TAIPEI, June 5, 2023
/PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) previously
released an announcement dated May 19,
2023 for Notice of Annual General Meeting of Shareholders
and Proxy Statement. The Company made an amendment today to
clarify Exhibit 99.3 to the Notice, and attached the corrected
Exhibit 99.3 in its amendment announcement.
The Company inadvertently attached an incorrect version of the
Exhibit 99.3 in its previous announcement on May 19, 2023, where the Critical Audit Matter
Description in the Report of Independent Registered Public
Accounting Firm stated:
Critical Audit Matter Description
The Company holds investment in securities
amounted to $10,321 thousand issued
by a private company. The fair value of the investments is based on
complex valuation methods with unobservable inputs, therefore,
classified as Level 3.
Unlike the valuation of assets with readily
observable market prices, therefore, more easily independently
corroborated, the valuation of financial instruments classified as
Level 3 is inherently subjective, and often involves the use of
complex proprietary methods and unobservable inputs.
We identified the valuation of the Level 3
assets as a critical audit matter because of the complex valuation
methods and unobservable inputs, including the discount of lack of
marketability and volatility management uses to estimate the fair
value. This requires a high degree of auditor's professional
judgment and an increased extent of effort, including the
involvement of our fair value specialists, when evaluating the
methods and related inputs.
The correct and final Report of Independent Registered Public
Accounting Firm, as included in the Company's Annual Report on Form
20-F for 2022 filed with the U.S. SEC on April 28, 2023, includes the addition of
"discount rate" in the discussion of unobservable inputs. The
correct Critical Audit Matter Description is as below (with the
additional phrase identified in bold type and underlined):
Critical Audit Matter Description
The Company holds investment in securities
amounted to $10,321 thousand issued
by a private company. The fair value of the investments is based on
complex valuation methods with unobservable inputs, therefore,
classified as Level 3.
Unlike the valuation of assets with readily
observable market prices, therefore, more easily independently
corroborated, the valuation of financial instruments classified as
Level 3 is inherently subjective, and often involves the use of
complex proprietary methods and unobservable inputs.
We identified the valuation of the Level 3
assets as a critical audit matter because of the complex valuation
methods and unobservable inputs, including the discount
rate, discount of lack of marketability and volatility
management uses to estimate the fair value. This requires a high
degree of auditor's professional judgment and an increased extent
of effort, including the involvement of our fair value specialists,
when evaluating the methods and related inputs.
While this change is not material, GigaMedia is issuing this
notice to avoid any potential confusion. The correct version of the
Consolidated Financial Statements with the Report of Independent
Registered Public Accounting Firm, as included in the Form 20-F for
2022 previously filed with the U.S. SEC, is attached hereto as
Exhibit 99.3.
About GigaMedia
Headquartered in Taipei, Taiwan, GigaMedia Limited
(Singapore registration number:
199905474H) is a diversified provider of digital entertainment
services. GigaMedia's digital entertainment service business
develops and operates a suite of digital entertainments in
Taiwan and Hong Kong, with focus on browser/mobile games
and casual games. More information on GigaMedia can be obtained
from www.gigamedia.com.
The statements included above and elsewhere in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements regarding expected
financial performance (as described without limitation in the
"Business Outlook" section and in quotations from management in
this press release) and GigaMedia's strategic and operational
plans. These statements are based on management's current
expectations and are subject to risks and uncertainties and changes
in circumstances. There are important factors that could cause
actual results to differ materially from those anticipated in the
forward looking statements, including but not limited to, our
ability to license, develop or acquire additional online games that
are appealing to users, our ability to retain existing online game
players and attract new players, and our ability to launch online
games in a timely manner and pursuant to our anticipated schedule.
Further information on risks or other factors that could cause
results to differ is detailed in GigaMedia's Annual Report on Form
20-F filed in April 2023 and its
other filings with the United States Securities and Exchange
Commission.
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SOURCE GigaMedia