SemiLEDs Corp 0001333822 false --08-31 Non-accelerated Filer Q3 Estimating expected forfeitures P15Y P5Y P15Y P5Y 0001333822 2020-09-01 2021-05-31 xbrli:shares 0001333822 2021-07-06 iso4217:USD 0001333822 2021-05-31 0001333822 2020-08-31 iso4217:USD xbrli:shares 0001333822 2021-03-01 2021-05-31 0001333822 2020-03-01 2020-05-31 0001333822 2019-09-01 2020-05-31 0001333822 us-gaap:CommonStockMember 2019-08-31 0001333822 us-gaap:AdditionalPaidInCapitalMember 2019-08-31 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-31 0001333822 us-gaap:RetainedEarningsMember 2019-08-31 0001333822 us-gaap:ParentMember 2019-08-31 0001333822 us-gaap:NoncontrollingInterestMember 2019-08-31 0001333822 2019-08-31 0001333822 us-gaap:CommonStockMember 2019-09-01 2019-11-30 0001333822 us-gaap:AdditionalPaidInCapitalMember 2019-09-01 2019-11-30 0001333822 us-gaap:ParentMember 2019-09-01 2019-11-30 0001333822 2019-09-01 2019-11-30 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-01 2019-11-30 0001333822 us-gaap:NoncontrollingInterestMember 2019-09-01 2019-11-30 0001333822 us-gaap:RetainedEarningsMember 2019-09-01 2019-11-30 0001333822 us-gaap:CommonStockMember 2019-11-30 0001333822 us-gaap:AdditionalPaidInCapitalMember 2019-11-30 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-11-30 0001333822 us-gaap:RetainedEarningsMember 2019-11-30 0001333822 us-gaap:ParentMember 2019-11-30 0001333822 us-gaap:NoncontrollingInterestMember 2019-11-30 0001333822 2019-11-30 0001333822 us-gaap:CommonStockMember 2019-12-01 2020-02-29 0001333822 us-gaap:AdditionalPaidInCapitalMember 2019-12-01 2020-02-29 0001333822 us-gaap:ParentMember 2019-12-01 2020-02-29 0001333822 2019-12-01 2020-02-29 0001333822 leds:SubscribedStockMember 2019-12-01 2020-02-29 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-01 2020-02-29 0001333822 us-gaap:NoncontrollingInterestMember 2019-12-01 2020-02-29 0001333822 us-gaap:RetainedEarningsMember 2019-12-01 2020-02-29 0001333822 us-gaap:CommonStockMember 2020-02-29 0001333822 leds:SubscribedStockMember 2020-02-29 0001333822 us-gaap:AdditionalPaidInCapitalMember 2020-02-29 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-29 0001333822 us-gaap:RetainedEarningsMember 2020-02-29 0001333822 us-gaap:ParentMember 2020-02-29 0001333822 us-gaap:NoncontrollingInterestMember 2020-02-29 0001333822 2020-02-29 0001333822 us-gaap:AdditionalPaidInCapitalMember 2020-03-01 2020-05-31 0001333822 us-gaap:ParentMember 2020-03-01 2020-05-31 0001333822 us-gaap:CommonStockMember 2020-03-01 2020-05-31 0001333822 leds:SubscribedStockMember 2020-03-01 2020-05-31 0001333822 us-gaap:NoncontrollingInterestMember 2020-03-01 2020-05-31 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-01 2020-05-31 0001333822 us-gaap:RetainedEarningsMember 2020-03-01 2020-05-31 0001333822 us-gaap:CommonStockMember 2020-05-31 0001333822 us-gaap:AdditionalPaidInCapitalMember 2020-05-31 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-05-31 0001333822 us-gaap:RetainedEarningsMember 2020-05-31 0001333822 us-gaap:ParentMember 2020-05-31 0001333822 us-gaap:NoncontrollingInterestMember 2020-05-31 0001333822 2020-05-31 0001333822 us-gaap:CommonStockMember 2020-08-31 0001333822 us-gaap:AdditionalPaidInCapitalMember 2020-08-31 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-08-31 0001333822 us-gaap:RetainedEarningsMember 2020-08-31 0001333822 us-gaap:ParentMember 2020-08-31 0001333822 us-gaap:NoncontrollingInterestMember 2020-08-31 0001333822 us-gaap:AdditionalPaidInCapitalMember 2020-09-01 2020-11-30 0001333822 us-gaap:ParentMember 2020-09-01 2020-11-30 0001333822 2020-09-01 2020-11-30 0001333822 us-gaap:NoncontrollingInterestMember 2020-09-01 2020-11-30 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-01 2020-11-30 0001333822 us-gaap:RetainedEarningsMember 2020-09-01 2020-11-30 0001333822 us-gaap:CommonStockMember 2020-11-30 0001333822 us-gaap:AdditionalPaidInCapitalMember 2020-11-30 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-11-30 0001333822 us-gaap:RetainedEarningsMember 2020-11-30 0001333822 us-gaap:ParentMember 2020-11-30 0001333822 us-gaap:NoncontrollingInterestMember 2020-11-30 0001333822 2020-11-30 0001333822 us-gaap:CommonStockMember 2020-12-01 2021-02-28 0001333822 us-gaap:AdditionalPaidInCapitalMember 2020-12-01 2021-02-28 0001333822 us-gaap:ParentMember 2020-12-01 2021-02-28 0001333822 2020-12-01 2021-02-28 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-01 2021-02-28 0001333822 us-gaap:NoncontrollingInterestMember 2020-12-01 2021-02-28 0001333822 us-gaap:RetainedEarningsMember 2020-12-01 2021-02-28 0001333822 us-gaap:CommonStockMember 2021-02-28 0001333822 us-gaap:AdditionalPaidInCapitalMember 2021-02-28 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-02-28 0001333822 us-gaap:RetainedEarningsMember 2021-02-28 0001333822 us-gaap:ParentMember 2021-02-28 0001333822 us-gaap:NoncontrollingInterestMember 2021-02-28 0001333822 2021-02-28 0001333822 us-gaap:CommonStockMember 2021-03-01 2021-05-31 0001333822 us-gaap:AdditionalPaidInCapitalMember 2021-03-01 2021-05-31 0001333822 us-gaap:ParentMember 2021-03-01 2021-05-31 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-01 2021-05-31 0001333822 us-gaap:NoncontrollingInterestMember 2021-03-01 2021-05-31 0001333822 us-gaap:RetainedEarningsMember 2021-03-01 2021-05-31 0001333822 us-gaap:CommonStockMember 2021-05-31 0001333822 us-gaap:AdditionalPaidInCapitalMember 2021-05-31 0001333822 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-05-31 0001333822 us-gaap:RetainedEarningsMember 2021-05-31 0001333822 us-gaap:ParentMember 2021-05-31 0001333822 us-gaap:NoncontrollingInterestMember 2021-05-31 leds:subsidiary xbrli:pure 0001333822 leds:SemiLEDsOptoelectronicsCompanyLimitedMember leds:TaiwanBandaotiZhaomingCoLtdMember 2021-05-31 0001333822 leds:XianChangMaMember 2019-11-27 0001333822 leds:XianChangMaMember 2020-01-01 2020-01-31 0001333822 leds:XianChangMaMember 2020-01-16 2020-01-17 0001333822 2019-09-01 2020-08-31 0001333822 2018-09-01 2019-08-31 0001333822 country:US currency:USD 2021-05-31 0001333822 country:US currency:USD 2020-08-31 0001333822 country:TW currency:USD 2021-05-31 0001333822 country:TW currency:USD 2020-08-31 0001333822 country:TW currency:TWD 2021-05-31 0001333822 country:TW currency:TWD 2020-08-31 0001333822 country:TW leds:OtherCurrencyMember 2021-05-31 0001333822 country:TW leds:OtherCurrencyMember 2020-08-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2021-03-01 2021-05-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-09-01 2021-05-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-03-01 2020-05-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-09-01 2020-05-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2021-03-01 2021-05-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2020-09-01 2021-05-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2020-03-01 2020-05-31 0001333822 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2019-09-01 2020-05-31 0001333822 leds:TaiwanBandaotiZhaomingCoLtdMember 2018-09-01 2018-09-01 0001333822 leds:TaiwanBandaotiZhaomingCoLtdMember 2018-08-31 0001333822 leds:TaiwanBandaotiZhaomingCoLtdMember 2018-09-01 iso4217:TWD 0001333822 leds:TaiwanBandaotiZhaomingCoLtdMember 2018-08-31 0001333822 leds:TaiwanBandaotiZhaomingCoLtdMember 2018-09-01 0001333822 leds:TaiwanBandaotiZhaomingCoLtdMember 2021-05-31 0001333822 leds:SemiLEDsOptoelectronicsCompanyLimitedMember leds:TaiwanBandaotiZhaomingCoLtdMember 2019-01-01 2021-09-30 0001333822 us-gaap:BuildingAndBuildingImprovementsMember 2021-05-31 0001333822 us-gaap:BuildingAndBuildingImprovementsMember 2020-08-31 0001333822 us-gaap:MachineryAndEquipmentMember 2021-05-31 0001333822 us-gaap:MachineryAndEquipmentMember 2020-08-31 0001333822 us-gaap:LeaseholdImprovementsMember 2021-05-31 0001333822 us-gaap:LeaseholdImprovementsMember 2020-08-31 0001333822 us-gaap:OtherMachineryAndEquipmentMember 2021-05-31 0001333822 us-gaap:OtherMachineryAndEquipmentMember 2020-08-31 0001333822 us-gaap:ConstructionInProgressMember 2021-05-31 0001333822 us-gaap:ConstructionInProgressMember 2020-08-31 0001333822 us-gaap:IntellectualPropertyMember 2020-09-01 2021-05-31 0001333822 us-gaap:DevelopedTechnologyRightsMember 2020-09-01 2021-05-31 0001333822 us-gaap:IntellectualPropertyMember 2021-05-31 0001333822 us-gaap:DevelopedTechnologyRightsMember 2021-05-31 0001333822 us-gaap:IntellectualPropertyMember 2019-09-01 2020-08-31 0001333822 us-gaap:DevelopedTechnologyRightsMember 2019-09-01 2020-08-31 0001333822 us-gaap:IntellectualPropertyMember 2020-08-31 0001333822 us-gaap:DevelopedTechnologyRightsMember 2020-08-31 0001333822 leds:UnconsolidatedEntitiesMember 2020-09-01 2021-05-31 0001333822 srt:MinimumMember 2020-09-01 2021-05-31 0001333822 srt:MaximumMember 2020-09-01 2021-05-31 0001333822 leds:WellThriveLimitedMember 2020-09-01 2021-05-31 0001333822 leds:WellThriveLimitedMember 2021-01-05 2021-01-06 0001333822 leds:WellThriveLimitedMember 2021-04-08 2021-04-08 0001333822 leds:WellThriveLimitedMember leds:SettlementAgreementMember us-gaap:SubsequentEventMember 2021-06-22 0001333822 leds:WellThriveLimitedMember leds:SettlementAgreementMember us-gaap:SubsequentEventMember 2021-06-22 2021-06-22 0001333822 leds:XianChangMaMember 2020-01-16 2020-01-17 0001333822 leds:XianChangMaMember 2020-01-17 0001333822 leds:FengShuangZhuMember 2020-05-24 2020-05-25 0001333822 leds:FengShuangZhuMember 2020-05-25 0001333822 leds:ChairmanAndChiefExecutiveOfficerMember us-gaap:MajorityShareholderMember 2020-05-25 0001333822 leds:ChairmanAndChiefExecutiveOfficerMember us-gaap:MajorityShareholderMember 2020-05-24 2020-05-25 leds:item 0001333822 2014-04-01 2014-04-30 0001333822 2019-07-31 2019-07-31 0001333822 2020-09-25 2020-09-25 0001333822 srt:DirectorMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2020-11-01 2020-11-30 0001333822 leds:OfficerAndEmployeesMember us-gaap:RestrictedStockUnitsRSUMember 2020-11-01 2020-11-30 0001333822 leds:OfficerAndEmployeesMember us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-01-31 0001333822 srt:DirectorMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-09-01 2019-09-30 0001333822 srt:DirectorMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2019-09-01 2019-09-30 0001333822 us-gaap:CostOfSalesMember 2021-03-01 2021-05-31 0001333822 us-gaap:CostOfSalesMember 2020-03-01 2020-05-31 0001333822 us-gaap:CostOfSalesMember 2020-09-01 2021-05-31 0001333822 us-gaap:CostOfSalesMember 2019-09-01 2020-05-31 0001333822 us-gaap:ResearchAndDevelopmentExpenseMember 2021-03-01 2021-05-31 0001333822 us-gaap:ResearchAndDevelopmentExpenseMember 2020-03-01 2020-05-31 0001333822 us-gaap:ResearchAndDevelopmentExpenseMember 2020-09-01 2021-05-31 0001333822 us-gaap:ResearchAndDevelopmentExpenseMember 2019-09-01 2020-05-31 0001333822 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-03-01 2021-05-31 0001333822 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-03-01 2020-05-31 0001333822 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-09-01 2021-05-31 0001333822 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-09-01 2020-05-31 0001333822 leds:StockUnitsAndStockOptionsToPurchaseCommonStockMember 2021-03-01 2021-05-31 0001333822 leds:StockUnitsAndStockOptionsToPurchaseCommonStockMember 2020-09-01 2021-05-31 0001333822 leds:StockUnitsAndStockOptionsToPurchaseCommonStockMember 2019-09-01 2020-05-31 0001333822 2016-09-01 2017-08-31 0001333822 us-gaap:EarliestTaxYearMember 2020-09-01 2021-05-31 0001333822 us-gaap:LatestTaxYearMember 2020-09-01 2021-05-31 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember us-gaap:MajorityShareholderMember 2019-12-06 2019-12-06 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember srt:ChiefExecutiveOfficerMember 2019-12-10 2019-12-10 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember us-gaap:MajorityShareholderMember 2019-12-10 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember srt:ChiefExecutiveOfficerMember 2019-12-10 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember leds:ChairmanAndChiefExecutiveOfficerAndLargestShareholderMember 2020-09-01 2021-05-31 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember leds:ChairmanAndChiefExecutiveOfficerAndLargestShareholderMember 2021-05-26 2021-05-26 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember leds:ChairmanAndChiefExecutiveOfficerAndLargestShareholderMember 2021-05-31 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember us-gaap:MajorityShareholderMember 2020-05-24 2020-05-25 0001333822 leds:UnsecuredConvertiblePromissoryNotesPayableMember srt:ChiefExecutiveOfficerMember 2020-05-24 2020-05-25 0001333822 srt:ChiefExecutiveOfficerMember 2019-01-08 0001333822 srt:ChiefExecutiveOfficerMember 2019-01-08 2019-01-08 0001333822 leds:LargestShareholderMember 2019-01-08 0001333822 leds:LargestShareholderMember 2019-01-08 2019-01-08 0001333822 srt:ScenarioForecastMember leds:LargestShareholderMember 2022-01-15 2022-01-15 0001333822 srt:ScenarioForecastMember srt:ChiefExecutiveOfficerMember 2022-01-15 2022-01-15 0001333822 leds:ChairmanAndChiefExecutiveOfficerAndLargestShareholderMember 2021-05-31 0001333822 leds:ChairmanAndChiefExecutiveOfficerAndLargestShareholderMember 2020-08-31 0001333822 leds:RothCapitalPartnersLLPMember leds:SalesAgreementMember us-gaap:SubsequentEventMember srt:MaximumMember 2021-07-05 2021-07-06 0001333822 leds:RothCapitalPartnersLLPMember leds:SalesAgreementMember us-gaap:SubsequentEventMember 2021-07-05 2021-07-06

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2021

or

TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission File Number: 001-34992

SemiLEDs Corporation

(Exact name of registrant as specified in its charter)

 

Delaware

 

20-2735523

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification Number)

 

3F, No. 11 Ke Jung Rd., Chu-Nan Site,

 

 

Hsinchu Science Park, Chu-Nan 350,

 

 

Miao-Li County, Taiwan, R.O.C.

 

350

(Address of principal executive offices)

 

(Zip Code)

+886-37-586788
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.0000056

 

LEDS

 

The Nasdaq Stock Market

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes    No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 4,104,188 shares of common stock, par value $0.0000056 per share, outstanding as of July 6, 2021.

 


Table of Contents

 

 

SEMILEDS CORPORATION

FORM 10-Q for the Quarter Ended May 31, 2021

INDEX

 

 

 

Page No.

 

 

 

 

Part I. Financial Information

 

 

 

 

Item 1.

Financial Statements

1

 

 

 

 

Unaudited Condensed Consolidated Balance Sheets as of May 31, 2021 and August 31, 2020

1

 

 

 

 

Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2021 and 2020

2

 

 

 

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended May 31, 2021 and 2020

3

 

 

 

 

Unaudited Condensed Consolidated Statement of Changes in Equity for the three and nine months ended May 31, 2021 and 2020

4

 

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended May 31, 2021 and 2020

5

 

 

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

16

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29

 

 

 

Item 4.

Controls and Procedures

29

 

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

30

 

 

 

Item 1A.

Risk Factors

30

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

32

 

 

 

Item 3.

Defaults Upon Senior Securities

32

 

 

 

Item 4.

Mine Safety Disclosures

32

 

 

 

Item 5.

Other Information

32

 

 

 

Item 6.

Exhibits

33

 

 

 

Signatures

34

 

 

 


Table of Contents

 

 

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

SEMILEDS CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars and shares, except par value)

 

 

 

May 31,

 

 

August 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,666

 

 

$

2,832

 

Restricted cash and cash equivalents

 

 

90

 

 

 

85

 

Accounts receivable (including related parties), net of allowance for doubtful accounts of $200 and $187 as of May 31, 2021 and August 31, 2020, respectively

 

 

1,067

 

 

 

1,331

 

Inventories

 

 

3,618

 

 

 

2,476

 

Prepaid expenses and other current assets

 

 

744

 

 

 

781

 

Total current assets

 

 

7,185

 

 

 

7,505

 

Property, plant and equipment, net

 

 

5,462

 

 

 

5,645

 

Operating lease right of use assets

 

 

1,676

 

 

 

203

 

Intangible assets, net

 

 

130

 

 

 

89

 

Investments in unconsolidated entities

 

 

1,015

 

 

 

952

 

Other assets

 

 

169

 

 

 

186

 

TOTAL ASSETS

 

$

15,637

 

 

$

14,580

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current installments of long-term debt

 

$

5,125

 

 

$

4,750

 

Accounts payable

 

 

530

 

 

 

536

 

Advance receipt toward convertible note

 

 

500

 

 

 

500

 

Accrued expenses and other current liabilities

 

 

2,836

 

 

 

2,654

 

Other payable to related parties

 

 

688

 

 

 

460

 

Operating lease liabilities, current

 

 

114

 

 

 

97

 

Total current liabilities

 

 

9,793

 

 

 

8,997

 

Long-term debt, excluding current installments

 

 

2,710

 

 

 

2,909

 

Operating lease liabilities, less current portion

 

 

1,562

 

 

 

106

 

Total liabilities

 

 

14,065

 

 

 

12,012

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

 

 

SemiLEDs stockholders’ equity

 

 

 

 

 

 

 

 

Common stock, $0.0000056 par value—7,500 shares authorized; 4,069 shares and 4,011 shares issued and outstanding as of May 31, 2021 and August 31, 2020, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

177,361

 

 

 

177,235

 

Accumulated other comprehensive income

 

 

3,543

 

 

 

3,647

 

Accumulated deficit

 

 

(179,376

)

 

 

(178,360

)

Total SemiLEDs stockholders' equity

 

 

1,528

 

 

 

2,522

 

Noncontrolling interests

 

 

44

 

 

 

46

 

Total equity

 

 

1,572

 

 

 

2,568

 

TOTAL LIABILITIES AND EQUITY

 

$

15,637

 

 

$

14,580

 

 

See notes to unaudited condensed consolidated financial statements.

1


Table of Contents

 

SEMILEDS CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(In thousands of U.S. dollars and shares, except per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

May 31, 2021

 

 

May 31, 2020

 

 

May 31, 2021

 

 

May 31, 2020

 

Revenues, net

 

$

1,439

 

 

$

1,569

 

 

$

3,364

 

 

$

4,669

 

Cost of revenues

 

 

775

 

 

 

1,153

 

 

 

2,481

 

 

 

3,187

 

Gross profit

 

 

664

 

 

 

416

 

 

 

883

 

 

 

1,482

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

528

 

 

 

375

 

 

 

1,162

 

 

 

1,112

 

Selling, general and administrative

 

 

730

 

 

 

782

 

 

 

2,078

 

 

 

2,141

 

Gain on disposals of long-lived assets, net

 

 

(2

)

 

 

 

 

 

(286

)

 

 

(79

)

Total operating expenses

 

 

1,256

 

 

 

1,157

 

 

 

2,954

 

 

 

3,174

 

Loss from operations

 

 

(592

)

 

 

(741

)

 

 

(2,071

)

 

 

(1,692

)

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on disposal of investment

 

 

 

 

 

 

 

 

 

 

 

634

 

Interest expenses, net

 

 

(94

)

 

 

(95

)

 

 

(278

)

 

 

(273

)

Other income, net

 

 

474

 

 

 

270

 

 

 

951

 

 

 

594

 

Foreign currency transaction gain, net

 

 

155

 

 

 

57

 

 

 

380

 

 

 

256

 

Total other income, net

 

 

535

 

 

 

232

 

 

 

1,053

 

 

 

1,211

 

Loss before income taxes

 

 

(57

)

 

 

(509

)

 

 

(1,018

)

 

 

(481

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(57

)

 

 

(509

)

 

 

(1,018

)

 

 

(481

)

Less: Net (loss) income attributable to noncontrolling interests

 

 

7

 

 

 

4

 

 

 

(2

)

 

 

1

 

Net loss attributable to SemiLEDs stockholders

 

$

(64

)

 

$

(513

)

 

$

(1,016

)

 

$

(482

)

Net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.02

)

 

$

(0.14

)

 

$

(0.25

)

 

$

(0.13

)

Shares used in computing net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

4,060

 

 

 

3,738

 

 

 

4,036

 

 

 

3,806

 

 

See notes to unaudited condensed consolidated financial statements.

2


Table of Contents

 

SEMILEDS CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(In thousands of U.S. dollars)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

May 31, 2021

 

 

May 31, 2020

 

 

May 31, 2021

 

 

May 31, 2020

 

Net loss

 

$

(57

)

 

$

(509

)

 

$

(1,018

)

 

$

(481

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments, net of tax of $0 for all periods presented

 

 

(41

)

 

 

(9

)

 

 

(101

)

 

 

(84

)

Comprehensive loss

 

$

(98

)

 

$

(518

)

 

$

(1,119

)

 

$

(565

)

Comprehensive loss attributable to noncontrolling interests

 

$

8

 

 

$

4

 

 

$

1

 

 

$

3

 

Comprehensive loss attributable to SemiLEDs stockholders

 

$

(106

)

 

$

(522

)

 

$

(1,120

)

 

$

(568

)

 

See notes to unaudited condensed consolidated financial statements.

 

3


Table of Contents

 

 

SEMILEDS CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Changes in Equity

(In thousands of U.S. dollars and shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

SemiLEDs

 

 

Non-

 

 

 

 

 

 

Common Stock

 

 

Subscribed

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Shareholders'

 

 

Controlling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Stock

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

BALANCE—September 1, 2019

 

 

3,594

 

 

$

 

 

$

 

 

$

175,804

 

 

$

3,753

 

 

$

(177,816

)

 

$

1,741

 

 

$

47

 

 

$

1,788

 

Issuance of common stock under equity incentive plans

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

 

35

 

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24

)

 

 

 

 

 

(24

)

 

 

1

 

 

 

(23

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(317

)

 

 

(317

)

 

 

(5

)

 

 

(322

)

BALANCE—November 30, 2019

 

 

3,595

 

 

 

 

 

 

 

 

 

175,839

 

 

 

3,729

 

 

 

(178,133

)

 

 

1,435

 

 

 

43

 

 

 

1,478

 

Issuance of common stock under equity incentive plans

 

 

28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Issuance of common stock for private placement

 

 

 

 

 

 

 

 

600

 

 

 

 

 

 

 

 

 

 

 

 

600

 

 

 

 

 

 

600

 

Issuance of convertible notes

 

 

 

 

 

 

 

 

 

 

 

39

 

 

 

 

 

 

 

 

 

39

 

 

 

 

 

 

39

 

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(53

)

 

 

 

 

 

(53

)

 

 

1

 

 

 

(52

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

348

 

 

 

348

 

 

 

2

 

 

 

350

 

BALANCE—February 29, 2020

 

 

3,623

 

 

 

 

 

 

600

 

 

 

175,902

 

 

 

3,676

 

 

 

(177,785

)

 

 

2,393

 

 

 

46

 

 

 

2,439

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

21

 

 

 

 

 

 

21

 

Issuance of common stock for private placement

 

 

183

 

 

 

 

 

 

(600

)

 

 

700

 

 

 

 

 

 

 

 

 

100

 

 

 

 

 

 

100

 

Conversion of notes into common stocks

 

 

200

 

 

 

 

 

 

 

 

 

592

 

 

 

 

 

 

 

 

 

592

 

 

 

 

 

 

592

 

Change ownership in SBDI*

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

 

 

(2

)

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

 

 

 

(9

)

 

 

 

 

 

(9

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(513

)

 

 

(513

)

 

 

4

 

 

 

(509

)

BALANCE—May 31, 2020

 

 

4,006

 

 

$

 

 

$

 

 

$

177,214

 

 

$

3,667

 

 

$

(178,298

)

 

$

2,583

 

 

$

49

 

 

$

2,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

SemiLEDs

 

 

Non-

 

 

 

 

 

 

Common Stock

 

 

Subscribed

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Shareholders'

 

 

Controlling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Stock

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

BALANCE—September 1, 2020

 

 

4,011

 

 

$

 

 

$

 

 

$

177,235

 

 

$

3,647

 

 

$

(178,360

)

 

$

2,522

 

 

$

46

 

 

$

2,568

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

21

 

 

 

 

 

 

21

 

Change ownership in SBDI*

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

 

 

 

 

 

 

(9

)

 

 

(3

)

 

 

(12

)

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(29

)

 

 

 

 

 

(29

)

 

 

1

 

 

 

(28

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(697

)

 

 

(697

)

 

 

(10

)

 

 

(707

)

BALANCE—November 30, 2020

 

 

4,011

 

 

 

 

 

 

 

 

 

177,247

 

 

 

3,618

 

 

 

(179,057

)

 

 

1,808

 

 

 

34

 

 

 

1,842

 

Issuance of common stock under equity incentive plans

 

 

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

66

 

 

 

 

 

 

 

 

 

66

 

 

 

 

 

 

66

 

Comprehensive income (loss):