SemiLEDs Corp Fair Value Disclosure
12. FAIR VALUE MEASUREMENTS
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of August 31, 2025 and 2024 (in thousands):
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August 31, 2025 |
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|
August 31, 2024 |
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|
Carrying |
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|
Fair |
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|
Carrying |
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|
Fair |
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|
Amount |
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|
Value |
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|
Amount |
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|
Value |
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Financial assets: |
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|
|
|
|
|
|
|
|
|
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Cash and cash equivalents and restricted cash |
|
$ |
2,593 |
|
|
$ |
2,593 |
|
|
$ |
1,671 |
|
|
$ |
1,671 |
|
Receivables (including related parties) |
|
|
3,588 |
|
|
|
3,588 |
|
|
|
416 |
|
|
|
416 |
|
Other assets (non-derivatives) |
|
|
145 |
|
|
|
145 |
|
|
|
376 |
|
|
|
376 |
|
Financial liabilities: |
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|
|
|
|
|
|
|
|
|
|
|
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Payables (including related parties) |
|
$ |
9,964 |
|
|
$ |
9,964 |
|
|
$ |
4,073 |
|
|
$ |
4,073 |
|
Long-term debt (including current installments) |
|
|
1,708 |
|
|
|
1,708 |
|
|
|
3,724 |
|
|
|
3,724 |
|
The fair values of the financial instruments shown in the above table as of August 31, 2025 and 2024 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances, including expected cash flows and appropriately risk‑adjusted discount rates, available observable and unobservable inputs.
The following methods and assumptions were used to estimate the fair value of each class of financial instruments:
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 28, 2025 | Showing above |
| 2024 | Nov 27, 2024 | |
| 2023 | Nov 28, 2023 | |
| 2022 | Nov 8, 2022 | |
| 2021 | Nov 29, 2021 | |
| 2020 | Nov 17, 2020 | |
| 2019 | Nov 20, 2019 | |
| 2018 | Nov 26, 2018 | |
| 2017 | Nov 29, 2017 | |
| 2016 | Nov 21, 2016 | |
| 2015 | Dec 15, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.