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 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].
Semilux International(SELX) - 2023 Q4 - Annual Report