Investments in Unconsolidated Entities

12 Months Ended

Aug. 31, 2025

Investments In Unconsolidated Entities Disclosure [Abstract]

Investments in Unconsolidated Entities

4. INVESTMENTS IN UNCONSOLIDATED ENTITIES

The Company’s ownership interest and carrying amounts of investments in unconsolidated entities as of August 31, 2025 and 2024 consist of the following (in thousands, except percentages):

	August 31, 2025				August 31, 2024
	Percentage				Percentage
	Ownership	Amount			Ownership	Amount
Equity method investments, net	47.62	$	65		47.62	$	93
Equity investment without readily determinable fair value - Beginning Balance	Various	$	876		Various	$	876
Dissolution of investee		$	(876	)		$	—
Equity investment without readily determinable fair value - Ending Balance		$	—			$	876
Total investments in unconsolidated entities		$	65			$	969

There were no dividends received from unconsolidated entities through August 31, 2025.

Equity Investment without Readily Determinable Fair Value

Equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the Company) which do not have readily determinable fair values are recorded as equity investment without readily determinable fair value. All equity investments without readily determinable fair value are assessed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable, and measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuers. The recoverable value of the investment was determined based on the Company’s best estimate of the amount that could be realized from the investment, which considered the latest financial information. As of August 31, 2025, the Company held an equity investment without readily determinable fair value in High Power Optoelectronics, Inc., for which the Company recognized an impairment loss of $930 thousand during fiscal year 2025 based on the latest available financial information and the estimated recoverable value of the investment. The impairment losses for the equity investments without readily determinable fair value were $930 thousand and zero for the years ended August 31, 2025 and 2024, respectively.

Equity Method Investments

In July 2023, TSLC Corporation, the Company’s subsidiary, had a board resolution to hold an equity interest in Yi Yang Optoelectronics Co., Ltd., accounting for its equity interest using the equity method to accounts for its equity investment as prescribed in ASC 323, Investments—Equity Method and Joint Ventures (“ASC 323”). Equity method adjustments include the Company’s proportionate share of investee’s income or loss and other adjustments required by the equity method. As of August 31, 2025 and 2024, the Company owns 47.62% common stock shares of Yi Yang Optoelectronics Co., Ltd.