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Equity Method Investment in Equity Investee | 12 Months Ended
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Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Equity Method Investment in Equity Investee | Equity Method Investment in Equity Investee On December 1, 2021 (the “Effective Date”), Alpha & Omega Semiconductor (Shanghai) Ltd. (“AOS SH”) and Agape Package Manufacturing (Shanghai) Limited (“APM SH”), each a wholly-owned subsidiary of the Company, entered into a share transfer agreement (“STA”) with a third-party investor to sell a portion of the Company's equity interest in the JV Company which consists of a power semiconductor packaging, testing and 12-inch wafer fabrication facility in Chongqing, China (the “Transaction”). The Transaction closed on December 2, 2021 (the “Closing Date”), which reduced the Company’s equity interest in the JV Company from 50.9% to 48.8%. Also, the Company’s right to designate directors on the board of JV Company was reduced to three (3) out of seven (7) directors, from four (4) directors prior to the Transaction. As a result of the Transaction and other factors, the Company no longer has a controlling financial interest in the JV Company and has determined that the JV Company was deconsolidated from the Company’s Consolidated Financial Statements effective as of the Closing Date. In connection with the deconsolidation and in accordance with ASC 810, the Company recorded a gain on deconsolidation of $399.1 million during the fiscal year ended June 30, 2022 in the Consolidated Statements of Income. The gain on deconsolidation of the JV Company was calculated as follows:
|  |  | (in thousands) |
Cash received for sales of shares in the JV Company |  | $ | 16,924 |  |
Fair value of retained equity method investment |  | 393,124 |  |
Carrying amount of non-controlling interest |  | 143,889 |  |
Cumulative translation adjustment removal |  | 1,793 |  |
Carrying amount of net assets of the JV Company at December 1, 2021 |  | (156,637) |  |
Gain on deconsolidation of the JV Company |  | $ | 399,093 |  |
The Company retained significant influence over the operating and financial policies of the JV Company and measured the fair value of the retained investment based on their share of the fair value of the JV Company, which was calculated using the market approach based on the Transaction. On December 24, 2021, the Company entered into a share transfer agreement with another third-party investor, pursuant to which the Company sold to this investor 1.1% of outstanding equity interest held by the Company in the JV Company. In addition, on December 30, 2021, the JV Company adopted an employee equity incentive plan and issued an equity interest equivalent to 3.99% of the JV Company in exchange to cash. As a result of these two transactions, the Company owned 45.8% of the equity interest in the JV Company as of December 31, 2021. On January 26, 2022, the JV Company completed a financing transaction pursuant to a corporate investment agreement (the “Investment Agreement”) between the JV and certain third-party investors (the “New Investors”). Under the Investment Agreement, the New Investors purchased newly issued equity interest of the JV Company, representing approximately 7.82% of post-transaction outstanding equity interests of the JV Company, for a total purchase price of RMB 509 million (or approximately USD 80 million based on the currency exchange rate as of January 26, 2022) (the “Investment”). Following the closing of the Investment and as of June 30, 2022, the percentage of outstanding JV Company equity interest beneficially owned by the Company was reduced to 42.2%. The net loss associated with these sales of JV Company equity interest held by the Company were recorded in the fiscal year ended June 30, 2022 as follows:
|  | (in thousands) |
Gain on 1.1% equity interest sold |  | $ | 475 |  |
Loss on diluted equity interest from issuance of shares under the employee equity incentive plan |  | (8,116) |  |
Gain on 7.82% equity interest sold |  | 4,501 |  |
Loss on changes on equity interest of the JV Company, net |  | $ | (3,140) |  |
The Company accounts for its investment in the JV Company as an equity method investment and reports its equity in earnings or loss of the JV Company on a three-month lag due to an inability to timely obtain financial information of the JV Company. During the fiscal year ended June 30, 2022, the Company recorded $2.6 million of its equity in loss of the JV Company, using lag reporting. Summarized Financial Information The following table presents summarized financial information for the JV Company as of and for the period from December 2, 2021 through March 31, 2022, using lag reporting (in thousands):
|  | As of March 31, 2022 |  |
Current assets |  | $ | 198,323 |  |  |
Non-current assets |  | $ | 364,777 |  |  |
Current liabilities |  | $ | 251,988 |  |  |
Non-current liabilities |  | $ | 76,207 |  |  |
|  | For the periods of December 2, 2021 to March 31, 2022 |  |
Revenue |  | $ | 68,972 |  |  |
Gross loss |  | $ | 870 |  |  |
Operating expenses |  | $ | 2,280 |  |  |
Net loss |  | $ | 6,197 |  |  |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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