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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, 2023

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: 4,915,282 shares of common stock, par value $0.0000056 per share, outstanding as of June 30, 2023.

 


Table of Contents

 

SEMILEDS CORPORATION

FORM 10-Q for the Quarter Ended May 31, 2023

INDEX

Page No.

 

Part I. Financial Information

 

 

Item 1.

Financial Statements

1

 

 

 

Unaudited Condensed Consolidated Balance Sheets as of May 31, 2023 and August 31, 2022

1

 

 

 

Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2023 and 2022

 

2

 

 

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended May 31, 2023 and 2022

3

 

 

 

Unaudited Condensed Consolidated Statement of Changes in Equity for the three and nine months ended May 31, 2023 and 2022

4

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended May 31, 2023 and 2022

5

 

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

 

Item 2.

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

17

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

 

Item 4.

Controls and Procedures

31

 

Part II. Other Information

 

 

Item 1.

Legal Proceedings

32

 

 

Item 1A.

Risk Factors

32

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

33

 

Item 3.

Defaults Upon Senior Securities

33

 

Item 4.

Mine Safety Disclosures

33

 

Item 5.

Other Information

33

 

Item 6.

Exhibits

34

 

 

 

Signatures

35

 

 

 


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,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,041

 

 

$

4,274

 

Restricted cash and cash equivalents

 

 

81

 

 

 

82

 

Accounts receivable (including related parties), net of allowance for doubtful accounts of $180 and $181 as of May 31, 2023 and August 31, 2022, respectively

 

 

981

 

 

 

880

 

Inventories

 

 

4,207

 

 

 

3,784

 

Prepaid expenses and other current assets

 

 

160

 

 

 

123

 

Total current assets

 

 

8,470

 

 

 

9,143

 

Property, plant and equipment, net

 

 

3,360

 

 

 

4,139

 

Operating lease right of use assets

 

 

1,456

 

 

 

1,578

 

Intangible assets, net

 

 

98

 

 

 

102

 

Investments in unconsolidated entities

 

 

913

 

 

 

922

 

Other assets

 

 

286

 

 

 

170

 

TOTAL ASSETS

 

$

14,583

 

 

$

16,054

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Current installments of long-term debt

 

$

5,072

 

 

$

5,063

 

Accounts payable

 

 

544

 

 

 

286

 

Accrued expenses and other current liabilities

 

 

2,690

 

 

 

2,702

 

Other payable to related parties

 

 

1,298

 

 

 

1,061

 

Operating lease liabilities, current

 

 

144

 

 

 

143

 

Total current liabilities

 

 

9,748

 

 

 

9,255

 

Long-term debt, excluding current installments

 

 

1,493

 

 

 

1,866

 

Operating lease liabilities, less current portion

 

 

1,312

 

 

 

1,435

 

Total liabilities

 

 

12,553

 

 

 

12,556

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

SemiLEDs stockholders’ equity

 

 

 

 

 

 

Common stock, $0.0000056 par value—7,500 shares authorized; 4,915 shares and 4,832 shares issued and outstanding as of May 31, 2023 and August 31, 2022, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

184,092

 

 

 

183,711

 

Accumulated other comprehensive income

 

 

3,658

 

 

 

3,697

 

Accumulated deficit

 

 

(185,764

)

 

 

(183,955

)

Total SemiLEDs stockholders' equity

 

 

1,986

 

 

 

3,453

 

Noncontrolling interests

 

 

44

 

 

 

45

 

Total equity

 

 

2,030

 

 

 

3,498

 

TOTAL LIABILITIES AND EQUITY

 

$

14,583

 

 

$

16,054

 

 

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, 2023

 

 

May 31, 2022

 

 

May 31, 2023

 

 

May 31, 2022

 

Revenues, net

 

$

1,679

 

 

$

1,784

 

 

$

4,526

 

 

$

5,425

 

Cost of revenues

 

 

1,438

 

 

 

1,448

 

 

 

3,560

 

 

 

4,363

 

Gross profit

 

 

241

 

 

 

336

 

 

 

966

 

 

 

1,062

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

372

 

 

 

357

 

 

 

1,032

 

 

 

1,056

 

Selling, general and administrative

 

 

850

 

 

 

810

 

 

 

2,271

 

 

 

2,333

 

Gain on disposals of long-lived assets, net

 

 

 

 

 

(57

)

 

 

 

 

 

(196

)

Total operating expenses

 

 

1,222

 

 

 

1,110

 

 

 

3,303

 

 

 

3,193

 

Loss from operations

 

 

(981

)

 

 

(774

)

 

 

(2,337

)

 

 

(2,131

)

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses, net

 

 

(67

)

 

 

(94

)

 

 

(219

)

 

 

(277

)

Other income, net

 

 

295

 

 

 

264

 

 

 

766

 

 

 

1,215

 

Foreign currency transaction loss, net

 

 

(3

)

 

 

(307

)

 

 

(20

)

 

 

(395

)

Total other income (expenses), net

 

 

225

 

 

 

(137

)

 

 

527

 

 

 

543

 

Loss before income taxes

 

 

(756

)

 

 

(911

)

 

 

(1,810

)

 

 

(1,588

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(756

)

 

 

(911

)

 

 

(1,810

)

 

 

(1,588

)

Less: Net income (loss) attributable to noncontrolling interests

 

 

 

 

 

5

 

 

 

(1

)

 

 

18

 

Net loss attributable to SemiLEDs stockholders

 

$

(756

)

 

$

(916

)

 

$

(1,809

)

 

$

(1,606

)

Net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.15

)

 

$

(0.20

)

 

$

(0.37

)

 

$

(0.36

)

Diluted

 

$

(0.15

)

 

$

(0.20

)

 

$

(0.37

)

 

$

(0.36

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

4,897

 

 

 

4,517

 

 

 

4,866

 

 

 

4,488

 

Diluted

 

 

4,897

 

 

 

4,517

 

 

 

4,866

 

 

 

4,488

 

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, 2023

 

 

May 31, 2022

 

 

May 31, 2023

 

 

May 31, 2022

 

Net loss

 

$

(756

)

 

$

(911

)

 

$

(1,810

)

 

$

(1,588

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(33

)

 

 

115

 

 

 

(39

)

 

 

149

 

Comprehensive loss

 

$

(789

)

 

$

(796

)

 

$

(1,849

)

 

$

(1,439

)

Comprehensive income (loss) attributable to noncontrolling interests

 

 

 

 

$

4

 

 

$

(1

)

 

$

16

 

Comprehensive loss attributable to SemiLEDs stockholders

 

$

(789

)

 

$

(800

)

 

$

(1,848

)

 

$

(1,455

)

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

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Shareholders'

 

 

Controlling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

BALANCE—September 1, 2022

 

 

4,832

 

 

$

 

 

$

183,711

 

 

$

3,697

 

 

$

(183,955

)

 

$

3,453

 

 

$

45

 

 

$

3,498

 

Stock-based compensation

 

 

16

 

 

 

 

 

 

125

 

 

 

 

 

 

 

 

 

125

 

 

 

 

 

 

125

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(55

)

 

 

 

 

 

(55

)

 

 

 

 

 

(55

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(512

)

 

 

(512

)

 

 

3

 

 

 

(509

)

BALANCE—November 30, 2022

 

 

4,848

 

 

 

 

 

 

183,836

 

 

 

3,642

 

 

 

(184,467

)

 

 

3,011

 

 

 

48

 

 

 

3,059

 

Stock-based compensation

 

 

44

 

 

 

 

 

 

115

 

 

 

 

 

 

 

 

 

115

 

 

 

 

 

 

115

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

49

 

 

 

 

 

 

49

 

 

 

 

 

 

49

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(541

)

 

 

(541

)

 

 

(4

)

 

 

(545

)

BALANCE—February 28, 2023

 

 

4,892

 

 

 

 

 

 

183,951

 

 

 

3,691

 

 

 

(185,008

)

 

 

2,634

 

 

 

44

 

 

 

2,678

 

Stock-based compensation

 

 

23

 

 

 

 

 

 

141

 

 

 

 

 

 

 

 

 

141

 

 

 

 

 

 

141

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(33

)

 

 

 

 

 

(33

)

 

 

 

 

 

(33

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(756

)

 

 

(756

)

 

 

 

 

 

(756

)

BALANCE—May 31, 2023

 

 

4,915

 

 

$

 

 

$

184,092

 

 

$

3,658

 

 

$

(185,764

)

 

$

1,986

 

 

$

44

 

 

$

2,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

SemiLEDs

 

 

Non-

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Shareholders'

 

 

Controlling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

BALANCE—September 1, 2021

 

 

4,460

 

 

$

 

 

$

182,255

 

 

$

3,543

 

 

$

(181,211

)

 

$

4,587

 

 

$

39