GigaMedia Announces Amendment to One Exhibit in Notice of Annual General Meeting of Shareholders and Proxy Statement Previously Announced on May 19, 2023

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[{"type":"text","content":"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.\nThe 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:\nCritical Audit Matter Description\nThe 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.\nUnlike 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.\nWe 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.\nThe 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):\nCritical Audit Matter Description\nThe 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.\nUnlike the valuation of assets with readily observable market prices, therefore, more easily independe...

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