At the beginning of fiscal year 2024, we held 42.2% interest in the JV company. In February 2024, the JV Company repurchased certain shares that were previously issued to employees under the employee equity incentive plan, which increased the Company’s percentage of equity ownership in the JV Company by 0.54%.

On December 30, 2024, the JV Company signed an investment agreement with an investor, pursuant to which the third-party investor agreed to invest RMB 500 million (or $68.5 million based on the currency exchange rate between RMB and U.S. Dollar on December 31, 2024) in the JV Company in exchange for a 7.09% interest. This transaction closed on January 15, 2025, at which time, the percentage of outstanding JV Company’s equity interest owned by the Company was reduced to approximately 39.2%.

In the fourth quarter of fiscal year 2025, the Company began negotiations with a third-party strategic investor to sell a portion of its outstanding equity interest in the JV Company. On July 14, 2025, the Company entered into an equity transfer agreement with the investor to sell approximately 20.3% of outstanding equity interest in the JV Company for an aggregate cash consideration of approximately $150 million to be paid in four installments, subject to satisfaction of certain conditions. As of June 30, 2026, all of the conditions were satisfied, and the Company received all installment payments.

The Company identified the negotiations of the equity transfer agreement throughout the fourth quarter of fiscal year 2025 as an impairment indicator and performed a quantitative impairment test as of June 30, 2025. Based on the implied valuation of the JV Company per the transaction price in the equity transfer agreement, the fair value of the equity method investment was determined to be lower than its carrying value, and a $76.8 million other-than-temporary impairment of the equity method investment was recognized as of June 30, 2025. The impairment loss is recorded within Equity method investment loss in the consolidated statement of operations for the year-ended June 30, 2025.

The Company accounts for its investment in the JV Company as an equity method investment and reports its equity in earnings or loss of the JV Company on a three-month lag due to an inability to timely obtain financial information of the JV Company. During the fiscal year ended June 30, 2026, the Company recorded $0.8 million of equity method investment income, including the $1.1 million gain on the related sale of a portion of its interest in the equity method investment and immaterial loss of its equity share of the JV Company, using lag reporting. During the fiscal years ended June 30, 2025 and 2024, the Company recorded $77.8 million including the impairment loss and $4.8 million of equity method investment loss, respectively, using lag reporting. As of June 30, 2026, the percentage of outstanding JV equity interest beneficially owned by the Company was 18.9%. The difference between the investment’s carrying value on June 30, 2026 of $142.7 million and the underlying equity in net assets of approximately $54.8 million as of March 31, 2026 relates primarily to equity method goodwill.


	As of March 31, 2026		As of March 31, 2025		As of March 31, 2024
Current assets	$	111,936	$	101,151	$	86,280
Non-current assets	$	337,353	$	315,420	$	338,450
Current liabilities	$	146,278	$	61,341	$	70,776
Non-current liabilities	$	13,455	$	82,124	$	81,899

	For the period April 1, 2025 to March 31, 2026		For the period April 1, 2024 to March 31, 2025		For the period April 1, 2023 to March 31, 2024
Revenue	$	164,738	$	142,921	$	128,951
Gross profit	$	12,284	$	8,662	$	1,844
Operating expenses	$	12,534	$	10,637	$	9,174
Net loss	$	2,577	$	3,195	$	9,477