What changed in this filing

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Item 1. Financial Statements

2021-09-08 compared with 2021-06-08 · 113 added, 101 removed, 499 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 April 30, 2021 and

authorized and no shares issued and outstanding at July 31, 2021 and

January 31, 2021, respectively

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

authorized at April 30, 2021 and January 31, 2021, respectively;

36,273,343 shares issued and outstanding at April 30, 2021;

authorized at July 31, 2021 and January 31, 2021, respectively;

36,644,636 shares issued and outstanding at July 31, 2021;

shares issued and outstanding at January 31, 2021

8 unchanged sentences

(in thousands, except share and per share data)

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

Cost of revenue

13 unchanged sentences

(unaudited, in thousands)

Three Months Ended April 30,

Other comprehensive loss, net of tax:

Net unrealized losses on investments

Other comprehensive loss, net of tax

Three Months Ended July 31,

Six Months Ended July 31,

Other comprehensive income (loss), net of tax:

Net unrealized gains (losses) on investments

Other comprehensive income (loss), net of tax

Comprehensive loss

11 unchanged sentences

Balance--April 30, 2021

Issuance of shares through employee equity incentive plan

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

Net unrealized losses on investments - net of tax

Balance--July 31, 2021

Ordinary Shares

7 unchanged sentences

Balance--April 30, 2020

Issuance of shares through employee equity incentive plan

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

Net unrealized gains on investments - net of tax

Balance--July 31, 2020

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands)

Three Months Ended April 30,

Six Months Ended July 31,

Cash flows from operating activities:

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

13 unchanged sentences

Other long-term liabilities

Net cash provided by (used in) operating activities

Net cash provided by operating activities

Cash flows from investing activities:

3 unchanged sentences

Purchase of tangible and intangible assets

Net cash used in investing activities

Net cash provided by (used in) investing activities

Cash flows from financing activities:

2 unchanged sentences

Payment for intangible assets

Net cash provided by (used in) financing activities

Net cash provided by financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash

40 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 April 30, 2021 and through the date of this report.

The Company also assessed the impacts of COVID-19 on the above accounting matters as of July 3 1 , 2021 and through the date of issuing 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 .

32 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 from the financial instruments were not material for the three months ended April 30, 2021 and 2020, respectively, and the associated allowance amounts were not material as of April 30, 2021 and January 31, 2021, respectively.

The credit-related losses from the financial instruments were not material for the three and six months ended July 31, 2021 and 2020, respectively, and the associated allowance amounts were not material as of July 31, 2021 and January 31, 2021, 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 April 30, 2021 and January 31, 2021, restricted cash was immaterial, respectively.

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:

April 30, 2021

January 31, 2021

April 30, 2020

January 31, 2020

(in thousands)

7 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 months ended April 30, 2021 and 2020, respectively.

There were no material inventory losses recognized for the three and six months ended July 31, 2021 and 2020, respectively.

Software Licenses

12 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 April 30, 2021 and January 31, 2021, respectively.

The Company's finance leases were immaterial as of July 31, 2021 and January 31, 2021, respectively.

Revenue Recognition

23 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 months ended April 30, 2021 and 2020, respectively.

Revenues from engineering service agreements were not material for the three and six months ended July 31, 2021 and 2020, 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 April 30, 2021 and January 31, 2021, the contract assets for these unbilled receivables were not material.

As of July 31, 2021 and January 31, 2021, 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 months ended April 30, 2021 and 2020, 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 April 30, 2021 and January 31, 2021, 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 April 30, 2021 and January 31, 2021, respectively.

For the three and six months ended July 31, 2021 and 2020, 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, 2021 and January 31, 2021, 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, 2021 and January 31, 2021, 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 April 30, 2021, there was approximately $ 1.4 million of grants recorded in prepaid expenses and other current assets and approximately $ 1.6 million of grants recorded in other non-current assets in the condensed consolidated balance sheets.

As of July 31, 2021, there was approximately $ 1.4 million of grants recorded in prepaid expenses and other current assets and approximately $ 1.2 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.

13 unchanged sentences

Should the actual amounts differ from estimates, the amount of valuation allowance could be materially impacted.

Any adjustment to the deferred tax asset valuation allowance would be recorded in the condensed consolidated income statement for the periods in which the adjustment is determined to be required.

Any adjustment to the deferred tax asset valuation allowance would be recorded in the condensed consolidated statements of operations for the periods in which the adjustment is determined to be required.

Net Income (Loss) Per Ordinary Share

11 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 April 30, 2021

As of July 31, 2021

Amortized Cost

19 unchanged sentences

Total cash equivalents and marketable debt securities

As of April 30, 2021, there were no debt securities with unrealized losses for more than twelve months.

April 30, 2021

As of July 31, 2021, there were no debt securities with unrealized losses for more than twelve months.

July 31, 2021

January 31, 2021

3 unchanged sentences

Total cash equivalents and marketable debt securities

The contractual maturities of the investments at April 30, 2021 and January 31, 2021 were as follows:

April 30, 2021

The contractual maturities of the investments at July 31, 2021 and January 31, 2021 were as follows:

July 31, 2021

January 31, 2021

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 were not material for the three months ended April 30, 2021, and 2020, respectively.

The credit-related losses were not material for the three and six months ended July 31, 2021, and 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 April 30, 2021 and January 31, 2021, respectively:

As of April 30, 2021

The following tables present the fair value of the financial instruments measured on a recurring basis as of July 31, 2021 and January 31, 2021, respectively:

As of July 31, 2021

(in thousands)

13 unchanged sentences

Total cash equivalents and marketable debt securities

Inventories at April 30, 2021 and January 31, 2021 consisted of the following:

April 30, 2021

Inventories at July 31, 2021 and January 31, 2021 consisted of the following:

July 31, 2021

January 31, 2021

3 unchanged sentences

Property and Equipment, Net

Depreciation expense was approximately $ 0.6 million and $ 0.7 million for the three months ended April 30, 2021 and 2020, respectively.

Property and equipment at April 30, 2021 and January 31, 2021 consisted of the following:

April 30, 2021

Depreciation expense was approximately $ 0.6 million and $ 0.6 million for the three months ended July 31, 2021 and 2020, respectively, and was approximately $ 1.2 million and $ 1.3 million for the six months ended July 31, 2021 and 2020, respectively.

Property and equipment at July 31, 2021 and January 31, 2021 consisted of the following:

July 31, 2021

January 31, 2021

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 April 30, 2021, there was no IPR&D amortized.

As of July 31, 2021, 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.

2 unchanged sentences

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

As of April 30, 2021, $ 5.6 million was recorded in accrued and other current liabilities and $ 4.2 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The carrying amounts of intangible assets as of April 30, 2021 and January 31, 2021 were as follows :

As of April 30, 2021

As of July 31, 2021, $ 5.6 million was recorded in accrued and other current liabilities and $ 3.0 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The carrying amounts of intangible assets as of July 31, 2021 and January 31, 2021 were as follows :

As of July 31, 2021

As of January 31, 2021

9 unchanged sentences

Total acquired intangible assets

The amortization expense related to the software licenses was approximately $ 1.5 million and $ 1.5 million for the three months ended April 30, 2021 and 2020, respectively.

The expected future amortization expense related to these software licenses as of April 30, 2021 is as follows:

April 30, 2021

The amortization expense related to the software licenses was approximately $ 1.5 million and $ 1.6 million for the three months ended July 31, 2021 and 2020, respectively, and was approximately $ 3.0 million and $ 3.1 million for the six months ended July 31, 2021 and 2020, respectively.

The expected future amortization expense related to these software licenses as of July 31, 2021 is as follows:

July 31, 2021

(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 months ended April 30, 2021 and 2020, respectively.

There were no intangible asset impairments for the three and six months ended July 31, 2021 and 2020, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities at April 30, 2021 and January 31, 2021 consisted of the following:

April 30, 2021

Accrued and other current liabilities at July 31, 2021 and January 31, 2021 consisted of the following:

July 31, 2021

January 31, 2021

6 unchanged sentences

Total accrued and other current liabilities

The decrease in employee compensation liabilities was primarily due to $ 6.7 million of annual bonus paid in March 2021, of which $ 2.1 million was paid in cash and $ 4.6 million was settled with restricted stock units.

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

During the three months ended April 30, 2021, the Company extended its Shanghai office lease for an additional three years beginning December 1, 2021 to November 30, 2024 .

In the first quarter of fiscal year 2022, the Company extended its Shanghai office lease for an additional three years beginning December 1, 2021 to November 30, 2024 .

The Company accounted for this extension as a lease modification and recorded an increase to the operating lease right-of-use assets and corresponding operating lease liabilities of approximately $ 1.7 million, respectively, in the condensed consolidated balance sheets.

1 unchanged sentence

T he total estimated future undiscounted cash payments for this additional lease are approximately $ 1.7 million.

The operating lease expense was approximately $ 0.8 million and $ 0.7 million for the three months ended April 30, 2021 and 2020, respectively.

The Company's short-term leases and finance leases were not material as of April 30, 2021 and January 31, 2021, respectively .

The operating lease expense was approximately $ 0.8 million and $ 0.7 million for the three months ended July 31, 2021 and 2020, respectively.

The operating lease expense was approximately $ 1.6 million and $ 1.4 million for the six months ended July 31, 2021 and 2020, respectively.

The Company's short-term leases and finance leases were not material as of July 31, 2021 and January 31, 2021, respectively .

Supplemental cash flow information related to leases is as follows:

Three Months Ended

April 30, 2021

Six Months Ended

July 31, 2021

(in thousands)

2 unchanged sentences

Leased assets obtained in exchange for operating lease liabilities arising from lease modifications

As of April 30, 2021, the weighted average remaining lease term is 4.20 years, and the weighted average discount rate is 3.82 percent.

As of July 31, 2021, the weighted average remaining lease term is 3.99 years, and the weighted average discount rate is 3.83 percent.

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

April 30, 2021

July 31, 2021

(in thousands)

3 unchanged sentences

Other Long-Term Liabilities

Other long-term liabilities at April 30, 2021 and January 31, 2021 consisted of the following:

April 30, 2021

Other long-term liabilities at July 31, 2021 and January 31, 2021 consisted of the following:

July 31, 2021

January 31, 2021

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 April 30, 2021 and January 31, 2021, respectively.

There were no preference shares issued and outstanding as of July 31, 2021 and January 31, 2021, respectively.

Ordinary shares

As of April 30, 2021 and January 31, 2021, a total of 200,000,000 ordinary shares were authorized.

For the three months ended April 30, 2021, the Company added 1,599,634 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the 2012 Equity Incentive Plan, or EIP.

Pursuant to such provision, for each fiscal year, the number of ordinary shares reserved for issuance under the EIP is automatically increased by a number equal to the lesser of (i) 3,500,000 ordinary shares, (ii) four and one half percent ( 4.5 %) of the aggregate number of ordinary shares outstanding on January 31st of the preceding fiscal year, or (iii) a lesser number of shares that may be determined by the Company’s Board of Directors.

For the three months ended April 30, 2021, the Company added 444,343 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the Amended and Restated 2012 Employee Stock Purchase Plan, or ESPP.

As of July 31, 2021 and January 31, 2021, a total of 200,000,000 ordinary shares were authorized.

In June 2021, the Company’s shareholders approved the 2021 Equity Incentive Plan, or 2021 EIP.

The 2021 EIP permits the grant of incentive stock options, or ISOs, within the meaning of Section 422 of the Code, to employees of the Company and any of the Company’s subsidiary or parent corporations, and the grant of nonstatutory stock options, or NSOs, stock appreciation rights, restricted stock, restricted stock units, and performance awards to employees, directors and consultants of the Company and any of the Company’s subsidiary or parent corporations’ employees and consultants.

Upon adoption of the 2021 EIP, the total number of ordinary shares of the Company reserved for issuance under the 2021 Plan was equal to, subject to adjustments upon changes in capitalization as provided under the 2021 EIP, 1,350,000 ordinary shares, plus (i) any ordinary shares subject to outstanding awards granted under the 2012 Equity Incentive Plan, or 2012 EIP, that, after the date the 2012 EIP is terminated, are cancelled, expire or otherwise terminate without having been exercised in full or are forfeited to or repurchased by the Company due to failure to vest, and (ii) any ordinary shares that, as of immediately prior to the termination of the 2012 EIP, were available for grant under the 2012 EIP, up to a maximum of 6,834,208 ordinary shares pursuant to clauses (i) and (ii) .

In the first quarter of fiscal year 2022, the Company added 1,599,634 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the 2012 EIP.

Upon the approval of the 2021 EIP, the 2012 EIP was terminated.

No additional awards will be granted under the 2012 EIP and any shares that were reserved but not issued under the 2012 EIP became available for future grant or sale under the 2021 EIP.

However, all outstanding stock options and other awards previously granted under the 2012 EIP will remain subject to the terms of the 2012 EIP.

In the first quarter of fiscal year 2022, the Company added 444,343 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the Amended and Restated 2012 Employee Stock Purchase Plan, or ESPP.

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 April 30, 2021 and January 31, 2021, the following ordinary shares were reserved for future issuance under the EIP and ESPP:

April 30, 2021

As of July 31, 2021 and January 31, 2021, the following ordinary shares were reserved for future issuance under the EIP and ESPP:

July 31, 2021

January 31, 2021

6 unchanged sentences

On May 29, 2020, the Board approved an extension of this program for an additional twelve months ending June 30, 2021 .

There were no ordinary shares repurchased in the three months ended April 30, 2021.

On May 25, 2021, the Board extended the repurchase program for another 12 months through June 30, 2022 .There were no ordinary shares repurchased in the six months ended July 31, 2021.

Repurchases may be made from time-to-time through open market purchases, 10b5-1 plans or privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors.

1 unchanged sentence

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

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

As of July 31, 2021, there was approximately $ 49.0 million available for repurchases under the repurchase program through June 30, 2022.

Stock-based Compensation

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

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

(in thousands)

4 unchanged sentences

Total stock-based compensation

During the three months ended April 30, 2021, approximately $ 1.7 million of stock-based compensation expense was accrued in accrued and other current liabilities in the condensed consolidated balance sheets.

As of April 30, 2021, total unrecognized compensation cost related to unvested stock options was $ 3.3 million and is expected to be recognized over a weighted-average period of 2.41 years.

During the three and six months ended July 31, 2021, approximately $ 1.7 million and $ 3.4 million of stock-based compensation expense was accrued in accrued and other current liabilities in the condensed consolidated balance sheets, respectively.

As of July 31, 2021, total unrecognized compensation cost related to unvested stock options was $ 2.9 million and is expected to be recognized over a weighted-average period of 2.29 years.

Total unrecognized compensation cost related to unvested restricted stock units was $ 129.7 million and is expected to be recognized over a weighted-average period of 2.20 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 April 30,

Three Months Ended

Six Months Ended

Stock Options:

13 unchanged sentences

Outstanding at January 31, 2021

Outstanding at April 30, 2021

Exercisable at April 30, 2021

Outstanding at July 31, 2021

Exercisable at July 31, 2021

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 April 30, 2021 was $ 97.49 , as reported by The NASDAQ Global Market.

The closing price of the Company’s ordinary shares on July 31, 2021 was $ 98.49 , 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.

The following table summarizes the restricted stock units activities for the period indicated:

The following table summarizes restricted stock units activities for the period indicated:

Unvested at January 31, 2021

Unvested at April 30, 2021

As of April 30, 2021, the aggregate intrinsic value of unvested restricted stock units was $ 255.4 million.

Unvested at July 31, 2021

As of July 31, 2021, the aggregate intrinsic value of unvested restricted stock units was $ 239.4 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 April 30,

Three Months Ended July 31,

Six Months Ended July 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 April 30,

Three Months Ended

Six Months Ended

Options to purchase ordinary shares

2 unchanged sentences

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

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

(in thousands)

2 unchanged sentences

Effective tax rate

The Company recorded an income tax provision of $ 1.3 million and $ 1.1 million for the three months ended April 30, 2021 and 2020, respectively.

The increase in income tax expense was primarily due to a decrease in the proportion of profits generated in lower tax jurisdictions, partially offset by a $ 3.4 million increase in the U.S.

The Company recorded an income tax provision of $ 1.4 million and $ 0.7 million for the three months ended July 31, 2021 and 2020, and $ 2.7 million and $ 1.9 million for the six months ended July 31, 2021 and 2020, respectively.

The increase in income tax expense was primarily due to an increase in the proportion of profits generated in higher tax jurisdictions, partially offset by an increase in the U.S.

federal research tax credit as well as an increase in tax benefits from excess stock-based compensation deductions.

10 unchanged sentences

These assessments can require considerable estimates and judgments.

As of April 30, 2021, the gross amount of unrecognized tax benefits was approximately $ 27.8 million.

As of July 31, 2021, the gross amount of unrecognized tax benefits was approximately $ 27.9 million.

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

6 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.

These purchase orders typically provide the Company with flexibility to cancel, reschedule or adjust requirements based upon business needs but the Company may incur certain costs depending on the production stage of the products.

As of April 30, 2021 and January 31, 2021, total manufacturing purchase commitments were approximately $ 67.6 million and $ 48.2 million, respectively.

These manufacturing purchase commitments typically provide the Company with flexibility to cancel, reschedule or adjust requirements based upon business needs but the Company may incur certain costs depending on the production stage of the products.

As of July 31, 2021 and January 31, 2021, total manufacturing purchase commitments were approximately $ 72.3 million and $ 48.2 million, respectively.

The Company also reviews and assesses the need for any expected loss liabilities on quarterly basis for all products that it does not expect to sell for which it has committed purchases from suppliers.

As of April 30, 2021, there was no material loss recognized in the condensed consolidated balance sheets from adverse purchase commitments.

As of July 31, 2021, there was no material loss recognized in the condensed consolidated balance sheets from adverse purchase commitments.

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 April 30, 2021 and January 31, 2021, 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 July 31, 2021 and January 31, 2021, 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 April 30,

Three Months Ended July 31,

Six Months Ended July 31,

(in thousands)

2 unchanged sentences

Total revenue

As of April 30, 2021, 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 $ 2.4 million, $ 2.4 million and $ 1.5 million, respectively.

As of July 31, 2021, 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 $ 2.8 million, $ 4.0 million and $ 1.5 million, respectively.

Major Customers

The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 63 % and 16 % of total revenue for the three months ended April 30, 2021, respectively.

For the three months ended April 30, 2020, the customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 63 % and 15 % of total revenue, respectively.

Accounts receivable with Wintech and Chicony were approximately $ 17.0 million and $ 11.3 million as of April 30, 2021, respectively.

Subsequent Events

On May 29, 2019 , the Company’s Board of Directors authorized a program to repurchase up to $ 50.0 million of the Company’s ordinary shares through June 30, 2020 .

On May 29, 2020, the Board approved an extension of this program for an additional twelve months ending June 30, 2021.

On May 25, 2021, the Board extended the repurchase program for another 12 months through June 30, 2022 .

The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and it may be suspended at any time at the Company’s discretion.

As of June 7, 2021, there was approximately $ 49.0 million available for repurchases under the repurchase program through June 30, 2022.

For the three and six months ended July 31, 2021, the customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 61.6 % and 15.8 % of total revenue for the three months ended July 31, 2021, respectively, and accounted for approximately 62.4 % and 15.8 % of total revenue for the six months ended July 31, 2021, respectively.

For the three and six months ended July 31, 2020, 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.

Accounts receivable with Wintech and Chicony were approximately $ 17.7 million and $ 12.6 million as of July 31, 2021, 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