LEDS [SemiLEDs] 10-Q: Table of Contents SEMILEDS CORPORATION M FORM 10-Q

Ticker: LEDS, Company: SemiLEDs Corp, Type: 10-Q, Date: 2019-07-12, XBRL Interactive Financials
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Table of Contents SEMILEDS CORPORATION M FORM 10-Q for the Quarter Ended Page No. Part I. Financial Information Item 1. Financial Statements 1 Unaudited Condensed Consolidated Balance Sheets as of May 31, 2019 and August 31, 2018 1 Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2019 and 2018 2 Unaudited Condensed Consolidated




Table of Contents

 

SEMILEDS CORPORATION

FORM 10-Q for the Quarter Ended May 31, 2019

INDEX

 

 

 

Page No.

 

 

 

 

Part I. Financial Information

 

 

 

 

Item 1.

Financial Statements

1

 

 

 

 

Unaudited Condensed Consolidated Balance Sheets as of May 31, 2019 and August 31, 2018

1

 

 

 

 

Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2019 and 2018

2

 

 

 

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended May 31, 2019 and 2018

3

 

 

 

 

Unaudited Condensed Consolidated Statement of Changes in Equity for the three and nine months ended May 31, 2019 and 2018

4

 

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended May 31, 2019 and 2018

5

 

 

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

 

 

 

Item 2.

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

15

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

 

 

 

Item 4.

Controls and Procedures

27

 

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

28

 

 

 

Item 1A.

Risk Factors

28

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

29

 

 

 

Item 3.

Defaults Upon Senior Securities

29

 

 

 

Item 4.

Mine Safety Disclosures

29

 

 

 

Item 5.

Other Information

29

 

 

 

Item 6.

Exhibits

29

 

 

 

Signatures

30

 

 

 


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,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,060

 

 

$

3,421

 

Accounts receivable (including related parties), net of allowance for doubtful accounts of $469 and $477 as of May 31, 2019 and August 31, 2018, respectively

 

 

562

 

 

 

282

 

Inventories

 

 

1,945

 

 

 

1,818

 

Prepaid expenses and other current assets

 

 

441

 

 

 

340

 

Total current assets

 

 

4,008

 

 

 

5,861

 

Property, plant and equipment, net

 

 

6,029

 

 

 

7,213

 

Intangible assets, net

 

 

96

 

 

 

98

 

Investments in unconsolidated entities

 

 

888

 

 

 

914

 

Other assets

 

 

163

 

 

 

164

 

TOTAL ASSETS

 

$

11,184

 

 

$

14,250

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current installments of long-term debt

 

$

329

 

 

$

335

 

Accounts payable

 

 

658

 

 

 

894

 

Advance receipt toward the convertible note

 

 

500

 

 

 

500

 

Accrued expenses and other current liabilities

 

 

2,179

 

 

 

5,505

 

Total current liabilities

 

 

3,666

 

 

 

7,234

 

Long-term debt, excluding current installments

 

 

4,908

 

 

 

2,013

 

Total liabilities

 

 

8,574

 

 

 

9,247

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

 

 

SemiLEDs stockholders’ equity

 

 

 

 

 

 

 

 

Common stock, $0.0000056 par value—7,500 shares authorized; 3,589 shares and 3,559 shares issued and outstanding as of May 31, 2019 and August 31, 2018, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

175,772

 

 

 

175,527

 

Accumulated other comprehensive income

 

 

3,728

 

 

 

3,727

 

Accumulated deficit

 

 

(176,935

)

 

 

(174,251

)

Total SemiLEDs stockholders' equity

 

 

2,565

 

 

 

5,003

 

Noncontrolling interests

 

 

45

 

 

 

 

Total equity

 

 

2,610

 

 

 

5,003

 

TOTAL LIABILITIES AND EQUITY

 

$

11,184

 

 

$

14,250

 

 

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, 2019

 

 

May 31, 2018

 

 

May 31, 2019

 

 

May 31, 2018

 

Revenues, net

 

$

1,745

 

 

$

1,999

 

 

$

4,347

 

 

$

5,545

 

Cost of revenues

 

 

1,405

 

 

 

1,837

 

 

 

4,224

 

 

 

5,775

 

Gross profit (loss)

 

 

340

 

 

 

162

 

 

 

123

 

 

 

(230

)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

444

 

 

 

296

 

 

 

1,076

 

 

 

703

 

Selling, general and administrative

 

 

597

 

 

 

799

 

 

 

1,973

 

 

 

2,313

 

Gain on disposals of long-lived assets, net

 

 

 

 

 

(581

)

 

 

(288

)

 

 

(790

)

Total operating expenses

 

 

1,041

 

 

 

514

 

 

 

2,761

 

 

 

2,226

 

Loss from operations

 

 

(701

)

 

 

(352

)

 

 

(2,638

)

 

 

(2,456

)

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses, net

 

 

(74

)

 

 

(7

)

 

 

(115

)

 

 

(22

)

Other income (losses), net

 

 

94

 

 

 

78

 

 

 

48

 

 

 

625

 

Foreign currency transaction (losses) gain, net

 

 

(177

)

 

 

(45

)

 

 

20

 

 

 

3

 

Total other income (expenses), net

 

 

(157

)

 

 

26

 

 

 

(47

)

 

 

606

 

Loss before income taxes

 

 

(858

)

 

 

(326

)

 

 

(2,685

)

 

 

(1,850

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(858

)

 

 

(326

)

 

 

(2,685

)

 

 

(1,850

)

Less: Net gain (loss) attributable to noncontrolling interests

 

 

1

 

 

 

 

 

 

(1

)

 

 

 

Net loss attributable to SemiLEDs stockholders

 

$

(859

)

 

$

(326

)

 

$

(2,684

)

 

$

(1,850

)

Net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.24

)

 

$

(0.09

)

 

$

(0.75

)

 

$

(0.52

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

3,589

 

 

 

3,550

 

 

 

3,576

 

 

 

3,546

 

 

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, 2019

 

 

May 31, 2018

 

 

May 31, 2019

 

 

May 31, 2018

 

Net loss

 

$

(858

)

 

$

(326

)

 

$

(2,685

)

 

$

(1,850

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

12

 

 

 

(77

)

 

 

(1

)

 

 

58

 

Comprehensive loss

 

$

(846

)

 

$

(403

)

 

$

(2,686

)

 

$

(1,792

)

Comprehensive loss attributable to noncontrolling interests

 

$

(1

)

 

$

 

 

$

(3

)

 

$

 

Comprehensive loss attributable to SemiLEDs stockholders

 

$

(845

)

 

$

(403

)

 

$

(2,683

)

 

$

(1,792

)

 

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, 2017

 

 

3,544

 

 

$

 

 

$

175,386

 

 

$

3,701

 

 

$

(171,270

)

 

$

7,817

 

 

$

 

 

$

7,817

 

Stock-based compensation

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

 

26

 

 

 

 

 

 

26

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(392

)

 

 

(392

)

 

 

 

 

 

(392

)

BALANCE—November 30, 2017

 

 

3,544

 

 

$

 

 

$

175,410

 

 

$

3,727

 

 

$

(171,662

)

 

$

7,475

 

 

$

 

 

$

7,475

 

Issuance of common stock under equity incentive plans

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

109

 

 

 

 

 

 

109

 

 

 

 

 

 

109

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,132

)

 

 

(1,132

)

 

 

 

 

 

(1,132

)

BALANCE—February 28, 2018

 

 

3,545

 

 

$

 

 

$

175,434

 

 

$

3,836

 

 

$

(172,794

)

 

$

6,476

 

 

$

 

 

$

6,476

 

Issuance of common stock under equity incentive plans

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

53

 

 

 

 

 

 

 

 

 

 

53

 

 

 

 

 

 

53

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

(77

)

 

 

 

 

 

(77

)

 

 

 

 

 

(77

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(326

)

 

 

(326

)

 

 

 

 

 

(326

)

BALANCE—May 31, 2018

 

 

3,557

 

 

$

 

 

$

175,487

 

 

$

3,759

 

 

$

(173,120

)

 

$

6,126

 

 

$

 

 

$

6,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2018

 

 

3,559

 

 

$

 

 

$

175,527

 

 

$

3,727

 

 

$

(174,251

)

 

$

5,003

 

 

$

 

 

$

5,003

 

Issuance of common stock under equity incentive plans

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

43

 

 

 

 

 

 

 

 

 

43

 

 

 

 

 

 

43

 

Common stock issued by SBDI*

 

 

 

 

 

 

 

 

128

 

 

 

 

 

 

 

 

 

128

 

 

 

48

 

 

 

176

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

5

 

 

 

(1

)

 

 

4

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(978

)

 

 

(978

)

 

 

(5

)

 

 

(983

)

BALANCE—November 30, 2018

 

 

3,560

 

 

$

 

 

$

175,698

 

 

$

3,732

 

 

$

(175,229

)

 

$

4,201

 

 

$

42

 

 

$

4,243

 

Issuance of common stock under equity incentive plans

 

 

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

47

 

 

 

 

 

 

 

 

 

47

 

 

 

 

 

 

47

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

 

 

1

 

 

 

(17

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(847

)

 

 

(847

)

 

 

3

 

 

 

(844

)

BALANCE—February 28, 2019

 

 

3,589

 

 

$

 

 

$

175,745

 

 

$

3,714

 

 

$

(176,076

)

 

$

3,383

 

 

$

46

 

 

$

3,429

 

Stock-based compensation

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

27

 

Comprehensive loss: