Core Viewpoint - Semilux International Ltd. has received a delinquency notification from Nasdaq due to its failure to timely file its annual report for the year ended December 31, 2024, which may affect its compliance status with Nasdaq Listing Rule 5250(c)(1) [1][2][3] Group 1: Compliance and Reporting - The Company has 60 calendar days from the receipt of the Deficiency Letter to submit a plan to regain compliance with the Listing Rule [2] - Nasdaq may grant an extension of up to 180 calendar days from the due date of the Annual Report, potentially until November 11, 2025, for the Company to regain compliance [2] - The delay in filing the Annual Report is primarily due to the need for additional time to finalize financial statements and prepare the report [3] Group 2: Impact on Listing - The Deficiency Letter does not have an immediate impact on the listing of the Company's ordinary shares on the Nasdaq Capital Market [4] - The announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of deficiency notifications [4] Group 3: Company Overview - Semilux is based in the Cayman Islands and operates through its subsidiaries, including Taiwan Color Optics, Inc., which specializes in optical and 3D sensing technology [5] - The Company focuses on the customization, design, and supply of optical components for various industries, including autonomous driving and intelligent lighting [5] - TCO's products are used in applications such as automotive laser headlight systems and light detection and autonomous driving systems (LiDAR) [5]

Financial Performance and Currency Exposure - For the fiscal year ended December 31, 2023, 94.2% of the company's revenue was generated in U.S. Dollars, while 74.5% of its expenses were denominated in New Taiwan Dollars (NTD) [382]. - The company has not engaged in any hedging strategies to mitigate foreign currency risk, which could significantly impact its financial statements with a hypothetical 10% change in exchange rates [383]. - The company has not entered into foreign-exchange hedging contracts for all currencies in which it operates, exposing it to potential fluctuations in cash flows [381]. Company Classification and Governance - The company is classified as an emerging growth company (EGC) and will remain so until its market value exceeds $700 million or total annual gross revenue reaches $1.07 billion [375][376]. - The company qualifies as a foreign private issuer, allowing it to follow corporate governance practices of Taiwan instead of U.S. Nasdaq requirements [380]. - The company intends to rely on exemptions provided by the JOBS Act, including reduced reporting requirements and exemptions from certain voting requirements [375][379]. Risk Management - Interest rate risk is present due to borrowings based on both fixed and floating rates, with short-term loans maturing in 2024 and long-term loans maturing between 2026 and 2027 [384]. - The company limits credit risk by reviewing counterparties' financial conditions and payment practices to minimize collection risks on accounts receivable [385]. - Liquidity risk is managed by maintaining adequate cash levels to finance operations and monitoring bank borrowings for compliance with loan covenants [386]. Financial Reporting and Estimates - The company evaluates its estimates and judgments related to financial reporting, which may differ from actual results under different assumptions [373].