Joint Venture

On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). As of September 30, 2018, the Company owns 54.4%, and the Chongqing Funds own 45.6%, of the equity interest in the JV Company. In September 2018, the JV Company completed its assembly and testing facilities and commenced small mass production of assembly and testing. In addition, the JV Company substantially completed the 12-inch wafer fab facility and expects trial production of power semiconductors toward the end of calendar year 2018.

As part of the JV Transaction, the JV Company entered into an Engineering, Procurement and Construction Contract (the “EPC Contract”) with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited (the “Contractor”), effective as of January 10, 2017 (the "Effective Date"), pursuant which the Contractor was engaged to construct the manufacturing facility contemplated under the JV Agreement. The total price payable under the EPC Contract is Chinese Renminbi (RMB) 540.0 million, or approximately $78.0 million based on the currency exchange rate between RMB and U.S. Dollars on the Effective Date, which consists of $2.8 million (RMB 19.5 million) of design fees and $75.2 million (RMB 520.5 million) of construction and procurement fees (including compliance with safety and aesthetic requirements). As of September 30, 2018, the JV Company paid approximately $68.3 million (RMB 469.5 million), and expects to pay the remaining of $10.2 million (RMB 70.5 million) in fiscal year 2019.

The changes in total AOS stockholders' equity, noncontrolling interest and total equity were as follows (in thousands):



	Total AOS Stockholders' Equity			Noncontrolling Interest			Total Equity
Balance, June 30, 2018	$	278,594		$	147,568		$	426,162
Exercise of common stock options and release of RSUs	105			—			105
Withholding tax on restricted stock units	(109		)	—			(109		)
Repurchase of common shares under shares repurchase program	(1,501		)	—			(1,501		)
Stock-based compensation expense	3,129			—			3,129
Net income (loss)	2,416			(3,329		)	(913		)
Impact on retained earnings related to ASC 606 adoption	1,036			—			1,036
Cumulative translation adjustment	(3,248		)	(2,989		)	(6,237		)
Balance, September 30, 2018	$	280,422		$	141,250		$	421,672