SemiLEDs(US:LEDS)2023-11-27 16:00Financial Performance - Revenues for the year ended August 31, 2023, were $5,979 million, a decrease of 15.2% from $7,051 million in 2022[247]. - Gross profit for the year ended August 31, 2023, was $1,007 million, down from $1,397 million in 2022, reflecting a gross margin decline[247]. - Net loss attributable to SemiLEDs stockholders for the year ended August 31, 2023, was $2,690 million, compared to a net loss of $2,744 million in 2022[247]. - Basic and diluted net loss per share attributable to SemiLEDs stockholders was $(0.55) for 2023, an improvement from $(0.61) in 2022[247]. - The company reported operational losses of $3.4 million for the year ended August 31, 2023, compared to $3.2 million for 2022, with net cash used in operating activities of $984 thousand and $1.5 million respectively[262]. Cash and Liquidity - The company reported cash and cash equivalents of $2.6 million and $4.3 million for August 31, 2023, and 2022, respectively, indicating a decrease in liquidity[151]. - As of August 31, 2023, cash and cash equivalents totaled $2.6 million, down from $4.3 million in the previous year[164]. - The company incurred net losses attributable to stockholders of $2.7 million for both fiscal years 2023 and 2022, with net cash used in operating activities of $984 thousand in 2023[214]. - The company plans to issue additional equity to stockholders to address cash requirements estimated at approximately $5.1 million for fiscal 2024[217]. - The liquidity plan includes potential equity offerings, asset sales, and debt issuance to raise additional cash as necessary[262]. Customer and Revenue Concentration - Sales to the three largest customers accounted for 53% and 59% of total revenues for the years ended August 31, 2023, and 2022, respectively, highlighting customer concentration risk[151]. - Revenues from the Netherlands, Taiwan, the United States, and Japan accounted for 89% and 83% of net revenues for the years ended August 31, 2023, and 2022, respectively, showing geographic concentration[156]. - Major customers accounted for significant portions of revenue, with Customer A contributing 20% in 2023, down from 28% in 2022, while Customer B accounted for 17% in 2023[278]. Operating Expenses and Cost Management - Total operating expenses decreased to $4,411 million in 2023 from $4,597 million in 2022, primarily due to lower research and development costs[247]. - Selling, general and administrative expenses decreased from $3.3 million in 2022 to $3.1 million in 2023, driven by lower bad debt and other expenses[197]. - The company has implemented actions to accelerate operating cost reductions and improve operational efficiencies, including workforce reductions and exploring the sale of manufacturing equipment[151]. - The company plans to adjust its product mix by exiting low-margin product lines to focus on more profitable offerings[193]. Inventory and Asset Management - Inventory write-downs totaled $627 thousand for the year ended August 31, 2023, down from $807 thousand in the previous year, primarily due to obsolescence[174]. - As of August 31, 2023, total inventories amounted to $4,022 thousand, an increase from $3,784 thousand in 2022, with inventory write-downs of $627 thousand in 2023 compared to $807 thousand in 2022[304]. - The company has purchase commitments for inventory and property, plant, and equipment totaling $116 thousand as of August 31, 2023, compared to $121 thousand in 2022[332]. Research and Development - Research and development expenses primarily consist of employee-related costs and engineering charges, with a focus on product design[160]. - Research and development expenses decreased from $1.5 million in 2022 to $1.4 million in 2023, mainly due to reduced materials and payroll expenses[196]. Foreign Currency and Taxation - The company incurred a foreign currency transaction loss of $52 thousand in the current year, compared to a loss of $642 thousand in the previous year[165]. - The corporate income tax rate in Taiwan is 20%, with an alternative minimum tax rate of 12% applicable[170]. - Total foreign net operating loss carryforwards amounted to $72 million as of August 31, 2023, with expiration in various future years[172]. Debt and Financing - As of August 31, 2023, the company's long-term debt totaled $6.4 million, a decrease from $6.9 million in 2022, primarily consisting of NT dollar denominated long-term notes and loans from the Chairman[210]. - Net cash used in financing activities was $456 thousand in 2023, primarily for the repayment of long-term debt[219]. - Scheduled principal payments for long-term debt total $5.0 million for the year ending August 31, 2024[325]. Stock and Equity - The company established an at-the-market equity program allowing the sale of up to $20 million in shares, with net proceeds of $964,473 from 286,328 shares sold in fiscal year 2022[147]. - The company did not sell any shares of its common stock under its ATM program during the year ended August 31, 2023, after selling 286,328 shares for gross proceeds of $995 thousand in 2022[335]. - Stock-based compensation expense for the year ended August 31, 2023, totaled $518 thousand, an increase from $459 thousand in 2022, representing a growth of approximately 12.9%[341].