips and a $360 thousand decrease in sales of other revenues.
Previous report
Revenues attributable to the sales of our LED chips were $93 thousand and $106 thousand, representing 2% of our revenues for both nine months ended May 31, 2024 and 2023, respectively. The slight decrease in sales of LED chips was a result of a decrease in the volume of LED chips sold.
Previous report
Revenues attributable to the sales of lighting products were $169 thousand and $307 thousand, representing 4% and 7% of our revenues for nine months ended May 31, 2024 and 2023, respectively. Revenues attributable to the sales of lighting products were $138 thousand lower for the nine months ended May 31, 2023 primarily due to less demand for the lighting products sold.
Previous report
Revenues attributable to other revenues represented 38% and 40% of our revenues for the nine months ended May 31, 2024 and 2023, respectively. The decrease in revenues attributable to other revenues was primarily due to reductions in the provision of service and the sale of raw materials.
Previous report
Cost of Revenues
Previous report
Gross Profit
Previous report
Operating Expenses
Previous report
Research and development Our research and development expenses were $943 thousand and $1.0 million for the nine months ended May 31, 2024 and 2023, respectively. The decrease was primary due to a $74 thousand decrease in payroll and compensation and a $14 thousand decrease in various other expenses.
Previous report
Gain on disposal of long-lived assets, net
Previous report
Other Income (Expenses)
Previous report
Other income, net Other income, net increased from $766 thousand for the nine months ended May 31, 2023, to $913 thousand for the nine months ended May 31, 2024, primarily due to an increase in rental income and revenue under the Patent Cross-License Agreement with CrayoNano AS.
Previous report
Income Tax Expense
Previous report
Net (Loss) Income Attributable to Noncontrolling Interests
Previous report
On July 6, 2021, we entered into a Sales Agreement (the “Sales Agreement”) with Roth Capital Partners, LLC (the “Agent”). In accordance with the terms of the Sales Agreement, we may offer and sell from time to time through the Agent our common stock having an aggregate offering price of up to $20,000,000 (the “Placement Shares”). Sales of the Placement Shares will be made on Nasdaq at market prices by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act of 1933, as amended, or the Securities Act. We agreed to pay a commission to the Agent of 3.0% of the gross proceeds of the sale of the Placement Shares sold under the Agreement and reimburse the Agent for certain expenses. We did not sell any shares of common stock under our ATM program in fiscal year 2023 or in the third quarter of fiscal 2024. The ATM program expired on June 8, 2024.
Previous report
Net cash used in operating activities for the nine months ended May 31, 2024 and May 31, 2023 was $570 thousand and $645 thousand, respectively. The decrease in cash flows used in operating activities for the nine months ended May 31, 2024 was primary attributable to a $263 thousand decrease of accounts receivable offset by an $195 thousand increase prepaid expense and other current assets.
Previous report
Net cash used in investing activities for the nine months ended May 31, 2024 and May 31, 2023 was $46 thousand and $228, respectively, primarily for the purchases of property, plant and equipment during each period.
Previous report
Net cash used in financing activities for the nine months ended May 31, 2024 and May 31, 2023 was $336 thousand and $354 thousand, respectively. The decrease was primary attributable to the repayments of long-term debt.
Reworded paragraphs (52)
Previous wording
Our ability to maintain compliance with the continued listing requirements to avoid our stock being delisted from the Nasdaq Capital Market.
Current wording
Our ability to regain compliance with the continued listing requirements to avoid our stock being delisted from the Nasdaq Capital Market.
Previous wording
Adverse macroeconomic developments in those selected markets, including the United States, Japan, Taiwan and the Netherlands, where our revenues are concentrated, including supply chain delays and the impact of inflation on customer demand.
Current wording
Adverse macroeconomic developments in those selected markets, including the United States, Japan, Taiwan, Germany, and the Netherlands, where our revenues are concentrated, including supply chain delays and the impact of inflation on customer demand.
Previous wording
We package our LED chips into LED components, which we sell to distributors and a customer base that is heavily concentrated in a few select markets, including Taiwan, the United States, the Netherlands, and Japan. We also sell our “Enhanced Vertical,” or EV, LED product series in blue, white, green and UV in selected markets. We sell our LED chips to packagers or to distributors, who in turn sell to packagers. Our lighting products customers are primarily original design manufacturers, or ODMs, of lighting products and the end‑users of lighting devices. We also contract other manufacturers to produce for our sale certain LED products, and for certain aspects of our product fabrication, assembly and packaging processes, based on our design and technology requirements and under our quality control specifications and final inspection process.
Current wording
We package our LED chips into LED components, which we sell to distributors and a customer base that is heavily concentrated in a few select markets, including the United States, Japan, Taiwan, Germany, and the Netherlands. We also sell our “Enhanced Vertical,” or EV, LED product series in blue, white, green and UV in selected markets. We sell our LED chips to packagers or to distributors, who in turn sell to packagers. Our lighting products customers are primarily original design manufacturers, or ODMs, of lighting products and the end‑users of lighting devices. We also contract other manufacturers to produce for our sale certain LED products, and for certain aspects of our product fabrication, assembly and packaging processes, based on our design and technology requirements and under our quality control specifications and final inspection process.
Previous wording
developing low cost Chip Scaled Packaging (CSP) technology; and
Current wording
developing low cost Chip Scaled Packaging (CSP) technology;
Previous wording
developing multi-pixel Mini LED packages for commercial displays.
Current wording
developing multi-pixel Mini LED packages for commercial displays; and
Previous wording
We were incorporated in the State of Delaware on January 4, 2005. We are a holding company for two wholly and majority owned subsidiaries. SemiLEDs Optoelectronics Co., Ltd., or Taiwan SemiLEDs, is our wholly owned operating subsidiary, where a substantial portion of our assets are held and located, where a portion of our research, development, manufacturing and sales activities take place. Taiwan SemiLEDs owns a 97.37% equity interest in Taiwan Bandaoti Zhaoming Co., Ltd., formerly known as Silicon Base Development, Inc., which is engaged in the research, development, manufacture and a substantial portion of marketing and sale of LED products, including lighting fixtures and systems, and where most of our employees are based.
Current wording
We were incorporated in the State of Delaware on January 4, 2005. We are a holding company for two principal owned subsidiaries. SemiLEDs Optoelectronics Co., Ltd., or Taiwan SemiLEDs, is our wholly owned operating subsidiary, where a substantial portion of our assets are held and located, and where a portion of our research, development, manufacturing and sales activities take place. Taiwan SemiLEDs had a wholly owned subsidiary. Taiwan Bandaoti Zhaoming Co., Ltd., formerly known as Silicon Base Development, Inc., which is engaged in the research, development, manufacturing and a substantial portion of marketing and sale of LED components, and where most of the Company’s employees are based.
Previous wording
Our ability to raise additional funding, sell additional equity securities and improve our liquidity. We need to improve our liquidity, access alternative sources of funding and obtain additional equity capital or debt when necessary for our operations. In July 2021, we established an at-the-market equity program (“ATM”) that allowed us to sell up to $20 million of shares of our common stock from time to time. In fiscal 2024 to date, we sold zero shares of our common stock pursuant to the ATM program. The ATM program expired on June 8, 2024. We may not be able to obtain such debt funding or sell equity securities on terms that are favorable to us, or at all, particularly if our common stock is delisted from the Nasdaq Capital Market. The raising of additional debt funding by us, if required and available, would result in increased debt service obligations and could result in additional operating and financing covenants, or liens on our assets, that would restrict our operations. The sale of additional equity securities, if required and available, could result in dilution to our stockholders.
Current wording
Our ability to raise additional debt funding, sell additional equity securities and improve our liquidity. We need to improve our liquidity, access alternative sources of funding and obtain additional equity capital or debt when necessary for our operations. However, we may not be able to obtain such debt funding or sell equity securities on terms that are favorable to us, or at all. The raising of additional debt funding by us, if required and available, would result in increased debt service obligations and could result in additional operating and financing covenants, or liens on our assets, that would restrict our operations. The sale of additional equity securities, if required and available, could result in dilution to our stockholders.
Previous wording
General economic conditions and geographic concentration. Many countries including the United States and the European Union (the “E.U.”) members have instituted, or have announced plans to institute, government regulations and programs designed to encourage or mandate increased energy efficiency in lighting. These actions include in certain cases banning the sale after specified dates of certain forms of incandescent lighting, which are advancing the adoption of more energy efficient lighting solutions such as LEDs. When the global economy slows or a financial crisis occurs, consumer and government confidence declines, with levels of government grants and subsidies for LED adoption and consumer spending likely to be adversely impacted. Our revenues have been concentrated in a few select markets, including the Netherlands, Taiwan, the United States, Germany, and Japan. Given that we are operating in a rapidly changing industry, our sales in specific markets may fluctuate from quarter to quarter. Therefore, our financial results will be impacted by general economic and political conditions in such markets. For example, the aggressive support by the Chinese government for the LED industry through significant government incentives and subsidies to encourage the use of LED lighting and to establish the LED‑sector companies has resulted in production overcapacity in the market and intense competition. Furthermore, due to Chinese package manufacturers increasing usage of domestic LED chips, prices are increasingly competitive, leading to Chinese manufacturers growing market share in the global LED industry. In addition, we have historically derived a significant portion of our revenues from a limited number of customers. Some of our largest customers and what we produce/have produced for them have changed from quarter to quarter primarily as a result of the timing of discrete, large project‑based purchases and broadening customer base, among other things. For the three and nine months ended May 31, 2024, sales to our three largest customers, in the aggregate, accounted for 79% and 65% of our revenues, respectively.
Current wording
General economic conditions and geographic concentration. Many countries including the United States and the European Union (the “E.U.”) members have instituted, or have announced plans to institute, government regulations and programs designed to encourage or mandate increased energy efficiency in lighting. These actions include in certain cases banning the sale after specified dates of certain forms of incandescent lighting, which are advancing the adoption of more energy efficient lighting solutions such as LEDs. When the global economy slows or a financial crisis occurs, consumer and government confidence declines, with levels of government grants and subsidies for LED adoption and consumer spending likely to be adversely impacted. Our revenues have been concentrated in a few select markets, including the United States, Japan, Taiwan, Germany, and the Netherlands. Given that we are operating in a rapidly changing industry, our sales in specific markets may fluctuate from quarter to quarter. Therefore, our financial results will be impacted by general economic and political conditions in such markets. For example, the aggressive support by the Chinese government for the LED industry through significant government incentives and subsidies to encourage the use of LED lighting and to establish the LED‑sector companies has resulted in production overcapacity in the market and intense competition. Furthermore, due to Chinese package manufacturers increasing usage of domestic LED chips, prices are increasingly competitive, leading to Chinese manufacturers growing market share in the global LED industry. In addition, we have historically derived a significant portion of our revenues from a limited number of customers. Some of our largest customers and what we produce/have produced for them have changed from quarter to quarter primarily as a result of the timing of discrete, large project‑based purchases and broadening customer base, among other things. For the three months ended November 30, 2024 and 2023, sales to our three largest customers, in the aggregate, accounted for 78% and 72% of our revenues, respectively.
Previous wording
Cash position. Our cash and cash equivalents decreased to $1.7 cash and cash equivalents were million as of May 31, 2024 from $3.0 million as of May 31, 2023. We have implemented actions to accelerate operating cost reductions and improve operational efficiencies. The plan is further enhanced through the fabless business model in which we implemented certain workforce reductions and are exploring the opportunities to sell certain equipment related to the manufacturing of vertical LED chips, in order to reduce the idle capacity charges and minimize our research and development activities associated with chips manufacturing operation. Based on our current financial projections and assuming our outstanding notes are converted or extended, we believe that we will have sufficient sources of liquidity to fund our operations and capital expenditure plans for the next 12 months.
Current wording
Cash position. Our cash and cash equivalents were $1.2 million and $1.7 million for November 30, 2024 and August 31, 2024, respectively. We have implemented actions to accelerate operating cost reductions and improve operational efficiencies. The plan is further enhanced through the fabless business model in which we implemented certain workforce reductions and are exploring the opportunities to sell certain equipment related to the manufacturing of vertical LED chips, in order to reduce the idle capacity charges and minimize our research and development activities associated with chips manufacturing operation. Based on our current financial projections and assuming our outstanding notes are converted or extended, we believe that we will have sufficient sources of liquidity to fund our operations and capital expenditure plans for the next 12 months.
Previous wording
The allowance for doubtful accounts is based on management’s assessment of the collectability of customer accounts. Management regularly reviews the allowance by considering certain factors such as historical experience, industry data, credit quality, age of accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. No bad debt expenses were recognized during the three and nine months ended May 31, 2024 and 2023.
Current wording
The allowance for doubtful accounts is based on management’s assessment of the collectability of customer accounts. Management regularly reviews the allowance by considering certain factors such as historical experience, industry data, credit quality, age of accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. No bad debt expenses were recognized during the three months ended November 30, 2024 and 2023.
Previous wording
The Company writes down excess and obsolete inventory to its estimated net realizable value. The net realized value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and disposal. The estimation of net realized value is based on current market conditions and historical experience with product sales of similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value. For finished goods and work in process, if the estimated net realizable value for an inventory item, which is the estimated selling price in the ordinary course of business, less reasonably predicable costs to completion and disposal, is lower than its cost, the specific inventory item is written down to its estimated net realizable value. Net realizable value for raw materials is based on replacement cost. Provisions for inventory write downs are included in cost of revenues in the consolidated statements of operations. Once written down, inventories are carried at this lower cost basis until sold or scrapped. Inventory write‑downs to estimated net realizable values were $119 thousand and $97 thousand for the three months ended May 31, 2024 and 2023, respectively. Inventory write‑downs to estimated net realizable values were $300 thousand and $471 thousand for the nine months ended May 31, 2024 and 2023, respectively.
Current wording
The Company writes down excess and obsolete inventory to its estimated net realizable value. The net realized value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and disposal. The estimation of net realized value is based on current market conditions and historical experience with product sales of similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value. For finished goods and work in process, if the estimated net realizable value for an inventory item, which is the estimated selling price in the ordinary course of business, less reasonably predicable costs to completion and disposal, is lower than its cost, the specific inventory item is written down to its estimated net realizable value. Net realizable value for raw materials is based on replacement cost. Provisions for inventory write downs are included in cost of revenues in the consolidated statements of operations. Once written down, inventories are carried at this lower cost basis until sold or scrapped. Inventory write‑downs to estimated net realizable values were $96 thousand and $104 thousand for the three months ended November 30, 2024 and 2023, respectively.
Previous wording
The translations from NT dollars to U.S. dollars were made at the exchange rates as set forth in the statistical release of the Bank of Taiwan. On May 31, 2024, the exchange rate was 32.4 NT dollars to one U.S. dollar. On July 1, 2024, the exchange rate was 32.55 NT dollars to one U.S. dollar.
Current wording
The translations from NT dollars to U.S. dollars were made at the exchange rates set forth in the statistical release of the Bank of Taiwan. On November 29, 2024, the exchange rate was 32.47 NT dollars to one U.S. dollar. On January 6, 2024, the exchange rate was 30.87 NT dollars to one U.S. dollar.
Previous wording
(1) Other revenues includes primarily revenues attributable to the sale of epitaxial wafers, scraps and raw materials, the provision of services and a joint development project with CrayoNano AS.
Current wording
(1)Other includes primarily revenues attributable to the sale of epitaxial wafers, scraps and raw materials and the provision of services and a joint development project with CrayoNano AS.
Previous wording
Our revenues decreased by 21% to $1.3 million for the three months ended May 31, 2024 from $1.7 million for the three months ended May 31, 2023. The decrease in revenues was driven primarily by a $560 thousand decrease in sales of LED components, a $2 thousand decrease in sales of LED chips and a $24 thousand decrease in lighting products, offset in part by a $230 thousand increase in other revenues.
Current wording
Our revenues decreased by 24% to $1.3 million for the three months ended November 30, 2024 from $1.6 million for the three months ended November 30, 2023. The decrease in revenues was driven primarily by a $514 thousand decrease in LED components, offset by a $108 thousand increase in other operating revenues, a $10 thousand increase in lighting products and a $7 thousand increase in LED chips.
Previous wording
Revenues attributable to the sales of our LED components were $2.1 million and $2.3 million, representing 56% and 51% of our revenues for the nine months ended May 31, 2024 and 2023, respectively. The decrease in sales of LED components was primarily due to less volumes sold.
Current wording
Revenues attributable to the sales of our LED components were $561 thousand and $1,075 thousand, representing 44% and 65% of our revenues for the three months ended November 30, 2024 and 2023, respectively. The decrease in sales of LED components was primarily due to less volumes sold.
Previous wording
Revenues attributable to other revenues represented 53% and 28% of our revenues for the three months ended May 31, 2024 and 2023, respectively. The increase in revenues attributable to other revenues was primarily due to the provision of service and the sale of raw materials.
Current wording
Revenues attributable to other operating revenues were $576 thousand and $468 thousand, representing 46% and 28% of our revenues for the three months ended November 30, 2024 and 2023, respectively. The increase in other revenues was primarily due to the provision of services and the sale of raw materials.
Previous wording
We have adopted a strategy to adjust our product mix by exiting certain high volume but low unit selling price product lines in response to the general trend of lower average selling prices for products that have been available in the market for some time and to focus on profitable products.
Current wording
We have adopted a strategy to adjust our product mix by exiting certain high volume but low unit selling price product lines in response to the general trend of lower average selling prices for products that have been available in the market for some time and to focus on the profitable products.
Previous wording
Our cost of revenues decreased by 17% from $3.6 million for the nine months ended May 31, 2023 to $3 million for the nine months ended May 31, 2024. The decrease in cost of revenues was primarily due to the decrease in the volume of products sold.
Current wording
Our cost of revenues decreased by 29% from $1.4 million for the three months ended November 30, 2023 to $1.0 million for the three months ended November 30, 2024. The decrease in cost of revenues was primarily due to lower volumes sold for LED components.
Previous wording
Our gross profit decreased from $966 thousand for the nine months ended May 31, 2023 to $900 thousand for the nine months ended May 31, 2024. Our gross margin percentage was 23% for the nine months ended May 31, 2024, as compared to 21% for the nine months ended May 31, 2023 as a consequence of an increase in the sales of products with higher margins.
Current wording
Our gross profit increased from $245 thousand for the three months ended November 30, 2023 to $260 thousand for the three months ended November 30, 2024. Our gross margin percentage was 21% for the three months ended November 30, 2024, as compared to 15% for the three months ended November 30, 2023 as a result of an increase in other revenues.
Previous wording
Research and development Our research and development expenses were $320 thousand and $372 thousand for the three months ended May 31, 2024 and 2023, respectively. The decrease was primary due to a $38 thousand decrease in payroll and compensation and a $14 thousand decrease in materials and supplies.
Current wording
Research and development. Our research and development expenses were $221 thousand and $372 thousand for the three months ended November 30, 2024 and 2023, respectively. The decrease was primarily due to a $101 thousand decrease in materials and supplies and a $41 thousand decrease in payroll expense.
Previous wording
Selling, general and administrative Our selling, general and administrative expenses were $2.1 million and $2.3 million for nine months ended May 31, 2024 and May 31, 2023. The slight decrease was mainly attributable to a $67 thousand decrease in payroll and compensation, a $16 thousand decrease in bank charges, a $15 thousand decrease in insurance expenses, a $9 thousand decrease in repair and maintenance expense and a $7 thousand decrease in employee benefit.
Current wording
Selling, general and administrative. Our selling, general and administrative expenses were $696 thousand and $742 thousand for the three months ended November 30, 2024 and 2023, respectively. The decrease was mainly due to a $33 thousand decrease in payroll expense, a $7 thousand decrease in entertainment expense and a $6 thousand decrease in travel expense.
Previous wording
We recognized a net gain of $50 thousand and zero on the disposal of long-lived assets for the nine months ended May 31, 2024 and 2023, respectively. Due to the excess capacity charges that we have suffered for the last few years, and considering the risk of technological obsolescence and according to the production plan built based on our sales forecast, we disposed of certain of our idle equipment.
Current wording
Gain on disposals of long-lived assets. We recognized zero and a $50 thousand gain on disposals of long-lived assets for the three months ended November 30, 2024 and 2023, respectively. Due to the excess capacity charges that we have suffered for many years, and considering the risk of technological obsolescence and according to the production plan built based on our sales forecast, we disposed of certain of our idle equipment during the three months ended November 30, 2023.
Previous wording
Investment loss from unconsolidated entities Investment loss from unconsolidated entities, net increased from zero for the three months ended May 31, 2023 to $3 thousand for the three months ended May 31, 2024, primarily due to the decrease in equity method investments.
Current wording
Investment (loss) income from unconsolidated entities. We recognized an investment loss from unconsolidated entities of $3 thousand for the three month ended November 30, 2024 and an investment income from unconsolidated entities of $8 thousand for the three months ended November 30, 2023, primarily due to the loss in equity method investments.
Previous wording
Interest expenses, net Interest expenses, net primarily consisted of accrued interest payment on $2.4 million of loans with our Chairman and Chief Executive Officer and our largest shareholder. The decrease in interest expenses, net was primarily due to decrease in interest expense for the three months ended May 31, 2024.
Current wording
Interest expenses, net. Interest expenses, net primarily consisted of accrued interest on $2.4 million of loans with our Chairman and Chief Executive Officer and our largest shareholder. The decrease in interest expenses, net was primarily due to the repayment $800,000 of loan principal in fiscal year 2024.
Previous wording
Other income, net Other income, net which primarily consisted of rental income, was $277 thousand and $295 thousand for the three months ended May 31, 2024 and May 31, 2023, respectively.
Current wording
Other income, net. Other income, net which primarily consisted of rental income, was $282 thousand and $259 thousand for the three months ended November 30, 2024 and 2023, respectively. The increase in other income, net was primarily due to the increase of rental income.
Previous wording
Foreign currency transaction loss, net We recognized a net foreign currency transaction loss of $59 thousand and $3 thousand for the three months ended May 31, 2024 and 2023, respectively, primarily due to the impact of a lower exchange rate of the U.S. dollar against the NT dollar from bank deposits and accounts payables.
Current wording
Foreign currency transaction (loss) gain, net. We recognized a net foreign currency transaction loss of $102 thousand and a net foreign currency transaction gain of $44 thousand for the three months ended November 30, 2024 and 2023, respectively, primarily due to the impact of fluctuations in the exchange rate of the U.S. dollar against the NT dollar from bank deposits and accounts receivable.
Previous wording
Our effective tax rate is expected to be approximately zero for fiscal 2024, consistent with 2023, since Taiwan SemiLEDs has incurred losses, and because we provided a full valuation allowance on all deferred tax assets, which consisted primarily of net operating loss carryforwards and foreign investment loss.
Current wording
Income Tax Expense. Our effective tax rate is expected to be approximately zero for both fiscal year 2025 and 2024, since Taiwan SemiLEDs incurred losses, and because we provided a full valuation allowance on all deferred tax assets, which consisted primarily of net operating loss carryforwards and foreign investment loss.
Previous wording
We recognized net income attributable to non-controlling interests of $3 and zero for the three months ended May 31, 2024 and 2023, respectively, which was attributable to the share of the net gain (loss) of Taiwan Bandaoti Zhaoming Co., Ltd held by the remaining non-controlling holders. Non-controlling interests represented 2.63% equity interest in Taiwan Bandaoti Zhaoming Co., Ltd., for both May 31, 2024 and 2023.
Current wording
We recognized zero and net income attributable to non-controlling interests of $2 thousand for the three months ended November 30, 2024 and 2023, respectively, which was attributable to the share of the net income of Taiwan Bandaoti Zhaoming Co., Ltd., held by the remaining non-controlling holders. Non-controlling interests represented zero and 2.63% equity interest in Taiwan Bandaoti Zhaoming Co., Ltd., as of November 30, 2024 and 2023, respectively.
Previous wording
We have several operating leases with third parties, primarily for land, plant and office spaces in Taiwan, including cancellable and noncancelable leases that expire at various dates between December 2024 and December 2040. See Note 5, “Commitments and Contingencies” in the notes to our unaudited consolidated financial statements in this Quarterly Report.
Current wording
We have several operating leases with third parties, primarily for land, plant and office spaces in Taiwan, including cancellable and noncancelable leases that, as of November 30, 2024, expire at various dates between December 2024 and December 2040. See Note 5, "Commitments and Contingencies" in the notes to our unaudited consolidated financial statements in this Form 10-Q.
Previous wording
As of May 31, 2024 and August 31, 2023, we had cash and cash equivalents of $1.7 million and $2.6 million, respectively, which were predominately held in U.S. dollar denominated demand deposits and/or money market funds.
Current wording
As of November 30, 2024 and August 31, 2024, we had cash and cash equivalents of $1.2 million and $1.7 million, respectively, which were predominately held in U.S. dollar denominated demand deposits and/or money market funds. We require cash to fund our operating expenses, working capital requirements and service our debts, including principal and interest.
Previous wording
Our long-term debt, which consisted of NT dollar denominated long-term notes, convertible unsecured promissory notes, and loans from our Chairman and our largest shareholder, totaled $4.0 million and $6.4 million as of May 31, 2024 and August 31, 2023, respectively. In January 2024, the convertible unsecured promissory notes were all converted.
Current wording
Our long-term debt, which consisted of NT dollar denominated long-term notes, convertible unsecured promissory notes, and loans from our Chairman and our largest shareholder, totaled $3.6 million and $3.7 million as of November 30, 2024 and August 31, 2024, respectively.
Previous wording
Our NT dollar denominated long-term notes, totaled $1.4 million as of May 31, 2024 and $1.8 million as of August 31, 2023. These long-term notes consisted of two loans which we entered into on July 5, 2019, with aggregate amounts of $3.2 million (NT$100 million). The first loan originally for $2.0 million (NT$62 million) has an annual floating interest rate equal to the NTD base lending rate plus 0.64% (or 2.29% currently), and was exclusively used to repay the existing loans. The second loan originally for $1.2 million (NT$38 million) has an annual floating interest rate equal to the NTD base lending rate plus 1.02% (or 2.67% currently) and was used for operating capital. These loans are secured by a $77 thousand (NT$2.5 million) security deposit and a first priority security interest on the Company’s headquarters building.
Current wording
Our NT dollar denominated long-term notes, totaled $1.2 million and $1.3 million as of November 30, 2024 and August 31, 2024, respectively. These long-term notes consisted of two loans which we entered into on July 5, 2019, with aggregate amounts of $3.2 million (NT$100 million). The first loan originally for $2.0 million (NT$62 million) has an annual floating interest rate equal to the NTD base lending rate plus 0.64% (or 2.415% currently), and was exclusively used to repay the existing loans. The second loan originally for $1.2 million (NT$38 million) has an annual floating interest rate equal to the NTD base lending rate plus 1.02% (or 2.795% currently) and is available for operating capital. These loans are secured by an $77 thousand (NT$2.5 million) security deposit and a first priority security interest on the Company’s headquarters building.
Previous wording
Starting from May 2021, the first note payable requires monthly payments of principal in the amount of $23 thousand plus interest over the 74-month term of the note with final payment to occur in July 2027 and, as of May 31, 2024, our outstanding balance on this note payable was approximately $879 thousand.
Current wording
Starting from May 2021, the first note payable requires monthly payments of principal in the amount of $23 thousand plus interest over the 74-month term of the note with final payment to occur in July 2027 and, as of November 30, 2024, our outstanding balance on this note payable was approximately $738 thousand.
Previous wording
Starting from May 2021, the second note payable requires monthly payments of principal in the amount of $14 thousand plus interest over the 74-month term of the note with final payment to occur in July 2027 and, as of May 31, 2024, our outstanding balance on this note payable was approximately $538 thousand.
Current wording
Starting from May 2021, the second note payable requires monthly payments of principal in the amount of $14 thousand plus interest over the 74-month term of the note with final payment to occur in July 2027 and, as of November 30, 2024, our outstanding balance on this note payable was approximately $452 thousand.
Previous wording
Property, plant and equipment pledged as collateral for our notes payable were $2.1 million and $2.3 million as of May 31, 2024 and August 31, 2023, respectively.
Current wording
Property, plant and equipment pledged as collateral for our notes payable were $1.9 million and $2.0 million as of November 30, 2024 and August 31, 2024, respectively.
Previous wording
On January 8, 2019, the Company entered into loan agreements with each of the Chairman and Chief Executive Officer and the largest shareholder of the Company, with aggregate amounts of $1.7 million and $1.5 million, respectively, and an annual interest rate of 8%. All proceeds of the loans were exclusively used to return the deposit to Formosa Epitaxy Incorporation in connection with the proposed sale of the Company's headquarters building pursuant to the agreement dated December 15, 2015. The Company were initially required to repay the loans of $1.5 million on January 14, 2021 and $1.7 million on January 22, 2021, respectively. On January 16, 2021, the maturity date of these loans was extended with same terms and interest rate for one year to January 15, 2022, and on January 14, 2022, the maturity date of these loans was extended again with same terms and interest rate for one more year to January 15, 2023. On January 13, 2023, the maturity date of these loans was further extended with same terms and interest rate for one year to January 15, 2024.
Current wording
On January 8, 2019, we entered into loan agreements with each of the Chairman and Chief Executive Officer and the largest shareholder of the Company, with aggregate amounts of $1.7 million and $1.5 million, respectively, and an annual interest rate of 8%. All proceeds of the loans were exclusively used to return the deposit to Formosa Epitaxy Incorporation in connection with the proposed sale of our headquarters building pursuant to the agreement dated December 15, 2015. We were initially required to repay the loans of $1.5 million on January 14, 2021 and $1.7 million on January 22, 2021, respectively. On January 16, 2021, the maturity date of these loans was extended with same terms and interest rate for one year to January 15, 2022, and on January 14, 2022, the maturity date of these loans was extended again with same terms and interest rate for one more year to January 15, 2023. On January 13, 2023, the maturity date of these loans was further extended with same terms and interest rate for one year to January 15, 2024.
Previous wording
On January 7, 2024, J.R. Simplot Company and the Company entered into an assignment agreement pursuant to which J.R. Simplot assigned and transferred all of its right, title and interest in and to the loan agreement to Simplot Taiwan Inc., in accordance with and subject to the terms and conditions of the loan agreement.
Current wording
On January 7, 2024, J.R. Simplot Company assigned and transferred all of its right, title and interest in and to the loan agreement to Simplot Taiwan Inc., in accordance with and subject to the terms and conditions of the loan agreement.
Previous wording
On January 7, 2024, the Company entered into the Fourth Amendment to the loan agreements with each of Simplot Taiwan Inc. and Trung Doan (each, a “Fourth Amendment”).
Current wording
On January 7, 2024, we entered into the Fourth Amendment to the loan agreements with each of Simplot Taiwan Inc. and Trung Doan (each, a “Fourth Amendment”).
Previous wording
The Fourth Amendment with Simplot Taiwan Inc. (i) extends the maturity date of its loan agreement to January 15, 2025, and (ii) upon mutual agreement of the Company and Simplot Taiwan Inc., permits the Company to repay any principal amount or accrued interest, in an amount not to exceed $400,000, by issuing shares of the Company’s common stock in the name of Simplot Taiwan Inc. as partial repayment of the loan agreement at a price per share equal to the closing price of the Company’s common stock immediately preceding the business day of the payment notice date. All other terms and conditions of the loan agreement with Simplot Taiwan Inc. remained the same.
Current wording
The Fourth Amendment with Simplot Taiwan Inc. (i) extended the maturity date of its loan agreement to January 15, 2025, and (ii) upon mutual agreement of we and Simplot Taiwan Inc., permitted us to repay any principal amount or accrued interest, in an amount not to exceed $400,000, by issuing shares of our common stock in the name of Simplot Taiwan Inc. as partial repayment of the loan agreement at a price per share equal to the closing price of our common stock immediately preceding the business day of the payment notice date. All other terms and conditions of the loan agreement with Simplot Taiwan Inc. remained the same.
Previous wording
On January 7, 2024, the Company issued 305,343 shares of its common stock at a price of $1.31 per share to repay $400,000 of accrued interest on the Loan Agreement with Simplot Taiwan Inc. The shares of common stock were issued in reliance on Section 3(a)(9) of the Securities Act of 1933, as amended.
Current wording
On January 7, 2024, we issued 305,343 shares of our common stock at a price of $1.31 per share to repay $400,000 of accrued interest on the Loan Agreement with Simplot Taiwan Inc. The shares of common stock were issued in reliance on Section 3(a)(9) of the Securities Act of 1933, as amended.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net Income Attributable to Non-controlling Interests
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
Nine months Ended May 31, 2024 Compared to the Nine months Ended May 31, 2023
Previous report — wording carried elsewhere
(1) Other revenues include primarily revenues attributable to the sale of epitaxial wafers, scraps and raw materials, the provision of services and a joint development project with CrayoNano AS.
Previous report — wording carried elsewhere
Interest expenses, net Interest expenses, net primarily consisted of accrued interest payments on convertible notes, NT dollar denominated long-term notes and $2.4 million of loans with our Chairman and Chief Executive Officer and our largest shareholder. The decrease in interest expense, net was primarily due to lower outstanding debt for the nine months ended May 31, 2024.
Previous report — wording carried elsewhere
Foreign currency transaction loss, net We recognized a net foreign currency transaction loss of $47 thousand and $20 thousand for the nine months ended May 31, 2024 and 2023, respectively, primarily due to the impact of a lower exchange rate of the U.S. dollar against the NT dollar from bank deposits and accounts payables.
Previous report — wording carried elsewhere
Our effective tax rate is expected to be approximately zero for fiscal 2024, consistent with 2023, since Taiwan SemiLEDs has incurred losses, and because we provided a full valuation allowance on all deferred tax assets, which consisted primarily of net operating loss carryforwards and foreign investment loss.
Previous report — wording carried elsewhere
We recognized net income attributable to non-controlling interests of $7 thousand and net loss of $1 thousand for the nine months ended May 31, 2024 and 2023, respectively, which was attributable to the share of the net gain (loss) of Taiwan Bandaoti Zhaoming Co., Ltd held by the remaining non-controlling holders. Non-controlling interests represented 2.63% equity interest in Taiwan Bandaoti Zhaoming Co., Ltd., for both May 31, 2024 and 2023.