v3.25.1
EQUITY METHOD INVESTMENT
3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
EQUITY METHOD INVESTMENT EQUITY METHOD INVESTMENT
On February 21, 2022, Arteris IP (Hong Kong) Ltd. (AHK), a wholly-owned subsidiary of the Company, entered into a Share Purchase and Shareholders Agreement (the SPA) with certain investors and Ningbo Transchip Information Consulting Partnership (Limited Partnership) (Management Co). The Company’s ownership interest of Transchip’s registered capital was 35.0% on a fully diluted basis as of March 31, 2025. The Company’s loss from its proportionate share of its equity method investment in Transchip was $0.8 million for both the three months ended March 31, 2025 and 2024.
The Company reviews its investment in Transchip for impairment if and when circumstances indicate that a decline in fair value below its carrying amount may have occurred. The Company identified certain factors which could indicate a decline in fair value of its equity method investment. After completing its impairment assessment based on the prevailing facts and circumstances, the Company determined that the impairment condition was not considered other than temporary. As such, no impairment charge has been recognized during the three months ended March 31, 2025. The Company will continue to closely monitor future events and developments that would impact its assessment and if future facts and circumstances indicate that decline in fair value of the investment is other than temporary, a significant impairment may be recorded.