Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2019 | Jul. 09, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SemiLEDs Corp | |
Entity Central Index Key | 0001333822 | |
Trading Symbol | LEDs | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 3,589,015 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
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 |
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) | ||
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 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 469 | $ 477 |
Common stock, par value (in dollars per share) | $ 0.0000056 | $ 0.0000056 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 3,589,000 | 3,559,000 |
Common stock, shares outstanding | 3,589,000 | 3,559,000 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Income Statement [Abstract] | ||||
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) |
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 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
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) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statement of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Taiwan Bandaoti Zhaoming Co., Ltd. | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalTaiwan Bandaoti Zhaoming Co., Ltd. | Accumulated Other Comprehensive Income | Accumulated Deficit | Total SemiLEDs Shareholders' Equity | Total SemiLEDs Shareholders' EquityTaiwan Bandaoti Zhaoming Co., Ltd. | Non-Controlling Interests | Non-Controlling InterestsTaiwan Bandaoti Zhaoming Co., Ltd. |
BALANCE at Aug. 31, 2017 | $ 7,817 | $ 175,386 | $ 3,701 | $ (171,270) | $ 7,817 | ||||||
BALANCE (in shares) at Aug. 31, 2017 | 3,544 | ||||||||||
Stock-based compensation | 24 | 24 | 24 | ||||||||
Comprehensive loss: | |||||||||||
Other comprehensive income (loss) | 26 | 26 | 26 | ||||||||
Net loss | (392) | (392) | (392) | ||||||||
BALANCE at Nov. 30, 2017 | 7,475 | 175,410 | 3,727 | (171,662) | 7,475 | ||||||
BALANCE (in shares) at Nov. 30, 2017 | 3,544 | ||||||||||
BALANCE at Aug. 31, 2017 | 7,817 | 175,386 | 3,701 | (171,270) | 7,817 | ||||||
BALANCE (in shares) at Aug. 31, 2017 | 3,544 | ||||||||||
Comprehensive loss: | |||||||||||
Other comprehensive income (loss) | 58 | ||||||||||
Net loss | (1,850) | ||||||||||
BALANCE at May. 31, 2018 | 6,126 | 175,487 | 3,759 | (173,120) | 6,126 | ||||||
BALANCE (in shares) at May. 31, 2018 | 3,557 | ||||||||||
BALANCE at Nov. 30, 2017 | 7,475 | 175,410 | 3,727 | (171,662) | 7,475 | ||||||
BALANCE (in shares) at Nov. 30, 2017 | 3,544 | ||||||||||
Issuance of common stock under equity incentive plans (in shares) | 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 at Feb. 28, 2018 | 6,476 | 175,434 | 3,836 | (172,794) | 6,476 | ||||||
BALANCE (in shares) at Feb. 28, 2018 | 3,545 | ||||||||||
Issuance of common stock under equity incentive plans (in shares) | 12 | ||||||||||
Stock-based compensation | 53 | 53 | 53 | ||||||||
Comprehensive loss: | |||||||||||
Other comprehensive income (loss) | (77) | (77) | (77) | ||||||||
Net loss | (326) | (326) | (326) | ||||||||
BALANCE at May. 31, 2018 | 6,126 | 175,487 | 3,759 | (173,120) | 6,126 | ||||||
BALANCE (in shares) at May. 31, 2018 | 3,557 | ||||||||||
BALANCE at Aug. 31, 2018 | 5,003 | 175,527 | 3,727 | (174,251) | 5,003 | ||||||
BALANCE (in shares) at Aug. 31, 2018 | 3,559 | ||||||||||
Issuance of common stock under equity incentive plans (in shares) | 1 | ||||||||||
Stock-based compensation | 43 | 43 | 43 | ||||||||
Common stock issued by SBDI | $ 176 | $ 128 | $ 128 | $ 48 | |||||||
Comprehensive loss: | |||||||||||
Other comprehensive income (loss) | 4 | 5 | 5 | $ (1) | |||||||
Net loss | (983) | (978) | (978) | (5) | |||||||
BALANCE at Nov. 30, 2018 | 4,243 | 175,698 | 3,732 | (175,229) | 4,201 | 42 | |||||
BALANCE (in shares) at Nov. 30, 2018 | 3,560 | ||||||||||
BALANCE at Aug. 31, 2018 | 5,003 | 175,527 | 3,727 | (174,251) | 5,003 | ||||||
BALANCE (in shares) at Aug. 31, 2018 | 3,559 | ||||||||||
Comprehensive loss: | |||||||||||
Other comprehensive income (loss) | (1) | ||||||||||
Net loss | (2,685) | ||||||||||
BALANCE at May. 31, 2019 | 2,610 | 175,772 | 3,728 | (176,935) | 2,565 | 45 | |||||
BALANCE (in shares) at May. 31, 2019 | 3,589 | ||||||||||
BALANCE at Nov. 30, 2018 | 4,243 | 175,698 | 3,732 | (175,229) | 4,201 | 42 | |||||
BALANCE (in shares) at Nov. 30, 2018 | 3,560 | ||||||||||
Issuance of common stock under equity incentive plans (in shares) | 29 | ||||||||||
Stock-based compensation | 47 | 47 | 47 | ||||||||
Comprehensive loss: | |||||||||||
Other comprehensive income (loss) | (17) | (18) | (18) | 1 | |||||||
Net loss | (844) | (847) | (847) | 3 | |||||||
BALANCE at Feb. 28, 2019 | 3,429 | 175,745 | 3,714 | (176,076) | 3,383 | 46 | |||||
BALANCE (in shares) at Feb. 28, 2019 | 3,589 | ||||||||||
Stock-based compensation | 27 | 27 | 27 | ||||||||
Comprehensive loss: | |||||||||||
Other comprehensive income (loss) | 12 | 14 | 14 | (2) | |||||||
Net loss | (858) | (859) | (859) | 1 | |||||||
BALANCE at May. 31, 2019 | $ 2,610 | $ 175,772 | $ 3,728 | $ (176,935) | $ 2,565 | $ 45 | |||||
BALANCE (in shares) at May. 31, 2019 | 3,589 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,685) | $ (1,850) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 827 | 766 |
Stock-based compensation expense | 117 | 101 |
Bad debt expense | 10 | |
Provisions for inventory write-downs | 560 | 487 |
Gain on disposals of long-lived assets, net | (288) | (790) |
Changes in : | ||
Accounts receivable, net | (292) | 802 |
Inventories | (724) | 201 |
Prepaid expenses and other | (121) | 119 |
Accounts payable | (183) | (269) |
Accrued expenses and other current liabilities | (85) | 150 |
Net cash used in operating activities | (2,874) | (273) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (73) | (247) |
Proceeds from sales of property, plant and equipment | 505 | 913 |
Return the received-in-advance | (3,000) | |
Payments for development of intangible assets | (3) | (4) |
Proceeds from patents assignment | 1 | |
Net cash provided by (used in) investing activities | (2,571) | 663 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 3,200 | |
Repayments of long-term debt | (248) | (255) |
Acquisition of noncontrolling interests | (1) | |
Net cash provided by (used in) financing activities | 2,951 | (255) |
Effect of exchange rate changes on cash and cash equivalents | 133 | 22 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,361) | 157 |
CASH AND CASH EQUIVALENTS—Beginning of period | 3,421 | 3,582 |
CASH AND CASH EQUIVALENTS—End of period | 1,060 | 3,739 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Accrual related to property, plant and equipment | $ 34 | $ 140 |
Business
Business | 9 Months Ended |
May 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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 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 components, as well as LED chips and lighting products. LED components have become the most important part of its 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, 2019, SemiLEDs had four wholly owned subsidiaries. SemiLEDs’ common stock began trading on the NASDAQ Global Select Market under the symbol “LEDS” on December 8, 2010 and was transferred to the NASDAQ Capital Market effective November 5, 2015 where it continues to trade under the same symbol. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
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 November 26, 2018. The unaudited condensed consolidated balance sheet as of August 31, 2018 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, 2019, the statements of operations and comprehensive loss for the three and nine months ended May 31, 2019 and 2018, the statement of changes in equity for the nine months ended May 31, 2019 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 suffered losses from operations of $3.7 million and $4.3 million, and net cash used in operating activities of $1.2 million and $2.1 million for the years ended August 31, 2018 and 2017, respectively. Gross loss on product sales was $435 thousand for the year ended August 31, 2018, and gross profit was $82 thousand for the year ended August 31, 2017. Loss from operations for the three and nine months ended May 31, 2019 were $701 thousand and $2.6 million, respectively. Net cash used in operating activities for the nine months ended May 31, 2019 was $2.9 million. Further, at May 31, 2019, the Company’s cash and cash equivalents was down to $1.1 million. These facts and conditions raise substantial doubt about the Company’s ability to continue as a going concern. However, management has recently entered into two new loan agreements to refinance its existing real estate loan and provide for operating capital. 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. • Gaining positive cash-inflow from operating activities through continuous cost reductions and the sales of new higher margin products. Steady growth of module products and the continued commercial sales of its UV LED product are expected to improve the Company’s future gross margin, operating results and cash flows. The Company is targeting niche markets and focusing on product enhancement and developing its LED product into many other applications or devices. • Continuing to monitor prices, work with current and potential vendors to decrease costs and, consistent with its existing contractual commitments, may possibly decrease its activity level and capital expenditures further. This plan reflects its strategy of controlling capital costs and maintaining financial flexibility. • Raising additional cash through further equity offerings, sales of assets and/or issuance of debt as considered necessary and looking at other potential business opportunities. 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 after the date that the financial statements are issued, 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. Revenue Recognition —Effective September 1 2018, the Company adopted ASC 606 using the modified retrospective transition method. The Company applied the following five steps to achieve the core principles of ASC 606: 1) identified the contract with a customer; 2) identified the performance obligations (promises) in the contract; 3) determined the transaction price; 4) allocated the transaction price to the performance obligations in the contract; and 5) recognized revenue when (or as) the Company satisfies a performance obligation. The Company recognizes the amount of revenue when the Company satisfies a performance obligation to which it expects to be entitled for the transfer of promised goods or services to customers. The Company obtains written purchase authorizations from its customers as evidence of an arrangement and these authorizations generally provide for a specified amount of product at a fixed price. Generally, the Company considers delivery to have occurred at the time of shipment as this is generally when title and risk of loss for the products will pass to the customer. The Company provides its customers with limited rights of return for non‑conforming shipments and product warranty claims. Based on historical return percentages, which have not been material to date, and other relevant factors, the Company estimates its potential future exposure on recorded product sales, which reduces product revenues in the consolidated statements of operations and reduces accounts receivable in the consolidated balance sheets. The Company also provides standard product warranties on its products, which generally range from three months to two years. Management estimates the Company’s warranty obligations as a percentage of revenues, based on historical knowledge of warranty costs and other relevant factors. To date, the related estimated warranty provisions have been insignificant. 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. On September 1, 2018, the Company adopted ASC 825-10, “Financial Instruments- Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. This standard allows equity investments that do not have readily determinable fair values to be re-measured at fair value either upon the occurrence of an observable price change or upon identification of impairment. The standard also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period. Investments in which the Company has the ability to exercise significant influence over the investee but not a controlling financial interest, are accounted for using the equity method of accounting and are not consolidated. These investments are in joint ventures that are not subject to consolidation under the variable interest model, and for which the Company: (i) does not have a majority voting interest that would allow it to control the investee, or (ii) has a majority voting interest but for which other shareholders have significant participating rights, but for which the Company has the ability to exercise significant influence over operating and financial policies. Under the equity method, investments are stated at cost after adding or removing the Company’s portion of equity in undistributed earnings or losses, respectively. The Company’s investment in these equity‑method entities is reported in the consolidated balance sheets in investments in unconsolidated entities, and the Company’s share of the income or loss of these equity‑method entities, after the elimination of unrealized intercompany profits, is reported in the consolidated statements of operations in equity in losses from unconsolidated entities. When net losses from an equity‑method investee exceed its carrying amount, the carrying amount of the investment is reduced to zero. The Company then suspends using the equity method to provide for additional losses unless the Company has guaranteed obligations or is otherwise committed to provide further financial support to the equity‑method investee. The Company resumes accounting for the investment under the equity method if the investee subsequently returns to profitability and the Company’s share of the investee’s income exceeds its share of the cumulative losses that have not been previously recognized during the period the equity method is suspended. Investments in entities that are not consolidated or accounted for under the equity method are recorded as investments without readily determinable fair values. Investments without readily determinable fair values are reported on the consolidated balance sheets in investments in unconsolidated entities, at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Dividend income, if any, received is reported in the consolidated statements of operations in equity in losses from unconsolidated entities. If the fair value of an equity investment declines below its respective carrying amount and the decline is determined to be other‑than‑temporary, the investment will be written down to its fair value. 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 preparation of the Company’s consolidated financial statements on the basis that the Company will continue as a going concern, 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 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 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, 2019 and August 31, 2018, cash and cash equivalents of the Company consisted of the following (in thousands): May 31, August 31, Cash and Cash Equivalents by Location 2019 2018 United States; Denominated in U.S. dollars $ 16 $ 194 Taiwan; Denominated in U.S. dollars 234 2,220 Denominated in New Taiwan dollars 696 55 Denominated in other currencies 78 910 China (including Hong Kong); Denominated in U.S. dollars — 7 Denominated in Renminbi 28 29 Denominated in H.K. dollars 8 6 Total cash and cash equivalents $ 1,060 $ 3,421 The 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 collectability of its customer accounts. Management regularly reviews the allowance by considering certain factors, such as historical experience, industry data, credit quality, ages 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 80% and 73 % of the Company’s total net revenues for the three and nine months ended May 31, 2019, respectively, and 69% and 62% of the Company’s net revenues for the three and nine months ended May 31, 2018, respectively. The Company’s revenues have been concentrated in a few select markets, including Noncontrolling Interests —Noncontrolling 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. On September 1, 2018, Taiwan Bandaoti Zhaoming Co., Ltd. (“SBDI”), the Company’s wholly owned operating subsidiary, issued 414,000 common shares and amended its certificate of incorporation to increase its issued common stock from 12,087,715 to 12,501,715. As of the issuance date, the increased capital of $176 thousand (NT$5.4 million) has been completely received in cash by Taiwan Bandaoti Zhaoming Co., Ltd. The Company did not subscribe for the newly issued common shares, and, as a result, noncontrolling interest in SBDI was increased from zero to 3.31%. In December 2018, Taiwan SemiLEDs purchased 3,000 common shares of SBDI from non-controlling interests. As of May 31, 2019, noncontrolling interest in SBDI was down to 3.29%. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework – Change to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify the disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. This standard will be effective for the Company on September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. This standard will be effective for the Company on September 1, 2019. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard will be effective for the Company on September 1, 2019. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial position, results of operations or cash flows. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
May 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Inventories Inventories as of May 31, 2019 and August 31, 2018 consisted of the following (in thousands): May 31, August 31, 2019 2018 Raw materials $ 519 $ 577 Work in process 529 505 Finished goods 897 736 Total $ 1,945 $ 1,818 Inventory write-downs to estimated net realizable values were $248 thousand and $560 thousand for the three and nine months ended May 31, 2019, respectively, and $74 thousand and $487 thousand for the three and nine months ended May 31, 2018, respectively. Property, Plant and Equipment Property, plant and equipment as of May 31, 2019 and August 31, 2018 consisted of the following (in thousands): May 31, August 31, 2019 2018 Buildings and improvements $ 13,143 $ 13,558 Machinery and equipment 37,729 39,391 Leasehold improvements 155 150 Other equipment 2,235 2,312 Total property, plant and equipment 53,262 55,411 Less: Accumulated depreciation and amortization (47,233 ) (48,487 ) Construction in progress — 289 Property, plant and equipment, net $ 6,029 $ 7,213 Intangible Assets Intangible assets as of May 31, 2019 and August 31, 2018 consisted of the following (in thousands): May 31, 2019 Weighted Average Gross Net Amortization Carrying Accumulated Carrying Period (Years) Amount Amortization Amount Patents and trademarks 15 $ 538 $ 442 $ 96 Acquired technology 5 480 480 — Total $ 1,018 $ 922 $ 96 August 31, 2018 Weighted Average Gross Net Amortization Carrying Accumulated Carrying Period (Years) Amount Amortization Amount Patents and trademarks 15 $ 544 $ 446 $ 98 Acquired technology 5 494 494 — Total $ 1,038 $ 940 $ 98 |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 9 Months Ended |
May 31, 2019 | |
Investments In Unconsolidated Entities Disclosure [Abstract] | |
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, 2019 and August 31, 2018 consisted of the following (in thousands, except percentages): May 31, 2019 August 31, 2018 Percentage Percentage Ownership Amount Ownership Amount Equity method investments: Xurui Guangdian Co., Ltd. (“China SemiLEDs”) 49 % $ — 49 % $ — Equity investment wihout readily determinable fair value Various 888 Various 914 Total investments in unconsolidated entities $ 888 $ 914 There were no dividends received from unconsolidated entities through May 31, 2019. Equity Method Investments The Company owns a 49% equity interest in China SemiLEDs. This investment has a carrying amount of zero as a result of a previously recognized impairment. In May 2019, the Foshan (China) Court declared China SemiLEDs was bankrupt after confirming that China SemiLEDs was incapable to pay outstanding debts. Equity Investments without Readily Determinable Fair Value Equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the Company) which do not have readily determinable fair values are recorded as equity investment without readily determinable fair value. All equity investments without readily determinable fair value are assessed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable, and measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
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 include cancellable and noncancellable and which expire at various dates between December 2020 and December 2021. Lease expense related to these noncancellable operating leases was $39 thousand and $114 thousand for the three and nine months ended May 31, 2019, respectively, and $101 thousand and $348 thousand for the three and nine months ended May 31, 2018, 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, 2019 consisted of the following (in thousands): Operating Years Ending August 31, Leases Remainder of 2019 $ 37 2020 147 2021 49 2022 — 2023 — Thereafter — Total $ 233 Purchase Obligations —The Company had purchase commitments for inventory, property, plant and equipment in the amount of $220 thousand and $1.6 million as of May 31, 2019 and August 31, 2018, 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. However, the Company cannot predict the outcome of any litigation or the potential for future litigation. On June 21, 2017, Well Thrive Ltd. (“Well Thrive”) filed a complaint against SemiLEDs Corporation in the United States District Court for the District of Delaware. The complaint alleges that Well Thrive is entitled to return of $500 thousand paid toward a note purchase pursuant to a purchase agreement (the “Purchase Agreement”) effective July 6, 2016 with Dr. Peter Chiou, which was assigned to Well Thrive on August 4, 2016. Pursuant to the terms of the Purchase Agreement, we have retained the $500 thousand payment as liquidated damages. Well Thrive alleges that the liquidated damages provision is unenforceable as an illegal penalty and does not reflect the amount of purported damages. On December 28, 2018, the Company received a notification from the Court in Miao-Li County, Taiwan that Epistar Corporation (the successor to Formosa Epitaxy Incorporation, the “Plaintiff”) filed a motion requesting that the Company return the $3 million prepayment plus value-added-tax for the headquarters building sale and pay interest during this period and litigation fee. The Plaintiff also petitioned the Court to do a provisional execution upon the Company, which would permit the Plaintiff to sell the building and/or other assets belonging to the Company to recover the prepayment. On January 4, 2019, the Company filed a statement of defense arguing that the Plaintiff’s action and motion for provisional execution should be dismissed and the litigation fees should be borne by the Plaintiff. On January 25, 2019, the Company and the Plaintiff entered into a settlement, agreeing that the Company would return the $3 million plus value-added-tax of $150 thousand and penalty of $200 thousand, and on February 1, 2019, the Plaintiff withdrew the motion. As of May 31, 2019, the Company has paid the $3.2 million, and accrued a payable of $150 thousand. Except as described above, as of May 31 2019, 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, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
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 250 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. On June 14, 2019, the Company amended the 2010 Plan, subject to shareholder approval at the annual meeting on July 31, 2019, to increase the number of shares authorized for issuance under the plan by an additional 500 thousand shares, to extend expiration of the plan to November 3, 2023, to remove the IRS Code section 162(m) provisions from the plan, and to modify the maximum grant limit to 35 thousand shares to one person in a one year period. A total of In July 2018, SemiLEDs granted 7.5 thousand restricted stock units to its directors that vested 100% on June 29, 2019. The grant-date fair value of the restricted stock units was $4.75 per unit. In January 2018, SemiLEDs granted 56.7 thousand restricted stock units to its employees among which 50% will vest each year on January 1 of 2019 and 2020 and will become fully vested upon a change in control. The grant-date fair value of the restricted stock units was $4.10 per unit. In November 2017, SemiLEDs granted 2.5 thousand restricted stock units to its directors that vested 100% on June 28, 2018. 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, 2019 and 2018 was as follows (in thousands): Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Cost of revenues $ 10 $ 19 $ 34 $ 33 Research and development 6 10 21 16 Selling, general and administrative 11 23 62 52 $ 27 $ 52 $ 117 $ 101 |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 9 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
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 Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Stock units and stock options to purchase common stock 7 11 13 63 |
Income Taxes
Income Taxes | 9 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company’s income (loss) before income taxes for the three and nine months ended May 31, 2019 and 2018 consisted of the following (in thousands): Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 U.S. operations $ (86 ) $ (179 ) $ (377 ) $ (86 ) Foreign operations (772 ) (147 ) (2,308 ) (1,764 ) Loss before income taxes $ (858 ) $ (326 ) $ (2,685 ) $ (1,850 ) Unrecognized Tax Benefits On December 22, 2017, the U.S. Tax Cuts and Jobs Act was adopted, which among other effects, reduced the U.S. federal corporate income tax rate to 21% from 34% (or 35% in certain cases) beginning in 2018, requires companies to pay a one-time transition tax on certain unrepatriated earnings from non-U.S. subsidiaries that is payable over eight years, makes the receipt of future non-U.S. sourced income of non-U.S. subsidiaries tax-free to U.S. companies and creates a new minimum tax on the earnings of non-U.S. subsidiaries relating to the parent’s deductions for payments to the subsidiaries. Provisional estimate of the Company is that no tax will be due under this provision. As of both May 31 2019 and August 31, 2018, 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 2018 remain open in most jurisdictions. The Company is not currently under examination by income tax authorities in federal, state or foreign jurisdictions. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
May 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions On January 8, 2019, the Company entered into loan agreements with each of its Chairman and Chief Executive Officer and its largest shareholder, with aggregate amounts of $3.2 million, and an annual interest rate of 8%. All proceeds of the loans were exclusively used to return the deposit to Formosa Epitaxy Incorporation in connection with the canceled sale of the Company’s headquarters building pursuant to the agreement dated December 15, 2015. The Company is required to repay the loans of $1.5 million on January 14, 2021 and $1.7 million on January 22, 2021, respectively, unless the loans are sooner accelerated pursuant to the loan agreements. As of May 31, 2019, these loans totaled $3.2 million. The loans are secured by a second priority security interest on the Company’s headquarters building. |
Subsequent Events
Subsequent Events | 9 Months Ended |
May 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events The Company entered two New Taiwan dollar (“NTD”) denominated loan agreements with Mega International Commercial Bank on July 5, 2019 with aggregate amounts of $3.2 million (NT$100 million). The first loan for $2.0 million (NT$62 million) has an annual floating interest rate equal to the NTD base lending rate plus 0.64% (or 1.62% currently), and was exclusively used to repay the existing loan to E. Sun Commercial Bank. The second loan for $1.2 million (NT$38 million) has an annual floating interest rate equal to the NTD base lending rate plus 1.02% (or 2% currently) and is available for operating capital. The loans are secured by a $79 thousand (NT$2.5 million) security deposit and a first priority security interest on the Company’s headquarters building. Principal and interests on the loans are payable monthly, and will mature in 8 years after the first withdrawal of the loaned funds. The Company has analyzed its operations subsequent to May 31, 2019 to the date these unaudited condensed consolidated financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these unaudited condensed consolidated financial statements, except the above. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
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 November 26, 2018. The unaudited condensed consolidated balance sheet as of August 31, 2018 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, 2019, the statements of operations and comprehensive loss for the three and nine months ended May 31, 2019 and 2018, the statement of changes in equity for the nine months ended May 31, 2019 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 suffered losses from operations of $3.7 million and $4.3 million, and net cash used in operating activities of $1.2 million and $2.1 million for the years ended August 31, 2018 and 2017, respectively. Gross loss on product sales was $435 thousand for the year ended August 31, 2018, and gross profit was $82 thousand for the year ended August 31, 2017. Loss from operations for the three and nine months ended May 31, 2019 were $701 thousand and $2.6 million, respectively. Net cash used in operating activities for the nine months ended May 31, 2019 was $2.9 million. Further, at May 31, 2019, the Company’s cash and cash equivalents was down to $1.1 million. These facts and conditions raise substantial doubt about the Company’s ability to continue as a going concern. However, management has recently entered into two new loan agreements to refinance its existing real estate loan and provide for operating capital. 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. • Gaining positive cash-inflow from operating activities through continuous cost reductions and the sales of new higher margin products. Steady growth of module products and the continued commercial sales of its UV LED product are expected to improve the Company’s future gross margin, operating results and cash flows. The Company is targeting niche markets and focusing on product enhancement and developing its LED product into many other applications or devices. • Continuing to monitor prices, work with current and potential vendors to decrease costs and, consistent with its existing contractual commitments, may possibly decrease its activity level and capital expenditures further. This plan reflects its strategy of controlling capital costs and maintaining financial flexibility. • Raising additional cash through further equity offerings, sales of assets and/or issuance of debt as considered necessary and looking at other potential business opportunities. 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 after the date that the financial statements are issued, 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. |
Revenue Recognition | Revenue Recognition —Effective September 1 2018, the Company adopted ASC 606 using the modified retrospective transition method. The Company applied the following five steps to achieve the core principles of ASC 606: 1) identified the contract with a customer; 2) identified the performance obligations (promises) in the contract; 3) determined the transaction price; 4) allocated the transaction price to the performance obligations in the contract; and 5) recognized revenue when (or as) the Company satisfies a performance obligation. The Company recognizes the amount of revenue when the Company satisfies a performance obligation to which it expects to be entitled for the transfer of promised goods or services to customers. The Company obtains written purchase authorizations from its customers as evidence of an arrangement and these authorizations generally provide for a specified amount of product at a fixed price. Generally, the Company considers delivery to have occurred at the time of shipment as this is generally when title and risk of loss for the products will pass to the customer. The Company provides its customers with limited rights of return for non‑conforming shipments and product warranty claims. Based on historical return percentages, which have not been material to date, and other relevant factors, the Company estimates its potential future exposure on recorded product sales, which reduces product revenues in the consolidated statements of operations and reduces accounts receivable in the consolidated balance sheets. The Company also provides standard product warranties on its products, which generally range from three months to two years. Management estimates the Company’s warranty obligations as a percentage of revenues, based on historical knowledge of warranty costs and other relevant factors. To date, the related estimated warranty provisions have been insignificant. |
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. On September 1, 2018, the Company adopted ASC 825-10, “Financial Instruments- Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. This standard allows equity investments that do not have readily determinable fair values to be re-measured at fair value either upon the occurrence of an observable price change or upon identification of impairment. The standard also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period. Investments in which the Company has the ability to exercise significant influence over the investee but not a controlling financial interest, are accounted for using the equity method of accounting and are not consolidated. These investments are in joint ventures that are not subject to consolidation under the variable interest model, and for which the Company: (i) does not have a majority voting interest that would allow it to control the investee, or (ii) has a majority voting interest but for which other shareholders have significant participating rights, but for which the Company has the ability to exercise significant influence over operating and financial policies. Under the equity method, investments are stated at cost after adding or removing the Company’s portion of equity in undistributed earnings or losses, respectively. The Company’s investment in these equity‑method entities is reported in the consolidated balance sheets in investments in unconsolidated entities, and the Company’s share of the income or loss of these equity‑method entities, after the elimination of unrealized intercompany profits, is reported in the consolidated statements of operations in equity in losses from unconsolidated entities. When net losses from an equity‑method investee exceed its carrying amount, the carrying amount of the investment is reduced to zero. The Company then suspends using the equity method to provide for additional losses unless the Company has guaranteed obligations or is otherwise committed to provide further financial support to the equity‑method investee. The Company resumes accounting for the investment under the equity method if the investee subsequently returns to profitability and the Company’s share of the investee’s income exceeds its share of the cumulative losses that have not been previously recognized during the period the equity method is suspended. Investments in entities that are not consolidated or accounted for under the equity method are recorded as investments without readily determinable fair values. Investments without readily determinable fair values are reported on the consolidated balance sheets in investments in unconsolidated entities, at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Dividend income, if any, received is reported in the consolidated statements of operations in equity in losses from unconsolidated entities. If the fair value of an equity investment declines below its respective carrying amount and the decline is determined to be other‑than‑temporary, the investment will be written down to its fair value. |
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 preparation of the Company’s consolidated financial statements on the basis that the Company will continue as a going concern, 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 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 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, 2019 and August 31, 2018, cash and cash equivalents of the Company consisted of the following (in thousands): May 31, August 31, Cash and Cash Equivalents by Location 2019 2018 United States; Denominated in U.S. dollars $ 16 $ 194 Taiwan; Denominated in U.S. dollars 234 2,220 Denominated in New Taiwan dollars 696 55 Denominated in other currencies 78 910 China (including Hong Kong); Denominated in U.S. dollars — 7 Denominated in Renminbi 28 29 Denominated in H.K. dollars 8 6 Total cash and cash equivalents $ 1,060 $ 3,421 The 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 collectability of its customer accounts. Management regularly reviews the allowance by considering certain factors, such as historical experience, industry data, credit quality, ages 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 80% and 73 % of the Company’s total net revenues for the three and nine months ended May 31, 2019, respectively, and 69% and 62% of the Company’s net revenues for the three and nine months ended May 31, 2018, respectively. The Company’s revenues have been concentrated in a few select markets, including |
Noncontrolling Interests | Noncontrolling Interests —Noncontrolling 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. On September 1, 2018, Taiwan Bandaoti Zhaoming Co., Ltd. (“SBDI”), the Company’s wholly owned operating subsidiary, issued 414,000 common shares and amended its certificate of incorporation to increase its issued common stock from 12,087,715 to 12,501,715. As of the issuance date, the increased capital of $176 thousand (NT$5.4 million) has been completely received in cash by Taiwan Bandaoti Zhaoming Co., Ltd. The Company did not subscribe for the newly issued common shares, and, as a result, noncontrolling interest in SBDI was increased from zero to 3.31%. In December 2018, Taiwan SemiLEDs purchased 3,000 common shares of SBDI from non-controlling interests. As of May 31, 2019, noncontrolling interest in SBDI was down to 3.29%. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework – Change to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify the disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. This standard will be effective for the Company on September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. This standard will be effective for the Company on September 1, 2019. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard will be effective for the Company on September 1, 2019. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of cash and cash equivalents by location | As of May 31, 2019 and August 31, 2018, cash and cash equivalents of the Company consisted of the following (in thousands): May 31, August 31, Cash and Cash Equivalents by Location 2019 2018 United States; Denominated in U.S. dollars $ 16 $ 194 Taiwan; Denominated in U.S. dollars 234 2,220 Denominated in New Taiwan dollars 696 55 Denominated in other currencies 78 910 China (including Hong Kong); Denominated in U.S. dollars — 7 Denominated in Renminbi 28 29 Denominated in H.K. dollars 8 6 Total cash and cash equivalents $ 1,060 $ 3,421 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
May 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of inventories | Inventories as of May 31, 2019 and August 31, 2018 consisted of the following (in thousands): May 31, August 31, 2019 2018 Raw materials $ 519 $ 577 Work in process 529 505 Finished goods 897 736 Total $ 1,945 $ 1,818 |
Schedule of property, plant and equipment | Property, plant and equipment as of May 31, 2019 and August 31, 2018 consisted of the following (in thousands): May 31, August 31, 2019 2018 Buildings and improvements $ 13,143 $ 13,558 Machinery and equipment 37,729 39,391 Leasehold improvements 155 150 Other equipment 2,235 2,312 Total property, plant and equipment 53,262 55,411 Less: Accumulated depreciation and amortization (47,233 ) (48,487 ) Construction in progress — 289 Property, plant and equipment, net $ 6,029 $ 7,213 |
Schedule of intangible assets | Intangible assets as of May 31, 2019 and August 31, 2018 consisted of the following (in thousands): May 31, 2019 Weighted Average Gross Net Amortization Carrying Accumulated Carrying Period (Years) Amount Amortization Amount Patents and trademarks 15 $ 538 $ 442 $ 96 Acquired technology 5 480 480 — Total $ 1,018 $ 922 $ 96 August 31, 2018 Weighted Average Gross Net Amortization Carrying Accumulated Carrying Period (Years) Amount Amortization Amount Patents and trademarks 15 $ 544 $ 446 $ 98 Acquired technology 5 494 494 — Total $ 1,038 $ 940 $ 98 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 9 Months Ended |
May 31, 2019 | |
Investments In Unconsolidated Entities Disclosure [Abstract] | |
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, 2019 and August 31, 2018 consisted of the following (in thousands, except percentages): May 31, 2019 August 31, 2018 Percentage Percentage Ownership Amount Ownership Amount Equity method investments: Xurui Guangdian Co., Ltd. (“China SemiLEDs”) 49 % $ — 49 % $ — Equity investment wihout readily determinable fair value Various 888 Various 914 Total investments in unconsolidated entities $ 888 $ 914 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
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, 2019 consisted of the following (in thousands): Operating Years Ending August 31, Leases Remainder of 2019 $ 37 2020 147 2021 49 2022 — 2023 — Thereafter — Total $ 233 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of the stock-based compensation expense | A summary of the stock-based compensation expense for the three and nine months ended May 31, 2019 and 2018 was as follows (in thousands): Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Cost of revenues $ 10 $ 19 $ 34 $ 33 Research and development 6 10 21 16 Selling, general and administrative 11 23 62 52 $ 27 $ 52 $ 117 $ 101 |
Net Loss Per Share of Common _2
Net Loss Per Share of Common Stock (Tables) | 9 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
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 Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Stock units and stock options to purchase common stock 7 11 13 63 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (loss) before income taxes | The Company’s income (loss) before income taxes for the three and nine months ended May 31, 2019 and 2018 consisted of the following (in thousands): Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 U.S. operations $ (86 ) $ (179 ) $ (377 ) $ (86 ) Foreign operations (772 ) (147 ) (2,308 ) (1,764 ) Loss before income taxes $ (858 ) $ (326 ) $ (2,685 ) $ (1,850 ) |
Business (Details)
Business (Details) | 9 Months Ended |
May 31, 2019subsidiary | |
Business | |
State of entity incorporated | Delaware |
Date of entity incorporation | Jan. 4, 2005 |
Number of wholly owned subsidiaries | 4 |
Taiwan SemiLEDs | Taiwan Bandaoti Zhaoming Co., Ltd. | |
Business | |
Ownership interest (as a percent) | 97.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Basis of Presentation and Use of Estimates (Details) $ in Thousands, Loan in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2019USD ($)Loan | May 31, 2018USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Accounting Policies [Abstract] | ||||||
Losses from operations | $ 701 | $ 352 | $ 2,638 | $ 2,456 | $ 3,700 | $ 4,300 |
Gross profits (losses) on product sales | 340 | 162 | 123 | (230) | (435) | 82 |
Net cash used in operating activities | 2,874 | 273 | 1,200 | 2,100 | ||
Cash and cash equivalents | $ 1,060 | $ 3,739 | $ 1,060 | $ 3,739 | $ 3,421 | $ 3,582 |
Number of new loan agreement | Loan | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | |
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | $ 1,060 | $ 3,739 | $ 1,060 | $ 3,739 | $ 3,421 | $ 3,582 |
Net revenues | Customer concentration | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (as a percent) | 80.00% | 69.00% | 73.00% | 62.00% | ||
Net revenues | Geographic concentration | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (as a percent) | 74.00% | 85.00% | 71.00% | 78.00% | ||
United States | U.S. Dollars | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | $ 16 | $ 16 | 194 | |||
Taiwan | U.S. Dollars | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | 234 | 234 | 2,220 | |||
Taiwan | New Taiwan Dollars | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | 696 | 696 | 55 | |||
Taiwan | Other currencies | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | 78 | 78 | 910 | |||
China (including Hong Kong) | U.S. Dollars | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | 7 | |||||
China (including Hong Kong) | Renminbi | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | 28 | 28 | 29 | |||
China (including Hong Kong) | H.K. dollars | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | $ 8 | $ 8 | $ 6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Noncontrolling Interests (Details) $ in Thousands, $ in Millions | Sep. 30, 2018USD ($)shares | Sep. 30, 2018TWD ($)shares | Dec. 31, 2018shares | Nov. 30, 2018USD ($) | May 31, 2019shares | Aug. 31, 2018shares |
Minority Interest [Line Items] | ||||||
Common stock, shares issued | 3,589,000 | 3,559,000 | ||||
Taiwan Bandaoti Zhaoming Co., Ltd. | ||||||
Minority Interest [Line Items] | ||||||
Noncontrolling interest (as percentage) | 3.31% | 3.31% | 3.29% | 0.00% | ||
Taiwan Bandaoti Zhaoming Co., Ltd. | ||||||
Minority Interest [Line Items] | ||||||
Common stock issued during period, shares | 414,000 | 414,000 | ||||
Common stock, shares issued | 12,501,715 | 12,501,715 | 12,087,715 | |||
Common stock issued during period, value | $ 176 | $ 5.4 | $ 176 | |||
Taiwan SemiLEDs | Taiwan Bandaoti Zhaoming Co., Ltd. | ||||||
Minority Interest [Line Items] | ||||||
Common shares purchased form non-controlling interests | 3,000 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |||||
Raw materials | $ 519 | $ 519 | $ 577 | ||
Work in process | 529 | 529 | 505 | ||
Finished goods | 897 | 897 | 736 | ||
Total | 1,945 | 1,945 | $ 1,818 | ||
Inventory write-downs | $ 248 | $ 74 | $ 560 | $ 487 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment | $ 53,262 | $ 55,411 |
Less: Accumulated depreciation and amortization | (47,233) | (48,487) |
Construction in progress | 289 | |
Property, plant and equipment, net | 6,029 | 7,213 |
Buildings and improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment | 13,143 | 13,558 |
Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment | 37,729 | 39,391 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment | 155 | 150 |
Other equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment | $ 2,235 | $ 2,312 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
May 31, 2019 | Aug. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,018 | $ 1,038 |
Accumulated Amortization | 922 | 940 |
Net Carrying Amount | $ 96 | $ 98 |
Patents and trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 15 years | 15 years |
Gross Carrying Amount | $ 538 | $ 544 |
Accumulated Amortization | 442 | 446 |
Net Carrying Amount | $ 96 | $ 98 |
Acquired technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 5 years | 5 years |
Gross Carrying Amount | $ 480 | $ 494 |
Accumulated Amortization | $ 480 | $ 494 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2019 | Aug. 31, 2018 | |
Investments in unconsolidated entities | ||
Equity investment wihout readily determinable fair value | $ 888 | $ 914 |
Total investments in unconsolidated entities | $ 888 | $ 914 |
Xurui Guangdian Co., Ltd. ("China SemiLEDs") | ||
Investments in unconsolidated entities | ||
Percentage Ownership | 49.00% | 49.00% |
Equity method investments | $ 0 | $ 0 |
Unconsolidated Entities | ||
Investments in unconsolidated entities | ||
Dividend received from unconsolidated entities | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | May 31, 2019 | Jan. 25, 2019 | Dec. 28, 2018 | May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 |
Commitments and Contingencies | ||||||||
Lease expense related to operating leases | $ 39 | $ 101 | $ 114 | $ 348 | ||||
Operating lease agreements, description | The Company has several operating leases with unrelated parties, primarily for land, plant and office spaces in Taiwan, which include cancellable and noncancellable and which expire at various dates between December 2020 and December 2021. | |||||||
Future noncancellable minimum rental payments | ||||||||
Remainder of 2019 | $ 37 | 37 | $ 37 | |||||
2020 | 147 | 147 | 147 | |||||
2021 | 49 | 49 | 49 | |||||
Total | 233 | 233 | 233 | |||||
Purchase Obligations | ||||||||
Purchase commitments for inventory, property, plant and equipment | 220 | 220 | 220 | $ 1,600 | ||||
Litigation | ||||||||
Advance receipt toward the convertible note | 500 | 500 | 500 | $ 500 | ||||
Settlement agreement, date | January 25, 2019 | |||||||
Loss contingency, return of prepayment value | $ 3,000 | |||||||
Value-added-tax | $ 150 | |||||||
Penalty amount | $ 200 | |||||||
Loss contingency paid | 3,200 | |||||||
Loss contingency, accrued payable | 150 | 150 | 150 | |||||
Claims From Well Thrive Ltd. | ||||||||
Litigation | ||||||||
Advance receipt toward the convertible note | $ 500 | $ 500 | $ 500 | |||||
Minimum | ||||||||
Commitments and Contingencies | ||||||||
Cancellable and noncancellable operating lease expiration | 2020-12 | |||||||
Maximum | ||||||||
Commitments and Contingencies | ||||||||
Cancellable and noncancellable operating lease expiration | 2021-12 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) $ / shares in Units, $ in Thousands | Jun. 29, 2019 | Jun. 14, 2019shares | Jun. 28, 2018 | Jul. 31, 2018$ / sharesshares | Jan. 31, 2018$ / sharesshares | Nov. 30, 2017$ / sharesshares | Apr. 30, 2014shares | May 31, 2019USD ($)itemshares | May 31, 2018USD ($)shares | May 31, 2019USD ($)itemshares | May 31, 2018USD ($)shares |
Stock-based Compensation | |||||||||||
Number of share-based compensation plans | item | 1 | 1 | |||||||||
Additional number of shares authorized for issuance | 250,000 | ||||||||||
Shares of common stock reserved for issuance | 521,000 | 521,000 | 521,000 | 521,000 | |||||||
Common stock available for future issuance (in shares) | 191,000 | 196,000 | 191,000 | 196,000 | |||||||
Share-based Compensation, Forfeiture Method [Fixed List] | Estimating expected forfeitures | ||||||||||
Estimated forfeiture rate (as a percent) | 0.00% | 0.00% | |||||||||
Stock-based compensation expense | $ | $ 27 | $ 52 | $ 117 | $ 101 | |||||||
Cost of revenues | |||||||||||
Stock-based Compensation | |||||||||||
Stock-based compensation expense | $ | 10 | 19 | 34 | 33 | |||||||
Research and development | |||||||||||
Stock-based Compensation | |||||||||||
Stock-based compensation expense | $ | 6 | 10 | 21 | 16 | |||||||
Selling, general and administrative | |||||||||||
Stock-based Compensation | |||||||||||
Stock-based compensation expense | $ | $ 11 | $ 23 | $ 62 | $ 52 | |||||||
Maximum | |||||||||||
Stock-based Compensation | |||||||||||
Vesting period | 1 year | ||||||||||
Directors | Restricted stock unit | |||||||||||
Stock-based Compensation | |||||||||||
Stock units granted (in shares) | 7,500 | 2,500 | |||||||||
Vesting percentage | 100.00% | ||||||||||
Grant-date fair value (in dollars per share) | $ / shares | $ 4.75 | $ 4.15 | |||||||||
Officer and Employees | Restricted stock unit | |||||||||||
Stock-based Compensation | |||||||||||
Stock units granted (in shares) | 56,700 | ||||||||||
Grant-date fair value (in dollars per share) | $ / shares | $ 4.10 | ||||||||||
Vesting percentage per anniversary of the vesting start date | 50.00% | ||||||||||
Subsequent Event | |||||||||||
Stock-based Compensation | |||||||||||
Additional number of shares authorized for issuance | 500,000 | ||||||||||
Plan expiration date | Nov. 3, 2023 | ||||||||||
Maximum grant limit per employee per one year period | 35,000 | ||||||||||
Subsequent Event | Directors | Restricted stock unit | |||||||||||
Stock-based Compensation | |||||||||||
Vesting percentage | 100.00% |
Net Loss Per Share of Common _3
Net Loss Per Share of Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Stock units and stock options to purchase common stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 7 | 11 | 13 | 63 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | |
Income Taxes [Line Items] | ||||||
U.S. operations | $ (86,000) | $ (179,000) | $ (377,000) | $ (86,000) | ||
Foreign operations | (772,000) | (147,000) | (2,308,000) | (1,764,000) | ||
Loss before income taxes | (858,000) | $ (326,000) | $ (2,685,000) | $ (1,850,000) | ||
U.S. federal corporate income tax rate | 21.00% | 34.00% | ||||
One-time transition tax payable period on certain unrepatriated earnings from non-U.S. subsidiaries | 8 years | |||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | |||
Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Tax year remain open | 2005 | |||||
Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Tax year remain open | 2018 |
Related Party Transactions (Det
Related Party Transactions (Details) - Chairman and Chief Executive Officer and Largest Shareholder - USD ($) | Jan. 22, 2021 | Jan. 14, 2021 | May 31, 2019 | Jan. 08, 2019 |
Related Party Transaction [Line Items] | ||||
Aggregate amount of loan | $ 3,200,000 | |||
Loan agreement, rate of interest | 8.00% | |||
Related party loan amount | $ 3,200,000 | |||
Scenario Forecast | ||||
Related Party Transaction [Line Items] | ||||
Related party loan repayment amount | $ 1,700,000 | $ 1,500,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Megabank - Subsequent Event $ in Thousands, $ in Millions | Jul. 05, 2019USD ($) | Jul. 05, 2019TWD ($) |
Subsequent Event [Line Items] | ||
Aggregate amount of loan | $ 3,200 | $ 100 |
Loan Agreement One | ||
Subsequent Event [Line Items] | ||
Aggregate amount of loan | $ 2,000 | $ 62 |
Debt instrument, basis spread on variable rate | 0.64% | |
Loan agreement, rate of interest | 1.62% | 1.62% |
Loan Agreement Two | ||
Subsequent Event [Line Items] | ||
Aggregate amount of loan | $ 1,200 | $ 38 |
Debt instrument, basis spread on variable rate | 1.02% | |
Loan agreement, rate of interest | 2.00% | 2.00% |
Security deposit | $ 79 | $ 2.5 |
Debt instrument terms | 8 years | |
Debt instrument, payment terms | monthly |