What changed in this filing

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Item 1. Financial Statements

2020-12-09 compared with 2020-09-09 · 127 added, 105 removed, 530 unchanged (30% of the section changed)

29 unchanged sentences

Preference shares, $ 0.00045 par value per share, 20,000,000 shares

authorized and no shares issued and outstanding at July 31, 2020 and

authorized and no shares issued and outstanding at October 31, 2020 and

January 31, 2020, respectively

Ordinary shares, $ 0.00045 par value per share, 200,000,000 shares

authorized at July 31, 2020 and January 31, 2020, respectively;

34,610,836 shares issued and outstanding at July 31, 2020;

authorized at October 31, 2020 and January 31, 2020, respectively;

35,072,089 shares issued and outstanding at October 31, 2020;

shares issued and outstanding at January 31, 2020

8 unchanged sentences

(in thousands, except share and per share data)

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

Cost of revenue

6 unchanged sentences

Loss before income taxes

Provision for income taxes

Provision (benefit) for income taxes

Net loss per share attributable to ordinary shareholders:

Weighted-average shares used to compute net loss per share attributable to ordinary

shareholders:

Weighted-average shares used to compute net loss per share attributable to ordinary shareholders:

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands)

Three Months Ended July 31,

Six Months Ended July 31,

Other comprehensive income, net of tax:

Unrealized gains on investments

Other comprehensive income, net of tax

Three Months Ended October 31,

Nine Months Ended October 31,

Other comprehensive income (loss), net of tax:

Net unrealized gains (losses) on investments

Other comprehensive income (loss), net of tax

Comprehensive loss

10 unchanged sentences

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized losses on investments - net of taxes

Net unrealized losses on investments - net of tax

Balance--April 30, 2020

1 unchanged sentence

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized gains on investments - net of taxes

Net unrealized gains on investments - net of tax

Balance--July 31, 2020

Issuance of shares through employee equity incentive plan

Issuance of shares through employee stock purchase plan

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized losses on investments - net of tax

Balance--October 31, 2020

Ordinary Shares

4 unchanged sentences

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized gains on investments - net of taxes

Net unrealized gains on investments - net of tax

Balance--April 30, 2019

1 unchanged sentence

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized gains on investments - net of taxes

Net unrealized gains on investments - net of tax

Balance--July 31, 2019

Issuance of shares through employee equity incentive plan

Issuance of shares through employee stock purchase plan

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized gains on investments - net of tax

Balance--October 31, 2019

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands)

Six Months Ended July 31,

Nine Months Ended October 31,

Cash flows from operating activities:

1 unchanged sentence

Depreciation and amortization

Amortization/accretion of marketable debt securities

Amortization (accretion) of premium (discount) on marketable debt securities, net

Stock-based compensation

5 unchanged sentences

Accounts payable

Accrued liabilities

Accrued and other current liabilities

Income taxes payable

61 unchanged sentences

Actual results could differ from these estimates under different assumptions or circumstances and such differences could be material.

The Company also assessed the impacts of COVID-19 on the above accounting matters as of July 3 1 , 2020 and through the date of this report.

While it is difficult to quantify the impact of COVID-19 , the future magnitude and duration of COVID-19, as well as other associated factors, could r esult in material negative impacts to its condensed consolidated financial statements in future reporting periods.

The Company also assessed the impacts of COVID-19 on the above accounting matters as of October 3 1 , 2020 and through the date of this report.

While it is difficult to quantify the impact of COVID-19 , the future magnitude and duration of COVID-19, as well as other associated factors, could r esult in material negative impacts to the Company’s condensed consolidated financial statements in future reporting periods.

Concentration of Risk

32 unchanged sentences

The cumulative effect adjustment upon the adoption on February 1, 2020 was immaterial.

The credit-related losses and associated allowance amount from the Company’s financial instruments were not material as of July 31, 2020, respectively.

The credit-related losses and associated allowance amount from the Company’s financial instruments were not material as of October 31, 2020, respectively.

Restricted Cash

Amounts included in restricted cash represent those required to be set aside to secure certain transactions in a foreign entity.

As of both July 31, 2020 and January 31, 2020, restricted cash was immaterial.

As of both October 31, 2020 and January 31, 2020, restricted cash was immaterial.

The following table presents cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets, and the sums are presented on the condensed consolidated statements of cash flows:

July 31, 2020

October 31, 2020

January 31, 2020

July 31, 2019

October 31, 2019

January 31, 2019

8 unchanged sentences

Once inventory is written down, a new accounting cost basis is established and, accordingly, any associated reserve is not released until the inventory is sold or scrapped.

There were no material inventory losses recognized for the three and six months ended July 31, 2020 and 2019, respectively.

There were no material inventory losses recognized for the three and nine months ended October 31, 2020 and 2019, respectively.

Noncancelable Internal-Use Software License

10 unchanged sentences

The renewal options are included in the ROU and liability calculation if it is reasonably certain that the Company will exercise the option.

The Company's finance leases were immaterial as of July 31, 2020 and January 31, 2020, respectively.

The Company's finance leases were immaterial as of October 31, 2020 and January 31, 2020, respectively.

Revenue Recognition

24 unchanged sentences

Because payments received do not correspond directly with the value of the Company’s performance to date, for fixed-price engineering services arrangements, revenue is recognized using the time-based straight line method, which best depicts the Company’s performance toward complete satisfaction of the performance obligation based on the nature of such professional services.

Revenues from engineering service agreements were not material for the three and six months ended July 31, 2020 and 2019, respectively.

Revenues from engineering service agreements were not material for the three and nine months ended October 31, 2020 and 2019, respectively.

Timing of revenue recognition may differ from the timing of invoicing to the Company’s customers.

1 unchanged sentence

The Company’s contract assets are primarily related to satisfied but unbilled performance obligations associated with its engineering service agreements at the reporting date.

As of July 31, 2020 and January 31, 2020, the contract assets for these unbilled receivables were not material.

As of October 31, 2020 and January 31, 2020, the contract assets for these unbilled receivables were not material.

The Company’s contract liabilities consist of deferred revenue.

1 unchanged sentence

This deferred revenue is expected to be recognized over the course of the contract when products are delivered for future pricing below the weighted average selling price of the contract.

For the three and six months ended July 31, 2020 and 2019, the Company did not recognize any material revenue adjustment, respectively, related to performance obligations satisfied in prior periods released from this deferred revenue.

As of July 31, 2020 and January 31, 2020, the respective deferred revenues were not material.

Additionally, the transaction price allocated to unsatisfied, or partially unsatisfied, purchase orders for contracts that are greater than a year was not material as of July 31, 2020 and January 31, 2020, respectively.

For the three and nine months ended October 31, 2020 and 2019, the Company did not recognize any material revenue adjustment, respectively, related to performance obligations satisfied in prior periods released from this deferred revenue.

As of October 31, 2020 and January 31, 2020, the respective deferred revenues were not material.

Additionally, the transaction price allocated to unsatisfied, or partially unsatisfied, purchase orders for contracts that are greater than a year was not material as of October 31, 2020 and January 31, 2020, respectively.

The Company also elects not to disclose the value of unsatisfied or partially unsatisfied performance obligations due to an original expected contract duration of one year or less and elects to exclude amounts collected from customers for all sales taxes from the transaction price .

3 unchanged sentences

Research and development costs are expensed as incurred and consist primarily of personnel costs, product development costs, which include engineering services, development software and hardware tools, license fees, costs of fabrication of masks for prototype products, other development materials costs, depreciation of equipment and tools and allocation of facility costs, net of any research and development grants.

As of July 31, 2020, there was approximately $ 1.3 million of grants recorded in prepaid expenses and other current assets and approximately $ 2.7 million of grants recorded in other non-current assets in the condensed consolidated balance sheets.

As of October 31, 2020, there was approximately $ 1.3 million of grants recorded in prepaid expenses and other current assets and approximately $ 2.4 million of grants recorded in other non-current assets in the condensed consolidated balance sheets.

The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns.

34 unchanged sentences

The Company did not early adopt and believes the adoption of this new guidance will not have a material impact on its consolidated financial statements and disclosures.

In October 2020, the FASB issued ASU 2020-08 – Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs.

The amendments in this Update clarify that for each reporting period, to the extent that the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess (that is, the premium) shall be amortized to the next call date.

The amendments also clarify that securities within the amendments shall have explicit, noncontingent call options that are callable at fixed prices and on preset dates at prices less than the amortized cost basis of the security.

The amendments are effective for public entities in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years .

The Company is required to appl y the new guidance on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debit securities .

Early adoption is not permitted.

The Company is currently evaluating the impact of the adoption of this new guidance on its consolidated financial statements and disclosures .

In October 2020, the FASB issued ASU 2020-10 – Codification Improvements.

The amendments in this Update contain improvements to the Codification by including disclosure guidance in appropriate disclosure and ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the Disclosure Section of the Codification.

The amendments are effective for public entities in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.

Early adoption is permitted.

The Company did not early adopt and believes the adoption of this new guidance will not have a material impact on its consolidated financial statements and disclosures.

Financial Instruments and Fair Value

3 unchanged sentences

All of the investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets as follows:

As of July 31, 2020

As of October 31, 2020

Amortized Cost

19 unchanged sentences

Total cash equivalents and marketable debt securities

As of July 31, 2020, there were no debt securities with unrealized losses for more than twelve months.

July 31, 2020

As of October 31, 2020, there were no debt securities with unrealized losses for more than twelve months.

October 31, 2020

January 31, 2020

3 unchanged sentences

Total cash equivalents and marketable debt securities

The contractual maturities of the investments at July 31, 2020 and January 31, 2020 were as follows:

July 31, 2020

The contractual maturities of the investments at October 31, 2020 and January 31, 2020 were as follows:

October 31, 2020

January 31, 2020

9 unchanged sentences

The non-credit-related portion of the loss is recognized in accumulated other comprehensive income in the condensed consolidated balance sheets.

The credit-related losses of the Company’s financial instruments were not material for the three and six months ended July 31, 2020, respectively.

The credit-related losses of the Company’s financial instruments were not material for the three and nine months ended October 31, 2020, respectively.

The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value.

6 unchanged sentences

The fair value of the Company’s investments in other debt securities are obtained based on quoted prices for similar assets in active markets and are classified within Level 2.

The following tables present the fair value of the financial instruments measured on a recurring basis as of July 31, 2020 and January 31, 2020, respectively:

As of July 31, 2020

The following tables present the fair value of the financial instruments measured on a recurring basis as of October 31, 2020 and January 31, 2020, respectively:

As of October 31, 2020

(in thousands)

13 unchanged sentences

Total cash equivalents and marketable debt securities

Inventories at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

Inventories at October 31, 2020 and January 31, 2020 consisted of the following:

October 31, 2020

January 31, 2020

3 unchanged sentences

Property and Equipment, Net

Depreciation expense was approximately $ 0.6 million and $ 0.7 million for the three months ended July 31, 2020 and 2019, respectively.

Depreciation expense was approximately $ 1.3 million and $ 1.4 million for the six months ended July 31, 2020 and 2019, respectively.

Property and equipment at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

Depreciation expense was approximately $ 0.6 million and $ 0.7 million for the three months ended October 31, 2020 and 2019, respectively.

Depreciation expense was approximately $ 1.9 million and $ 2.1 million for the nine months ended October 31, 2020 and 2019, respectively.

Property and equipment at October 31, 2020 and January 31, 2020 consisted of the following:

October 31, 2020

January 31, 2020

11 unchanged sentences

Once research and development efforts are completed, the corresponding amount of IPR&D is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life.

As of July 31, 2020, there was no IPR&D amortized.

As of October 31, 2020, there was no IPR&D amortized.

The Company will determine the project incorporating the VisLab IPR&D to be completed when a related chip begins mass production to address the level 3 and above advanced driving assistance systems markets.

1 unchanged sentence

The licenses have been capitalized as intangible assets, and the corresponding future payments have been recorded as liabilities at net present value.

As of July 31, 2020, $ 5.0 million was recorded in accrued and other current liabilities and $ 6.5 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The carrying amounts of intangible assets as of July 31, 2020 and January 31, 2020 were as follows :

As of July 31, 2020

As of October 31, 2020, $ 5.8 million was recorded in accrued and other current liabilities and $ 7.2 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The carrying amounts of intangible assets as of October 31, 2020 and January 31, 2020 were as follows :

As of October 31, 2020

As of January 31, 2020

9 unchanged sentences

Total acquired intangible assets

During the six months ended July 31, 2020, there was approximately $ 10.1 million of fully amortized software licenses retired.

The amortization expense related to software licenses was approximately $ 1.6 million and $ 1.3 million for the three months ended July 31, 2020 and 2019, respectively.

The amortization expense related to software licenses was approximately $ 3.1 million and $ 2.6 million for the six months ended July 31, 2020 and 2019, respectively.

The estimated future amortization expense of these software licenses as of July 31, 2020 is as follows:

July 31, 2020

During the nine months ended October 31, 2020, there was approximately $ 10.1 million of fully amortized software licenses retired.

The amortization expense related to software licenses was approximately $ 1.7 million and $ 1.3 million for the three months ended October 31, 2020 and 2019, respectively.

The amortization expense related to software licenses was approximately $ 4.8 million and $ 3.9 million for the nine months ended October 31, 2020 and 2019, respectively.

The estimated future amortization expense of these software licenses as of October 31, 2020 is as follows:

October 31, 2020

(in thousands)

2 unchanged sentences

IPR&D is required to be tested for impairment at least annually in the fourth fiscal quarter or sooner whenever events or changes in circumstances indicate that the assets may be impaired.

There were no intangible asset impairments for the three and six months ended July 31, 2020 and 2019, respectively.

There were no intangible asset impairments for the three and nine months ended October 31, 2020 and 2019, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

Accrued and other current liabilities at October 31, 2020 and January 31, 2020 consisted of the following:

October 31, 2020

January 31, 2020

6 unchanged sentences

Total accrued and other current liabilities

The timing of SoC development progress and payments to outside foundries resulted in fluctuation of the accrued product development costs.

The Company has entered into various operating leases for its worldwide office facilities.

The operating lease expense was approximately $ 0.7 million and $ 0.7 million for the three months ended July 31, 2020 and 2019, respectively.

The operating lease expense was approximately $ 1.4 million and $ 1.5 million for the six months ended July 31, 2020 and 2019, respectively.

The Company's short-term leases and finance leases were not material as of July 31, 2020 and January 31, 2020, respectively .

The operating lease expense was approximately $ 0.8 million and $ 0.7 million for the three months ended October 31, 2020 and 2019, respectively.

The operating lease expense was approximately $ 2.2 million and $ 2.2 million for the nine months ended October 31, 2020 and 2019, respectively.

The Company's short-term leases and finance leases were not material as of October 31, 2020 and January 31, 2020, respectively .

Supplemental cash flow information related to leases is as follows:

Three Months Ended

Six Months Ended

July 31, 2020

Nine Months Ended

October 31, 2020

(in thousands)

1 unchanged sentence

Supplemental non-cash information related to lease liabilities arising from obtaining right-of-use assets

As of July 31, 2020, the weighted average remaining lease term is 4.76 years, and the weighted average discount rate is 4.43 percent.

As of October 31, 2020, the weighted average remaining lease term is 4.41 years, and the weighted average discount rate is 4.43 percent.

Future minimum lease payments for the lease liabilities are as follows :

July 31, 2020

October 31, 2020

(in thousands)

3 unchanged sentences

Other Long-Term Liabilities

Other long-term liabilities at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

Other long-term liabilities at October 31, 2020 and January 31, 2020 consisted of the following:

October 31, 2020

January 31, 2020

8 unchanged sentences

After completion of the Company’s initial public offering in 2012, a total of 20,000,000 preference shares, with a $ 0.00045 par value per share, were authorized.

There were no preference shares issued and outstanding as of July 31, 2020 and January 31, 2020, respectively.

There were no preference shares issued and outstanding as of October 31, 2020 and January 31, 2020, respectively.

Ordinary shares

As of July 31, 2020 and January 31, 2020, a total of 200,000,000 ordinary shares were authorized.

As of October 31, 2020 and January 31, 2020, a total of 200,000,000 ordinary shares were authorized.

On February 1, 2020, the Company added 1,521,252 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the 2012 Equity Incentive Plan, or EIP.

2 unchanged sentences

Pursuant to such provision, for each fiscal year, the number of ordinary shares reserved for issuance under the ESPP is automatically increased by a number equal to the lesser of (i) 1,500,000 ordinary shares, (ii) one and one quarter percent ( 1.25 %) of the aggregate number of ordinary shares outstanding on such date, or (iii) an amount determined by the Company’s Board of Directors or a duly authorized committee of the Board of Directors.

As of July 31, 2020 and January 31, 2020, the following ordinary shares were reserved for future issuance under the EIP and ESPP:

July 31, 2020

As of October 31, 2020 and January 31, 2020, the following ordinary shares were reserved for future issuance under the EIP and ESPP:

October 31, 2020

January 31, 2020

10 unchanged sentences

The repurchase program is funded using the Company’s working capital and any repurchased shares are recorded as authorized but unissued shares.

As of July 31, 2020, there was approximately $ 49.0 million available for repurchases under the repurchase program through June 30, 2021.

As of October 31, 2020, there was approximately $ 49.0 million available for repurchases under the repurchase program through June 30, 2021.

Stock-based Compensation

The following table presents the classification of stock-based compensation for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands)

4 unchanged sentences

Total stock-based compensation

During the three and six months ended July 31, 2020, approximately $ 0.1 million and $ 0.9 million of stock-based compensation expense was accrued in the accrued and other current liabilities in the condensed consolidated balance sheets, respectively.

As of July 31, 2020, total unrecognized compensation cost related to unvested stock options was $ 3.4 million and is expected to be recognized over a weighted-average period of 2.40 years.

During the three and nine months ended October 31, 2020, approximately $ 1.9 million and $ 2.8 million of stock-based compensation expense was accrued in the accrued and other current liabilities in the condensed consolidated balance sheets, respectively.

As of October 31, 2020, total unrecognized compensation cost related to unvested stock options was $ 3.1 million and is expected to be recognized over a weighted-average period of 2.37 years.

Total unrecognized compensation cost related to unvested restricted stock units was $ 137.3 million and is expected to be recognized over a weighted-average period of 2.54 years.

The following table sets forth the weighted-average assumptions used to estimate the fair value of stock options and employee stock purchase plan awards for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

Stock Options:

13 unchanged sentences

Outstanding at January 31, 2020

Outstanding at July 31, 2020

Exercisable at July 31, 2020

Outstanding at October 31, 2020

Exercisable at October 31, 2020

The intrinsic value of options outstanding and exercisable is calculated based on the difference between the fair market value of the Company’s ordinary shares on the reporting date and the exercise price.

The closing price of the Company’s ordinary shares on July 31, 2020 was $ 45.28 , as reported by The NASDAQ Global Market.

The closing price of the Company’s ordinary shares on October 31, 2020 was $ 54.67 , as reported by The NASDAQ Global Market.

The intrinsic value of exercised options is calculated based on the difference between the fair market value of the Company’s ordinary shares on the exercise date and the exercise price.

1 unchanged sentence

Unvested at January 31, 2020

Unvested at July 31, 2020

As of July 31, 2020, the aggregate intrinsic value of unvested restricted stock units was $ 110.8 million.

Unvested at October 31, 2020

As of October 31, 2020, the aggregate intrinsic value of unvested restricted stock units was $ 168.8 million.

Net Loss Per Ordinary Share

The following table sets forth the computation of basic and diluted loss per ordinary share for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands, except share and per share data)

3 unchanged sentences

The following weighted-average potentially dilutive securities were excluded from the computation of diluted loss per ordinary share as their effect would have been antidilutive:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

Options to purchase ordinary shares

2 unchanged sentences

The following table provides details of income taxes for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands)

Loss before income taxes

Provision for income taxes

Provision (benefit) for income taxes

Effective tax rate

The income tax expense decreased for the three and six months ended July 31, 2020, as compared to the same periods in the prior fiscal year, primarily due to a decrease in the proportion of profits generated in higher tax jurisdictions as well as an increase in the U.S.

federal research tax credit, partially offset by an increase in non-deductible stock-based compensation.

The income tax expense increased for the three and nine months ended October 31, 2020, as compared to the same periods in the prior fiscal year, primarily due to a decrease in the proportion of profits generated in lower tax jurisdictions as well as an increase in non-deductible stock-based compensation.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), P.L.

15 unchanged sentences

These assessments can require considerable estimates and judgments.

As of July 31, 2020, the gross amount of unrecognized tax benefits was approximately $ 43.1 million.

As of October 31, 2020, the gross amount of unrecognized tax benefits decreased by $ 16.1 million to $ 27.0 million.

The decrease was primarily due to changes to our uncertain tax positions from adjustments arising from tax return filings.

If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required.

7 unchanged sentences

On February 10, 2020, the taxpayer filed a petition to appeal the decision with the Supreme Court of the United States which was denied on June 22, 2020.

The denial of the request by the Supreme Court did not have a material impact to the Company’s condensed consolidated financial statements.

The denial of the request by the Supreme Court did not have a material impact to the Company’s provision for income taxes.

Commitments and Contingencies

3 unchanged sentences

The Company regularly issues purchase orders to independent contract manufacturers which are cancelable upon agreement between the Company and the third-party manufacturers.

As of July 31, 2020 and January 31, 2020, total manufacturing purchase commitments were approximately $ 24.4 million and $ 35.9 million, respectively.

As of October 31, 2020 and January 31, 2020, total manufacturing purchase commitments were approximately $ 37.1 million and $ 35.9 million, respectively.

Indemnification

3 unchanged sentences

It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim.

The Company has no t made payments under these obligations, and no liabilities have been recorded for these obligations in the condensed consolidated balance sheets as of July 31, 2020 and January 31, 2020, respectively.

The Company has no t made payments under these obligations, and no liabilities have been recorded for these obligations in the condensed consolidated balance sheets as of October 31, 2020 and January 31, 2020, respectively.

Segment Reporting

4 unchanged sentences

The following table sets forth the Company’s revenue by geographic region based on bill-to location for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands)

2 unchanged sentences

Total revenue

As of July 31, 2020, substantially all of the Company’s property and equipment, net, was located in the United States, Asia Pacific region and Europe with approximate net amounts of $ 1.6 million, $ 2.5 million and $ 0.9 million, respectively.

As of October 31, 2020, substantially all of the Company’s property and equipment, net, was located in the United States, Asia Pacific region and Europe with approximate net amounts of $ 1.6 million, $ 2.5 million and $ 1.0 million, respectively.

Major Customers

The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 55.6 % and 19.6 % of total revenue for the three months ended July 31, 2020, respectively, and accounted for approximately 59.5 % and 17.4 % of total revenue for the six months ended July 31, 2020, respectively.

The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 54.9 % and 20.5 % of total revenue for the three months ended July 31, 2019, respectively, and accounted for approximately 56.5 % and 19.1 % of total revenue for the six months ended July 31, 2019, respectively.

Accounts receivable with Wintech and Chicony were approximately $ 8.1 million and $ 10.1 million as of July 31, 2020, respectively.

The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 62.3 % and 17.6 % of total revenue for the three months ended October 31, 2020, respectively, and accounted for approximately 60.4 % and 17.4 % of total revenue for the nine months ended October 31, 2020, respectively.

The customers representing 10% or more of revenue and accounts receivable in fiscal year 2020 were Wintech and Chicony, which accounted for approximately 63.2 % and 15.7 % of total revenue for the three months ended October 31, 2019, respectively, and accounted for approximately 59.2 % and 17.8 % of total revenue for the nine months ended October 31, 2019, respectively.

Accounts receivable with Wintech and Chicony were approximately $ 11.2 million and $ 9.9 million as of October 31, 2020, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements