SemiLEDs (LEDS) 10-Q 10 Jul 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May. 31, 2015	Jul. 06, 2015
Document and Entity Information
Entity Registrant Name	SemiLEDs Corp
Entity Central Index Key	1,333,822
Document Type	10-Q
Document Period End Date	May 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		29,052,185
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May. 31, 2015	Aug. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 6,016	$ 12,649
Accounts receivable, net of allowance for doubtful accounts of $1,334 and $1,369 as of May 31, 2015 and August 31, 2014, respectively	2,135	2,130
Accounts receivable from related parties, net of allowance for doubtful accounts of $1,371 and $1,397 as of May 31, 2015 and August 31, 2014, respectively	26	41
Inventories	6,618	9,212
Prepaid expenses and other current assets	1,029	1,909
Total current assets	15,824	25,941
Property, plant and equipment, net	23,483	27,063
Intangible assets, net	1,481	1,586
Goodwill	57	59
Investments in unconsolidated entities	2,135	2,204
Other assets	713	764
TOTAL ASSETS	43,693	57,617
CURRENT LIABILITIES:
Current installments of long-term debt	1,457	1,934
Accounts payable	1,806	2,675
Accrued expenses and other current liabilities	3,645	4,860
Total current liabilities	6,908	9,469
Long-term debt, excluding current installments	3,126	4,256
Total liabilities	$ 10,034	$ 13,725
Commitments and contingencies (Note 5)
SemiLEDs stockholders' equity
Common stock, $0.0000056 par value-75,000 shares authorized; 29,052 shares and 28,424 shares issued and outstanding as of May 31, 2015 and August 31, 2014, respectively
Additional paid-in capital	$ 171,920	$ 170,953
Accumulated other comprehensive income	4,580	5,583
Accumulated deficit	(142,904)	(132,630)
Total SemiLEDs stockholders' equity	33,596	43,906
Noncontrolling interests	63	(14)
Total equity	33,659	43,892
TOTAL LIABILITIES AND EQUITY	$ 43,693	$ 57,617

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	May. 31, 2015	Aug. 31, 2014
Condensed Consolidated Balance Sheets
Accounts receivable, net of allowance for doubtful accounts (in dollars)	$ 1,334	$ 1,369
Accounts receivable from related parties, net of allowance for doubtful accounts (in dollars)	$ 1,371	$ 1,397
Common stock, par value (in dollars per share)	$ 0.0000056	$ 0.0000056
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	29,052	28,424
Common stock, shares outstanding	29,052	28,424

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Condensed Consolidated Statements of Operations
Revenues, net	$ 3,508	$ 4,615	$ 11,002	$ 12,203
Cost of revenues	4,367	7,408	14,055	20,470
Gross loss	(859)	(2,793)	(3,053)	(8,267)
Operating expenses:
Research and development	594	1,025	1,954	3,370
Selling, general and administrative	1,621	2,530	5,648	7,437
Gain on disposal of long-lived assets, net			(287)
Total operating expenses	2,215	3,555	7,315	10,807
Loss from operations	(3,074)	(6,348)	(10,368)	(19,074)
Other income (expenses):
Equity in income (loss) from unconsolidated entities, net	40	(22)	(16)	(152)
Interest expenses, net	(26)	(23)	(74)	(61)
Other income, net	29	53	88	159
Foreign currency transaction gain (loss), net	(15)	(81)	49	(71)
Total other income (expenses), net	28	(73)	47	(125)
Loss before income taxes	(3,046)	(6,421)	(10,321)	(19,199)
Income tax expense			1
Net loss	(3,046)	(6,421)	(10,322)	(19,199)
Less: Net loss attributable to noncontrolling interests	(5)	(16)	(48)	(93)
Net loss attributable to SemiLEDs stockholders	$ (3,041)	$ (6,405)	$ (10,274)	$ (19,106)
Net loss per share attributable to SemiLEDs stockholders:
Basic and diluted (in dollars per share)	$ (0.11)	$ (0.23)	$ (0.36)	$ (0.68)
Shares used in computing net loss per share attributable to SemiLEDs stockholders:
Basic and diluted (in shares)	28,567	28,441	28,594	28,039

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (3,046)	$ (6,421)	$ (10,322)	$ (19,199)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax of $0 for all periods presented	642	414	(1,003)	(71)
Comprehensive loss	(2,404)	(6,007)	(11,325)	(19,270)
Comprehensive loss attributable to noncontrolling interests	(7)	(17)	(48)	(92)
Comprehensive loss attributable to SemiLEDs stockholders	$ (2,397)	$ (5,990)	$ (11,277)	$ (19,178)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Condensed Consolidated Statements of Comprehensive Loss
Foreign currency translation adjustments, net of tax for all periods presented	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Changes in Equity - 9 months ended May. 31, 2015 - USD ($) shares in Thousands, $ in Thousands	Total SemiLEDs Stockholders' Equity	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Non-Controlling Interests	Total
BALANCE at Aug. 31, 2014	$ 43,906		$ 170,953	$ 5,583	$ (132,630)	$ (14)	$ 43,892
BALANCE (in shares) at Aug. 31, 2014		28,424
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under equity incentive plans (in shares)		628
Stock-based compensation	1,092		1,092				1,092
Purchase of common shares in Ning Xiang	(125)		(125)			125
Comprehensive loss:
Foreign currency translation adjustment	(1,003)			(1,003)			(1,003)
Net loss	(10,274)				(10,274)	(48)	(10,322)
BALANCE at May. 31, 2015	$ 33,596		$ 171,920	$ 4,580	$ (142,904)	$ 63	$ 33,659
BALANCE (in shares) at May. 31, 2015		29,052

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May. 31, 2015	May. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (10,322)	$ (19,199)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,839	4,953
Stock-based compensation expense	1,092	1,530
Bad debt expense		89
Provisions for inventory write-downs	1,161	1,618
Equity in losses from unconsolidated entities, net	16	152
Gain on disposal of long-lived assets, net	(287)
Income recognized on patents assignment		(38)
Changes in operating assets and liabilities:
Accounts receivable, net	(88)	(687)
Inventories	1,273	(907)
Prepaid expenses and other	429	(161)
Accounts payable	(889)	(740)
Accrued expenses and other current liabilities	(152)	(377)
Net cash used in operating activities	(3,928)	(13,767)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(1,299)	(1,911)
Purchase of investments		(206)
Payments related to acquisition of business		(2,069)
Payments for development of intangible assets	(37)	(271)
Proceeds from sale of investment		114
Decrease (increase) in restricted cash	351	(122)
Other investing activities, net	28	(86)
Net cash used in investing activities	(957)	(4,551)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long-term debt	(1,453)	(1,712)
Proceeds from line of credit		170
Payments on line of credit		(170)
Payment of loan from related party		(201)
Other financing activities		12
Net cash used in financing activities	(1,453)	(1,901)
Effect of exchange rate changes on cash and cash equivalents	(295)	31
NET DECREASE IN CASH AND CASH EQUIVALENTS	(6,633)	(20,188)
CASH AND CASH EQUIVALENTS-Beginning of period	12,649	36,272
CASH AND CASH EQUIVALENTS- End of period	6,016	16,084
NONCASH INVESTING AND FINANCING ACTIVITIES:
Accrual related to property, plant and equipment	842	$ 279
Proceeds from sale of property, plant and equipment included in other current liabilities	$ 884

Business

Business	9 Months Ended
	May. 31, 2015
Business
Business	1. Business SemiLEDs Corporation (“SemiLEDs” or the “parent company”) was incorporated in Delaware on January 4, 2005 and is a holding company for various wholly and majority owned subsidiaries. SemiLEDs and its subsidiaries (collectively, the “Company”) develop, manufacture and sell high performance light emitting diodes (“LEDs”). The Company’s core products are LED chips and LED components, but lighting products have also become an increasingly important part of the Company’s business. A portion of the Company’s business consists of the sale of contract manufactured LED products. The Company’s customers are concentrated in a few select markets, including Taiwan, the United States and China. As of May 31, 2015 , SemiLEDs had seven wholly owned subsidiaries and a 93 % equity interest in Ning Xiang Technology Co., Ltd. (“Ning Xiang”) . The most significant of these consolidated subsidiaries is SemiLEDs Optoelectronics Co., Ltd. (“Taiwan SemiLEDs”) located in Hsinchu, Taiwan where a substantial portion of research, development, manufacturing, marketing and sales activities currently takes place and where a substantial portion of the assets is held and located. Taiwan SemiLEDs owns a 100% equity interest in Taiwan Bandaoti Zhaoming Co., Ltd., formerly known as Silicon Base Development, Inc., which is engaged in the research, development, manufactur e , marketing and sale of LED components. As of May 31, 2015 , the Company also owned a 93% interest in Ning Xiang, which consisted of a 51% interest acquired in August 2011 , an additional 15% interest acquired in April 2013, an additional 21% interest acquired in November 2013 and an additional 6% interest acquired in December 2014. Ning Xiang is engaged in the design, manufacture and sale of lighting fixtures and systems . SemiLEDs’ common shares are listed on the NASDAQ Global Select Market under the symbol “LEDS” since December 8, 2010 .

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	May. 31, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation —The Company’s unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable provisions of the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the rules and regulations of the SEC. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on December 12 , 2014 . The unaudited condensed consolidated balance sheet as of August 31, 201 4 included herein was derived from the audited consolidated financial statements as of that date. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated balance sheet as of May 31, 2015 , the statements of operations and comprehensive loss for the three and nine months ended May 31, 2015 and 2014, the statement of changes in equity for the nine months ended May 31, 2015, and the statements of cash flows for the nine months ended May 31, 2015 and 2014 . The results for the three or nine months ended May 31, 2015 are not necessarily indicative of the results to be expected for the year ending August 31, 2015 . The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. The Company has suffered losses from operations of $24.8 million and $42.7 million, gross losses on product sales of $11.3 million and $14.7 million, and net cash used in operating activities of $15.7 million and $14.5 million for the years ended August 31, 2014 and 2013, respectively. Loss from operations for the three and nine months ended May 31, 2015 were $3.1 million and $10.4 million, respectively. Gross loss on product sales for the three and nine months ended May 31, 2015 were $0.9 million and $3.1 million, respectively. Net cash used in operating activities for the nine months ended May 31, 2015 was $3.9 million. Further, at May 31, 2015, the Company’s cash and cash equivalents was down to $6.0 million. These facts and conditions raise substantial doubt about the Company’s ability to continue as a going concern. However, management believes that it has developed a liquidity plan, as summarized below, that, if executed successfully, should provide sufficient liquidity to meet the Company’s obligations as they become due for a reasonable period of time, and allow the development of its core business. · Improve operating cash flows through cost reductions and the sales of new higher margin products. Management has implemented cost reductions that include the closing and relocation of the manufacturing operations at the Company’s Sinwu facility, the consolidation of the Company’s facilities, and workforce reductions, and executives taking a salary reduction until the Company returns to profitability. The commercial sales of its UV LED product with a leading cosmetic manufacturer are expected to continue to improve the Company’s future gross margin, operating results and cash flows. We are making progress towards scaling sales of our UV LED products and are focused on product enhancement and developing our UV LED into many other applications or devices. · Reduce planned capital expenditures and reduce research and development expenditure expenses. Management continues to monitor prices and, consistent with its existing contractual commitments, may decrease its activity level and capital expenditures further. This plan reflects its strategy of controlling capital costs and maintaining financial flexibility. · Obtain new operating lines of credit facilities from several financial institutions and utilize any available lines of credit to fulfill our short-term financing needs, if necessary. · Raise additional cash through further equity offerings, sales of assets and/or issuance of debt as considered necessary. While the Company’s management believes that the measures described in the above liquidity plan will be adequate to satisfy its liquidity requirements for the twelve months ending May 31, 2016, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan may have a material adverse effect on its business, results of operations and financial position, and may adversely affect its ability to continue as a going concern. These unaudited interim condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern. Principles of Consolidation —The unaudited interim condensed consolidated financial statements include the accounts of SemiLEDs and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated during consolidation. Use of Estimates —The preparation of unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the collectibility of accounts receivable, inventory net realizable values, realization of deferred tax assets, valuation of stock-based compensation expense, the useful lives of property, plant and equipment and intangible assets, the recoverability of the carrying amount of property, plant and equipment, intangible assets, goodwill and investments in unconsolidated entities, the fair value of acquired tangible and intangible assets, income tax uncertainties, provision for potential litigation costs and other contingencies. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ materially from those estimates. Certain Significant Risks and Uncertainties —The Company is subject to certain risks and uncertainties that could have a material and adverse effect on the Company’s future financial position or results of operations, which risks and uncertainties include, among others: it has incurred significant losses over the past few years, any inability of the Company to compete in a rapidly evolving market and to respond quickly and effectively to changing market requirements, any inability of the Company to grow its revenue and/or maintain or increase its margins, it may experience fluctuations in its revenues and operating results, any inability of the Company to protect its intellectual property rights, claims by others that the Company infringes their proprietary technology, and any inability of the Company to raise additional funds in the future. Concentration of Supply Risk —Some of the components and technologies used in the Company’s products are purchased and licensed from a limited number of sources and some of the Company’s products are produced by a limited number of contract manufacturers. The loss of any of these suppliers and contract manufacturers may cause the Company to incur transition costs to another supplier or contract manufacturer, result in delays in the manufacturing and delivery of the Company’s products, or cause it to carry excess or obsolete inventory. The Company relies on a limited number of such suppliers and contract manufacturers for the fulfillment of its customer orders. Any failure of such suppliers and contract manufacturers to perform could have an adverse effect upon the Company’s reputation and its ability to distribute its products or satisfy customers’ orders, which could adversely affect the Company’s business, financial position, results of operations and cash flows. Concentration of Credit Risk —Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company keeps its cash and cash equivalents in demand deposits with prominent banks of high credit quality and invests only in money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. As of May 31, 2015 and August 31, 201 4 , cash and cash equivalents of the Company consisted of the following (in thousands): Cash and Cash Equivalents by Location May 31, 2015 August 31, 2014 United States: Denominated in U.S. dollars $ $ Taiwan: Denominated in U.S. dollars Denominated in New Taiwan dollars Denominated in other currencies China (including Hong Kong): Denominated in U.S. dollars Denominated in Renminbi Denominated in H.K. dollars Total cash and cash equivalents $ $ T he Company’s revenues are substantially derived from the sales of LED products. A significant portion of the Company’s revenues are derived from a limited number of customers and sales are concentrated in a few select markets. Management performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. Management evaluates the need to establish an allowance for doubtful accounts for estimated potential credit losses at each reporting period. The allowance for doubtful accounts is based on the management’s assessment of the collectibility of its 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. Net revenues generated from sales to the top ten customers represented 60% and 61% of the Company’s total net revenues for the three and nine months ended May 31, 2015 , respectively , and 52% and 47% of the Company’s net revenues for the three and n ine m onths ended May 31, 201 4 , respectively . The Company’s revenues have been concentrated in a few select markets, including Taiwan, the United States , and China (including Hong Kong). Net revenues generated from sales to customers in these markets, in the aggregate, accounted for 53% and 70% of the Company’s net revenues for the three and nine months ended May 31, 2015 , respectively, and 73% and 58% of the Company’s net revenues for the three and n ine m onths ended May 31, 201 4 , respectively. Noncontrolling Interests — N oncontrolling interests are classified in the consolidated statements of operations as part of consolidated net income (loss) and the accumulated amount of noncontrolling interests in the consolidated balance sheets as part of equity. Changes in ownership interest in a consolidated subsidiary that do not result in a loss of control are accounted for as an equity transaction. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Transactions with noncontrolling interests had the following effect on equity attributable to SemiLEDs stockholders (in thousands): Three Months Ended May 31, 2015 Nine Months Ended May 31, 2015 Net loss attributable to SemiLEDs stockholders $ ) $ ) Transfers to noncontrolling interests: Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang — ) Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests $ ) $ )

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	May. 31, 2015
Balance Sheet Components
Balance Sheet Components	3. Balance Sheet Components Inventories Inventories as of May 31, 2015 and August 31, 201 4 consisted of the following (in thousands): May 31, 2015 August 31, 2014 Raw materials $ $ Work in process Finished goods Total $ $ Inventory write-downs to estimated net realizable values were $ 1,161 thousand and $1,618 thousand for the n ine m onths ended May 31, 2015 and 2014 , respectively . Property, Plant and Equipment Property, plant and equipment as of May 31, 2015 and August 31, 20 14 consisted of the following (in thousands): May 31, 2015 August 31, 2014 Buildings and improvements $ $ Machinery and equipment Leasehold improvements Other equipment Construction in progress Total property, plant and equipment Less: Accumulated depreciation, amortization and impairment ) ) Property, plant and equipment, net $ $ Intangible Assets Intangible assets as of May 31, 2015 and August 31, 201 4 consisted of the following (in thousands): May 31, 2015 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and trademarks 14 $ $ $ Acquired technology 5 Total $ $ $ August 31, 2014 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Patents and trademarks 14 $ $ $ Acquired technology 5 Total $ $ $ Goodwill In July 2013, the Company recognized goodwill on the acquisition of an LED production business. All of the goodwill was assigned to the Company’s reporting unit associated with the manufacture and sale of LED chips and LED components.

Investments in Unconsolidated E

Investments in Unconsolidated Entities	9 Months Ended
	May. 31, 2015
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities	4. Investments in Unconsolidated Entities The Company’s ownership interest and carrying amounts of investments in unconsolidated entities as of May 31, 2015 and August 31, 201 4 consisted of the following (in thousands, except percentages): May 31, 2015 August 31, 2014 Percentage Ownership Amount Percentage Ownership Amount Equity method investments: SILQ (Malaysia) Sdn. Bhd. (“SILQ”) % $ % $ Xurui Guangdian Co., Ltd. (“China SemiLEDs”) % — % — Cost method investments Various Various Total investments in unconsolidated entities $ $ There were no dividends received from unconsolidated entities through May 31, 2015. Equity Method Investments As of May 31, 2015, the Company owned a 33% interest in SILQ (Malaysia) Sdn. Bhd., or SILQ, a joint venture in Malaysia which is engaged in the design, manufacture and sale of lighting fixtures and systems. Originally, the Company and the other investor each owned a 50% equity interest in the joint venture. In January 2014, the Company participated in SILQ’s capital increase and contributed $76 thousand. Following the capital increase, the Company’s equity interest in SILQ was diluted from 50% to 49%, and consequently, the Company recognized a gain on dilution of its investment of $26 thousand. The dilution gain was recognized as additional paid in capital in the consolidated statement of changes in equity. In April 2014, the Company sold part of its equity interest in SILQ to the other investor for a cash consideration of $ 114 thousand and recognized a gain on sale of investment of $37 thousand. The gain was reported in the consolidated statements of operations in equity in losses from unconsolidated entities . Upon consummation of the sale, the Company’s equity interest in SILQ was reduced from 49% to 33%. The Company subsequently invested $130 thousand in SILQ’s capital increase in April 201 4 and its equity interest remains unchanged . Cost Method Investments The fair values of the Company’s cost method investments are not readily available. All cost method investments are assessed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	May. 31, 2015
Commitments and Contingencies
Commitments and Contingencies	5 . Commitments and Contingencies Operating Lease Agreements —The Company has several operating leases with unrelated parties, primarily for land, plant and office spaces in Taiwan, which are including cancellable and noncancellable and which expire at various dates between August 201 5 and December 2020. Lease expense related to these noncancellable operating leases was $ 130 thousand and $ 438 thousand for the three and nine months ended May 31, 2015 , respectively, and $343 thousand and $925 thousand for the three and n ine m onths ended May 31, 201 4 , respectively. Lease expense is recognized on a straight-line basis over the term of the lease. The aggregate future noncancellable minimum rental payments for the Company’s operating leases as of May 31, 2015 consisted of the following (in thousands): Years Ending August 31, Operating Leases Remainder of 2015 $ 2016 2017 2018 2019 Thereafter Total $ Purchase Obligations —The Company had purchase commitments for inventory, property, plant and equipment in the amount of $ 2.5 million and $3.9 million as of May 31, 2015 and August 31, 201 4, respectively . Litigation —The Company is directly or indirectly involved from time to time in various claims or legal proceedings arising in the ordinary course of business. The Company recognizes a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in assessing both the likelihood of an unfavorable outcome and whether the amount of loss, if any, can be reasonably estimated. As of May 31, 2015, there was no pending or threatened litigation that could have a material impact on the Company’s financial position, results of operations or cash flows.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	May. 31, 2015
Stock-based Compensation
Stock-based Compensation	6 . Stock-based Compensation The Company currently has one equity incentive plan (the “ 2010 Plan”) , which provides for awards in the form of restricted shares, stock units, stock options or stock appreciation rights to the Company’s employees, officers, directors and consultants. In April 2014, SemiLEDs’ stockholders approved an amendment to the 2010 Plan that increased the number of shares authorized for issuance under the plan by an additional 2,500 thousand shares. Prior to SemiLEDs’ initial public offering, the Company had another stock-based compensation plan (the “ 2005 Plan”) , but awards are made from the 2010 Plan after the initial public offering. Options outstanding under the 2005 Plan continue to be governed by its existing terms. A total of 6,349 thousand shares of common stock was reserved for issuance under the 2005 Plan and 2010 Plan as of both May 31, 2015 and August 31, 2014. There were 3,886 thous and and 4,492 thousand shares of common stock available for future issuance under the 2005 Plan and 2010 Plan under the equity incentive plans as of May 31, 2015 and August 31, 2014, respectively. In May 2015 , SemiLEDs granted 50 thousand restricted stock units to its directors that vest 100% on the earlier of the first anniversary of the vesting start date of May 7, 2016 and the date of the next annual meeting. The grant-date fair value of the restricted stock units was $ 0.82 per unit. In January 2015, SemiLEDs granted 50 thousand restricted stock units that vest over four years at a rate of 25% on each anniversary of the vesting start date of January 9, 2015, subject to earlier expiration in the event of the holder’s termination. The grant-date fair value of the restricted stock units was $1.0 7 per unit. In April 2014, SemiLEDs granted 75 thousand restricted stock units to its directors that vest 100% on the earlier of the first anniversary of the vesting start date of April 21, 2014 and the date of the next annual meeting. The grant-date fair value of the restricted stock units was $1.05 per unit. In May 2014, SemiLEDs granted 410 thousand restricted stock units that vest over four years at a rate of 25% on each anniversary of the vesting start date of May 9, 2014, and 122 thousand restricted stock units that vest 100% on May 9, 2015, subject to earlier expiration in the event of the holder’s termination. SemiLEDs also granted 366 thousand performance-based restricted stock units that vest upon the attainment of certain performance targets in the fiscal years ending August 31, 2015, 2016 or 2017. The grant-date fair value of these restricted stock units was $1.01 per unit. The grant date fair value of stock options is determined using the Black-Scholes option - pricing model. The Black-Scholes option-pricing model requires inputs including the market price of SemiLEDs’ common stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several of the Company’s publicly-traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of stock units is based upon the market price of SemiLEDs’ common stock on the date of the grant. This fair value is amortized to compensation expense over the vesting term. Stock-based compensation expense is recorded net of estimated forfeitures such that expense is recorded only for those stock-based awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. A forfeiture rate of zero is estimated for stock-based awards with vesting term that is less than or equal to one year from the date of grant. A summary of the stock-based compensation expense for the three and nine months ended May 31, 2015 and 2014 was as follows (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Cost of revenues $ $ $ $ Research and development Selling, general and administrative $ $ $ $

Net Loss Per Share of Common St

Net Loss Per Share of Common Stock	9 Months Ended
	May. 31, 2015
Net Loss Per Share of Common Stock
Net Loss Per Share of Common Stock	7 . Net Loss Per Share of Common Stock The following stock-based compensation plan awards were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive (in thousands of shares): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Stock units and stock options to purchase common stock

Income Taxes

Income Taxes	9 Months Ended
	May. 31, 2015
Income Taxes
Income Taxes	8 . Income Taxes The Company’s loss before income taxes for the three and nine months ended May 31, 2015 and 201 4 consisted of the following (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 U.S. operations $ ) $ ) $ ) $ ) Foreign operations ) ) ) ) Loss before income taxes $ ) $ ) $ ) $ ) Unrecognized Tax Benefits As of both May 31, 2015 and August 31, 2014 , the Company had no unrecognized tax benefits related to tax positions taken in prior periods . The Company files income tax returns in the United States, various U.S. states and certain foreign jurisdictions. The tax years 2005 through 201 4 remain open in most jurisdictions. The Company is not currently under examination by income tax authorities in federal, state or foreign jurisdictions.

Subsequent Events

Subsequent Events	9 Months Ended
	May. 31, 2015
Subsequent Events
Subsequent Events	9 . Subsequent Event s The Company entered into a definitive common stock purchase agreement effective December 18, 2014 (the “Agreement”) with Mr. Xiaoqing Han, the Chairman and CEO of Beijing Xiaoqing Environmental Protection Group. T he transaction has not closed due to Mr. Han’s inability to transfer funds from China. To date, the Company has only received approximately $261,000 of the $5 million purchase price. Pursuant to the terms of the Agreement, if Mr. Han did not purchase the shares before February 25, 2015, then he is required to pay the Company $3 million plus the legal fees incurred by the Company relating to the sale. On June 29, 2015, the Company provided written notice to Mr. Han informing him that he is in breach of the Agreement for failure to provide full payment before February 25, 2015 and demanding that he remit the balance of the purchase price by July 16, 2015 or, alternatively, the $3 million in liquidated damages. The Company’s Board is considering legal alternatives to collect the amounts owed under the Agreement. There can be no assurance if, or when, Mr. Han will be able to complete the purchase or if the Company can collect any judgment for liquidated damages should it obtain one .

Summary of Significant Accoun18

Summary of Significant Accounting Policy (Policies)	9 Months Ended
	May. 31, 2015
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation —The Company’s unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable provisions of the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the rules and regulations of the SEC. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on December 12 , 2014 . The unaudited condensed consolidated balance sheet as of August 31, 201 4 included herein was derived from the audited consolidated financial statements as of that date. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated balance sheet as of May 31, 2015 , the statements of operations and comprehensive loss for the three and nine months ended May 31, 2015 and 2014, the statement of changes in equity for the nine months ended May 31, 2015, and the statements of cash flows for the nine months ended May 31, 2015 and 2014 . The results for the three or nine months ended May 31, 2015 are not necessarily indicative of the results to be expected for the year ending August 31, 2015 . The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. The Company has suffered losses from operations of $24.8 million and $42.7 million, gross losses on product sales of $11.3 million and $14.7 million, and net cash used in operating activities of $15.7 million and $14.5 million for the years ended August 31, 2014 and 2013, respectively. Loss from operations for the three and nine months ended May 31, 2015 were $3.1 million and $10.4 million, respectively. Gross loss on product sales for the three and nine months ended May 31, 2015 were $0.9 million and $3.1 million, respectively. Net cash used in operating activities for the nine months ended May 31, 2015 was $3.9 million. Further, at May 31, 2015, the Company’s cash and cash equivalents was down to $6.0 million. These facts and conditions raise substantial doubt about the Company’s ability to continue as a going concern. However, management believes that it has developed a liquidity plan, as summarized below, that, if executed successfully, should provide sufficient liquidity to meet the Company’s obligations as they become due for a reasonable period of time, and allow the development of its core business. · Improve operating cash flows through cost reductions and the sales of new higher margin products. Management has implemented cost reductions that include the closing and relocation of the manufacturing operations at the Company’s Sinwu facility, the consolidation of the Company’s facilities, and workforce reductions, and executives taking a salary reduction until the Company returns to profitability. The commercial sales of its UV LED product with a leading cosmetic manufacturer are expected to continue to improve the Company’s future gross margin, operating results and cash flows. We are making progress towards scaling sales of our UV LED products and are focused on product enhancement and developing our UV LED into many other applications or devices. · Reduce planned capital expenditures and reduce research and development expenditure expenses. Management continues to monitor prices and, consistent with its existing contractual commitments, may decrease its activity level and capital expenditures further. This plan reflects its strategy of controlling capital costs and maintaining financial flexibility. · Obtain new operating lines of credit facilities from several financial institutions and utilize any available lines of credit to fulfill our short-term financing needs, if necessary. · Raise additional cash through further equity offerings, sales of assets and/or issuance of debt as considered necessary. While the Company’s management believes that the measures described in the above liquidity plan will be adequate to satisfy its liquidity requirements for the twelve months ending May 31, 2016, there is no assurance that the liquidity plan will be successfully implemented. Failure to successfully implement the liquidity plan may have a material adverse effect on its business, results of operations and financial position, and may adversely affect its ability to continue as a going concern. These unaudited interim condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern.
Principles of Consolidation	Principles of Consolidation —The unaudited interim condensed consolidated financial statements include the accounts of SemiLEDs and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated during consolidation.
Use of Estimates	Use of Estimates —The preparation of unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the collectibility of accounts receivable, inventory net realizable values, realization of deferred tax assets, valuation of stock-based compensation expense, the useful lives of property, plant and equipment and intangible assets, the recoverability of the carrying amount of property, plant and equipment, intangible assets, goodwill and investments in unconsolidated entities, the fair value of acquired tangible and intangible assets, income tax uncertainties, provision for potential litigation costs and other contingencies. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ materially from those estimates.
Certain Significant Risks and Uncertainties	Certain Significant Risks and Uncertainties —The Company is subject to certain risks and uncertainties that could have a material and adverse effect on the Company’s future financial position or results of operations, which risks and uncertainties include, among others: it has incurred significant losses over the past few years, any inability of the Company to compete in a rapidly evolving market and to respond quickly and effectively to changing market requirements, any inability of the Company to grow its revenue and/or maintain or increase its margins, it may experience fluctuations in its revenues and operating results, any inability of the Company to protect its intellectual property rights, claims by others that the Company infringes their proprietary technology, and any inability of the Company to raise additional funds in the future.
Concentration of Supply Risk	Concentration of Supply Risk —Some of the components and technologies used in the Company’s products are purchased and licensed from a limited number of sources and some of the Company’s products are produced by a limited number of contract manufacturers. The loss of any of these suppliers and contract manufacturers may cause the Company to incur transition costs to another supplier or contract manufacturer, result in delays in the manufacturing and delivery of the Company’s products, or cause it to carry excess or obsolete inventory. The Company relies on a limited number of such suppliers and contract manufacturers for the fulfillment of its customer orders. Any failure of such suppliers and contract manufacturers to perform could have an adverse effect upon the Company’s reputation and its ability to distribute its products or satisfy customers’ orders, which could adversely affect the Company’s business, financial position, results of operations and cash flows.
Concentration of Credit Risk	Concentration of Credit Risk —Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company keeps its cash and cash equivalents in demand deposits with prominent banks of high credit quality and invests only in money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. As of May 31, 2015 and August 31, 201 4 , cash and cash equivalents of the Company consisted of the following (in thousands): Cash and Cash Equivalents by Location May 31, 2015 August 31, 2014 United States: Denominated in U.S. dollars $ $ Taiwan: Denominated in U.S. dollars Denominated in New Taiwan dollars Denominated in other currencies China (including Hong Kong): Denominated in U.S. dollars Denominated in Renminbi Denominated in H.K. dollars Total cash and cash equivalents $ $ T he Company’s revenues are substantially derived from the sales of LED products. A significant portion of the Company’s revenues are derived from a limited number of customers and sales are concentrated in a few select markets. Management performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. Management evaluates the need to establish an allowance for doubtful accounts for estimated potential credit losses at each reporting period. The allowance for doubtful accounts is based on the management’s assessment of the collectibility of its 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. Net revenues generated from sales to the top ten customers represented 60% and 61% of the Company’s total net revenues for the three and nine months ended May 31, 2015 , respectively , and 52% and 47% of the Company’s net revenues for the three and n ine m onths ended May 31, 201 4 , respectively . The Company’s revenues have been concentrated in a few select markets, including Taiwan, the United States , and China (including Hong Kong). Net revenues generated from sales to customers in these markets, in the aggregate, accounted for 53% and 70% of the Company’s net revenues for the three and nine months ended May 31, 2015 , respectively, and 73% and 58% of the Company’s net revenues for the three and n ine m onths ended May 31, 201 4 , respectively.
Noncontrolling Interests	Noncontrolling Interests — N oncontrolling interests are classified in the consolidated statements of operations as part of consolidated net income (loss) and the accumulated amount of noncontrolling interests in the consolidated balance sheets as part of equity. Changes in ownership interest in a consolidated subsidiary that do not result in a loss of control are accounted for as an equity transaction. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Transactions with noncontrolling interests had the following effect on equity attributable to SemiLEDs stockholders (in thousands): Three Months Ended May 31, 2015 Nine Months Ended May 31, 2015 Net loss attributable to SemiLEDs stockholders $ ) $ ) Transfers to noncontrolling interests: Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang — ) Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests $ ) $ )

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	May. 31, 2015
Summary of Significant Accounting Policies
Schedule of cash and cash equivalents by location	As of May 31, 2015 and August 31, 201 4 , cash and cash equivalents of the Company consisted of the following (in thousands): Cash and Cash Equivalents by Location May 31, 2015 August 31, 2014 United States: Denominated in U.S. dollars $ $ Taiwan: Denominated in U.S. dollars Denominated in New Taiwan dollars Denominated in other currencies China (including Hong Kong): Denominated in U.S. dollars Denominated in Renminbi Denominated in H.K. dollars Total cash and cash equivalents $ $
Schedule of effect of transactions with noncontrolling interests on equity attributable to stockholders	Transactions with noncontrolling interests had the following effect on equity attributable to SemiLEDs stockholders (in thousands): Three Months Ended May 31, 2015 Nine Months Ended May 31, 2015 Net loss attributable to SemiLEDs stockholders $ ) $ ) Transfers to noncontrolling interests: Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang — ) Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests $ ) $ )

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	May. 31, 2015
Balance Sheet Components
Schedule of inventories	Inventories as of May 31, 2015 and August 31, 201 4 consisted of the following (in thousands): May 31, 2015 August 31, 2014 Raw materials $ $ Work in process Finished goods Total $ $
Schedule of property, plant and equipment	Property, plant and equipment as of May 31, 2015 and August 31, 20 14 consisted of the following (in thousands): May 31, 2015 August 31, 2014 Buildings and improvements $ $ Machinery and equipment Leasehold improvements Other equipment Construction in progress Total property, plant and equipment Less: Accumulated depreciation, amortization and impairment ) ) Property, plant and equipment, net $ $
Schedule of intangible assets	Intangible assets as of May 31, 2015 and August 31, 201 4 consisted of the following (in thousands): May 31, 2015 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and trademarks 14 $ $ $ Acquired technology 5 Total $ $ $ August 31, 2014 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Patents and trademarks 14 $ $ $ Acquired technology 5 Total $ $ $

Investments in Unconsolidated21

Investments in Unconsolidated Entities (Tables)	9 Months Ended
	May. 31, 2015
Investments in Unconsolidated Entities
Schedule of ownership interest and carrying amounts of investments in unconsolidated entities	The Company’s ownership interest and carrying amounts of investments in unconsolidated entities as of May 31, 2015 and August 31, 201 4 consisted of the following (in thousands, except percentages): May 31, 2015 August 31, 2014 Percentage Ownership Amount Percentage Ownership Amount Equity method investments: SILQ (Malaysia) Sdn. Bhd. (“SILQ”) % $ % $ Xurui Guangdian Co., Ltd. (“China SemiLEDs”) % — % — Cost method investments Various Various Total investments in unconsolidated entities $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	May. 31, 2015
Commitments and Contingencies
Schedule of aggregate future noncancellable minimum rental payments for the operating leases	The aggregate future noncancellable minimum rental payments for the Company’s operating leases as of May 31, 2015 consisted of the following (in thousands): Years Ending August 31, Operating Leases Remainder of 2015 $ 2016 2017 2018 2019 Thereafter Total $

Stock-based Compensation (Table

Stock-based Compensation (Table)	9 Months Ended
	May. 31, 2015
Employees, directors and nonemployees
Stock-based Compensation
Schedule of stock-based compensation expense	A summary of the stock-based compensation expense for the three and nine months ended May 31, 2015 and 2014 was as follows (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Cost of revenues $ $ $ $ Research and development Selling, general and administrative $ $ $ $

Net Loss Per Share of Common 24

Net Loss Per Share of Common Stock (Tables)	9 Months Ended
	May. 31, 2015
Net Loss Per Share of Common Stock
Schedule of stock-based compensation plan awards were excluded from the computation of diluted net loss per share of common stock	The following stock-based compensation plan awards were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive (in thousands of shares): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Stock units and stock options to purchase common stock

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	May. 31, 2015
Income Taxes
Schedule of loss before income taxes	The Company’s loss before income taxes for the three and nine months ended May 31, 2015 and 201 4 consisted of the following (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 U.S. operations $ ) $ ) $ ) $ ) Foreign operations ) ) ) ) Loss before income taxes $ ) $ ) $ ) $ )

Business (Details)

Business (Details) - item	May. 31, 2015	Dec. 31, 2014	Nov. 30, 2013	Apr. 30, 2013	Aug. 31, 2011
Business
Number of wholly owned subsidiaries	7
Ning Xiang
Business
Ownership interest acquired (as a percent)		6.00%	21.00%	15.00%	51.00%
Ownership interest (as a percent)	93.00%
Taiwan SemiLEDs | Taiwan Bandaoti Zhaoming Co., Ltd.
Business
Ownership interest (as a percent)	100.00%

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014	Aug. 31, 2014	Aug. 31, 2013
Summary of Significant Accounting Policies
Losses from operations	$ 3,074	$ 6,348	$ 10,368	$ 19,074	$ 24,800	$ 42,700
Losses on product sales	859	2,793	3,053	8,267	11,300	14,700
Net cash used in operating activities			3,928	13,767	15,700	14,500
Cash and cash equivalents	$ 6,016	$ 16,084	$ 6,016	$ 16,084	$ 12,649	$ 36,272

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014	Aug. 31, 2014	Aug. 31, 2013
Concentration of Credit Risk
Cash and cash equivalents	$ 6,016	$ 16,084	$ 6,016	$ 16,084	$ 12,649	$ 36,272
Revenues | Customer concentration risk | Top ten customers
Concentration of Credit Risk
Concentration risk (as a percent)	60.00%	52.00%	61.00%	47.00%
United States | U.S. Dollars
Concentration of Credit Risk
Cash and cash equivalents	$ 2,457		$ 2,457		7,838
Taiwan | U.S. Dollars
Concentration of Credit Risk
Cash and cash equivalents	1,443		1,443		2,909
Taiwan | New Taiwan Dollars
Concentration of Credit Risk
Cash and cash equivalents	967		967		834
Taiwan | Other currencies
Concentration of Credit Risk
Cash and cash equivalents	$ 306		$ 306		300
China (including Hong Kong) | Revenues | Customer concentration risk
Concentration of Credit Risk
Concentration risk (as a percent)	53.00%	73.00%	70.00%	58.00%
China (including Hong Kong) | U.S. Dollars
Concentration of Credit Risk
Cash and cash equivalents	$ 262		$ 262		262
China (including Hong Kong) | Renminbi
Concentration of Credit Risk
Cash and cash equivalents	580		580		505
China (including Hong Kong) | H.K. dollars
Concentration of Credit Risk
Cash and cash equivalents	$ 1		$ 1		$ 1

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Noncontrolling Interests
Net loss attributable to SemiLEDs stockholders	$ (3,041)	$ (6,405)	$ (10,274)	$ (19,106)
Ning Xiang
Noncontrolling Interests
Net loss attributable to SemiLEDs stockholders	(3,041)		(10,274)
Transfers to noncontrolling interests:
Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang			(125)
Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests	$ (3,041)		$ (10,399)

Balance Sheet Components (Detai

Balance Sheet Components (Details) - USD ($) $ in Thousands	9 Months Ended
	May. 31, 2015	May. 31, 2014	Aug. 31, 2014
Inventories
Raw materials	$ 1,935		$ 2,792
Work in process	684		1,420
Finished goods	3,999		5,000
Total	6,618		9,212
Inventory write-downs	1,161	$ 1,618
Property, Plant and Equipment
Total property, plant and equipment	85,670		90,517
Less: Accumulated depreciation, amortization and impairment	(62,187)		(63,454)
Property, plant and equipment, net	23,483		27,063
Buildings and improvements
Property, Plant and Equipment
Total property, plant and equipment	14,700		14,518
Machinery and equipment
Property, Plant and Equipment
Total property, plant and equipment	62,450		68,038
Leasehold improvements
Property, Plant and Equipment
Total property, plant and equipment	2,952		2,914
Other equipment
Property, Plant and Equipment
Total property, plant and equipment	3,977		2,652
Construction in progress
Property, Plant and Equipment
Total property, plant and equipment	$ 1,591		$ 2,395

Balance Sheet Components (Det31

Balance Sheet Components (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	May. 31, 2015	Aug. 31, 2014
Intangible Assets
Gross Carrying Amount	$ 2,167	$ 2,130
Accumulated Amortization and Impairment	686	544
Total	$ 1,481	$ 1,586
Patents and trademarks
Intangible Assets
Weighted Average Amortization Period	14 years	14 years
Gross Carrying Amount	$ 1,466	$ 1,411
Accumulated Amortization and Impairment	326	257
Total	$ 1,140	$ 1,154
Acquired technology
Intangible Assets
Weighted Average Amortization Period	5 years	5 years
Gross Carrying Amount	$ 701	$ 719
Accumulated Amortization and Impairment	360	287
Total	$ 341	$ 432

Investments in Unconsolidated32

Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Apr. 30, 2014	Jan. 31, 2014	May. 31, 2015	Aug. 31, 2014	Dec. 31, 2013
Investments in unconsolidated entities
Cost method investments			$ 1,954	$ 1,987
Total investments in unconsolidated entities			2,135	$ 2,204
Dividend received from unconsolidated entities			$ 0
SILQ (Malaysia) Sdn. Bhd. ("SILQ")
Investments in unconsolidated entities
Ownership interest	33.00%	49.00%	33.00%	33.00%	50.00%
Equity method investments			$ 181	$ 217
Dilution gain on equity method investment		$ 26
Cash consideration from sale of the investment	$ 114
Gain on sale of investment	37
Payment for investments	$ 130	$ 76
China SemiLEDs
Investments in unconsolidated entities
Ownership interest			49.00%	49.00%

Commitments and Contingencies33

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014	Aug. 31, 2014
Commitments and Contingencies
Lease expense related to operating leases	$ 130	$ 343	$ 438	$ 925
Future noncancellable minimum rental payments
Remainder of 2015	120		120
2,016	426		426
2,017	431		431
2,018	266		266
2,019	91		91
Thereafter	122		122
Total	1,456		1,456
Purchase Obligations
Purchase commitments for inventory, property, plant and equipment	$ 2,500		$ 2,500		$ 3,900

Stock-based Compensation (Detai

Stock-based Compensation (Details) $ / shares in Units, shares in Thousands, $ in Thousands	May. 09, 2015shares	May. 31, 2015item$ / sharesshares	Jan. 31, 2015$ / sharesshares	May. 31, 2014$ / sharesshares	Apr. 30, 2014$ / sharesshares	May. 31, 2015USD ($)itemshares	May. 31, 2014USD ($)	May. 31, 2015USD ($)itemshares	May. 31, 2014USD ($)	Aug. 31, 2014shares
Stock-based Compensation
Number of share-based compensation plans | item		1				1		1
Stock-based Compensation
Shares of common stock reserved for issuance		6,349				6,349		6,349		6,349
Additional number of shares authorized for issuance					2,500
Stock-based compensation expense | $						$ 267	$ 482	$ 1,092	$ 1,530
Common Stock
Stock-based Compensation
Common stock available for future issuance (in shares)		3,886				3,886		3,886		4,492
Employee Stock Option
Stock-based Compensation
Estimated forfeiture rate (as a percent)		0.00%				0.00%		0.00%
Employee Stock Option | Maximum
Stock-based Compensation
Vesting period								1 year
Restricted stock unit
Stock-based Compensation
Stock units granted (in shares)				410
Stock units vested (in shares)	122
Vesting period				4 years
Vesting percentage on each anniversary of the vesting start date of awards granted	100.00%			25.00%
Grant-date fair value (in dollars per share) | $ / shares				$ 1.01
Performance Shares
Stock-based Compensation
Stock units granted (in shares)				366
Executives and employees | Restricted stock unit
Stock-based Compensation
Stock units granted (in shares)			50
Vesting period			4 years
Vesting percentage on each anniversary of the vesting start date of awards granted			25.00%
Grant-date fair value (in dollars per share) | $ / shares			$ 1.07
Directors | Restricted stock unit
Stock-based Compensation
Stock units granted (in shares)		50			75
Vesting percentage on the earlier of the first anniversary of the vesting start date and the date of the next annual meeting		100.00%			100.00%
Grant-date fair value (in dollars per share) | $ / shares		$ 0.82			$ 1.05
Employees, directors and nonemployees | Cost of revenues
Stock-based Compensation
Stock-based compensation expense | $						$ 49	191	$ 264	581
Employees, directors and nonemployees | Research and development
Stock-based Compensation
Stock-based compensation expense | $						22	51	133	273
Employees, directors and nonemployees | Selling, general and administrative
Stock-based Compensation
Stock-based compensation expense | $						$ 196	$ 240	$ 695	$ 676

Net Loss Per Share of Common 35

Net Loss Per Share of Common Stock (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Stock units and stock options to purchase common stock
Securities excluded from computation of diluted net income (loss) per share of common stock
Antidilutive securities (in shares)	229	277	529	567

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014	Aug. 31, 2014
Loss before income taxes
U.S. operations	$ (203)	$ (476)	$ (706)	$ (1,464)
Foreign operations	(2,843)	(5,945)	(9,615)	(17,735)
Loss before income taxes	(3,046)	$ (6,421)	(10,321)	$ (19,199)
Unrecognized Tax Benefits	$ 0		$ 0		$ 0

Subsequent Events (Details)

Subsequent Events (Details) - Xiaoqing Han - USD ($)	Dec. 18, 2014	May. 31, 2015
Subsequent events
Proceeds from liquidating damages		$ 261,000
Purchase price as per agreement	$ 5,000,000
Liquidating Damages Owed To Entity If Buyer Does Not Complete Stock Transaction	$ 3,000,000