We have a variety of business relationships with Ablecom and Compuware, both of which are Taiwan-based corporations. Both Ablecom and Compuware are a major contract manufacturer for us and Compuware is also a distributor of our products. Ablecom’s Chief Executive Officer, Steve Liang, is the brother of Charles Liang, our President, Chief Executive Officer and Chairman of the Board. Steve Liang and his family members owned approximately 35.0% of Ablecom’s stock and Charles Liang and his spouse, Sara Liu, who is also an officer and director for us, collectively owned approximately 10.5% of Ablecom’s capital stock as of June 30, 2025. Bill Liang, a brother of both Charles Liang and Steve Liang, is a member of the Board of Directors of Ablecom. Bill Liang is also the Chief Executive Officer of Compuware, Chairman of Compuware’s Board of Directors and a holder of equity interest in Compuware. Steve Liang is also a member of Compuware’s Board of Directors and is an equity holder of Compuware. Neither Charles Liang nor Sara Liu own any capital stock of Compuware and we do not own any of Ablecom or Compuware’s capital stock. In addition, a sibling of Yih-Shyan (Wally) Liaw, who is our Senior Vice President, Business Development and a director of ours, owns approximately 11.7% of Ablecom’s capital stock and 8.7% of Compuware’s capital stock.

In October 2018, our Chief Executive Officer, Charles Liang, personally borrowed approximately $12.9 million from Chien-Tsun Chang, the spouse of Steve Liang. The loan is unsecured, has no maturity date and bore interest at 0.8% per month for the first six months, increased to 0.85% per month through February 28, 2020, and reduced to 0.25% per month effective March 1, 2020. The loan was originally made at Mr. Liang’s request to provide funds to repay margin loans to two financial institutions, which loans had been secured by shares of our common stock that he held. The lenders called the loans in October 2018, following the suspension of our common stock from trading on Nasdaq in August 2018 and the decline in the market price of our common stock in October 2018. As of June 30, 2025 and June 30, 2024, the amount due on the unsecured loan (including principal and accrued interest) was approximately $16.8 million and $16.4 million.

Under these agreements, we outsource to Ablecom a portion of its design activities and a significant part of its server chassis manufacturing as well as an immaterial portion of other components. Ablecom manufactured approximately 95.4%, 93.6%, and 91.9% of the chassis purchased by us during fiscal years 2025, 2024, and 2023, respectively. With respect to design activities, Ablecom generally agrees to design certain agreed-upon products according to our specifications, and further agrees to build the tools needed to manufacture the products. We pay Ablecom for the design and engineering services, and further agree to pay Ablecom for the tooling. We retain full ownership of any intellectual property resulting from the design of these products and tooling.

With respect to the manufacturing aspects of the relationship, Ablecom purchases most of the materials needed to manufacture the chassis from third parties and we provide certain components used in the manufacturing process (such as power supplies) to Ablecom through consignment or sales transactions. Ablecom uses these materials and components to manufacture the completed chassis and then sell them back to us. For the components purchased from us, Ablecom sells the components back to us at a price equal to the price at which we sold the components to Ablecom. There is no revenue recognized by us from these transactions. We and Ablecom frequently review and negotiate the prices of the chassis we purchase from Ablecom. In addition to inventory purchases, we also incur other costs associated with design services, tooling and other miscellaneous costs from Ablecom.

Our exposure to financial loss as a result of our involvement with Ablecom is limited to potential losses on our purchase orders in the event of an unforeseen decline in the market price and/or demand of our products such that we incur a loss on the sale or cannot sell the products. Non-cancelable purchase orders from us to Ablecom on June 30, 2025 and 2024 were $30.6 million and $58.8 million, respectively, effectively representing the exposure to financial loss. We do not directly or indirectly guarantee any obligations of Ablecom, or any losses that the equity holders of Ablecom may suffer. Since Ablecom manufactures substantially all the chassis that we incorporate into its products, if Ablecom were to suddenly be unable to manufacture chassis for us, our business could suffer if we are unable to quickly qualify substitute suppliers who can supply high-quality chassis to us in volume and at acceptable prices. We have extended a $10.0 million trade credit line with a net 30 days payment terms to Ablecom through a credit agreement that outlines the terms and conditions governing their business dealings.

We appointed Compuware as a non-exclusive authorized distributor of our products in Taiwan, China, and Australia. Compuware assumes the responsibility of installing our products at the site of the end customer, if required, and administers customer support in exchange for a discount from our standard price for its purchases. From time to time, Compuware acts as a sales representative for us in exchange for a fee that is based on a percentage of net sales generated from customers introduced to us. The fee structure for Compuware is comparable to the fee structure offered to other sales representatives in the same geographic region.

We also have entered into a series of agreements with Compuware, including multiple product development, production and service agreements, product manufacturing agreements, and lease agreements for office space. We have extended a $65.0 million trade credit line with a net 60 days payment terms to Compuware through a credit agreement that outlines the terms and conditions governing their business dealings.

Under these agreements, we outsource to Compuware a portion of its design activities and a significant part of its power supplies manufacturing as well as an immaterial portion of other components. With respect to design activities, Compuware generally agrees to design certain agreed-upon products according to our specifications, and further agrees to build the tools needed to manufacture the products. We pay Compuware for the design and engineering services, and further agrees to pay Compuware for the tooling. We retain full ownership of any intellectual property resulting from the design of these products and tooling. With respect to the manufacturing aspects of the relationship, Compuware purchases most of the materials needed to manufacture the power supplies from outside markets and uses these materials to manufacture the products and then sell those products to us. We and Compuware frequently review and negotiate the prices of the power supplies we purchase from Compuware.

Compuware also manufactures motherboards, backplanes and other components used on printed circuit boards for us. We sell to Compuware most of the components needed to manufacture the above products. Compuware uses the components to manufacture the products and then sells the products back to us at a purchase price equal to the price at which we sold the components to Compuware, plus a “manufacturing value added” fee and other miscellaneous material charges and costs, including overhead and labor. There is no revenue recognized by us from these transactions. We and Compuware frequently review and negotiate the amount of the “manufacturing value added” fee that will be included in the price of the products we purchase from Compuware. In addition to the inventory purchases, we also incur costs associated with design services, tooling assets, and miscellaneous costs.

Our exposure to financial loss as a result of our involvement with Compuware is limited to potential losses on our purchase orders in the event of an unforeseen decline in the market price and/or demand of our products such that we incur a loss on the sale or cannot sell the products. Non-cancelable purchase orders from us to Compuware on June 30, 2025 and 2024 were $118.3 million and $93.5 million, respectively, effectively representing the exposure to financial loss. We do not directly or indirectly guarantee any obligations of Compuware, or any losses that the equity holders of Compuware may suffer.

During the fiscal year ended June 30, 2025, we agreed to pay a finder’s fee of approximately $1.6 million which represents 1% of the net sales from a customer referred to us by Compuware. This finder’s fee is consistent with market terms given Compuware's limited role and industry margins. The agreement doesn’t require us to absorb losses or provide subordinated financing.

In October 2023, Ablecom and Compuware acquired an approximately 30% interest in Leadtek Research Inc. (“Leadtek”), a Taiwan company specializing in providing professional graphics cards and workstation solutions (the “Leadtek Investment”). Prior to the Leadtek Investment, none of our related parties had direct or indirect material interests in any transactions in which we were a participant with Leadtek. Commencing with the closing of the Leadtek Investment, Steve Liang and Bill Liang have served as two of the seven members of the Leadtek board of directors. At the time of Leadtek Investment, Leadtek was, and it continues to be, our authorized reseller. During the fiscal years ended 2025 and 2024, we engaged in transactions whereby we sold $0.7 million and $1.4 million of servers to Leadtek, and purchased $0.5 million and $2.1 million of graphic cards from Leadtek, respectively.

In October 2016, we entered into agreements pursuant to which we contributed certain technology rights in connection with an investment in a privately-held company (the “Corporate Venture”) located in China to expand our presence in China. The Corporate Venture is 30% owned by us and 70% owned by another company in China. The transaction was closed in the third quarter of the fiscal year ended June 30, 2017, and the investment is accounted for using the equity method. As such, the Corporate Venture is also a related party.

We monitor the investment for events or circumstances indicative of potential impairment and make appropriate reductions in carrying values if we determine that an impairment charge is required. As of June 30, 2025, we concluded the Corporate Venture would be divested in the fiscal year ending June 2026. We performed an impairment analysis on this investment and concluded the remaining carrying value of the equity investment of $6.7 million was impaired as of June 30, 2025. As of June 30, 2024, the carrying value of the equity investment of $4.6 million was recorded in other assets on the consolidated balance sheets, and was not impaired as of June 30, 2024.

We sold products worth $11.0 million, $21.8 million, and $24.2 million to the Corporate Venture in the fiscal years 2025, 2024, and 2023, respectively, and our share of intra-entity profits on the products that remained unsold by the Corporate Venture as of June 30, 2025 and June 30, 2024 have been eliminated and have reduced the carrying value of our investment in the Corporate Venture prior to impairment write-off. To the extent that the elimination of intra-entity profits reduces the investment balance below zero, such amounts are recorded within accrued liabilities. We had less than $0.1 million and $5.1 million due from the Corporate Venture in accounts receivable, net as of June 30, 2025 and 2024, respectively.

For the fiscal year ended June 30, 2025, we had immaterial chargebacks from Green Earth Liang’s Inc. (“Green Earth”), an entity affiliated with our Chief Executive Officer. As of June 30, 2025, there was no balance due to and from Green Earth. For the fiscal year ended June 30, 2024, we had immaterial sales to and purchases from Green Earth. As of June 30, 2024, the amounts due to and from Green Earth were immaterial.

For the fiscal year ended June 30, 2025, we had no transactions directly or indirectly to Aeon Lighting Technology Inc. (“Aeon Lighting”). Aeon Lighting is a company which is owned more than 10% by James Liang, a brother of our Chief Executive Officer. James Liang is also a director of Aeon Lighting and serves as the Chief Executive Officer of such entity. For the fiscal year ended June 30, 2024, we had immaterial sales of products indirectly to Aeon Lighting. As of June 30, 2025 and 2024, amount due from Aeon Lighting were none and immaterial, respectively.

In June 2025, we invested $6.0 million and acquired an approximately 11% interest in Ampera, Inc. (“Ampera”), a clean energy technology company focused on the development and deployment of advanced battery storage solutions. This investment is accounted for as a non-marketable security, see Note 3, “Non-marketable Equity Securities”. We represent approximately 33% on the board of directors as we have one board of director seat on a board of three. With the combination of our 11% equity interest and board representation, we have the ability to exercise significant influence over the operating and financial policies of Ampera. For the fiscal year ended June 30, 2025, we had no sale or purchases transactions with Ampera. As of June 30, 2025, there was no balance due to and from Ampera.


	Accounts receivable		Other receivables (1)		Accounts payable		Accrued liabilities (2)		Other long-term liabilities (3)
Ablecom
Year Ended June 30, 2025	$	1	$	1,059	$	55,460	$	753	$	114
Year Ended June 30, 2024	$	1	$	1,927	$	98,629	$	—	$	—
Year Ended June 30, 2023	$	2	$	2,841	$	35,711	$	1,230	$	—
Compuware
Year Ended June 30, 2025	$	285	$	12,686	$	74,292	$	291	$	494
Year Ended June 30, 2024	$	142	$	10,012	$	66,436	$	170	$	—
Year Ended June 30, 2023	$	3,528	$	24,891	$	53,423	$	12,787	$	—
Corporate Venture
Year Ended June 30, 2025	$	30	$	—	$	—	$	—	$	—
Year Ended June 30, 2024	$	5,075	$	—	$	—	$	—	$	—
Year Ended June 30, 2023	$	1,943	$	—	$	—	$	—	$	—
Leadtek
Year Ended June 30, 2025	$	77	$	—	$	—	$	—	$	—
Year Ended June 30, 2024	$	976	$	—	$	230	$	—	$	—
Year Ended June 30, 2023	$	—	$	—	$	—	$	—	$	—
Total
Year Ended June 30, 2025	$	393	$	13,745	$	129,752	$	1,044	$	608
Year Ended June 30, 2024	$	6,194	$	11,939	$	165,295	$	170	$	—
Year Ended June 30, 2023	$	5,473	$	27,732	$	89,134	$	14,017	$	—


	Net sales		Cost of sales		Research and development		Sales and marketing		Purchases of fixed assets
Ablecom
Year Ended June 30, 2025	$	317	$	321,866	$	5,026	$	—	$	18,659
Year Ended June 30, 2024	$	11	$	269,256	$	4,513	$	—	$	11,990
Year Ended June 30, 2023	$	8	$	167,801	$	4,439	$	—	$	7,691
Compuware
Year Ended June 30, 2025	$	30,238	$	328,258	$	1,686	$	1,649	$	558
Year Ended June 30, 2024	$	46,618	$	280,801	$	1,377	$	—	$	163
Year Ended June 30, 2023	$	36,286	$	216,961	$	1,738	$	—	$	273
Corporate Venture
Year Ended June 30, 2025	$	11,027	$	—	$	—	$	—	$	—
Year Ended June 30, 2024	$	21,806	$	—	$	—	$	—	$	—
Year Ended June 30, 2023	$	24,243	$	—	$	—	$	—	$	—
Leadtek
Year Ended June 30, 2025	$	677	$	534	$	—	$	—	$	—
Year Ended June 30, 2024	$	1,356	$	2,079	$	—	$	—	$	—
Year Ended June 30, 2023	$	—	$	—	$	—	$	—	$	—
Total
Year Ended June 30, 2025	$	42,259	$	650,658	$	6,712	$	1,649	$	19,217
Year Ended June 30, 2024	$	69,791	$	552,136	$	5,890	$	—	$	12,153
Year Ended June 30, 2023	$	60,537	$	384,762	$	6,177	$	—	$	7,964


	Changes in accounts receivable		Changes in prepaid expenses and other assets		Changes in accounts payable		Changes in accrued liabilities		Changes in other long-term liabilities		Cash payment for property, plant, and equipment		Unpaid property, plant, and equipment
Ablecom
Year Ended June 30, 2025	$	—	$	868	$	(43,169)	$	753	$	114	$	17,119	$	3,879
Year Ended June 30, 2024	$	1	$	914	$	62,918	$	(1,230)	$	—	$	10,428	$	2,339
Year Ended June 30, 2023	$	—	$	1,975	$	(6,752)	$	(2,301)	$	—	$	7,498	$	777
Compuware
Year Ended June 30, 2025	$	(143)	$	(2,674)	$	7,856	$	121	$	494	$	558	$	—
Year Ended June 30, 2024	$	3,386	$	14,879	$	13,013	$	(12,617)	$	(178)	$	197	$	—
Year Ended June 30, 2023	$	(3,124)	$	(5,295)	$	8,531	$	(2,358)	$	(321)	$	346	$	33
Corporate Venture
Year Ended June 30, 2025	$	5,045	$	—	$	—	$	—	$	—	$	—	$	—
Year Ended June 30, 2024	$	(3,132)	$	—	$	—	$	—	$	—	$	—	$	—
Year Ended June 30, 2023	$	6,049	$	—	$	—	$	—	$	—	$	—	$	—
Leadtek
Year Ended June 30, 2025	$	899	$	—	$	(230)	$	—	$	—	$	—	$	—
Year Ended June 30, 2024	$	(976)	$	—	$	230	$	—	$	—	$	—	$	—
Year Ended June 30, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total
Year Ended June 30, 2025	$	5,801	$	(1,806)	$	(35,543)	$	874	$	608	$	17,677	$	3,879
Year Ended June 30, 2024	$	(721)	$	15,793	$	76,161	$	(13,847)	$	(178)	$	10,625	$	2,339
Year Ended June 30, 2023	$	2,925	$	(3,320)	$	1,779	$	(4,659)	$	(321)	$	7,844	$	810