Our operations and financial results are subject to various risks and uncertainties, including those described below, that could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common stock.
−Removed: Any of the following risks and uncertainties may be exacerbated by the impacts of the COVID-19 pandemic and related events.
Risk Factor Summary
Risks Related to Our Business
−Removed: • Our business operations and financial performance may be adversely affected by the COVID-19 pandemic and related events.
+Added: • We may be adversely affected by the macroeconomic conditions and cyclicality of the semiconductor industry.
• The decline of personal computing (“PC”) markets may have a material adverse effect on our results of operations.
2 unchanged sentences
• Geopolitical and economic conflicts between United States and China may adversely affect our business.
+Added: • Our lack of control over the JV Company may adversely affect our operations.
• Our revenue may fluctuate significantly from period to period due to ordering patterns from our distributors and seasonality.
3 unchanged sentences
• The operation of our Oregon Fab subjects us to additional risks and the need for additional capital expenditures which may negatively impact our results of operations.
−Removed: • We may not be able to successfully develop our digital power business.
• Defects and poor performance in our products could result in loss of customers, decreased revenue, unexpected expenses and loss of market share.
2 unchanged sentences
• Our reliance on third-party semiconductor foundries to manufacture our products subjects us to risks.
−Removed: • Our operation of two wholly-owned packaging and testing facilities are subject to risks that could adversely affect our business and financial results.
• Our reliance on distributors to sell a substantial portion of our products subjects us to a number of risks.
2 unchanged sentences
• We may not be able to accurately estimate provisions at fiscal period end for price adjustment and stock rotation rights under our agreements with distributors, and our failure to do so may impact our operating results.
−Removed: • We depend on the continuing services of our senior management team and other key personnel, and if we lose a member of our senior management or are unable to successfully retain, recruit and train key personnel, our ability to develop and market our products could be harmed.
+Added: • Our operation of two wholly-owned packaging and testing facilities are subject to risks that could adversely affect our business and financial results.
+Added: • We may be adversely affected by any disruption in our information technology systems.
+Added: • We depend on the continuing services of our senior management team and other key personnel.
• Failure to protect our patents and our other proprietary information could harm our business and competitive position.
1 unchanged sentence
• The DOJ government investigation and evolving export control regulations may adversely affect our financial performance and business operations.
−Removed: • We may be adversely affected by any disruption in our information technology systems.
• Global or regional economic, political and social conditions could adversely affect our business and operating results.
2 unchanged sentences
• Our international operations subject our company to risks not faced by companies without international operations.
−Removed: • If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud.
+Added: • If we fail to maintain an effective internal control environment as well as adequate control procedures over our financial reporting, investor confidence may be adversely affected thereby affecting the value of our stock price.
• We are subject to the risk of increased income taxes and changes in existing tax rules.
6 unchanged sentences
• The average selling prices of products in our markets have historically decreased rapidly and will likely do so in the future, which could harm our revenue and gross margins.
−Removed: • We may be adversely affected by the cyclicality of the semiconductor industry.
Risks Related to Doing Business in China
2 unchanged sentences
• The continuing potential for new or additional tariffs on imported goods from China could adversely affect our business operations.
−Removed: • Substantial uncertainties exist with respect to the interpretation and implementation of PRC Foreign Investment Law and how it may impact us.
+Added: • Uncertainties exist with respect to the interpretation and implementation of PRC Foreign Investment Law and how it may impact us.
• Limitations on our ability to transfer funds to our China subsidiaries could adversely affect our ability to expand our operations, make investments that could benefit our businesses and otherwise fund and conduct our business.
11 unchanged sentences
Risks Related to Our Business
−Removed: Our business operations and financial performance may be adversely affected by the COVID-19 pandemic and related events.
−Removed: Our business operations have been impacted by the global COVID-19 pandemic and the resulting economic downturn.
−Removed: Numerous governmental jurisdictions, including the States of California, Oregon and Texas in the U.S.
−Removed: and countries throughout the Asia Pacific region have imposed various restrictions on commercial activities, resulting in business closures, work stoppages, labor shortage, disruptions to ports, vaccine mandates and other shipping infrastructure, border closures, thereby negatively impacting our customers, suppliers, distributors, employees, offices, and the entire semiconductor ecosystem.
−Removed: As a result of the COVID-19 pandemic and changing consumer behaviors due to various government restrictions and the growing trend to provide remote-working options by employers, we have experienced shifting market trends, including an increasing demand in markets for notebooks, PCs, gaming devices and other products.
−Removed: While we have benefited from the increasing demand for PC related products, there is no guarantee that this trend will continue, and such increasing demand may discontinue or decline if government authorities relax or terminate COVID-19 related restrictions and consumer behaviors change in response to the reopening of certain economic activities.
−Removed: Since the start of the second quarter of calendar year 2021, there have been increasing availability and administration of vaccines against COVID-19, as well as an easing of restrictions on social, business, travel, and government activities and functions, and a gradual resumption of economic activities and consumer spending in our industries.
−Removed: However, infection rates continued to fluctuate in various regions and new strains of the virus remain a risk, including a surge of COVID-19 cases and hospitalization due to the spread of Omicron variants in late 2021 and early 2022.
−Removed: During the first half of calendar year of 2022, COVID-19 cases and hospitalization rate continued to decline and governments in various jurisdictions, including the U.S.
−Removed: and Europe, have lifted various restrictions and limitations on economic activities.
−Removed: At the same time, however, new variants of COVID-19, including the BA.5 variant, continued to emerge and contributed to recent rise of infection rates in various jurisdictions in which we operate, including China and U.S.
−Removed: Furthermore, we may be subject to the ongoing global impacts resulting from the pandemic, including disruption of the product supply chains, shortages of semiconductor components and raw materials, and delays in shipments, product development, and product launches and rising inflation rates, any of which may adversely affect our operations.
−Removed: In addition, actions by United States federal, state and local governments, as well as by foreign governments, to address the COVID-19 pandemic, including travel bans, stay-at-home orders and school, business and entertainment venue closures, also had a significant adverse effect on the markets in which we conduct our businesses.
−Removed: COVID-19 poses the risk that our workforce, suppliers, and other partners may be prevented from conducting normal business activities for an extended period of time, including due to shutdowns or stay-at-home orders that may be requested or mandated by governmental authorities.
−Removed: In April 2022, the city of Shanghai, China entered into a strict lockdown due to surging COVID-19 cases and the local government’s imposition of the “Zero Covid” policy.
−Removed: Our packaging and assembly facilities in Shanghai were shut down and production was halted since early April.
−Removed: Transportation suspension in and out of Shanghai also interrupted the shipping of raw materials and finished parts to and from our Songjiang factory.
−Removed: We received permission to reopen our facilities partially in early May.
−Removed: We gradually ramped up production at these facilities in May 2022 and returned to normal operation in June 2022.
−Removed: The suspension of our Shanghai facilities, and factors limiting the resumption of production, reduced our ability to complete orders from our customers in a timely manner, which adversely affected our revenue and results of operation for the three months ended June 30, 2022.
−Removed: There is no guarantee that additional restrictions and lockdown will not be reimposed by the government, which is outside of our control, and any extension of the lockdown will continue to have a negative impact on our results of operations and financial conditions.
−Removed: We also expect to incur additional incremental costs to comply with various public health and safety requirements imposed by the Shanghai government, which may continue for an extended period of time even after city-wide lockdown is lifted.
−Removed: Furthermore, while we intend to secure alternative sources of packaging capacity from third-party providers to mitigate the impact of the shutdown, there is no guarantee that such source will be available or on terms that are reasonable to us.
−Removed: Even if alternative sources are available, it will be difficult to complete the transition to such sources efficiently and timely, and we currently do not expect that we will be able to secure sufficient third-party packaging sources to substitute or replace fully our in-house capacity.
−Removed: The suspension of our Shanghai facilities, and factors limiting the resumption of production reduced our ability to complete orders from our customers in a timely manner or at all, which adversely affected our revenue and results of operation for the fiscal year ended June 30, 2022.
−Removed: We can not guarantee that the Shanghai government will not impose similar restrictions and lockdown in the future, and any such restrictions and lockdown will adversely affect our operations and financial performance.
−Removed: The full extent of the future impact of the COVID-19 pandemic on our operational and financial performance is uncertain and will depend on many factors beyond our control, including, without limitation, the timing, extent, trajectory and duration of the pandemic;
−Removed: the availability, distribution and effectiveness of vaccines;
−Removed: the spread of new variants of COVID-19;
−Removed: the continued and renewed imposition of protective public safety measures such as lockdowns and quarantines;
−Removed: the continuing global disruption in supply chains in our industries and the impact of the pandemic on the global economy, inflation and demand for consumer products.
−Removed: Even after the pandemic has subsided and economic activities gradually increase, we may continue to experience material and adverse impacts to our business, operating results, and financial condition as a result of the pandemic’s lasting global economic impact, including any recession that may occur in the future in our industries, as well as possible continuing inflationary impacts resulting from these factors.
−Removed: Our operation of two wholly-owned packaging and testing facilities are subject to risks that could adversely affect our business and financial results.
−Removed: We have two wholly-owned packaging and testing facilities located in Shanghai, China that handle most of our packaging and testing requirements.
−Removed: The operation of high-volume packaging and testing facilities and implementation of our advanced packaging technology are complex and demand a high degree of precision and may require modification to improve yields and product performance.
−Removed: We have committed substantial resources to ensure that our packaging and testing facilities operate efficiently and successfully, including the acquisition of equipment and raw materials, and training and management of a large number of technical personnel and employees.
−Removed: Due to the fixed costs associated with operating our own packaging and testing facilities, if we are unable to utilize our in-house facilities at a desirable level of production, our gross margin and results of operations may be adversely affected.
−Removed: For example, a significant decline in our market share or sales orders may negatively impact our factory utilization and reduce our ability to achieve profitability.
−Removed: In April 2022, the operations of our packaging and testing facilities in Shanghai, China were suspended due to a strict lockdown of the city imposed by the local government in response to surging COVID cases.
−Removed: The facilities were required to be shut down and production was halted since early April.
−Removed: Transportation suspension in and out of Shanghai also interrupted the shipping of raw materials and finished parts to and from our facilities.
−Removed: We received permission to reopen our facilities partially in early May.
−Removed: We gradually ramped up production at these facilities in May and returned to normal operation in June 2022.
−Removed: The suspension of our Shanghai facilities, and factors limiting the resumption of production, reduced our ability to complete orders from our customers in a timely manner, which adversely affected our revenue and results of operation for the three months ended June 30, 2022.
−Removed: There is no guarantee that additional restrictions and lockdown will not be reimposed by the government, which is outside of our control, and any extension of the lockdown will continue to have a negative impact on our results of operation and financial condition.
−Removed: Furthermore, while we intend to secure alternative sources of packaging capacity from third-party providers, there is no guarantee that such sources are available, and even if available, it will be difficult to complete the transition efficiently and timely, and such alternative source of capacity is not expected to be sufficient to substitute or replace fully our in-house capacity.
−Removed: The suspension of our Shanghai facilities had a negative impact on our production and adversely affected our revenue and results of operation for the fiscal year ended June 30, 2022.
−Removed: We can not guarantee that the Shanghai government will not impose similar restrictions and lockdown in the future, and any such restrictions and lockdown will adversely affect our operations and financial performance.
−Removed: In addition, the operation of our packaging and testing facilities is subject to a number of risks, including the following:
−Removed: • unavailability of equipment, whether new or previously owned, at acceptable terms and prices;
−Removed: • facility equipment failure, power outages or other disruptions;
−Removed: • shortage of raw materials, including packaging substrates, copper, gold and molding compound;
−Removed: • failure to maintain quality assurance and remedy defects and impurities;
−Removed: • changes in the packaging requirements of customers;
−Removed: • our limited experience in operating a high-volume packaging and testing facility;
−Removed: • operation stoppage due to the city-wide COVID-19 lockdown.
−Removed: Any of the foregoing risks could adversely affect our capacity to package and test our products, which could delay shipment of our products, result in higher expenses, reduce revenue, damage our relationships with customers and otherwise adversely affect our business, results of operations, financial condition and prospects.
−Removed: Our business operations and financial conditions may be adversely affected by any disruption in our information technology systems, including any cyberattacks and breaches.
−Removed: Our operations are dependent upon our information technology systems, which encompass all of our major business functions across offices internationally.
−Removed: We rely upon such information technology systems to manage and replenish inventory, complete and track customer orders, coordinate sales activities across all of our products and services, maintain vital data and information, perform financial and accounting tasks and manage and perform various administrative and human resources functions.
−Removed: A substantial disruption in our information technology systems for any extended time period (arising from, for example, system capacity limits from unexpected increases in our volume of business, outages or delays in our service) could result in delays in receiving inventory and supplies or filling customer orders and adversely affect our customer service and relationships.
−Removed: Our systems might be damaged or interrupted by natural or man−made events or by computer viruses, physical or electronic break−ins, cyber-attacks and similar disruptions affecting the global Internet.
−Removed: In addition, recent widespread ransomware attacks and cybersecurity breaches in the U.S.
−Removed: and elsewhere have affected many companies, including the cybersecurity incident involving SolarWinds Orion in December 2020.
−Removed: In the past, we also experienced ransomware attacks on our information technology system.
−Removed: In April, 2022, we became aware of a cybersecurity incident involving unauthorized access to one of the Company's email account, resulting in unauthorized payments.
−Removed: We recorded a loss of $1.5 million due to the incident for the three months ended March 31, 2022.
−Removed: Immediately following the discovery, we commenced an investigation, contained the incident and implemented additional protective measures and internal control policies and procedures.
−Removed: We also alerted law enforcement authorities and banking institutions in an effort to recover the lost amount.
−Removed: This incident appears to be isolated and its financial impact identified was not material.
−Removed: The Company believes that it has not incurred other damages and losses based on the conclusion of the full investigation.
−Removed: There is no guarantee that we will be able to recover the lost amount.
−Removed: While these attacks did not have a material adverse effect on our business operation or results of operations, they caused temporary disruptions and interfered with our operations.
−Removed: Any cybersecurity breach and financial loss may also have a negative impact on our internal control over financial reporting.
−Removed: While we have implemented additional measures to enhance our security protocol to protect our system and intend to do so in response to any threats, there is no guarantee that future attacks would be thwarted or prevented.
−Removed: We also expect to incur additional costs and expenses to upgrade our information technology system and establish additional protective measures to prevent future breaches.
−Removed: Furthermore, despite our efforts to investigate, improve and remediate the capability and performance of our information technology system, we may not be able to discover all weaknesses, breaches and vulnerabilities, and failure to do so may expose us to higher risk of data loss and adversely affect our business operations and results of operations.
+Added: Our operating results and financial conditions are affected by downturns in the semiconductor industry, changes in end-market demand and other macro-economic trends.
+Added: The semiconductor industry periodically experiences significant economic downturns characterized by diminished product and end-market demand, production overcapacity, excess inventory, which can result in rapid significant decline in shipment and sales, which may harm our operating results and financial condition.
+Added: The semiconductor market is also highly cyclical and is characterized by constant and rapid technological change such as product obsolescence and price erosion, evolving standards, uncertain product life cycles and wide fluctuations in product supply and demand.
+Added: Since mid-2022, we have experienced an industry-wide decline of customer demand for semiconductor products due primarily to the build-up of excess inventory prior to the cessation of the COVID-19 pandemic.
+Added: This decline has negatively affected our recent financial performance in 2023.
+Added: While we expect some recovery of the macroeconomic trend by the end of 2023 and early 2024, there is no guarantee that it will occur and a prolonged and extended downturn in the semiconductor industry will have a substantial impact on our operating results and financial conditions.
The decline of personal computing (“PC”) markets may have a material adverse effect on our results of operations.
2 unchanged sentences
The increasing popularity of smaller, mobile computing devices such as tablets and smart phones with touch interfaces is rapidly changing the PC markets both in the United States and abroad.
−Removed: In the past, we experienced a significant reduction in the demand for our products due to the declining PC markets, which had negatively impacted our revenue, profitability and gross margin.
−Removed: While we recently experienced resurgence of demand in the PC market as a result of the COVID-19 pandemic and related events, there is no assurance that such trend will continue or that the decline of PC market will not occur again, and if it does, we may not be able to implement measures successfully to mitigate or reduce the negative impact on our financial conditions and results of operations.
+Added: In the past prior to the commencement of the COVID-19 pandemic, we experienced a significant reduction in the demand for our products due to the declining PC markets, which negatively impacted our revenue, profitability and gross margin.
+Added: While we experienced a surge of demand in the PC market as a result of the COVID-19 pandemic and related events, such demand began to return to normal level with the cessation of the COVID-19 pandemic, and recently declined due to an industry-wide inventory correction and the ensuing downturn in the semiconductor industry.
+Added: We have implemented measures and strategies to mitigate the effect of such a downturn.
+Added: These measures and strategies may not be sufficient or successful, in which case our operating results may be adversely affected.
Our strategy of diversification into different market segments may not succeed according to our expectations and may expose us to new risks and place significant strains on our management, operational, financial and other resources.
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These controversies and trade frictions could have a material adverse effect on our business by, among other things, making it more difficult for us to coordinate our operations between the United States and China causing a reduction in the demand for our products by customers in the United States or China and reducing our profitability due to increasing cost of compliance.
−Removed: The continuing political and economic conflicts between U.S.
−Removed: and China have resulted in and may continue to cause retaliatory policies from both countries, including a 2020 executive order issued by the then U.S.
−Removed: President eliminating the preferential trade status of Hong Kong in response to China’s action to impose new security measures and regulation on Hong Kong.
−Removed: The order has made it more costly and difficult for U.S.
−Removed: companies to export goods or conduct businesses in Hong Kong.
−Removed: While we historically have not relied on the preferential trade status to operate in Hong Kong, there is no guarantee that additional policies, rules or regulations will not be implemented by either the U.S.
−Removed: or China that will negatively impact our ability to maintain our sales and other functions and operations in Hong Kong.
−Removed: We also cannot predict what new and additional retaliatory policies and regulations may be implemented by the Chinese government in response to U.S.
−Removed: actions, and such policies and regulations may adversely affect our business operations in China and other Asian countries, including our manufacturing and sales and marketing activities.
Our lack of control over the JV Company may adversely affect our operations.
1 unchanged sentence
The JV Company is our subcontractor, and we rely and expect to continue to rely substantially on the JV Company to provide us with foundry capacity to develop and manufacture our products and to enhance our market position in China.
−Removed: Since the formation of the JV Company, we have retained control over the business operation of the JV Company through our majority equity ownership and board representation.
+Added: At the formation of the JV Company, we retained control over the business operation of the JV Company through our majority equity ownership and board representation.
In December 2021, we relinquished control over the JV Company through a series of transactions, including the sale of a portion of our equity interests in the JV Company and issuance of additional equity interests by the JV Company to raise capital.
As a result of these transactions, we currently own approximately 42.2% of outstanding equity interest in the JV Company and have the right to designate three (3) out of seven (7) directors, instead of four (4) directors prior to such transaction.
−Removed: The reduction of our equity ownership of the JV Company is part of a plan to enable the JV Company to raise capital more easily and to facilitate a future public listing on the Science and Technology Innovation Board, or STAR Market, of
−Removed: the Shanghai Stock Exchange (the “China IPO”).
+Added: The reduction of our equity ownership of the JV Company is part of a plan to enable the JV Company to raise capital more easily and to facilitate a future public listing on the Science and Technology Innovation Board, or STAR Market, of the Shanghai Stock Exchange (the “China IPO”).
Such reduction also caused the deconsolidation of the JV Company’s financial statements from our Consolidated Financial Statements.
19 unchanged sentences
In recent year, broad fluctuations in the semiconductor markets and the global economic conditions, in particular the decline of the PC market conditions, have had a more significant impact on our results of operations, than seasonality, and have made it difficult to assess the impact of seasonal factors on our business.
−Removed: Our normal seasonality cycle has also been impacted by the COVID-19 pandemic and related events, making it more difficult to predict and determine a more consistent seasonality trend.
−Removed: See “Risk Factors- Our business operation and financial performance may be adversely affected by the COVID-19 pandemic and related events.”
+Added: Our normal seasonality cycle has also been impacted by the recent COVID-19 pandemic and related events, making it more difficult to predict and determine a more consistent seasonality trend.
If we are unable to introduce or develop new and enhanced products that meet or are compatible with our customer’s product requirements in a timely manner, it may harm our business, financial position and operating results.
−Removed: Our success depends upon our ability to develop and introduce new and enhanced products that meet or are compatible with our customer’s specifications, performance standards and other product requirements in a timely
+Added: Our success depends upon our ability to develop and introduce new and enhanced products that meet or are compatible with our customer’s specifications, performance standards and other product requirements in a timely manner.
The development of new and enhanced products involves highly complex processes, and at times we have experienced delays in the introduction of new products.
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Similarly, during periods of unexpected increase in customer demand, we may not be able to ramp up production quickly to meet these demands, which may lead to the loss of significant revenue opportunities.
−Removed: The manufacturing processes of a fabrication facility are complex and subject to
−Removed: interruptions.
+Added: The manufacturing processes of a fabrication facility are complex and subject to interruptions.
We may experience production difficulties, including lower manufacturing yields or products that do not meet our or our customers’ specifications, and problems in ramping production and installing new equipment.
1 unchanged sentence
Any significant quality problems could also damage our reputation with our customers and distract us from the development of new and enhanced product which may have a significant negative impact on our financial results.
−Removed: In addition, semiconductor manufacturing has historically required an upgrading of process technology from time to time to remain competitive, as new and enhanced semiconductor processes are developed which permit smaller, more efficient and more powerful semiconductor devices.
−Removed: Accordingly, we may have to incur substantial capital expenditures and install significant production capacity at our in-house fabrication facility to support new technologies and increased production volume, which may cause delay in our ability to deliver new products or negatively impact our results of operations.
−Removed: For example, we recently commenced a plan to enhance the manufacturing capability and capacity of our Oregon fab by investing in new equipment and expanding our factory facilities, which we expect will have a positive impact on our future new product development and revenue, particularly during the period of global shortage of capacity.
−Removed: The equipment installation contractors have experienced a shortage of skilled labor and certain materials.
−Removed: As a result, the expansion is expected to be now completed in the fiscal quarter ending March 31, 2023, although further delays are possible.
−Removed: While we expect such investment will enable us to accommodate increasing customer demand and generate additional revenue, there is no guarantee that we will be able to do so, and our investment may not produce the return that we expected, which may adversely affect our business and results of operations.
−Removed: We may not be able to successfully develop our digital power business.
−Removed: In September 2017, we entered into a license agreement with STMicro, which allows us to develop and market certain digital power multi-phase controller products and enter into a new market, primarily in the computer server market.
−Removed: We are in the process of developing this new digital power business and expect to incur significant costs to develop this business, including costs relating to the hiring and compensation of qualified engineers and technical staff;
−Removed: development of marketing and sales infrastructure, particularly in the computer server market;
−Removed: and other research and development and management activities.
−Removed: We do not expect this new business to generate sufficient revenue to offset our costs in the short term, and there is no guarantee that our attempt to develop a profitable digital business will ultimately succeed.
−Removed: The success of our digital power business depends on a number of factors, including the following:
−Removed: • competition from other companies with greater resources and experiences and more established reputations in the digital power market;
−Removed: • the availability of and our ability to recruit and attract qualified personnel;
−Removed: • our lack of experience and reputation in the digital power market;
−Removed: • difficulties in designing products acceptable to customers;
−Removed: • legal and regulatory restrictions;
−Removed: • inadequate sales and marketing capability.
−Removed: Any one of these factors may negatively impact our ability to create a successful digital power business, which would adversely affect our financial condition and results of operations.
Defects and poor performance in our products could result in loss of customers, decreased revenue, unexpected expenses and loss of market share, and we may face warranty and product liability claims arising from defective products.
4 unchanged sentences
Any actual or perceived errors, defects or poor performance in our products could result in the replacement or recall of our products, shipment delays, rejection of our products, damage to our reputation, lost revenue, diversion of our engineering personnel from our product development efforts in order to address or remedy any defects and increases in customer service and support costs, all of which could have a material adverse effect on our business and operations.
−Removed: Furthermore, as our products are typically sold at prices much lower than the cost of the equipment or other devices incorporating our products, any defective, inefficient or poorly performing products, or improper use by customers of power components, may give rise to warranty and product liability claims against us that exceed any revenue or profit we
−Removed: receive from the affected products.
+Added: Furthermore, as our products are typically sold at prices much lower than the cost of the equipment or other devices incorporating our products, any defective, inefficient or poorly performing products, or improper use by customers of power components, may give rise to warranty and product liability claims against us that exceed any revenue or profit we receive from the affected products.
We could incur significant costs and liabilities if we are sued and if damages are awarded against us.
1 unchanged sentence
Costs or payments we may make in connection with warranty and product liability claims or product recalls may adversely affect our financial condition and results of operations.
+Added: The average selling prices of products in our markets have historically decreased rapidly and will likely do so in the future, which could harm our revenue and gross margins.
+Added: As is typical in the semiconductor industry, the average selling price of a particular product has historically declined significantly over the life of the product.
+Added: In the past, we have reduced the average selling prices of our products in anticipation of future competitive pricing pressures, new product introductions by us or our competitors and other factors.
+Added: We expect that we will have to similarly reduce prices in the future for older generations of products.
+Added: Reductions in our average selling prices to one customer could also impact our average selling prices to all customers.
+Added: A decline in average selling prices would harm our gross margins for a particular product.
+Added: If not offset by sales of other products with higher gross margins, our overall gross margins may be adversely affected.
+Added: Our business, results of operations, financial condition and prospects will suffer if we are unable to offset any reductions in our average selling prices by increasing our sales volumes, reducing our costs and developing new or enhanced products on a timely basis, with higher selling prices or gross margins.
If we do not forecast demand for our products accurately, we may experience product shortages, delays in product shipment, excess product inventory, or difficulties in planning expenses, which will adversely affect our business and financial condition.
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Using a foundry with which we have no established relationship could expose us to potentially unfavorable pricing, unsatisfactory quality or insufficient capacity allocation.
−Removed: In addition, even though we have been transferring more new product developments to our Oregon Fab and we expect to increase gradually the utilization of capacity at our JV Company as it ramps up production, we still rely on third-party foundries to effectively implement certain of our proprietary technology and processes and also require their cooperation in developing new fabrication processes.
+Added: We also rely on third-party foundries to effectively implement certain of our proprietary technology and processes and also require their cooperation in developing new fabrication processes.
Any failure to do so may impair our ability to introduce new products and on time delivery of wafers for our existing products.
18 unchanged sentences
Two distributors, WPG and Promate, collectively accounted for 57.2%, 64.3% and 64.1% of our revenue for the fiscal years ended June 30, 2023, 2022 and 2021, respectively.
−Removed: Our agreements with Promate and WPG were renewed in July 2017 and are automatically renewed for each one-year period continuously unless terminated earlier pursuant to the provisions in the agreements.
+Added: We currently have effective agreements with Promate and WPO to serve as our distributors, and such agreement is renewed automatically for one-year period continuously unless terminated earlier pursuant to the terms of such agreements.
We believe that our success will continue to depend upon these distributors.
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If any significant distributor becomes unable or unwilling to promote and sell our products, or if we are not able to renew our contracts with the distributors on acceptable terms, we may not be able to find a replacement distributor on reasonable terms or at all and our business could be harmed.
−Removed: We have made and may continue to make strategic acquisitions of other companies, assets or businesses and these acquisitions introduce significant risks and uncertainties.
−Removed: In order to position ourselves to take advantage of growth opportunities, we have made, and may continue to make, strategic acquisitions, mergers, partnership and alliances that involve significant risks and uncertainties.
−Removed: Successful acquisitions and alliances in the semiconductor industry are difficult to accomplish because they require, among other things, efficient integration and aligning of product offerings and manufacturing operations and coordination of sales and marketing and research and development efforts.
−Removed: The difficulties of integration and alignment may be increased by the necessity of coordinating geographically separated organizations, the complexity of the technologies being integrated and aligned and the necessity of integrating personnel with disparate business backgrounds and combining different corporate cultures.
−Removed: Furthermore, there is no guarantee that we will be able to identify a viable target for strategic acquisition, and we may incur significant costs and resources in such effort that may not result in a successful acquisition.
+Added: We have made and may continue to make strategic acquisitions of other companies, assets or businesses or form joint ventures with partners to advance our business objectives.
+Added: These acquisitions and joint ventures involve significant risks and uncertainties.
+Added: In order to position ourselves to take advantage of growth opportunities, we have made, and may continue to make, strategic acquisitions, mergers, partnership, joint ventures and alliances that involve significant risks and uncertainties.
+Added: Successful acquisitions and alliances in the semiconductor industry are difficult to accomplish because they require, among other factors, efficient integration and aligning of product offerings and manufacturing operations and coordination of sales and marketing and research and development efforts.
+Added: We may also seek to establish partnerships, joint ventures and acquisition of assets in various foreign jurisdictions where we may not have significant operating experience.
+Added: In addition, we may encounter unanticipated challenges and difficulties, including regulatory and compliance issues, lack of local support and geopolitical tensions.
+Added: The difficulties of integration and alignment may be increased by the necessity of coordinating geographically separated organizations, the complexity of the technologies being integrated and aligned and the necessity of integrating personnel with dissimilar business backgrounds.
+Added: Furthermore, there is no guarantee that we will be able to identify viable targets for strategic acquisition.
+Added: Also we may incur significant costs in efforts that may not result in a successful acquisitions.
In addition, we may also issue equity securities to pay for future acquisitions or alliances, which could be dilutive to existing shareholders.
18 unchanged sentences
If we subsequently determine that any allowance and accrual based on our estimates is insufficient, we may be required to increase the size of our allowances and accrual in future periods, which would adversely affect our results of operations and financial condition.
+Added: Our operation of two wholly-owned packaging and testing facilities are subject to risks that could adversely affect our business and financial results.
+Added: We have two wholly-owned packaging and testing facilities located in Shanghai, China that handle most of our packaging and testing requirements.
+Added: The operation of high-volume packaging and testing facilities and implementation of our advanced packaging technology are complex and demand a high degree of precision and may require modification to improve yields and product performance.
+Added: We have committed substantial resources to ensure that our packaging and testing facilities operate efficiently and successfully, including the acquisition of equipment and raw materials, and training and management of a large number of technical personnel and employees.
+Added: Due to the fixed costs associated with operating our own packaging and testing facilities, if we are unable to utilize our in-house facilities at a desirable level of production, our gross margin and results of operations may be adversely affected.
+Added: For example, a significant decline in our market share or sales orders may negatively impact our factory utilization and reduce our ability to achieve profitability.
+Added: In addition, the operation of our packaging and testing facilities is subject to a number of risks, including the following:
+Added: • unavailability of equipment, whether new or previously owned, at acceptable terms and prices;
+Added: • facility equipment failure, power outages or other disruptions;
+Added: • shortage of raw materials, including packaging substrates, copper, gold and molding compound;
+Added: • failure to maintain quality assurance and remedy defects and impurities;
+Added: • changes in the packaging requirements of customers;
+Added: • our limited experience in operating a high-volume packaging and testing facility;
+Added: • operation stoppage due to the city-wide lockdown in response to public health emergencies or pandemics.
+Added: Any of the foregoing risks could adversely affect our capacity to package and test our products, which could delay shipment of our products, result in higher expenses, reduce revenue, damage our relationships with customers and otherwise adversely affect our business, results of operations, financial condition and prospects.
+Added: Our business operations and financial conditions may be adversely affected by any disruption in our information technology systems, including any cyberattacks and breaches.
+Added: Our operations are dependent upon our information technology systems, which encompass all of our major business functions across offices internationally.
+Added: We rely upon such information technology systems to manage and replenish inventory, complete and track customer orders, coordinate sales activities across all of our products and services, maintain vital data and information, perform financial and accounting tasks and manage and perform various administrative and human resources functions.
+Added: A substantial disruption in our information technology systems for any extended time period (arising from, for example, system capacity limits from unexpected increases in our volume of business, outages or delays in our service) could result in delays in receiving inventory and supplies or filling customer orders and adversely affect our customer service and relationships.
+Added: Our systems might be damaged or interrupted by natural or man−made events or by computer viruses, physical or electronic break−ins, cyber-attacks and similar disruptions affecting the global Internet.
+Added: In addition, recent widespread ransomware attacks and cybersecurity breaches in the U.S.
+Added: and elsewhere have affected many companies, including the cybersecurity incident involving SolarWinds Orion in December 2020.
+Added: In the past, we also experienced ransomware attacks on our information technology system.
+Added: In April, 2022, we became aware of a cybersecurity incident involving unauthorized access to one of the Company's email accounts, resulting in unauthorized payments.
+Added: We recorded a loss of $1.5 million due to the incident for the three months ended March 31, 2022.
+Added: Immediately following the discovery, we commenced an investigation, contained the incident and implemented additional protective measures and internal control policies and procedures.
+Added: We also alerted law enforcement authorities and banking institutions in an effort to recover the lost amount.
+Added: This incident appears to be isolated and its financial impact identified was not material.
+Added: The Company believes that it has not incurred other damages and losses based on the conclusion of the full investigation.
+Added: While these attacks did not have a material adverse effect on our business operation or results of operations, they caused temporary disruptions and interfered with our operations.
+Added: Any cybersecurity breach and financial loss may also have a negative impact on our internal control over financial reporting.
+Added: While we have implemented additional measures to enhance our security protocol to protect our system and intend to do so in response to any threats, there is no guarantee that future attacks would be thwarted or prevented.
+Added: We also expect to incur additional costs and expenses to upgrade our information technology system and establish additional protective measures to prevent future breaches.
+Added: Furthermore, despite our efforts to investigate, improve and remediate the capability and performance of our information technology system, we may not be able to discover all weaknesses, breaches and vulnerabilities, and failure to do so may expose us to higher risk of data loss and adversely affect our business operations and results of operations.
We depend on the continuing services of our senior management team and other key personnel, and if we lose a member of our senior management or are unable to successfully retain, recruit and train key personnel, our ability to develop and market our products could be harmed.
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If one or more of our senior executives or other key personnel are unable or unwilling to continue in their present positions, we may not be able to replace them easily or at all and other senior management may be required to divert attention from other aspects of our business.
−Removed: In addition, we do not have “key person” life insurance policies covering any member of our management team or other key personnel.
+Added: In addition, we do not have “key person” life insurance policies covering any member of
+Added: our management team or other key personnel.
The loss of any of these individuals or our inability to attract or retain qualified personnel, including engineers and others, could adversely affect our product introductions, overall business growth prospects, results of operations and financial condition.
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As of June 30, 2023, we owned 918 issued U.S.
−Removed: patents expiring between 2022 and
−Removed: 2041 and had 62 pending patent applications with the United States Patent and Trademark Office.
+Added: patents expiring between 2023 and 2041 and had 45 pending patent applications with the United States Patent and Trademark Office.
In addition, we own patents and have filed patent applications in several jurisdictions outside of the U.S, including China, Taiwan, Japan and Korea.
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Any litigation or arbitration regarding patents or other intellectual property could be costly and time consuming and could divert our management and key personnel from our business operations.
−Removed: We have in the past and may from time to time in the future become involved in litigation that requires our management to commit significant resources and time.
+Added: We have in the past and may from time
+Added: to time in the future become involved in litigation that requires our management to commit significant resources and time.
In addition, as part of our strategy to diversify our serviceable markets, we launched several key product families and technologies to enable high efficiency power conversion solutions and we plan to develop and commercialize new products in other power semiconductor markets.
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Department of Justice commenced an investigation into the Company’s compliance with export control regulations relating to its business transactions with Huawei and its affiliates (“Huawei”), which were added to the “Entity List” by the Department of Commerce (“DOC”) in May 2019.
−Removed: In connection with this investigation, DOC requested the Company to suspend shipments of its products to Huawei, and the Company complied with such request.
−Removed: The Company has not shipped any product to Huawei since December 31, 2019.
−Removed: The Company is currently working with DOC to resolve this issue and requested DOC to grant permission to reinstate shipments to Huawei.
−Removed: To date DOC has not provided us with any timeline or schedule under which DOC will respond to our request.
−Removed: There is no guarantee that DOC will agree to permit us to resume shipment to Huawei on a timely basis, or at all.
−Removed: The DOC’s decision may be influenced by factors beyond our control, such as shifting political dynamics and the macro-economic relationship between the U.S.
−Removed: and China and changes in export control regulations.
−Removed: Our inability to continue such shipment may negatively impact our revenue and financial performance, particularly if we are not able to acquire new customers to offset the loss of shipments to Huawei.
+Added: The Company is cooperating fully with federal authorities in the investigation.
+Added: The Company has continued to respond to inquiries and requests from DOJ for documents and information relating to the investigation, and the matter is currently pending at DOJ, and DOJ has not provided the Company with any specific timeline or indication as to when the investigation will be concluded or resolved.
+Added: In connection with this investigation, DOC previously requested the Company to suspend shipments of its products to Huawei.
+Added: The Company complied with such request, and the Company has not shipped any product to Huawei after December 31, 2019.
+Added: The Company continues to work with DOC to resolve this issue.
+Added: As part of this process and in response to DOC’s request, the Company provided certain documents and materials relating to the Company’s supply chain and shipment process to DOC, and DOC is currently reviewing this matter.
+Added: DOC has not informed the Company of any specific timeline or schedule under which DOC will complete its review.
The ongoing government investigations into our export control compliance also subject us to a number of financial and business risks.
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and China, including potential new export control regulations that may impose additional restrictions on our ability to continue to do business with certain customers in China and Asia.
−Removed: If such changes occur, we may be required to reduce shipments to certain Asian customers, adjust our business practices and incur additional costs to implement new export control compliance procedures, policies and programs, each of which will adversely affect our financial conditions and results of operations.
+Added: changes occur, we may be required to reduce shipments to certain Asian customers, adjust our business practices and incur additional costs to implement new export control compliance procedures, policies and programs, each of which will adversely affect our financial conditions and results of operations.
Global or regional economic, political and social conditions could adversely affect our business and operating results.
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Our business could be adversely affected by natural disasters such as epidemics, outbreaks or other health crisis.
−Removed: An outbreak of avian flu or H1N1 flu in the human population, or another similar health crisis, such as the recent COVID-19 pandemic, could adversely affect the economies and financial markets of many countries, particularly in Asia.
+Added: An outbreak of avian flu or H1N1 flu in the human population, or another similar health crisis could adversely affect the economies and financial markets of many countries, particularly in Asia.
Moreover, any related disruptions to transportation or the free movement of persons could hamper our operations and force us to close our offices temporarily.
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toward, countries in which we operate.
−Removed: If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud.
−Removed: Our management may conclude that our internal control over financial reporting is not effective.
−Removed: Moreover, even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm may decline to issue an opinion as to the effectiveness of our internal control over financial reporting, or may issue a report that is qualified or adverse.
−Removed: Our failure to achieve and maintain effective internal control over financial reporting could result in the loss of investor confidence in the reliability of our financial statements or prevent fraud, which in turn could harm our business and negatively impact the trading price of our shares.
+Added: If we fail to maintain an effective internal control environment as well as adequate control procedures over our financial reporting, investor confidence may be adversely affected thereby affecting the value of our stock price.
+Added: We are required to maintain proper internal control over our financial reporting and adequate controls related to our disclosures.
+Added: As defined in Rule 13a-15(f) under the Exchange Act, internal control over financial reporting is a process designed by, or under the supervision of the Chief Executive Officer and Chief Financial Officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
+Added: If we fail to maintain adequate controls, our business, the results of operations, financial condition and/or the value of our stock may be adversely impacted.
+Added: In connection with management’s evaluation of the effectiveness of our internal control over financial reporting, management identified a material weakness in our internal control over financial reporting due to the fact that (i) we did not design and maintain effective information technology general controls in the areas of user access, and segregation of duties for one of the information technology systems that supports the Company’s financial reporting over inventory (work in process and finished goods) in costing and (ii) we did not identify and test control to ensure reliability of costing of inventory (work in process and finished goods).
+Added: We are in the process of remediating the material weakness identified above, including the implementation of additional policies and procedures to address the issues in our information technology control systems.
+Added: For a more detailed description of the material weakness and our remediation plan, please see Item 9A of this Form 10-K.
+Added: If our remediation efforts are insufficient or if additional material weakness in internal control over financial reporting are discovered or occur in the future, our consolidated financial statements may contain material misstatements and it could be required to revise or restate its financial results, which could materially and adversely affect our business, results of operations and financial condition, restrict its ability to access the capital markets, require it to expend significant resources to correct the material weakness, subject it to fines, penalties or judgments, harm its reputation or otherwise cause a decline in investor confidence.
We are subject to the risk of increased income taxes and changes in existing tax rules.
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The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions.
−Removed: Any of these jurisdictions may assert that we have
−Removed: unpaid taxes.
+Added: Any of these jurisdictions may assert that we have unpaid taxes.
Our effective tax rate was 30.1%, 7.9% and 6.5% for the fiscal years ended June 30, 2023, 2022 and 2021, respectively.
19 unchanged sentences
These new laws require Bermuda and Cayman companies carrying on one or more “relevant activity” (including:
−Removed: banking, insurance, fund management, financing, leasing, headquarters, shipping, distribution and service center, intellectual property or holding company) to maintain a substantial economic presence in Bermuda and Cayman Islands in order to comply with the economic substance requirements.
+Added: banking, insurance, fund management,
+Added: financing, leasing, headquarters, shipping, distribution and service center, intellectual property or holding company) to maintain a substantial economic presence in Bermuda and Cayman Islands in order to comply with the economic substance requirements.
Effective from December 31, 2019, we have structured our activities to comply with the new law.
15 unchanged sentences
In June 2021, Finance Ministers from the Group of Seven (G7) nations reached an accord on the principles of pillar 2, backing the creation of a global minimum corporate tax rate of at least 15%.
−Removed: Following the G7 announcement, the OECD/G20 Inclusive Framework announced on July 1, 2021 broad agreement on the two pillars, and released a proposal, which has been endorsed by over
−Removed: 130 jurisdictions, for a global minimum tax rate of at least 15% for large multinational corporations on a jurisdiction-by-jurisdiction basis.
+Added: Following the G7 announcement, the OECD/G20 Inclusive Framework announced on July 1, 2021 broad agreement on the two pillars, and released a proposal, which has been endorsed by over 130 jurisdictions, for a global minimum tax rate of at least 15% for large multinational corporations on a jurisdiction-by-jurisdiction basis.
The OECD/G20 Inclusive Framework will work towards an agreement and the release of an implementation plan, which will contemplate bringing pillar 2 into law in 2022 with an effective date in 2023.
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federal income tax purposes for the foreseeable future.
−Removed: However, we must make a separate determination for each taxable year as to whether we are a PFIC after the close of each taxable year and we cannot assure you that we will not be a PFIC for our 2022 taxable year or any future taxable year.
+Added: However, we must make a separate determination for each taxable year as to whether we are a PFIC after the close of each taxable year and we cannot assure you that we will not be a PFIC for our June 30, 2023 taxable year or any future taxable year.
Under current law, a non-U.S.
5 unchanged sentences
federal income tax consequences could apply for such U.S.
−Removed: The average selling prices of products in our markets have historically decreased rapidly and will likely do so in the future, which could harm our revenue and gross margins.
−Removed: As is typical in the semiconductor industry, the average selling price of a particular product has historically declined significantly over the life of the product.
−Removed: In the past, we have reduced the average selling prices of our products in anticipation of future competitive pricing pressures, new product introductions by us or our competitors and other factors.
−Removed: We expect that we will have to similarly reduce prices in the future for older generations of products.
−Removed: Reductions in our average selling prices to one customer could also impact our average selling prices to all customers.
−Removed: A decline in average selling prices would harm our gross margins for a particular product.
−Removed: If not offset by sales of other
−Removed: products with higher gross margins, our overall gross margins may be adversely affected.
−Removed: Our business, results of operations, financial condition and prospects will suffer if we are unable to offset any reductions in our average selling prices by increasing our sales volumes, reducing our costs and developing new or enhanced products on a timely basis, with higher selling prices or gross margins.
−Removed: We may be adversely affected by the cyclicality of the semiconductor industry.
−Removed: Our industry is highly cyclical and is characterized by constant and rapid technological change such as the introduction of smart phones and tablets that contributed to the decline in the PC market, product obsolescence and price erosion, evolving standards, uncertain product life cycles and wide fluctuations in product supply and demand.
−Removed: The industry has, from time to time, experienced significant and sometimes prolonged, downturns, which were often connected with or in anticipation of, maturing product cycles and declines in general economic conditions.
−Removed: These downturns have been characterized by diminished product demand, production overcapacity, high inventory levels and accelerated erosion of average selling prices.
−Removed: Any future downturns, in particular the PC markets or in any other markets in which we sell our products, may reduce our revenue and result in us having excess inventory.
−Removed: By contrast, any upturn in the semiconductor industry could result in increased competition for access to limited third-party foundry and packaging and testing capacity, which could prevent us from benefiting from such an upturn or reduce our profit margins.
Risks Related to Doing Business in China
21 unchanged sentences
Our business and corporate transactions, including our operations through the JV Company, are subject to laws and regulations applicable to foreign investment in China as well as laws and regulations applicable to foreign-invested enterprises.
−Removed: These laws and regulations frequently change, and their interpretation and enforcement involves uncertainties that could limit the legal protections available to us.
+Added: These laws and regulations frequently change, and their interpretation and enforcement involve uncertainties that could limit the legal protections available to us.
Regulations and rules on foreign investments in China impose restrictions on the means that a foreign investor like us may apply to facilitate corporate transactions we may undertake.
22 unchanged sentences
If so, this would reduce demand for our power semiconductor products or result in pricing adjustments that would lower our gross margin, which could have a material adverse effect on our business and results of operations.
−Removed: Substantial uncertainties exist with respect to the interpretation and implementation of PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.
+Added: Uncertainties exist with respect to the interpretation and implementation of PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.
On March 15, 2019, the National People’s Congress of the PRC promulgated the Foreign Investment Law, which took effect on January 1, 2020, and replaced the existing laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations.
3 unchanged sentences
On June 30, 2019, the National Development and Reform Commission (the “NDRC”) and the Ministry of Commerce of the PRC (the “MOC”) published the Special Administrative Measures for Market Access of Foreign Investment (Negative List), which identifies specific sectors where foreign investors will be subject to special administrative measures.
−Removed: The Negative List has been updated twice in
−Removed: June 2020 for year 2021 and December 2021 for year 2022.
+Added: The Negative List has been updated twice in June 2020 for year 2021 and December 2021 for year 2022.
The current effective Negative List took effect on January 1, 2022.
14 unchanged sentences
However, pursuant to applicable regulations, foreign‑invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations.
−Removed: In calculating accumulated profits, foreign investment enterprises in China are required to allocate at least 10% of their accumulated profits each year, if any, to fund certain reserve funds unless these reserves have reached 50% of the registered capital of the enterprises.
+Added: In calculating accumulated profits, foreign investment enterprises in China are required to allocate 10% of their accumulated profits each year, if any, to fund certain reserve funds unless these reserves have reached 50% of the registered capital of the enterprises.
Other transactions that involve conversion of Renminbi into foreign currency are classified as “capital account” transactions;
7 unchanged sentences
The M&A Rules and certain other PRC regulations establish complex procedures for some acquisitions of Chinese companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.
−Removed: The Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors, or the M&A Rules, adopted by six PRC regulatory agencies in August 2006 and amended in 2009, and some other regulations and rules concerning mergers and acquisitions established additional procedures and requirements that could make merger and acquisition activities by foreign investors more time consuming and complex, including requirements in some instances that the Ministry of Commerce ("MOC") be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise.
+Added: The Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors, or the M&A Rules, adopted by six PRC regulatory agencies in August 2006 and amended in 2009, and some other regulations and rules concerning mergers and acquisitions established additional procedures and requirements that could make merger and acquisition activities by foreign investors more time consuming and complex, including requirements in some instances
+Added: that the Ministry of Commerce ("MOC") be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise.
Moreover, the Anti-Monopoly Law requires that the MOC shall be notified in advance of any concentration of undertaking if certain thresholds are triggered.
64 unchanged sentences
Legal Proceeding.
−Removed: If securities or industry analysts do not publish research or reports about our business, or if they adversely change their recommendations regarding our common shares or if our operating results do not meet their expectations, the trading price of our common shares could decline.
+Added: If securities or industry analysts adversely change their recommendations regarding our common shares or if our operating results do not meet their expectations, the trading price of our common shares could decline.
The market price of our common shares is influenced by the research and reports that industry or securities analysts publish about us or our business.
24 unchanged sentences
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.