Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 01, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-24085 | |
Entity Registrant Name | AXT INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3031310 | |
Entity Address, Address Line One | 4281 Technology Drive | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 510 | |
Local Phone Number | 438-4700 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | AXTI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,951,852 | |
Entity Central Index Key | 0001051627 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 29,494 | $ 36,763 |
Short-term investments | 5,400 | 5,419 |
Accounts receivable, net of allowances of $130 as of March 31, 2022 and December 31, 2021 | 39,848 | 34,839 |
Inventories | 68,821 | 65,912 |
Prepaid expenses and other current assets | 16,501 | 17,252 |
Total current assets | 160,064 | 160,185 |
Long-term investments | 9,400 | 9,576 |
Property, plant and equipment, net | 147,286 | 142,415 |
Operating lease right-of-use assets | 2,223 | 2,324 |
Other assets | 19,426 | 17,941 |
Total assets | 338,399 | 332,441 |
Current liabilities: | ||
Accounts payable | 14,399 | 16,649 |
Accrued liabilities | 12,213 | 17,057 |
Short-term loan from noncontrolling interest | 1,887 | |
Bank loan | 20,192 | 12,229 |
Total current liabilities | 46,804 | 47,822 |
Noncurrent operating lease liabilities | 1,810 | 1,935 |
Other long-term liabilities | 2,263 | 2,453 |
Total liabilities | 50,877 | 52,210 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interests (Note 18) | 50,971 | 50,385 |
Stockholders' equity: | ||
Preferred stock Series A, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of March 31, 2022 and December 31, 2021 (Liquidation preference of $7,566 and $7,522 as of March 31, 2022 and December 31, 2021) | 3,532 | 3,532 |
Common stock, $0.001 par value; 70,000 shares authorized; 42,952 and 42,886 shares issued and outstanding as of March 31, 2022 and December 31, 2021 | 43 | 43 |
Additional paid-in capital | 232,317 | 231,622 |
Accumulated deficit | (26,805) | (29,970) |
Accumulated other comprehensive income | 6,629 | 6,302 |
Total AXT, Inc. stockholders' equity | 215,716 | 211,529 |
Noncontrolling interests | 20,835 | 18,317 |
Total stockholders' equity | 236,551 | 229,846 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 338,399 | $ 332,441 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Accounts receivable, allowances for doubtful accounts | $ 130 | $ 130 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 883,000 | 883,000 |
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 |
Preferred stock, liquidation preference | $ 7,566 | $ 7,522 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 42,952,000 | 42,886,000 |
Common stock, shares outstanding (in shares) | 42,952,000 | 42,886,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Revenue | $ 39,653 | $ 31,350 |
Cost of revenue | 26,345 | 19,814 |
Gross profit | 13,308 | 11,536 |
Operating expenses: | ||
Selling, general and administrative | 6,450 | 5,570 |
Research and development | 3,159 | 2,405 |
Total operating expenses | 9,609 | 7,975 |
Income from operations | 3,699 | 3,561 |
Interest expense, net | (183) | (50) |
Equity in income of unconsolidated joint ventures | 1,125 | 1,111 |
Other expense, net | (9) | (111) |
Income before provision for income taxes | 4,632 | 4,511 |
Provision for income taxes | 660 | 746 |
Net income | 3,972 | 3,765 |
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interests | (807) | (340) |
Net income attributable to AXT, Inc. | $ 3,165 | $ 3,425 |
Net income attributable to AXT,Inc. per common share: | ||
Basic | $ 0.07 | $ 0.08 |
Diluted | $ 0.07 | $ 0.08 |
Weighted-average number of common shares outstanding: | ||
Basic | 41,871 | 41,004 |
Diluted | 42,662 | 42,726 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 3,972 | $ 3,765 |
Other comprehensive income (loss), net of tax: | ||
Change in foreign currency translation gain (loss), net of tax | 590 | (156) |
Change in unrealized loss on available-for-sale debt investments, net of tax | (172) | (8) |
Total other comprehensive income (loss), net of tax | 418 | (164) |
Comprehensive income | 4,390 | 3,601 |
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interests | (898) | (307) |
Comprehensive income attributable to AXT, Inc. | $ 3,492 | $ 3,294 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 3,972 | $ 3,765 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 1,983 | 1,596 |
Amortization of marketable securities premium | 23 | 15 |
Stock-based compensation | 1,088 | 816 |
Gain on disposal of equipment | 24 | 2 |
Equity in income of unconsolidated joint ventures | (1,125) | (1,111) |
Deferred tax assets | (8) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,915) | (3,886) |
Inventories | (2,586) | (3,243) |
Prepaid expenses and other current assets | 810 | (2,818) |
Other assets | (341) | 135 |
Accounts payable | (2,299) | 745 |
Accrued liabilities | (4,867) | (4,018) |
Other long-term liabilities, including royalties | (665) | (307) |
Net cash used in operating activities | (8,906) | (8,309) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (6,294) | (5,776) |
Proceeds from sales and maturities of available-for-sale debt securities | 240 | |
Net cash used in investing activities | (6,294) | (5,536) |
Cash flows from financing activities: | ||
Proceeds from common stock options exercised | 704 | |
Proceeds from sale of subsidiary shares to noncontrolling interests | 538 | |
Proceeds from bank loan | 10,718 | |
Payments on bank loan | (2,799) | |
Formation of new subsidiary with noncontrolling interests | 642 | |
Proceeds from issuance of Tongmei's common stock to redeemable noncontrolling interests, net of costs | 730 | |
Net cash provided by financing activities | 7,919 | 2,614 |
Effect of exchange rate changes on cash and cash equivalents | 12 | (165) |
Net decrease in cash and cash equivalents | (7,269) | (11,396) |
Cash and cash equivalents at the beginning of the year | 36,763 | 72,602 |
Cash and cash equivalents at the end of the period | 29,494 | 61,206 |
Supplemental disclosure of non-cash flow information: | ||
Conversion of related party borrowings to Additional Paid-in Capital | 1,887 | |
Investment in subsidiary shares from noncontrolling interest | $ 410 | |
Consideration payable to repurchase subsidiary shares from noncontrolling interests, included in accrued liabilities | $ 3,730 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying condensed consolidated financial statements of AXT, Inc. (“AXT,” the “Company,” “we,” “us,” and “our” refer to AXT, Inc. and all of its consolidated subsidiaries) are unaudited, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, this interim quarterly financial report does not include all disclosures required by US GAAP. In the opinion of our management, the unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the financial position, results of operations and cash flows of AXT and our consolidated subsidiaries for all periods presented. Our management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements in conformity with US GAAP. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. These estimates and assumptions may change as new events occur and additional information is obtained. Actual results could differ materially from those estimates. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected in the future or for the full fiscal year. It is recommended that these condensed consolidated financial statements be read in conjunction with our consolidated financial statements and the notes thereto included in our 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2022. The condensed consolidated financial statements include the accounts of AXT, and our consolidated subsidiaries, Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), AXT-Tongmei, Inc. (“AXT-Tongmei”), Baoding Tongmei Xtal Technology Co., Ltd. (“Baoding Tongmei”), ChaoYang Tongmei Xtal Technology Co., Ltd. (“ChaoYang Tongmei”), ChaoYang LiMei Semiconductor Technology Co., Ltd. (“ChaoYang LiMei”), ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. (“ChaoYang XinMei”), Nanjing JinMei Gallium Co., Ltd. (“JinMei”), ChaoYang JinMei Gallium Ltd. (“ChaoYang JinMei”), MaAnShan JinMei Gallium Ltd., and Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. (“BoYu”). All significant inter-company accounts and transactions have been eliminated. Investments in business entities in which we do not have controlling interests, but have the ability to exercise significant influence over operating and financial policies (generally 20-50% ownership), are accounted for by the equity method. As of March 31, 2022 and December 31, 2021, we have five companies accounted for by the equity method. For the majority-owned subsidiaries that we consolidate, we reflect the portion we do not own as either noncontrolling interests in stockholder’s equity or as redeemable noncontrolling interests in temporary equity on our condensed consolidated balance sheets and in our condensed consolidated statements of operations. When market conditions are warranted, we intend to construct facilities at the ChaoYang LiMei location to provide us with additional production capacity. For the three months ended March 31, 2022, expenses associated with ChaoYang LiMei had a de minimis impact on our condensed consolidated financial statements. In February 2021, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang XinMei. The agreement called for a total investment of approximately $3.0 million, of which Tongmei would fund approximately $1.8 million for a 58.5 percent ownership of ChaoYang XinMei. In February 2021, the investors completed the initial funding of approximately $1.5 million. Tongmei’s portion of the investment was approximately $0.9 million. In May 2021, the investors completed the funding of the remaining balance of approximately $1.5 million. Tongmei’s portion of the final investment was approximately $0.9 million, for a total investment of approximately $1.8 million for a 58.5 percent ownership of ChaoYang XinMei. In September 2021 and October 2021, ChaoYang XinMei received funding from a minority investor of $0.9 million and $1.0 million, respectively. In December 2021 and January 2022, ChaoYang XinMei received funding from Tongmei of $1.4 million and $1.4 million, respectively. In January 2022, the China local government certified this additional funding in ChaoYang XinMei, as an equity investment. Tongmei’s ownership remained at 58.5% after these equity investments. During the quarter ended December 31, 2020, Tongmei entered into two sets of definitive transaction documents, each consisting of a capital increase agreement along with certain supplemental agreements in substantially the same form (collectively, the “Capital Investment Agreements”), with several private equity investors in China. In preparation for Tongmei’s application for a listing of shares in an initial public offering (the “IPO”) on the Shanghai Stock Exchange’s Sci-Tech innovAtion boaRd (the “STAR Market”), in late December 2020, we reorganized our entity structures in China. JinMei and BoYu and its subsidiaries were assigned to Tongmei and effectively merged with Tongmei although they retained their own respective legal entity status and are wholly owned subsidiaries of Tongmei. The minority interest in Tongmei. The |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Investments and Fair Value Measurements | |
Investments and Fair Value Measurements | Note 2. Investments and Fair Value Measurements Our cash and cash equivalents consist of cash and instruments with original maturities of less than three months. Our investments consist of instruments with original maturities of more than three months. As of March 31, 2022 and December 31, 2021, our cash, cash equivalents and debt investments are classified as follows (in thousands): March 31, 2022 December 31, 2021 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash $ 29,494 $ — $ — $ 29,494 $ 36,763 $ — $ — $ 36,763 Cash equivalents: Certificates of deposit 1 — — — — — — — — Total cash and cash equivalents 29,494 — — 29,494 36,763 — — 36,763 Investments (available-for-sale): Certificates of deposit 2 6,680 — (90) 6,590 6,680 — (19) 6,661 Corporate bonds 8,357 — (147) 8,210 8,380 — (46) 8,334 Total investments 15,037 — (237) 14,800 15,060 — (65) 14,995 Total cash, cash equivalents and investments $ 44,531 $ — $ (237) $ 44,294 $ 51,823 $ — $ (65) $ 51,758 Contractual maturities on investments: Due within 1 year 3 $ 5,409 $ 5,400 $ 5,424 $ 5,419 Due after 1 through 5 years 4 9,627 9,400 9,636 9,576 $ 15,036 $ 14,800 $ 15,060 $ 14,995 1. Certificates of deposit with original maturities of less than three months. 2. Certificates of deposit with original maturities of more than three months. 3. Classified as “Short-term investments” in our condensed consolidated balance sheets. 4. Classified as “Long-term investments” in our condensed consolidated balance sheets. We manage our debt investments as a single portfolio of highly marketable securities that is intended to be available to meet our current cash requirements. Certificates of deposit and corporate bonds are typically held until maturity. Historically, the gross unrealized losses related to our portfolio of available-for-sale debt securities were immaterial, and primarily due to normal market fluctuations and not due to increased credit risk or other valuation concerns. There was an insignificant amount of gross unrealized losses on our available-for-sale debt securities as of March 31, 2022, and historically, such gross unrealized losses have been temporary in nature and we believe that it is probable the principal and interest will be collected in accordance with the contractual terms. We review our debt investment portfolio at least quarterly, or when there are changes in credit risks or other potential valuation concerns, to identify and evaluate whether an allowance for credit losses or impairment would be necessary. Factors considered in determining whether a loss is temporary include the magnitude of the decline in market value, the length of time the market value has been below cost (or adjusted cost), credit quality, and our ability and intent to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value. A portion of our debt investments would generate a loss if we sold them on March 31, 2022. The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2022 (in thousands): In Loss Position In Loss Position Total In < 12 months > 12 months Loss Position Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of March 31, 2022 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ 6,590 $ (90) $ — $ — $ 6,590 $ (90) Corporate bonds 4,857 (139) 3,002 (7) 7,859 (146) Total in loss position $ 11,447 $ (229) $ 3,002 $ (7) $ 14,449 $ (236) The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 (in thousands): In Loss Position In Loss Position Total In < 12 months > 12 months Loss Position Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2021 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ 6,181 $ (19) $ — $ — $ 6,181 $ (19) Corporate bonds 5,970 (42) 2,013 (4) 7,983 (46) Total in loss position $ 12,151 $ (61) $ 2,013 $ (4) $ 14,164 $ (65) Investments in Privately-held Raw Material Companies We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business (see Note 7). The investment balances for the non-consolidated companies are accounted for under the equity method and included in “Other assets” in the condensed consolidated balance sheets and totaled $11.3 million and $10.2 million as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, there were five companies accounted for under the equity method. There were no impairment charges in the three months ended March 31, 2022 and 2021. Fair Value Measurements We invest primarily in money market accounts, certificates of deposits, corporate bonds and notes, and government securities. We review our debt investment portfolio for credit loss at least quarterly or when there are changes in credit risk or other potential valuation concerns. As of March 31, 2022 and December 31, 2021, the total unrealized loss, net of tax, included in accumulated other comprehensive income was immaterial. We believe it is probable the principal and interest will be collected in accordance with the contractual terms, and the unrealized loss on these securities was due to normal market fluctuations, and not due to increased credit risk or other valuation concerns. Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures The type of instrument valued based on quoted market prices in active markets include our money market funds, which are generally classified within Level 1 of the fair value hierarchy. We classify our available-for-sale debt securities including certificates of deposit and corporate bonds as having Level 2 inputs. The valuation techniques used to measure the fair value of these financial instruments having Level 2 inputs were derived from bank statements, quoted market prices, broker or dealer statements or quotations, or alternative pricing sources with reasonable levels of price transparency. We place short-term foreign currency hedges that are intended to offset the potential cash exposure related to fluctuations in the exchange rate between the United States dollar and Japanese yen. We measure the fair value of these foreign currency hedges at each month end and quarter end using current exchange rates and in accordance with US GAAP. At quarter end, any foreign currency hedges not settled are netted in “Accrued liabilities” on the condensed consolidated balance sheet and classified as Level 3 assets and liabilities. As of March 31, 2022, the net change in fair value from the placement of the hedge to settlement at each month end during the quarter had a de minimis impact on the condensed consolidated results. There were no changes in valuation techniques or related inputs in the three months ended March 31, 2022. There have been no transfers between fair The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of Mach 31, 2022 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs March 31, 2022 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 6,590 $ — $ 6,590 $ — Corporate bonds 8,210 — 8,210 — Total $ 14,800 $ — $ 14,800 $ — The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2021 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2021 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 6,661 $ — $ 6,661 $ — Corporate bonds 8,334 — 8,334 — Total $ 14,995 $ — $ 14,995 $ — Items Measured at Fair Value on a Nonrecurring Basis Certain assets that are subject to nonrecurring fair value measurements are not included in the table above. These assets include investments in privately-held companies accounted for by the equity or cost method (see Note 7). We did not record any other-than-temporary impairment charges for these investments during the three months ended March 31, 2022 and 2021, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Inventories | Note 3. Inventories The components of inventories are summarized below (in thousands): March 31, December 31, 2022 2021 Inventories: Raw materials $ 32,949 $ 29,658 Work in process 32,411 32,605 Finished goods 3,461 3,649 $ 68,821 $ 65,912 As of March 31, 2022 and December 31, 2021, carrying values of inventories were net of inventory reserves of $20.6 million and $19.6 million, respectively, for excess and obsolete inventory and $70,000 and $66,000, respectively, for lower of cost or net realizable value reserves. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | Note 4. Property, Plant and Equipment, Net The components of our property, plant and equipment are summarized below (in thousands): March 31, December 31, 2022 2021 Property, plant and equipment: Machinery and equipment, at cost $ 59,617 $ 59,284 Less: accumulated depreciation and amortization (40,848) (40,292) Building, at cost 109,071 108,782 Less: accumulated depreciation and amortization (19,560) (18,710) Leasehold improvements, at cost 7,060 7,039 Less: accumulated depreciation and amortization (5,521) (5,352) Construction in progress 37,467 31,664 $ 147,286 $ 142,415 As of March 31, 2022, the balance of construction in progress was $37.5 million, of which $27.2 million was related to our buildings in our new Dingxing and Kazuo locations, $4.3 million was for manufacturing equipment purchases not yet placed in service and $6.1 million was for construction in progress for our other consolidated subsidiaries. As of December 31, 2021, the balance of construction in progress was $31.7 million, of which $22.7 million was for our buildings in our new Dingxing and Kazuo locations, $3.0 million was for manufacturing equipment purchases not yet placed in service and $6.0 million was for our construction in progress at our other consolidated subsidiaries. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Liabilities | |
Accrued Liabilities | Note 5. Accrued Liabilities The components of accrued liabilities are summarized below (in thousands): March 31, December 31, 2022 2021 Accrued compensation and related charges $ 3,436 $ 5,115 Preferred stock dividends payable 2,901 2,901 Advances from customers 1,024 946 Accrued income taxes 1,001 539 Accrued product warranty 832 743 Current portion of operating lease liabilities 499 488 Accrued professional services 423 880 Other personnel-related costs 278 279 Payable in connection with construction in progress 268 2,974 Other tax payable 230 392 Accrual for sales returns 20 48 Other accrued liabilities 1,301 1,752 $ 12,213 $ 17,057 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | Note 6. Related Party Transactions In March 2012, Tongmei, entered into an operating lease for the land it owns with our consolidated subsidiary, BoYu. The lease agreement for the land of approximately 22,081 square feet commenced on January 1, 2012 for a term of 10 years with annual lease payments of $24,000, subject to a 5% increase at each third year anniversary. The annual lease payment is due by January 31 st ChaoYang Tongmei purchases raw materials from one of our equity investment entities, Donghai County Dongfang High Purity Electronic Materials Co., Ltd., for production in the ordinary course of business. As of March 31, 2022 and December 31, 2021, amounts payable of $112,000 and $112,000 , respectively, were included in “Accounts payable” in our condensed consolidated balance sheets. In July 2017, Tongmei, provided an inter-company loan to JinMei in the amount of $768,000 in preparation for the acquisition of the land use rights and the construction of a new building. The inter-company loan carries an interest rate of 4.9% per annum. The principal . In September 2021 and October 2021, our consolidated subsidiary, ChaoYang XinMei received funding from a minority investor of $0.9 million and $1.0 million, respectively. In December 2021 and January 2022, the same subsidiary received funding from Tongmei of $1.4 million and $1.4 million, respectively. In January 2022, the China local government certified this additional funding in our consolidated subsidiary, ChaoYang XinMei, as an equity investment. As a result, noncontrolling interests increased $2.2 million and redeemable noncontrolling interests increased $0.2 million. Short-term loan from noncontrolling interest decreased to $0. Tongmei’s ownership remained at 58.5% after these equity investments. As of March 31, 2022, $0 was included in “Long-term debt, related party” in our condensed consolidated balance sheets. Our Related Party Transactions Policy seeks to prohibit all conflicts of interest in transactions between related parties and us, unless they have been approved by our Board of Directors. This policy applies to all of our employees, directors, and our consolidated subsidiaries. Our executive officers retain board seats on the board of directors of the companies in which we have invested in our China joint ventures. See Note 7 for further details. |
Investments in Privately-Held R
Investments in Privately-Held Raw Material Companies | 3 Months Ended |
Mar. 31, 2022 | |
Investments in Privately-Held Raw Material Companies | |
Investments in Privately-Held Raw Material Companies | Note 7. Investments in Privately-Held Raw Material Companies We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business. These companies form part of our overall supply chain strategy. Investment Balance as of March 31, December 31, Accounting Ownership * Company 2022 2021 Method Percentage Nanjing JinMei Gallium Co., Ltd. $ 592 $ 592 Consolidated **85.5 % ChaoYang JinMei Gallium Co., Ltd. 1,820 1,820 Consolidated **85.5 % Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. 1,346 1,346 Consolidated **85.5 % ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. 4,642 1,814 Consolidated ***58.5 % $ 8,400 $ 5,572 Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ 2,057 $ 2,053 Equity **46 % Beijing JiYa Semiconductor Material Co., Ltd. 4,292 3,760 Equity 39 % Xilingol Tongli Germanium Co., Ltd. — — Equity 25 % Xiaoyi XingAn Gallium Co., Ltd. 4,739 4,095 Equity **25 % Emeishan Jia Mei High Purity Metals Co., Ltd. 224 258 Equity 25 % $ 11,312 $ 10,166 * These ** In preparation for Tongmei’s application for a listing of shares in an IPO on the STAR Market, in late December 2020 we reorganized our entity structures in China. JinMei and BoYu and its subsidiaries, previously organized under AXT, Inc., were assigned to Tongmei and effectively merged with Tongmei although they retained their own respective legal entity status and are wholly owned subsidiaries of Tongmei. The minority interest in Tongmei. The *** Before June 15, 2018, our ownership of JinMei was 83%. On June 15, 2018, we purchased a 12% ownership interest from one of the minority owners of JinMei for $1.4 million. The $1.4 million was scheduled to be paid in two installments. On June 15, 2018, we paid the first installment of $163,000. In May 2019, we paid the second installment of $1.2 million as the relocation of JinMei’s headquarters and manufacturing operations was nearly complete, which had been previously included in “Accrued liabilities” in our condensed consolidated balance sheets. As a result, our ownership of JinMei increased from 83% to 95%. In September 2018, we purchased a 2% ownership interest from one of the three remaining minority owners of JinMei for $252,000. As a result, our ownership of JinMei increased from 95% to 97%. In May 2019, we purchased the remaining 3% ownership interest from retiring members of the JinMei management team for approximately $413,000. The final payment to the JinMei management team was made in October, 2020. As a result, our ownership of JinMei increased from 97% to 100%. Prior to June 1, 2019, we reported JinMei as a consolidated joint venture as we had a controlling financial interest and have majority control of the board. As of June 1, 2019, we referred to it as a wholly-owned subsidiary and reduced the carrying value of the corresponding noncontrolling interests to zero. Before August 1, 2020, our ownership of ChaoYang JinMei was 100%. In August 2020, we sold an 8.5% ownership interest to current members of the ChaoYang JinMei management team for approximately $396,000. As a result, our ownership of ChaoYang JinMei decreased from 100% to 91.5%. As of August 2020, we referred to ChaoYang JinMei as a significantly controlled subsidiary instead of a wholly-owned subsidiary. Our Chief Executive Officer is chairman of the JinMei board and we have appointed two other representatives to serve on the JinMei board. Our ownership of BoYu was 67%. On November 2, 2017, BoYu raised additional capital in the amount of $2 million in cash from a third-party investor through the issuance of shares equivalent to 10% ownership of BoYu. As a result, our ownership of BoYu was diluted from 70% to 63%. In December 2020, we purchased shares equivalent to 4% of BoYu from the same third-party investor for $1.6 million. As a result, our ownership of BoYu increased from 63% to 67%. We continue to consolidate BoYu as we have a controlling financial interest and have majority control of the board and accordingly no gain was recognized as a result of this equity transaction. Our Chief Executive Officer is chairman of the BoYu board and we have appointed two other representatives to serve on the board. An additional step in the STAR Market IPO process involved certain entity reorganizations and alignment of assets under Tongmei. In this regard our two consolidated raw material companies, JinMei and BoYu, and its subsidiaries, were assigned to Tongmei in December 2020. This increased the number of customers and employees attributable to Tongmei as well as increased Tongmei’s consolidated revenue. Although we have representation on the board of directors of each of the privately held raw material companies, the daily operations of each of these companies are managed by local management and not by us. Decisions concerning their respective short-term strategy and operations, ordinary course of business capital expenditures and sales of finished product, are made by local management with regular guidance and input from us. For AXT’s minority investment entities that are not consolidated, the investment balances are included in “Other assets” in our condensed consolidated balance sheets and totaled $11.3 million and $10.2 million as of March 31, 2022 and December 31, 2021, respectively. Our respective ownership interests in each of these companies are 46%, 39%, 25%, 25% and 25%. These minority investment entities are not considered variable interest entities because: ● all minority investment entities have sustainable businesses of their own; ● our voting power is proportionate to our ownership interests; ● we only recognize our respective share of the losses and/or residual returns generated by the companies if they occur; and ● we do not have controlling financial interest in, do not maintain operational or management control of, do not control the board of directors of, and are not required to provide additional investment or financial support to any of these companies. In June 2021, we received a $774,000 dividend from one of our equity investments, Xiaoyi XingAn Gallium Co., Ltd. AXT’s minority investment entities are not consolidated and are accounted for under the equity method. Excluding one fully impaired entity, the equity investment entities had the following summarized statements of operations information (in thousands) for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Net revenue $ 10,734 $ 8,525 Gross profit $ 5,999 $ 3,807 Operating income $ 4,149 $ 3,061 Net income $ 3,698 $ 2,612 Our portion of the income and losses from these minority investment entities that are not consolidated and are accounted for under the equity method was income of $1.1 million and $1.1 million, respectively, for the three months ended March 31, 2022 and 2021. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | Note 8. Stockholders’ Equity Condensed Consolidated Statements of Stockholders’ Equity (in thousands) The changes in stockholders’ equity by component for the three months ended March 31, 2022 are as follows: Accumulated Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive Stockholders’ Noncontrolling Stockholders’ Stock Stock Paid-In Capital Deficit Income (Loss) Equity Interests Equity Balance as of December 31, 2021 $ 3,532 $ 43 $ 231,622 $ (29,970) $ 6,302 $ 211,529 $ 18,317 $ 229,846 Investment in subsidiary with noncontrolling interest — — (410) — — (410) 204 (206) Noncontrolling interest portion of Tongmei stock-based compensation — — 17 — — 17 (7) 10 Stock-based compensation — — 875 — — 875 — 875 Tongmei stock-based compensation — — 213 — — 213 — 213 Net income — — — 3,165 — 3,165 389 3,554 Investment in subsidiary from noncontrolling interest — — — — — — 1,887 1,887 Other comprehensive income — — — — 327 327 45 372 Balance as of March 31, 2022 $ 3,532 $ 43 $ 232,317 $ (26,805) $ 6,629 $ 215,716 $ 20,835 $ 236,551 Net income and other comprehensive income attributable to redeemable noncontrolling interests was $418,000 and $46,000, respectively, not shown in the table above. The changes in stockholders’ equity by component for the three months ended March 31, 2021 are as follows: Accumulated Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive Stockholders’ Noncontrolling Stockholders’ Stock Stock Paid-In Capital Deficit Income (Loss) Equity Interests Equity Balance as of December 31, 2020 $ 3,532 $ 42 $ 230,381 $ (44,545) $ 3,209 $ 192,619 $ 15,350 $ 207,969 Common stock options exercised — — 704 — — 704 — 704 Stock-based compensation — — 816 — — 816 — 816 Formation of new subsidiary with noncontrolling interests — — (131) — — (131) 707 576 Sale of common stock to employees in connection with the reorganization — — 538 — — 538 — 538 Purchase of subsidiary shares from noncontrolling interests — — (2,691) — — (2,691) (1,039) (3,730) Net income (loss) — — — 3,425 — 3,425 311 3,736 Other comprehensive loss — — — — (131) (131) (16) (147) Balance as of March 31, 2021 $ 3,532 $ 42 $ 229,617 $ (41,120) $ 3,078 $ 195,149 $ 15,313 $ 210,462 There were no reclassification adjustments from accumulated other comprehensive income (loss) for . Stock Repurchase Program On October 27, 2014, our Board of Directors approved a stock repurchase program pursuant to which we may repurchase up to $5.0 million of our outstanding common stock. These repurchases can be made from time to time in the open market and are funded from our existing cash balances and cash generated from operations. No shares were repurchased from 2016 through 2021. During the three months ended March 31, 2022, we did no t repurchase any shares under the approved stock repurchase program. As of March 31, 2022, approximately $2.7 million remained available for future repurchases under this program. Currently, we do not plan to repurchase additional shares. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 9. Stock-Based Compensation We account for stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Cost of revenue $ 113 $ 39 Selling, general and administrative 811 640 Research and development 164 137 Total stock-based compensation 1,088 816 Tax effect on stock-based compensation — — Net effect on net income $ 1,088 $ 816 As of March 31, 2022, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plan was approximately $0.3 million, net of estimated forfeitures of $35,000 . These costs will be amortized on a straight-line basis over a weighted-average period of will be adjusted for subsequent changes in estimated forfeitures. We any stock-based compensation to inventory as of March 31, 2022 and December 31, 2021 due to the immateriality of the amount. We estimate the fair value of stock options using the Black-Scholes valuation model, consistent with the provisions of ASC 718. There were no options granted in the three months ended March 31, 2022 and 2021. The following table summarizes the stock option transactions during the three months ended March 31, 2022 (in thousands, except per share data): Weighted- average Weighted- Remaining Number of average Contractual Aggregate Options Exercise Life Intrinsic Stock Options Outstanding Price (in years) Value Balance as of January 1, 2022 1,378 $ 4.83 5.60 $ 5,573 Granted — — Exercised — — Canceled and expired — — Balance as of March 31, 2022 1,378 $ 4.83 5.36 $ 3,383 Options vested as of March 31, 2022 and unvested options expected to vest, net of forfeitures 1,376 $ 4.83 5.35 $ 3,371 Options exercisable as of March 31, 2022 1,140 $ 5.10 4.92 $ 2,547 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $7.02 on March 31, 2022, which would have been received by the option holder had all option holders exercised their options on that date. Restricted stock awards A summary of activity related to restricted stock awards for the three months ended March 31, 2022 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2022 875 $ 6.26 Granted 2 $ 9.05 Vested (9) $ 11.60 Forfeited (8) $ 5.21 Non-vested as of March 31, 2022 860 $ 6.22 As of March 31, 2022, the unamortized compensation costs related to unvested restricted stock awards was approximately $4.3 million, which is to be amortized on a straight-line basis over a weighted-average period of approximately 1.4 years. At-Risk, Performance Shares In February 2021 and 2022, the Company issued at-risk, performance shares classified as equity awards. Expense is recognized quarterly on a straight-line method over the requisite service period, based on the probability of achieving the specified financial performance metric, with changes in expectations recognized as an adjustment to earnings in the period of change. Compensation cost is not recognized for at-risk, performance shares that do not vest because service or performance conditions are not satisfied and any previously recognized compensation cost is reversed. At-risk, performance shares are eligible to receive dividend equivalents under the Company's 2015 Equity Incentive Plan (the “Plan”), as determined by the Board of Directors. The Company will recognize forfeitures as they occur. The Company's at-risk, performance shares are classified as equity and contain performance and service conditions that must be satisfied for an employee to receive the shares. The financial performance metric for the at-risk, performance shares issued in February 2021 is based upon year-end 2020 actual results as compared to the Company’s year-end actual results in 2021. The financial performance metric for the at-risk, performance shares issued in February 2022 is based upon year-end 2021 actual results as compared to the Company’s year-end actual results in 2022. All performance shares, if earned, are still subject to annual vesting over a four-year period except that no shares are vested on the first anniversary because the performance measurement is based on year-end results for the year 2021 and 2022, respectively. The fair value of the at-risk, performance shares is determined based on the closing price of the Company’s common stock on the first day after the public issuance of the Company’s earnings release for the most recent fiscal quarter, following the Compensation Committee and Board of Directors approval, which is considered the grant date. The fair value per share of the at-risk, performance shares classified as equity awards granted in February 2021 and 2022 was $15.37 and $7.83, respectively. On February 17, 2021, the Compensation Committee recommended, and the Board approved, the grant to Dr. Morris Young, our Chief Executive Officer, of 113,130 at-risk, performance shares under the Plan. On February 17, 2021, the Compensation Committee approved the grant to Gary Fischer, our Chief Financial Officer and Corporate Secretary, of 38,475 at-risk, performance shares under the Plan. On March 14, 2022, the Compensation Committee met and certified that the year-over-year annual revenue growth rate achieved for fiscal year 2021, expressed as a percentage, was 44%. Therefore, all of the at-risk performance shares became eligible to vest. On February 15, 2022, the Compensation Committee recommended, and the Board approved, the grant to Dr. Morris Young of 114,320 at-risk, performance shares under the Plan. On February 15, 2022, the Compensation Committee approved the grant to Gary Fischer of 32,100 at-risk, performance shares under the Plan. If the performance financial metric is less than 50% achieved these shares are forfeited. If the performance financial metric is between 50% and 200% achieved, then a corresponding pro rata portion of the 114,320 shares issued to Dr. Young would be eligible to vest and a corresponding pro rata portion of the 32,100 shares issued to Mr. Fischer would be eligible to vest. Any shares that are not eligible to vest are forfeited. If the target financial metric exceeds 200%, then the maximum number of at-risk performance shares that would be eligible to vest is 114,320 for Dr. Young and 32,100 for Mr. Fischer. A summary of the status of our unvested at-risk, performance shares as of March 31, 2022 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares* Share Value Non-vested as of January 1, 2022 114 $ 15.37 Granted 74 ** $ 10.91 Vested — $ — Forfeited — $ — Non-vested as of March 31, 2022 188 $ 12.42 *The number of shares presented is based on achieving 150% of the targeted financial performance metric as defined in the at-risk, performance shares agreement. ** The first annual vesting was reported in Q4 2021, when 25% of the at-risk performance shares became eligible subject to review and confirmation by the Compensation Committee after year-end results were certified. As of March 31, 2022, there was $1.5 million of unrecognized compensation expense related to unvested at-risk, performance shares that is expected to be recognized over a weighted-average period of 1.8 years. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | Note 10. Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options and vesting of restricted stock awards. Potentially dilutive common shares are excluded from the computation of weighted-average number of common shares outstanding in net loss years, as their effect would be anti-dilutive to the computation. A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations is as follows (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Numerator: Net income attributable to AXT, Inc. $ 3,165 $ 3,425 Less: Preferred stock dividends (44) (44) Net income available to common stockholders $ 3,121 $ 3,381 Denominator: Denominator for basic net income per share - weighted-average common shares 41,871 41,004 Effect of dilutive securities: Common stock options 474 1,082 Restricted stock awards 317 640 Denominator for dilutive net income per common shares 42,662 42,726 Net income attributable to AXT, Inc. per common share: Basic $ 0.07 $ 0.08 Diluted $ 0.07 $ 0.08 Options excluded from diluted net income (loss) per share as the impact is anti-dilutive 201 21 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive 218 57 The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of March 31, 2022 and December 31, 2021, valued at $3,532,000, are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the Board of Directors and a $4 per share liquidation preference over common stock, which must be paid before any distribution is made to common stockholders. These preferred shares were issued to Lyte Optronics, Inc. stockholders in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999. |
Segment Information and Foreign
Segment Information and Foreign Operations | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information and Foreign Operations | |
Segment Information and Foreign Operations | Note 11. Segment Information and Foreign Operations Segment Information We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. Our chief operating decision-maker has been identified as our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the condensed consolidated financial statements. Product Information The following table represents revenue amounts (in thousands) by product type: Three Months Ended March 31, 2022 2021 Product Type: Substrates $ 31,745 $ 23,373 Raw Materials and Other 7,908 7,977 Total $ 39,653 $ 31,350 Geographical Information The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended March 31, 2022 2021 Geographical region: China $ 17,480 $ 15,546 Taiwan 6,859 3,015 Japan 2,807 2,523 Asia Pacific (excluding China, Taiwan and Japan) 1,756 1,817 Europe (primarily Germany) 6,394 5,435 North America (primarily the United States) 4,357 3,014 Total $ 39,653 $ 31,350 Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands): As of March 31, December 31, 2022 2021 Long-lived assets by geographic region, net of depreciation: North America $ 897 $ 1,610 China 148,612 143,129 $ 149,509 $ 144,739 Significant Customers One customer, Landmark, represented 10% of our revenue for the three months ended March 31, We perform ongoing credit evaluations of our customers’ financial condition, and limit the amount of credit extended when deemed necessary, but generally do not require collateral. Two customers accounted for 12% and 10% of our accounts receivable balance as of March 31, 2022 , |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Indemnification Agreements We have entered into indemnification agreements with our directors and officers that require us to indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to obtain directors’ and officers’ insurance if available on reasonable terms, which we currently have in place. Product Warranty We provide warranties for our products for a specific period of time, generally twelve months, against material defects. We provide for the estimated future costs of warranty obligations in cost of sales when the related revenue is recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that we expect to incur to repair or replace product parts that fail while still under warranty. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on repair costs. On a quarterly basis, we review the accrued balances and update the historical warranty cost trends. The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Beginning accrued product warranty $ 743 $ 609 Accruals for warranties issued 556 113 Adjustments related to pre-existing warranties including expirations and changes in estimates (113) (54) Cost of warranty repair (354) (86) Ending accrued product warranty $ 832 $ 582 Contractual Obligations In 2020, we and a competitor entered into a cross license and covenant agreement (the “Cross License Agreement”), which has a term that began on January 1, 2020 and expires on December 31, 2029. The Cross License Agreement is a fixed-cost cross license and not a variable-cost cross license that is based on revenue or units. Under the Cross License Agreement, we are obligated to make annual payments over a Land Purchase and Investment Agreement We have established a wafer process production line in Dingxing, China. In addition to a land rights and building purchase agreement that we entered into with a private real estate development company to acquire our new manufacturing facility, we also entered into a cooperation agreement with the Dingxing local government. In addition to pledging its full support and cooperation, the Dingxing local government will issue certain credits or rebates to us as we achieve certain milestones. We, in turn, agreed to hire local workers over time, pay taxes when due and eventually demonstrate a total investment of approximately $90 million in value, assets and capital. The investment will include cash paid for the land and buildings, cash on deposit in our name at local banks, the gross value of new and used equipment (including future equipment that might be used for indium phosphide and germanium substrates production), the deemed value for our customer list or the end user of our substrates, for example, the end users of 3-D sensing VCSELs (vertical cavity surface emitting lasers), a deemed value for employment of local citizens, a deemed value for our proprietary process technology, other intellectual property, other intangibles and additional items of value. There is no timeline or deadline by which this must be accomplished, rather it is a good faith covenant entered into between AXT and the Dingxing local government. Further, there is no specific penalty contemplated if either party breaches the agreement. However, the agreement does state that each party has a right to seek from the other party compensation for losses. Under certain conditions, the Dingxing local government may purchase the land and building at the appraised value. We believe that such cooperation agreements are normal, customary and usual in China and that the future valuation is flexible. We have a similar agreement with the city of Kazuo, China, although on a smaller scale. The total investment targeted by AXT in Kazuo is approximately $15 million in value, assets and capital. In addition, BoYu has a similar agreement with the city of Kazuo. The total investment targeted by BoYu in Kazuo is approximately $8 million in value, assets and capital. Purchase Obligations with Penalties for Cancellation In the normal course of business, we issue purchase orders to various suppliers. In certain cases, we may incur a penalty if we cancel the purchase order. As of March 31, 2022, we do not have any outstanding purchase orders that will incur a penalty if cancelled by the Company. Legal Proceedings From time to time we may be involved in judicial or administrative proceedings concerning matters arising in the ordinary course of business. We do not expect that any of these matters, individually or in the aggregate, will have a material adverse effect on our business, financial condition, cash flows or results of operations. |
Other Expense, Net
Other Expense, Net | 3 Months Ended |
Mar. 31, 2022 | |
Other Expense, Net | |
Other Expense, Net | Note 13. Other Expense, Net Other expense, net for the three months ended March 31, 2022 and 2021, includes a grant of $0.2 million and $0.1 million, respectively, from a Chinese provincial government agency as an award for relocating to its province. In addition, we incurred a foreign currency transaction exchange loss of $228,000 and $173,000 for the three months ended March 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 14. Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes between the book and tax bases of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. We provide for income taxes based upon the geographic composition of worldwide earnings and tax regulations governing each region, particularly China. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws, particularly in foreign countries such as China. We recognize interest and penalties related to uncertain tax positions in income tax expense. Income tax expense for the three months ended March 31, 2022 includes no interest and penalties. As of March 31, 2022, we have no accrued interest and penalties related to uncertain tax positions. We file income tax returns in the U.S. federal, various states and foreign jurisdictions. Currently, there is no tax audit in any of the jurisdictions and we do not expect there will be any significant change to this. Provision for income taxes for the three months ended March 31, 2022 was mostly related to our wholly owned China subsidiaries and our partially owned subsidiaries in China. Income taxes and certain state taxes, have been provided for our U.S. operations as most of the income in the U.S. had been fully offset by utilization of federal and state net operating loss carryforwards except for the newly created US subsidiary, AXT-Tongmei. Which has incurred tax expense. Under the 2017 Tax Cuts and Jobs Act (TCJA), research and experimental (“R&E”), expenditures incurred or paid for tax years beginning after December 31, 2021, will no longer be immediately deductible for tax purposes. Instead, businesses are now required to capitalize and amortize R&E expenditures over a period of five years for research conducted within the U.S. or 15 years for research conducted in a foreign jurisdiction. We capitalize the R&E expense for our US Corporation and amortize it over 5 years. We also capitalize the R&E expense in our China subsidiaries and amortize it over 15 years. On June 29, 2020, California Governor Gavin Newsom signed Assembly Bill 85 (“AB 85”) into law as part of the California 2020 Budget Act, which temporarily suspends the use of California net operating losses and imposes a cap on the amount of business incentive tax credits that companies can utilize against their net income for tax years 2020, 2021, and 2022. We analyzed the provisions of AB 85 and determined there was no impact on our provision for income taxes for the current period and will continue to evaluate the impact, if any, AB 85 may have on the Company’s condensed consolidated financial statements and disclosures . |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Revenue | Note 15. Revenue Revenue Recognition We manufacture and sell high-performance compound semiconductor substrates including indium phosphide, gallium arsenide and germanium wafers, and our consolidated subsidiaries sell certain raw materials, including high purity gallium (7N Ga), pyrolytic boron nitride (pBN) crucibles and boron oxide (B2O3). After we ship our products, there are no remaining obligations or customer acceptance requirements that would preclude revenue recognition. Our products are typically sold pursuant to purchase orders placed by our customers, and our terms and conditions of sale do not require customer acceptance. We account for a contract with a customer when there is a legally enforceable contract, which could be the customer’s purchase order, the rights of the parties are identified, the contract has commercial terms, and collectibility of the contract consideration is probable. The majority of our contracts have a single performance obligation to transfer products and are short term in nature, usually less than six months. Our revenue is measured based on the consideration specified in the contract with each customer in exchange for transferring products that are generally based upon a negotiated, formula, list or fixed price. Revenue is recognized when control of the promised goods is transferred to our customer, which is either upon shipment from our dock, receipt at the customer’s dock, or removal from consignment inventory at the customer’s location, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods. Shipping and handling fees billed to customers in a sales transaction are recorded as an offset to shipping and handling expenses. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from revenue. We do not provide training, installation or commissioning services. We provide for future returns based on historical data, prior experience, current economic trends and changes in customer demand at the time revenue is recognized. We do not recognize any asset associated with the incremental cost of obtaining revenue generating customer contracts. As such, sales commissions are expensed as incurred, given that the expected period of benefit is less than one year. Contract Balances Contract assets are recorded when we have a conditional right to consideration for our completed performance under the contracts. Accounts receivables are recorded when the right to this consideration becomes unconditional. We believe the fair value of our accounts receivable approximates its carrying value due to its short maturities and nominal credit risk. We do not have any material contract assets as of March 31, 2022. In some contracts we require payment in advance of shipment, per a billing schedule reflected in our customer contracts, and the payment is recorded as a contract liability. The following table reflects the contract liabilities balance, which is included in “Accrued liabilities” on the condensed consolidated balance sheets, as of March 31, 2022 and December 31, 2021 (in thousands): March 31, December 31, 2022 2021 Contract liabilities $ 1,024 $ 946 During the three months ended March 31, 2022, the Company recognized $321,000 of revenue that was included in the contract balances as of December 31, 2021. Disaggregated Revenue In general, revenue disaggregated by product types and geography (See Note 11) is aligned according to the nature and economic characteristics of our business and provides meaningful disaggregation of our results of operations. Since we operate in one segment, all financial segment and product line information can be found in the condensed consolidated financial statements. |
Bank Loans and Line of Credit
Bank Loans and Line of Credit | 3 Months Ended |
Mar. 31, 2022 | |
Bank Loans and Line of Credit | |
Bank Loans and Line of Credit | Note 16. Bank Loans and Line of Credit On August 9, 2019, Tongmei entered into a credit facility (the “Credit Facility”) with the Bank of China with a $5.8 million line of credit at an annual interest rate of approximately 0.4% over the average interest rate quoted by the National Interbank Funding Center. Accrued interest is calculated monthly and paid quarterly. The annual interest rate was approximately 4.7% as of December 31, 2019. The Credit Facility is collateralized by Baoding Tongmei’s land use rights and all of its buildings located at its facility in Dingxing. The primary intended use of the Credit Facility is for general purposes, which may include working capital and other corporate expenses. On August 9, 2019, Tongmei borrowed $2.8 million against the Credit Facility (the “August 2019 borrowing”). The repayment of the full amount was due on August 9, 2020. On September 12, 2019, we borrowed an additional $2.8 million against the Credit Facility (the “September 2019 borrowing”). The repayment of the full amount was due on September 12, 2020. In August 2020, Tongmei repaid the full amount of the Credit Facility, including all outstanding accrued interest, of approximately $5.9 million and simultaneously applied to renew the Credit Facility. The process of repaying a loan and then renewing the loan is customary in China. In September 2020, the August 2019 borrowing was renewed and funded against the Credit Facility with an interest rate of 3.85%. The interest owed during the term of the loan was deducted prior to funding. The repayment of the loan was due on March 22, 2021, however the Credit Facility contains an option to renew for an additional six months, which was exercised in March 2021 for approximately $3.1 million. In September 2021, Tongmei repaid $3.1 million of the Credit Facility, including all outstanding accrued interest and simultaneously applied to renew the Credit Facility. In September 2021, the Credit Facility was renewed for approximately $2.7 million with an annual interest rate of 3.85%. In March 2022, Tongmei repaid $2.7 million of the Credit Facility, including all outstanding accrued interest. As of March 31, 2022, $0 was included in “Bank loan” in our condensed consolidated balance sheets. In October 2020, the September 2019 borrowing was renewed and funded against the Credit Facility and an additional $2.7 million was approved and funded against the Credit Facility with the annual interest rate of 4.7 %. Accrued interest is calculated monthly and paid quarterly. The combined loan totaled $5.6 In February 2020, our consolidated subsidiary, BoYu, entered into a credit facility with the Industrial and Commercial Bank of China (“ICBC”) with a $1.4 million line of credit at an annual interest rate of approximately 0.15% over the loan prime rate. Accrued interest is calculated monthly and paid quarterly. The annual interest rate was approximately 4.3% as of December 31, 2020. The credit facility is collateralized by BoYu’s land use rights and its building located at its facility in Tianjin, China and BoYu’s accounts receivable. The primary intended use of the credit facility is for general purposes, which may include working capital and other corporate expenses. % as of December 31, 2021. As of March 31, 2022, $1.6 million was included in “Bank loan” in our condensed consolidated balance sheets. In December 2021, Tongmei entered into a credit facility with China Merchants Bank for $1.6 million with an annual interest rate of 3.55%. Accrued interest is calculated monthly and paid quarterly. The repayment of the loan and any accrued interest is due on December 6, 2022. The loan is guaranteed by Beijing Capital Financing Guarantee Co., Ltd. In exchange for the guarantee, Tongmei paid Beijing Capital Financing Guarantee Co., Ltd. a fee of 1.5% of the loan amount or approximately $24,000. As of March 31, 2022, $1.6 million was included in “Bank loan” in our condensed consolidated balance sheets. In January 2022, ChaoYang Tongmei entered into a credit facility with the Bank of Communications for $1.6 million with an annual interest rate of 3.3%. The interest owed during the term of the loan was deducted prior to funding. The repayment of the loan is due in January 2023. As of March 31, 2022, $1.6 million was included in “Bank loan” in our condensed consolidated balance sheets. In January 2022, ChaoYang JinMei entered into a credit facility with the Bank of Communications for $1.6 million with an annual interest rate of 3.3 %. The interest owed during the term of the loan was deducted prior to funding. The repayment of the loan is due in January 2023. As of March 31, 2022, $1.6 million was included in “Bank loan” in our condensed consolidated balance sheets. In January 2022, Tongmei entered into a credit facility with the Bank of China for $4.4 million with an annual interest rate of 4.55%. Accrued interest is calculated monthly and paid quarterly. The repayment of the loan and any accrued interest is due in January 2023. The Credit Facility is collateralized by Baoding Tongmei Xtal Technology Co., Ltd.’s land use rights and all of its buildings located at its facility in Dingxing, China. As of March 31, 2022, $4.4 million was included in “Bank loan” in our condensed consolidated balance sheets. In March 2022, Tongmei entered into a credit facility with the Bank of China for $3.1 million with an annual interest rate of 3.7%. The interest owed during the term of the loan was deducted prior to funding. The repayment of the loan is due in September 2022. As of March 31, 2022, $3.1 million was included in “Bank loan” in our condensed consolidated balance sheets. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 17. Leases We lease certain equipment, office space, warehouse and facilities under long-term operating leases expiring at various dates through July 2029. The majority of our lease obligations relate to our lease agreement for a nitrogen system to be used during the manufacturing process for our facility in Dingxing, China. The equipment lease became effective in August 2019 and will expire in July 2029. There are no variable lease payments, residual value guarantees or any restrictions or covenants imposed by the equipment lease. The remainder relate to our lease agreement for our facility in Fremont, California with approximately 19,467 square feet, which was scheduled to expire in 2020. Under the terms of the facility lease agreement, in May 2020, we were granted an extension to the term of the lease for an additional three years. There are no variable lease Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. All of our leases are classified as operating leases and substantially all of our operating leases are comprised of equipment and office space leases. None of our leases are classified as finance leases. For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our secured incremental borrowing rate for the same term as the underlying lease. Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term. We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on our right-of-use asset and lease liability was not material. As of March 31, 2022, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2022 $ 444 2023 582 2024 293 2025 293 2026 293 Thereafter 757 Total minimum lease payments 2,662 Less: Interest (353) Present value of lease obligations 2,309 Less: Current portion, included in accrued liabilities (499) Long-term portion of lease obligations $ 1,810 The weighted-average remaining lease term and the weighted-average discount rate for our operating leases as of each date is as follows: March 31, December 31, 2022 2021 Weighted-average remaining lease term (years) 6.29 6.44 Weighted-average discount rate 4.61 % 4.61 % Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 147 $ 141 The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations: Three Months Ended March 31, 2022 2021 Operating lease $ 134 $ 133 Short-term lease expense 36 24 Total $ 170 $ 157 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2022 | |
Redeemable Noncontrolling Interests | |
Redeemable Noncontrolling Interests | Note 18. Redeemable Noncontrolling Interests As discussed in Note 1, during the quarter ended December 31, 2020, Tongmei entered into the Capital Investment Agreements with Investors that invested approximately $48.1 million in the form of redeemable noncontrolling interests representing 7.06% of the outstanding shares of Tongmei. An additional investment of approximately $1.5 million of new capital was funded in early January 2021. Under China regulations these investments must be formally approved by the appropriate government agency and are not deemed to be dilutive until such approval is granted. The government approved the entire approximately $49 million investment on January 25, 2021, at which time the Investors owned a redeemable noncontrolling interest in Tongmei of 7.28%. The initial carrying amount of the redeemable noncontrolling interest was recorded at fair value on the date of issuance of Tongmei’s common stock, net of issuance costs and presented in temporary equity on the condensed consolidated balance sheets. This classification is due to the existence of certain contingencies that could result in potential redemption at the fixed purchase price as described below. We currently do not believe that this is probable thus no amortization of the issuance costs has been recorded. Pursuant to the Capital Investment Agreements with the Investors, each Investor has the right to require AXT to redeem any or all Tongmei shares held by such Investor at the original purchase price paid by such Investor, without interest, in the event of a material adverse change or if Tongmei does not achieve its IPO on or before December 31, 2022. The aggregate redemption amount is approximately $49 million. This right is suspended when Tongmei submits its formal application to the Chinese Securities Regulatory Commission (“CSRC”). Tongmei submitted to the Shanghai Stock Exchange the application in December 2021 and it was formally accepted for review on January 10, 2022. The Shanghai Stock Exchange provided comments to the formal application in March 2022 and Tongmei filed an amended application to address the comments on April 14, 2022. The Shanghai Stock Exchange accepted for review the amended application on April 18, 2022 and provided comments to the amended application on April 26, 2022. The Shanghai Stock Exchange has not yet approved the formal application. If the Shanghai Stock Exchange approves the formal application, then the Shanghai Stock Exchange will forward it to the CSRC for further review. The process of going public on the STAR Market includes several periods of review and is therefore a lengthy process. Tongmei does not expect to complete the IPO until the second half of 2022. If, on December 31, 2022, the IPO application remains under review, then the date when such Investor is entitled to exercise such redemption right shall be deferred to a date when such submission is rejected by the CSRC or stock exchange, or the date when Tongmei withdraws its IPO application. If the application is approved and Tongmei completes an IPO the redemption right is cancelled. The listing of Tongmei on the STAR Market will not change the status of AXT as a U.S. public company. The components of the change in redeemable noncontrolling interests for the three months ended March 31, 2022 are presented in the following table (in thousands): Balance as of January 1, 2022 $ 50,385 Investment in subsidiary with redeemable noncontrolling interest 206 Equity issuance costs incurred (227) Stock-based compensation attributable to redeemable noncontrolling interests (6) Net income attributable to redeemable noncontrolling interests 418 Effect of foreign currency translation on redeemable noncontrolling interests 149 Effect of foreign currency translation attributable to redeemable noncontrolling interests 46 Balance as of March 31, 2022 $ 50,971 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 19. Recent Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. ASU 2021-10 aims to provide increased transparency by requiring business entities to disclose information about certain types of government assistance they receive in the notes to the financial statements. The FASB broadly defined “government assistance” in ASC 832 to ensure that assistance received from most types of governmental entities or other related organizations would be disclosed. Government assistance within the scope of ASC 832 includes assistance that is administered by domestic, foreign, local (such as city, town, county, or municipality), regional (such as state, provincial, or territorial), national (federal) governments, as well as entities related to those governments (such as departments, independent agencies, boards, commissions, or component units). ASC 832 also includes government assistance from intergovernmental organizations (for example, global organizations such as the United Nations, regional organizations such as the European Union, and economic organizations such as the World Trade Organization). The guidance is effective for fiscal years beginning after December 15, 2021, with early application permitted. Adoption of the new standard had a de minimis effect on our condensed consolidated financial statements. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Event. | |
Subsequent Event | Note 20. Subsequent Event In April 2022, Tongmei entered into a capital increase agreement with noncontrolling interests to further invest $4.5 million in our consolidated subsidiary, ChaoYang XinMei. Tongmei’s portion of the investment was approximately $2.6 million, of which $1.1 million was paid in April 2022. Noncontrolling interests’ portion of the investment was approximately $1.9 million, of which $0.7 million was paid in April 2022. As a result, noncontrolling interests increased $0.8 million and redeemable noncontrolling interests increased $0.1 million. Tongmei’s ownership remained at 58.5% after the April 2022 equity investment. |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments and Fair Value Measurements | |
Cash, cash equivalents and investments | As of March 31, 2022 and December 31, 2021, our cash, cash equivalents and debt investments are classified as follows (in thousands): March 31, 2022 December 31, 2021 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash $ 29,494 $ — $ — $ 29,494 $ 36,763 $ — $ — $ 36,763 Cash equivalents: Certificates of deposit 1 — — — — — — — — Total cash and cash equivalents 29,494 — — 29,494 36,763 — — 36,763 Investments (available-for-sale): Certificates of deposit 2 6,680 — (90) 6,590 6,680 — (19) 6,661 Corporate bonds 8,357 — (147) 8,210 8,380 — (46) 8,334 Total investments 15,037 — (237) 14,800 15,060 — (65) 14,995 Total cash, cash equivalents and investments $ 44,531 $ — $ (237) $ 44,294 $ 51,823 $ — $ (65) $ 51,758 Contractual maturities on investments: Due within 1 year 3 $ 5,409 $ 5,400 $ 5,424 $ 5,419 Due after 1 through 5 years 4 9,627 9,400 9,636 9,576 $ 15,036 $ 14,800 $ 15,060 $ 14,995 1. Certificates of deposit with original maturities of less than three months. 2. Certificates of deposit with original maturities of more than three months. 3. Classified as “Short-term investments” in our condensed consolidated balance sheets. 4. Classified as “Long-term investments” in our condensed consolidated balance sheets. |
Fair value and gross unrealized losses related to available-for-sale securities | The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2022 (in thousands): In Loss Position In Loss Position Total In < 12 months > 12 months Loss Position Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of March 31, 2022 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ 6,590 $ (90) $ — $ — $ 6,590 $ (90) Corporate bonds 4,857 (139) 3,002 (7) 7,859 (146) Total in loss position $ 11,447 $ (229) $ 3,002 $ (7) $ 14,449 $ (236) The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 (in thousands): In Loss Position In Loss Position Total In < 12 months > 12 months Loss Position Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2021 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ 6,181 $ (19) $ — $ — $ 6,181 $ (19) Corporate bonds 5,970 (42) 2,013 (4) 7,983 (46) Total in loss position $ 12,151 $ (61) $ 2,013 $ (4) $ 14,164 $ (65) |
Summary of financial assets and liabilities measured at fair value on a recurring basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of Mach 31, 2022 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs March 31, 2022 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 6,590 $ — $ 6,590 $ — Corporate bonds 8,210 — 8,210 — Total $ 14,800 $ — $ 14,800 $ — The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2021 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2021 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 6,661 $ — $ 6,661 $ — Corporate bonds 8,334 — 8,334 — Total $ 14,995 $ — $ 14,995 $ — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Components of inventories | The components of inventories are summarized below (in thousands): March 31, December 31, 2022 2021 Inventories: Raw materials $ 32,949 $ 29,658 Work in process 32,411 32,605 Finished goods 3,461 3,649 $ 68,821 $ 65,912 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | The components of our property, plant and equipment are summarized below (in thousands): March 31, December 31, 2022 2021 Property, plant and equipment: Machinery and equipment, at cost $ 59,617 $ 59,284 Less: accumulated depreciation and amortization (40,848) (40,292) Building, at cost 109,071 108,782 Less: accumulated depreciation and amortization (19,560) (18,710) Leasehold improvements, at cost 7,060 7,039 Less: accumulated depreciation and amortization (5,521) (5,352) Construction in progress 37,467 31,664 $ 147,286 $ 142,415 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Liabilities | |
Schedule of components of accrued liabilities | The components of accrued liabilities are summarized below (in thousands): March 31, December 31, 2022 2021 Accrued compensation and related charges $ 3,436 $ 5,115 Preferred stock dividends payable 2,901 2,901 Advances from customers 1,024 946 Accrued income taxes 1,001 539 Accrued product warranty 832 743 Current portion of operating lease liabilities 499 488 Accrued professional services 423 880 Other personnel-related costs 278 279 Payable in connection with construction in progress 268 2,974 Other tax payable 230 392 Accrual for sales returns 20 48 Other accrued liabilities 1,301 1,752 $ 12,213 $ 17,057 |
Investments in Privately-Held_2
Investments in Privately-Held Raw Material Companies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments in Privately-Held Raw Material Companies | |
Summary of investments | Investment Balance as of March 31, December 31, Accounting Ownership * Company 2022 2021 Method Percentage Nanjing JinMei Gallium Co., Ltd. $ 592 $ 592 Consolidated **85.5 % ChaoYang JinMei Gallium Co., Ltd. 1,820 1,820 Consolidated **85.5 % Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. 1,346 1,346 Consolidated **85.5 % ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. 4,642 1,814 Consolidated ***58.5 % $ 8,400 $ 5,572 Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ 2,057 $ 2,053 Equity **46 % Beijing JiYa Semiconductor Material Co., Ltd. 4,292 3,760 Equity 39 % Xilingol Tongli Germanium Co., Ltd. — — Equity 25 % Xiaoyi XingAn Gallium Co., Ltd. 4,739 4,095 Equity **25 % Emeishan Jia Mei High Purity Metals Co., Ltd. 224 258 Equity 25 % $ 11,312 $ 10,166 * These ** In preparation for Tongmei’s application for a listing of shares in an IPO on the STAR Market, in late December 2020 we reorganized our entity structures in China. JinMei and BoYu and its subsidiaries, previously organized under AXT, Inc., were assigned to Tongmei and effectively merged with Tongmei although they retained their own respective legal entity status and are wholly owned subsidiaries of Tongmei. The minority interest in Tongmei. The *** |
Summarized equity method income information | AXT’s minority investment entities are not consolidated and are accounted for under the equity method. Excluding one fully impaired entity, the equity investment entities had the following summarized statements of operations information (in thousands) for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Net revenue $ 10,734 $ 8,525 Gross profit $ 5,999 $ 3,807 Operating income $ 4,149 $ 3,061 Net income $ 3,698 $ 2,612 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity | |
Consolidated statements of stockholders' equity | The changes in stockholders’ equity by component for the three months ended March 31, 2022 are as follows: Accumulated Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive Stockholders’ Noncontrolling Stockholders’ Stock Stock Paid-In Capital Deficit Income (Loss) Equity Interests Equity Balance as of December 31, 2021 $ 3,532 $ 43 $ 231,622 $ (29,970) $ 6,302 $ 211,529 $ 18,317 $ 229,846 Investment in subsidiary with noncontrolling interest — — (410) — — (410) 204 (206) Noncontrolling interest portion of Tongmei stock-based compensation — — 17 — — 17 (7) 10 Stock-based compensation — — 875 — — 875 — 875 Tongmei stock-based compensation — — 213 — — 213 — 213 Net income — — — 3,165 — 3,165 389 3,554 Investment in subsidiary from noncontrolling interest — — — — — — 1,887 1,887 Other comprehensive income — — — — 327 327 45 372 Balance as of March 31, 2022 $ 3,532 $ 43 $ 232,317 $ (26,805) $ 6,629 $ 215,716 $ 20,835 $ 236,551 Net income and other comprehensive income attributable to redeemable noncontrolling interests was $418,000 and $46,000, respectively, not shown in the table above. The changes in stockholders’ equity by component for the three months ended March 31, 2021 are as follows: Accumulated Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive Stockholders’ Noncontrolling Stockholders’ Stock Stock Paid-In Capital Deficit Income (Loss) Equity Interests Equity Balance as of December 31, 2020 $ 3,532 $ 42 $ 230,381 $ (44,545) $ 3,209 $ 192,619 $ 15,350 $ 207,969 Common stock options exercised — — 704 — — 704 — 704 Stock-based compensation — — 816 — — 816 — 816 Formation of new subsidiary with noncontrolling interests — — (131) — — (131) 707 576 Sale of common stock to employees in connection with the reorganization — — 538 — — 538 — 538 Purchase of subsidiary shares from noncontrolling interests — — (2,691) — — (2,691) (1,039) (3,730) Net income (loss) — — — 3,425 — 3,425 311 3,736 Other comprehensive loss — — — — (131) (131) (16) (147) Balance as of March 31, 2021 $ 3,532 $ 42 $ 229,617 $ (41,120) $ 3,078 $ 195,149 $ 15,313 $ 210,462 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation | |
Summary of compensation costs related to stock-based awards | The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Cost of revenue $ 113 $ 39 Selling, general and administrative 811 640 Research and development 164 137 Total stock-based compensation 1,088 816 Tax effect on stock-based compensation — — Net effect on net income $ 1,088 $ 816 |
Summary of stock option activity | The following table summarizes the stock option transactions during the three months ended March 31, 2022 (in thousands, except per share data): Weighted- average Weighted- Remaining Number of average Contractual Aggregate Options Exercise Life Intrinsic Stock Options Outstanding Price (in years) Value Balance as of January 1, 2022 1,378 $ 4.83 5.60 $ 5,573 Granted — — Exercised — — Canceled and expired — — Balance as of March 31, 2022 1,378 $ 4.83 5.36 $ 3,383 Options vested as of March 31, 2022 and unvested options expected to vest, net of forfeitures 1,376 $ 4.83 5.35 $ 3,371 Options exercisable as of March 31, 2022 1,140 $ 5.10 4.92 $ 2,547 |
Summary of restricted stock awards activity | A summary of activity related to restricted stock awards for the three months ended March 31, 2022 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2022 875 $ 6.26 Granted 2 $ 9.05 Vested (9) $ 11.60 Forfeited (8) $ 5.21 Non-vested as of March 31, 2022 860 $ 6.22 |
Summary of unvested at-risk performance shares | A summary of the status of our unvested at-risk, performance shares as of March 31, 2022 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares* Share Value Non-vested as of January 1, 2022 114 $ 15.37 Granted 74 ** $ 10.91 Vested — $ — Forfeited — $ — Non-vested as of March 31, 2022 188 $ 12.42 *The number of shares presented is based on achieving 150% of the targeted financial performance metric as defined in the at-risk, performance shares agreement. ** The first annual vesting was reported in Q4 2021, when 25% of the at-risk performance shares became eligible subject to review and confirmation by the Compensation Committee after year-end results were certified. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Net Income (Loss) Per Share | |
Reconciliation of numerators and denominators of basic and diluted net income (loss) per share | A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations is as follows (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Numerator: Net income attributable to AXT, Inc. $ 3,165 $ 3,425 Less: Preferred stock dividends (44) (44) Net income available to common stockholders $ 3,121 $ 3,381 Denominator: Denominator for basic net income per share - weighted-average common shares 41,871 41,004 Effect of dilutive securities: Common stock options 474 1,082 Restricted stock awards 317 640 Denominator for dilutive net income per common shares 42,662 42,726 Net income attributable to AXT, Inc. per common share: Basic $ 0.07 $ 0.08 Diluted $ 0.07 $ 0.08 Options excluded from diluted net income (loss) per share as the impact is anti-dilutive 201 21 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive 218 57 |
Segment Information and Forei_2
Segment Information and Foreign Operations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information and Foreign Operations | |
Revenues reported by product type | The following table represents revenue amounts (in thousands) by product type: Three Months Ended March 31, 2022 2021 Product Type: Substrates $ 31,745 $ 23,373 Raw Materials and Other 7,908 7,977 Total $ 39,653 $ 31,350 |
Revenue reported for products shipped to customers in the corresponding geographic region | The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended March 31, 2022 2021 Geographical region: China $ 17,480 $ 15,546 Taiwan 6,859 3,015 Japan 2,807 2,523 Asia Pacific (excluding China, Taiwan and Japan) 1,756 1,817 Europe (primarily Germany) 6,394 5,435 North America (primarily the United States) 4,357 3,014 Total $ 39,653 $ 31,350 |
Long-lived assets by geographic region | Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands): As of March 31, December 31, 2022 2021 Long-lived assets by geographic region, net of depreciation: North America $ 897 $ 1,610 China 148,612 143,129 $ 149,509 $ 144,739 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Product warranty accrued liability | The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Beginning accrued product warranty $ 743 $ 609 Accruals for warranties issued 556 113 Adjustments related to pre-existing warranties including expirations and changes in estimates (113) (54) Cost of warranty repair (354) (86) Ending accrued product warranty $ 832 $ 582 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Schedule of amounts recorded in accrued liabilities | The following table reflects the contract liabilities balance, which is included in “Accrued liabilities” on the condensed consolidated balance sheets, as of March 31, 2022 and December 31, 2021 (in thousands): March 31, December 31, 2022 2021 Contract liabilities $ 1,024 $ 946 During the three months ended March 31, 2022, the Company recognized $321,000 of revenue that was included in the contract balances as of December 31, 2021. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Summary of maturities of our operating lease liabilities | As of March 31, 2022, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2022 $ 444 2023 582 2024 293 2025 293 2026 293 Thereafter 757 Total minimum lease payments 2,662 Less: Interest (353) Present value of lease obligations 2,309 Less: Current portion, included in accrued liabilities (499) Long-term portion of lease obligations $ 1,810 |
Schedule of weighted-average remaining lease term and the weighted-average discount rate of operating leases | March 31, December 31, 2022 2021 Weighted-average remaining lease term (years) 6.29 6.44 Weighted-average discount rate 4.61 % 4.61 % |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 147 $ 141 |
Summary of components of lease expense | The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations: Three Months Ended March 31, 2022 2021 Operating lease $ 134 $ 133 Short-term lease expense 36 24 Total $ 170 $ 157 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Redeemable Noncontrolling Interests | |
Components of the change in redeemable noncontrolling interests | The components of the change in redeemable noncontrolling interests for the three months ended March 31, 2022 are presented in the following table (in thousands): Balance as of January 1, 2022 $ 50,385 Investment in subsidiary with redeemable noncontrolling interest 206 Equity issuance costs incurred (227) Stock-based compensation attributable to redeemable noncontrolling interests (6) Net income attributable to redeemable noncontrolling interests 418 Effect of foreign currency translation on redeemable noncontrolling interests 149 Effect of foreign currency translation attributable to redeemable noncontrolling interests 46 Balance as of March 31, 2022 $ 50,971 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | Jan. 25, 2021USD ($) | Jun. 30, 2021USD ($) | May 31, 2021USD ($) | Feb. 28, 2021USD ($) | Jan. 31, 2021USD ($) | Mar. 31, 2022USD ($)company | Dec. 31, 2021USD ($)company | Dec. 31, 2020USD ($) | Jan. 31, 2022USD ($) | Oct. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Nov. 30, 2020 | May 31, 2019 | Apr. 30, 2019 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Number of equity method investments | company | 5 | 5 | ||||||||||||
Investments, equity method | $ 11,312 | $ 10,166 | ||||||||||||
AXT-Tongmei, Inc | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Cash consideration | $ 1,000 | |||||||||||||
ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | Loan from related party | ChaoYang Xinshuo | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Loan amount | $ 1,000 | $ 900 | ||||||||||||
ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Investment value, agreement amount | $ 1,800 | $ 3,000 | ||||||||||||
Investments, equity method | $ 1,800 | |||||||||||||
Ownership (as a percent) | 58.50% | 58.50% | 58.50% | |||||||||||
Initial funding | $ 1,500 | $ 1,500 | ||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Percentage of outstanding shares | 33.00% | |||||||||||||
Percentage of ownership | 67.00% | 63.00% | ||||||||||||
Beijing Tongmei Xtal Technology | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Percentage of outstanding shares | 7.28% | 14.50% | ||||||||||||
Private equity ownership percentage | 7.28% | 14.50% | ||||||||||||
Percentage of key managers and contributors purchased | 0.40% | |||||||||||||
Investment in new facility | $ 49,000 | $ 48,100 | ||||||||||||
Raised additional capital | $ 1,500 | |||||||||||||
Percentage of ownership | 85.50% | |||||||||||||
Transaction results in increase to noncontrolling interests | $ 1,200 | |||||||||||||
Transaction results in increase to redeemable noncontrolling interests | $ 1,200 | |||||||||||||
Beijing Tongmei Xtal Technology | Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Private equity ownership percentage | 7.59% | |||||||||||||
Beijing Tongmei Xtal Technology | Nanjing JinMei Gallium Co., Ltd | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Private equity ownership percentage | 0.38% | |||||||||||||
Beijing Tongmei Xtal Technology | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Loan amount | $ 1,400 | $ 1,400 | ||||||||||||
Beijing Tongmei Xtal Technology | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Investment amount | $ 900 | $ 900 | ||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Percentage of outstanding shares | 8.50% | |||||||||||||
Percentage of ownership | 100.00% | 97.00% | ||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Nanjing JinMei Gallium Co., Ltd | ||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||
Private equity ownership percentage | 0.38% |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Cash, cash equivalents and investments [Abstract] | ||
Cash | $ 29,494 | $ 36,763 |
Cash equivalents [Abstract] | ||
Total cash and cash equivalents | 29,494 | 36,763 |
Amortized Cost | 15,036 | 15,060 |
Cash, cash equivalents and investments, amortized costs | 44,531 | 51,823 |
Gross Unrealized (Loss) | (237) | (65) |
Fair Value | 14,800 | 14,995 |
Cash, cash equivalents and investments, amortized costs | 44,294 | 51,758 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Due within 1 year | 5,409 | 5,424 |
Due after 1 through 5 years | 9,627 | 9,636 |
Investments, amortized cost | 15,036 | 15,060 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Due within 1 year | 5,400 | 5,419 |
Due after 1 through 5 years | 9,400 | 9,576 |
Investments, fair value | 14,800 | 14,995 |
Total Investments [Member] | ||
Cash equivalents [Abstract] | ||
Amortized Cost | 15,037 | 15,060 |
Gross Unrealized (Loss) | (237) | (65) |
Fair Value | 14,800 | 14,995 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Investments, amortized cost | 15,037 | 15,060 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Investments, fair value | 14,800 | 14,995 |
Certificates of Deposit [Member] | ||
Cash equivalents [Abstract] | ||
Amortized Cost | 6,680 | 6,680 |
Gross Unrealized (Loss) | (90) | (19) |
Fair Value | 6,590 | 6,661 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Investments, amortized cost | 6,680 | 6,680 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Investments, fair value | 6,590 | 6,661 |
Corporate Bonds [Member] | ||
Cash equivalents [Abstract] | ||
Amortized Cost | 8,357 | 8,380 |
Gross Unrealized (Loss) | (147) | (46) |
Fair Value | 8,210 | 8,334 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Investments, amortized cost | 8,357 | 8,380 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Investments, fair value | $ 8,210 | $ 8,334 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Investment Category and Length (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)company | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)company | |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | |||
Fair value, in loss position less than twelve months | $ 11,447 | $ 12,151 | |
Gross unrealized (loss), in loss position less than twelve months | (229) | (61) | |
Fair value, in loss position greater than twelve months | 3,002 | 2,013 | |
Gross unrealized (loss), in loss position greater than twelve months | (7) | (4) | |
Fair value, total in loss position | 14,449 | 14,164 | |
Gross unrealized (loss), total in loss position | (236) | (65) | |
Minority Investments | |||
Investments, equity method | $ 11,312 | $ 10,166 | |
Number of equity method investments | company | 5 | 5 | |
Impairment charge | $ 0 | $ 0 | |
Certificates of Deposit [Member] | |||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | |||
Fair value, in loss position less than twelve months | 6,590 | $ 6,181 | |
Gross unrealized (loss), in loss position less than twelve months | (90) | (19) | |
Fair value, total in loss position | 6,590 | 6,181 | |
Gross unrealized (loss), total in loss position | (90) | (19) | |
Corporate Bonds [Member] | |||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | |||
Fair value, in loss position less than twelve months | 4,857 | 5,970 | |
Gross unrealized (loss), in loss position less than twelve months | (139) | (42) | |
Fair value, in loss position greater than twelve months | 3,002 | 2,013 | |
Gross unrealized (loss), in loss position greater than twelve months | (7) | (4) | |
Fair value, total in loss position | 7,859 | 7,983 | |
Gross unrealized (loss), total in loss position | (146) | (46) | |
Other Assets [Member] | |||
Minority Investments | |||
Investments, equity method | $ 11,300 | $ 10,200 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Assets, Fair Value Disclosure [Abstract] | ||
Investments, amortized cost | $ 14,800 | $ 14,995 |
Fair Value, Transfers Between Level 1 and Level 2, Description and Policy [Abstract] | ||
Transfer from Level 1 to Level 2 , assets | 0 | |
Transfer from Level 2 to Level 1 , assets | 0 | |
Transfers into Level 3, assets | 0 | |
Transfer out of Level 3, assets | 0 | |
Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 14,800 | 14,995 |
Recurring [Member] | Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 6,590 | 6,661 |
Recurring [Member] | Corporate Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, amortized cost | 8,210 | 8,334 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 14,800 | 14,995 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents, fair value disclosure | 6,590 | 6,661 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments, amortized cost | $ 8,210 | $ 8,334 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Raw materials | $ 32,949 | $ 29,658 |
Work in process | 32,411 | 32,605 |
Finished goods | 3,461 | 3,649 |
Inventories, Total | 68,821 | 65,912 |
Inventory reserve | 20,600 | 19,600 |
Excess and obsolete inventory | $ 70,000 | $ 66,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property, plant and equipment | |||
Property, plant and equipment, net | $ 147,286 | $ 142,415 | |
Depreciation and amortization | 1,983 | $ 1,596 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 59,617 | 59,284 | |
Less: accumulated depreciation and amortization | (40,848) | (40,292) | |
Building | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 109,071 | 108,782 | |
Less: accumulated depreciation and amortization | (19,560) | (18,710) | |
Leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 7,060 | 7,039 | |
Less: accumulated depreciation and amortization | (5,521) | (5,352) | |
Construction in progress | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 37,467 | 31,664 | |
Construction in progress Dingxin and Kazuo locations | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 27,200 | 22,700 | |
Construction in progress manufacturing equipment purchases | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 4,300 | 3,000 | |
Construction in progress other consolidated subsidiaries | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 6,100 | $ 6,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Components of accrued liabilities | ||
Accrued compensation and related charges | $ 3,436 | $ 5,115 |
Preferred stock dividends payable | 2,901 | 2,901 |
Advances from customers | 1,024 | 946 |
Accrued income taxes | 1,001 | 539 |
Accrued product warranty | 832 | 743 |
Current portion of operating lease liabilities | 499 | 488 |
Accrued professional services | 423 | 880 |
Other personnel-related costs | 278 | 279 |
Payable in connection with construction in progress | 268 | 2,974 |
Other tax payable | 230 | 392 |
Accrual for sales returns | 20 | 48 |
Other accrued liabilities | 1,301 | 1,752 |
Accrued liabilities, Total | $ 12,213 | $ 17,057 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Oct. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jul. 31, 2021USD ($) | Jul. 31, 2017USD ($)installment | Mar. 31, 2022USD ($)ft² | |
Related Party Transaction [Line Items] | |||||||
Area of leased property (in square feet) | ft² | 19,467 | ||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd | Raw materials purchases from related party | Accounts payable | Beijing Tongmei Xtal Technology | |||||||
Related Party Transaction [Line Items] | |||||||
Amount payable to related party | $ 112,000 | $ 112,000 | |||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Lease of land | Beijing Tongmei Xtal Technology | |||||||
Related Party Transaction [Line Items] | |||||||
Area of leased property (in square feet) | ft² | 22,081 | ||||||
Lease term | 11 years | 10 years | |||||
Annual lease payment | $ 27,000 | $ 24,000 | |||||
Increase in annual lease payment at each third year anniversary (in hundredths) | 5.00% | 5.00% | |||||
Rental increase period | 3 years | ||||||
Nanjing JinMei Gallium Co., Ltd | Related party loan | Beijing Tongmei Xtal Technology | |||||||
Related Party Transaction [Line Items] | |||||||
Number of installments | installment | 3 | ||||||
Related party notes receivable - long term | $ 768,000 | ||||||
Amount payable to related party | 0 | $ 0 | |||||
Interest rate (as a percent) | 4.90% | ||||||
Repayment of related party notes receivable | $ 858,000 | ||||||
ChaoYang Xinshuo | Loan from related party | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | |||||||
Related Party Transaction [Line Items] | |||||||
Amount of transaction | $ 1,000,000 | $ 900,000 | |||||
Long term debt, related party | $ 0 | ||||||
Beijing Tongmei Xtal Technology | Loan from related party | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | |||||||
Related Party Transaction [Line Items] | |||||||
Amount of transaction | $ 1,400,000 | $ 1,400,000 | |||||
Ownership (as a percent) | 58.50% | ||||||
Short-term loan from noncontrolling interest | $ 0 | ||||||
Increase in redeemable noncontrolling interests | 200,000 | ||||||
Increase in noncontrolling interest | $ 2,200,000 |
Investments in Privately-Held_3
Investments in Privately-Held Raw Material Companies (Details) | Jan. 25, 2021USD ($) | Jun. 15, 2018USD ($)installment | Nov. 02, 2017USD ($) | Jun. 30, 2021USD ($) | Jan. 31, 2021USD ($) | Aug. 31, 2020USD ($) | May 31, 2019USD ($) | Sep. 30, 2018USD ($)employeeentity | Mar. 31, 2022USD ($)employee | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)employee | Dec. 31, 2021USD ($) | Nov. 30, 2020 | Jul. 31, 2020 | Jun. 01, 2019USD ($) | Apr. 30, 2019 | Aug. 31, 2018 | Jun. 14, 2018 | Nov. 01, 2017 |
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 11,312,000 | $ 10,166,000 | |||||||||||||||||
Noncontrolling interests | 20,835,000 | 18,317,000 | |||||||||||||||||
Number of persons on board | employee | 1 | ||||||||||||||||||
Impairment charge | 0 | $ 0 | |||||||||||||||||
Joint Ventures [Member] | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Number of consolidated joint ventures | entity | 3 | ||||||||||||||||||
Other Assets [Member] | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | 11,300,000 | 10,200,000 | |||||||||||||||||
Xiaoyi XingAn Gallium Co., Ltd. | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Dividend received | $ 774,000 | ||||||||||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment | Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 2,057,000 | 2,053,000 | |||||||||||||||||
Percentage of ownership, equity method | 46.00% | ||||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 4,292,000 | 3,760,000 | |||||||||||||||||
Percentage of ownership, equity method | 39.00% | ||||||||||||||||||
Xilingol Tongli Germanium Co. Ltd Investment | Xilingol Tongli Germanium Co. Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, equity method | 25.00% | ||||||||||||||||||
Xiaoyi XingAn Gallium Co., Ltd. | Xiaoyi XingAn Gallium Co., Ltd. | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 4,739,000 | 4,095,000 | |||||||||||||||||
Percentage of ownership, equity method | 25.00% | ||||||||||||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd Investment | Emeishan Jia Mei High Purity Metals Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 224,000 | 258,000 | |||||||||||||||||
Percentage of ownership, equity method | 25.00% | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 100.00% | 97.00% | |||||||||||||||||
Percentage of outstanding shares | 8.50% | ||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 67.00% | 63.00% | |||||||||||||||||
Percentage of outstanding shares | 33.00% | ||||||||||||||||||
Beijing Tongmei Xtal Technology | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 85.50% | ||||||||||||||||||
Percentage of outstanding shares | 7.28% | 14.50% | |||||||||||||||||
Private equity ownership percentage | 7.28% | 14.50% | |||||||||||||||||
Percentage of key managers and contributors purchased | 0.40% | ||||||||||||||||||
Increase in redeemable noncontrolling interests | $ 1,500,000 | $ 48,100,000 | |||||||||||||||||
Investments, government approved | $ 49,000,000 | ||||||||||||||||||
Raised additional capital | $ 1,500,000 | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Number of new board representatives | employee | 2 | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd | Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Private equity ownership percentage | 0.38% | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd | Beijing Tongmei Xtal Technology | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Private equity ownership percentage | 0.38% | ||||||||||||||||||
Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Number of new board representatives | employee | 2 | ||||||||||||||||||
Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd | Beijing Tongmei Xtal Technology | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Private equity ownership percentage | 7.59% | ||||||||||||||||||
Majority-Owned Subsidiaries [Member] | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 8,400,000 | 5,572,000 | |||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 592,000 | 592,000 | |||||||||||||||||
Additional percentage of ownership, consolidated method | 12 | 3 | 2 | ||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | $ 1,400,000 | $ 413,000 | $ 252,000 | ||||||||||||||||
Number of installments | installment | 2 | ||||||||||||||||||
Payment of first installment | $ 163,000 | ||||||||||||||||||
Payment of second installment | $ 1,200,000 | ||||||||||||||||||
Noncontrolling interests | $ 0 | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 95.00% | 97.00% | 85.50% | 95.00% | 83.00% | ||||||||||||||
ChaoYang Jin Mei Gallium Co., Ltd [Member] | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 1,820,000 | 1,820,000 | |||||||||||||||||
ChaoYang Jin Mei Gallium Co., Ltd [Member] | ChaoYang Jin Mei Gallium Co., Ltd [Member] | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 91.50% | 85.50% | 100.00% | ||||||||||||||||
Percentage of ownership interest sold | 8.50% | ||||||||||||||||||
Proceeds from sale of previously consolidated subsidiary shares | $ 396,000 | ||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 1,346,000 | 1,346,000 | |||||||||||||||||
Additional percentage of ownership, consolidated method | 4 | ||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | $ 1,600,000 | ||||||||||||||||||
Gain (loss) from equity transaction | $ 0 | ||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | 3rd Party Investor | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage ownership from issuance of shares | 10.00% | ||||||||||||||||||
Raised additional capital | $ 2,000,000 | ||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 63.00% | 85.50% | 70.00% | ||||||||||||||||
ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 4,642,000 | $ 1,814,000 | |||||||||||||||||
ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 58.50% |
Investments in Privately-Held_4
Investments in Privately-Held Raw Material Companies - Minority Investment Entities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)entity | Mar. 31, 2021USD ($) | |
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ||
Revenue | $ 39,653 | $ 31,350 |
Gross profit | 13,308 | 11,536 |
Net income | $ 3,972 | 3,765 |
Minority investment entities | ||
Impaired entities | entity | 1 | |
Five Minority Investments | ||
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ||
Revenue | $ 10,734 | 8,525 |
Gross profit | 5,999 | 3,807 |
Operating income | 4,149 | 3,061 |
Net income | 3,698 | 2,612 |
Minority investment entities | ||
Entity income (loss) excluding impairment | $ 1,100 | $ 1,100 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | 72 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2015 | Dec. 31, 2021 | Oct. 27, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | $ 229,846 | $ 207,969 | |||
Common stock options exercised | 704 | ||||
Stock-based compensation | 875 | 816 | |||
Investment in subsidiary with noncontrolling interest | (206) | (576) | |||
Noncontrolling interest portion of Tongmei stock-based compensation | 10 | ||||
Sale of common stock to employees in connection with the reorganization | 538 | ||||
Tongmei stock-based compensation | 213 | ||||
Net income (loss) | 3,554 | 3,736 | |||
Investment in subsidiary from noncontrolling interest | 1,887 | ||||
Other comprehensive income (loss) | 372 | (147) | |||
Purchase of subsidiary shares from noncontrolling interests | (3,730) | ||||
Balance, end of period | 236,551 | 210,462 | $ 229,846 | ||
Reclassification adjustment from AOCI | 0 | 0 | |||
Net income attributable to redeemable noncontrolling interests | 418 | ||||
Other comprehensive income attributable to redeemable noncontrolling interests | $ 46 | ||||
Stock repurchase program, authorized amount | $ 5,000 | ||||
Shares repurchased (in shares) | 0 | 908,000 | 0 | ||
Average price of shares repurchased (in dollars per share) | $ 2.52 | ||||
Total purchase price | $ 2,300 | ||||
Stock repurchase program remaining authorized repurchase amount | $ 2,700 | ||||
Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | 3,532 | 3,532 | |||
Balance, end of period | 3,532 | 3,532 | $ 3,532 | ||
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | 43 | 42 | |||
Balance, end of period | 43 | 42 | 43 | ||
Additional Paid-In Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | 231,622 | 230,381 | |||
Common stock options exercised | 704 | ||||
Stock-based compensation | 875 | 816 | |||
Investment in subsidiary with noncontrolling interest | (410) | 131 | |||
Noncontrolling interest portion of Tongmei stock-based compensation | 17 | ||||
Sale of common stock to employees in connection with the reorganization | 538 | ||||
Tongmei stock-based compensation | 213 | ||||
Purchase of subsidiary shares from noncontrolling interests | (2,691) | ||||
Balance, end of period | 232,317 | 229,617 | 231,622 | ||
Accumulated Deficit | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | (29,970) | (44,545) | |||
Net income (loss) | 3,165 | 3,425 | |||
Balance, end of period | (26,805) | (41,120) | (29,970) | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | 6,302 | 3,209 | |||
Other comprehensive income (loss) | 327 | (131) | |||
Balance, end of period | 6,629 | 3,078 | 6,302 | ||
AXT, Inc. Stockholders' Equity | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | 211,529 | 192,619 | |||
Common stock options exercised | 704 | ||||
Stock-based compensation | 875 | 816 | |||
Investment in subsidiary with noncontrolling interest | (410) | 131 | |||
Noncontrolling interest portion of Tongmei stock-based compensation | 17 | ||||
Sale of common stock to employees in connection with the reorganization | 538 | ||||
Tongmei stock-based compensation | 213 | ||||
Net income (loss) | 3,165 | 3,425 | |||
Other comprehensive income (loss) | 327 | (131) | |||
Purchase of subsidiary shares from noncontrolling interests | (2,691) | ||||
Balance, end of period | 215,716 | 195,149 | 211,529 | ||
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | 18,317 | 15,350 | |||
Investment in subsidiary with noncontrolling interest | 204 | (707) | |||
Noncontrolling interest portion of Tongmei stock-based compensation | (7) | ||||
Net income (loss) | 389 | 311 | |||
Investment in subsidiary from noncontrolling interest | 1,887 | ||||
Other comprehensive income (loss) | 45 | (16) | |||
Purchase of subsidiary shares from noncontrolling interests | (1,039) | ||||
Balance, end of period | $ 20,835 | $ 15,313 | $ 18,317 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 1,088 | $ 816 |
Net effect on net income | 1,088 | 816 |
Cost of Revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 113 | 39 |
Selling, General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 811 | 640 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 164 | $ 137 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options (Details) - Options [Member] - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation costs related to unvested stock options not yet recognized | $ 300,000 | ||
Value of estimated forfeitures | $ 35,000 | ||
Weighted-average period of amortization | 1 year 4 months 24 days | ||
Number of Options Outstanding [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 1,378 | ||
Granted (in shares) | 0 | 0 | |
Options outstanding, end of period (in shares) | 1,378 | 1,378 | |
Options vested and unvested options expected to vest, net of forfeitures, end of period (in shares) | 1,376 | ||
Options exercisable, end of period (in shares) | 1,140 | ||
Weighted-average Exercise Price [Roll Forward] | |||
Options outstanding, beginning of period (in dollars per share) | $ 4.83 | ||
Options outstanding, end of period (in dollars per share) | 4.83 | $ 4.83 | |
Options vested and unvested options expected to vest, net of forfeitures (in dollars per share) | 4.83 | ||
Options exercisable, end of period (in dollars per share) | $ 5.10 | ||
Weighted average Remaining Contractual Life [Abstract] | |||
Options outstanding | 5 years 4 months 9 days | 5 years 7 months 6 days | |
Options vested and unvested options expected to vest, net of forfeitures, end of period | 5 years 4 months 6 days | ||
Option exercisable, end of period | 4 years 11 months 1 day | ||
Aggregate Intrinsic Value [Abstract] | |||
Options outstanding, beginning of period | $ 5,573,000 | ||
Options outstanding, end of period | 3,383,000 | $ 5,573,000 | |
Options vested and expected to vest, end of period | 3,371,000 | ||
Options exercisable, end of period | $ 2,547,000 | ||
Closing price (in dollars per share) | $ 7.02 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU (Details) - Restricted Stock Awards [Member] $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation costs related to unvested stock options not yet recognized | $ | $ 4.3 |
Weighted-average period of amortization | 1 year 4 months 24 days |
Shares [Roll Forward] | |
Non-vested, beginning of period (in shares) | shares | 875 |
Granted (in shares) | shares | 2 |
Vested (in shares) | shares | (9) |
Forfeited (in shares) | shares | (8) |
Non-vested, end of period (in shares) | shares | 860 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 6.26 |
Granted (in dollars per share) | $ / shares | 9.05 |
Vested (in dollars per share) | $ / shares | 11.60 |
Forfeited (in dollars per share) | $ / shares | 5.21 |
Non-vested, end of period (in dollars per share) | $ / shares | $ 6.22 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares (Details) - Performance Shares - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Mar. 14, 2022 | Feb. 15, 2022 | Feb. 17, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Shares [Roll Forward] | |||||||
Non-vested, beginning of period (in shares) | 114 | ||||||
Granted (in shares) | 74 | ||||||
Non-vested, end of period (in shares) | 188 | 114 | |||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Non-vested, beginning of period (in dollars per share) | $ 15.37 | ||||||
Granted (in dollars per share) | 10.91 | ||||||
Non-vested, end of period (in dollars per share) | $ 12.42 | $ 15.37 | |||||
Weighted-average grant date fair value of stock options granted (in dollars per share) | $ 7.83 | $ 15.37 | |||||
Percentage of year-over-year annual revenue growth rate | 44.00% | ||||||
Percentage of targeted financial performance | 150.00% | 25.00% | |||||
Unrecognized compensation expense related to restricted stock awards | $ 1.5 | ||||||
Weighted average remaining contractual terms | 1 year 9 months 18 days | ||||||
Minimum | Scenario Performance Financial Metric Less Than 50% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Percentage of targeted financial performance | 50.00% | ||||||
Minimum | Scenario Performance Financial Metric is Between 50% to 200% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Percentage of targeted financial performance | 50.00% | ||||||
Maximum | Scenario Performance Financial Metric is Between 50% to 200% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Percentage of targeted financial performance | 200.00% | ||||||
Maximum | Scenario Performance Financial Metric Greater Than 200% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Percentage of targeted financial performance | 200.00% | ||||||
First Anniversary | |||||||
Shares [Roll Forward] | |||||||
Vested (in shares) | 0 | ||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Vesting period | 4 years | ||||||
Chief Executive Officer | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 113,130 | ||||||
Chief Executive Officer | Scenario Performance Financial Metric Less Than 50% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 114,320 | ||||||
Chief Executive Officer | Scenario Performance Financial Metric is Between 50% to 200% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 114,320 | ||||||
Chief Executive Officer | Scenario Performance Financial Metric Greater Than 200% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 114,320 | ||||||
Chief Financial Officer | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 38,475 | ||||||
Chief Financial Officer | Scenario Performance Financial Metric Less Than 50% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 32,100 | ||||||
Chief Financial Officer | Scenario Performance Financial Metric is Between 50% to 200% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 32,100 | ||||||
Chief Financial Officer | Scenario Performance Financial Metric Greater Than 200% | |||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock options grants in period | 32,100 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Numerator: | |||
Net income attributable to AXT, Inc. | $ 3,165 | $ 3,425 | |
Less: Preferred stock dividends | (44) | (44) | |
Net income available to common stockholders | $ 3,121 | $ 3,381 | |
Weighted-average number of common shares outstanding: | |||
Denominator for basic net income (loss) per share - weighted-average common shares | 41,871,000 | 41,004,000 | |
Effect of dilutive securities: | |||
Denominator for dilutive net income per common shares | 42,662,000 | 42,726,000 | |
Net income attributable to AXT,Inc. per common share: | |||
Basic | $ 0.07 | $ 0.08 | |
Diluted | $ 0.07 | $ 0.08 | |
Preferred stock, shares issued (in shares) | 883,000 | 883,000 | |
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 | |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Preferred stock, value | $ 3,532 | $ 3,532 | |
Cumulative annual dividend rate (as a percent) | 5.00% | 5.00% | |
Liquidation preference over common stock (in dollars per share) | $ 4 | $ 4 | |
Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 201,000 | 21,000 | |
Restricted Stock Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 218,000 | 57,000 | |
Options [Member] | |||
Effect of dilutive securities: | |||
Effect of dilutive securities (in shares) | 474,000 | 1,082,000 | |
Restricted Stock Awards [Member] | |||
Effect of dilutive securities: | |||
Effect of dilutive securities (in shares) | 317,000 | 640,000 |
Segment Information and Forei_3
Segment Information and Foreign Operations - Product Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue by product type | ||
Revenue | $ 39,653 | $ 31,350 |
Substrates | ||
Revenue by product type | ||
Revenue | 31,745 | 23,373 |
Raw Materials And Others | ||
Revenue by product type | ||
Revenue | $ 7,908 | $ 7,977 |
Segment Information and Forei_4
Segment Information and Foreign Operations - Segment and Geographical Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 1 | ||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||
Revenue | $ 39,653 | $ 31,350 | |
Long-lived assets by geographic region, net of depreciation: | |||
Long-lived assets | 149,509 | $ 144,739 | |
Reportable Geographical Components | China | |||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||
Revenue | 17,480 | 15,546 | |
Long-lived assets by geographic region, net of depreciation: | |||
Long-lived assets | 148,612 | 143,129 | |
Reportable Geographical Components | Taiwan | |||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||
Revenue | 6,859 | 3,015 | |
Reportable Geographical Components | Japan | |||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||
Revenue | 2,807 | 2,523 | |
Reportable Geographical Components | Asia Pacific (excluding China, Taiwan, and Japan) | |||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||
Revenue | 1,756 | 1,817 | |
Reportable Geographical Components | Europe | |||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||
Revenue | 6,394 | 5,435 | |
Reportable Geographical Components | North America | |||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||
Revenue | 4,357 | $ 3,014 | |
Long-lived assets by geographic region, net of depreciation: | |||
Long-lived assets | $ 897 | $ 1,610 |
Segment Information and Forei_5
Segment Information and Foreign Operations - Concentration of Credit Risk (Details) - Customer concentration - customer | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 0 | ||
Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 2 | 0 | |
Landmark [Member] | Revenue [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 1 | ||
Percentage share generated by major customers | 10.00% | ||
Major Customer One | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Percentage share generated by major customers | 12.00% | ||
Major Customer Two | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Percentage share generated by major customers | 10.00% | ||
Top Five Major Customers | Revenue [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers representing significant share | 5 | 5 | |
Percentage share generated by major customers | 29.00% | 26.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Product Warranty [Abstract] | ||
Period of warranty | 12 months | |
Change in warranty accrual [Roll Forward] | ||
Beginning accrued product warranty | $ 743 | $ 609 |
Accruals for warranties issued | 556 | 113 |
Adjustments related to pre-existing warranties including expirations and changes in estimates | (113) | (54) |
Cost of warranty repair | (354) | (86) |
Ending accrued product warranty | $ 832 | $ 582 |
Cross License Agreement | ||
Preferred label sub abstract as Contractual Obligations | ||
Term of agreement | 10 years | |
Dingxing | ||
Preferred label sub abstract as Contractual Obligations | ||
Total investment agreement value | $ 90,000 | |
Kazuo | ||
Preferred label sub abstract as Contractual Obligations | ||
Total investment agreement value | 15,000 | |
Kazuo | Beijing BoYu Semiconductor Vessel Craftwork Technology Co | ||
Preferred label sub abstract as Contractual Obligations | ||
Total investment agreement value | $ 8,000 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Expense, Net | ||
Income from government grants | $ 200,000 | $ 100,000 |
Foreign exchange loss | $ 228,000 | $ 173,000 |
Income Taxes - (Details)
Income Taxes - (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Income Taxes | |
Unrecognized tax benefit interest and penalties expense | $ 0 |
Unrecognized tax benefits accrued interest and penalties | $ 0 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Contract liabilities | $ 1,024,000 | $ 946,000 |
Revenue recognized, included in contract balances | $ 321,000 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Disaggregation of Revenue [Line Items] | |
Number of operating segments | 1 |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Sales commissions benefit period | 1 year |
Bank Loans and Line of Credit (
Bank Loans and Line of Credit (Details) - USD ($) $ in Thousands | Sep. 12, 2019 | Aug. 09, 2019 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | Jan. 31, 2022 | Nov. 30, 2021 | Jun. 30, 2021 | Oct. 31, 2020 |
Bank Of China | Beijing Tongmei Xtal Technology | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | $ 0 | |||||||||||||||
Combined loans renewed | 0 | |||||||||||||||
Bank Of China | Secured Debt | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | 4,400 | |||||||||||||||
Combined loans renewed | 4,400 | |||||||||||||||
Bank Of China | Secured Debt | Beijing Tongmei Xtal Technology | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 5,800 | 3,100 | $ 3,100 | $ 4,400 | ||||||||||||
Repayments of line of credit | $ 2,700 | $ 3,100 | $ 5,600 | |||||||||||||
Letters of credit outstanding | 2,700 | $ 5,800 | ||||||||||||||
Proceeds from credit facility | $ 2,800 | $ 2,800 | ||||||||||||||
Combined loans renewed | $ 2,700 | $ 5,800 | ||||||||||||||
Interest rate | 3.70% | 3.85% | 3.85% | 4.55% | 4.70% | 4.70% | ||||||||||
Combined loan totals | $ 5,600 | |||||||||||||||
Renewal period | 6 months | |||||||||||||||
Additional loan borrowed | $ 2,700 | |||||||||||||||
Repayments of loan | $ 5,900 | |||||||||||||||
Bank Of China | Secured Debt | Beijing Tongmei Xtal Technology | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | $ 3,100 | |||||||||||||||
Combined loans renewed | 3,100 | |||||||||||||||
Bank Of China | Secured Debt | Beijing Tongmei Xtal Technology | Prime Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable rate spread (as a percent) | 0.40% | 4.70% | ||||||||||||||
ICBC | Secured Debt | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,400 | |||||||||||||||
Annual interest rate at end | 4.30% | |||||||||||||||
Repayments of line of credit | $ 1,600 | $ 400 | ||||||||||||||
Letters of credit outstanding | 1,600 | 1,500 | ||||||||||||||
Proceeds from lines of credit | $ 400 | |||||||||||||||
Combined loans renewed | $ 1,600 | $ 1,500 | ||||||||||||||
Interest rate | 3.92% | |||||||||||||||
ICBC | Secured Debt | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | 1,600 | |||||||||||||||
Combined loans renewed | 1,600 | |||||||||||||||
ICBC | Secured Debt | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | Prime Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable rate spread (as a percent) | 0.07% | 0.15% | ||||||||||||||
Bank of Communications | Secured Debt | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | 1,600 | |||||||||||||||
Combined loans renewed | 1,600 | |||||||||||||||
Bank of Communications | Secured Debt | Beijing Tongmei Xtal Technology | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 3,100 | $ 1,600 | $ 1,600 | |||||||||||||
Letters of credit outstanding | 4,700 | |||||||||||||||
Combined loans renewed | $ 4,700 | |||||||||||||||
Interest rate | 4.00% | 3.30% | ||||||||||||||
Bank of Communications | Secured Debt | Beijing Tongmei Xtal Technology | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | 4,700 | |||||||||||||||
Combined loans renewed | 4,700 | |||||||||||||||
Bank of Communications | Secured Debt | Nanjing JinMei Gallium Co., Ltd Investment | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,600 | |||||||||||||||
Interest rate | 3.30% | |||||||||||||||
Bank of Communications | Secured Debt | Nanjing JinMei Gallium Co., Ltd Investment | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | 1,600 | |||||||||||||||
Combined loans renewed | 1,600 | |||||||||||||||
China Merchants Bank | Secured Debt | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | 1,600 | |||||||||||||||
Combined loans renewed | 1,600 | |||||||||||||||
China Merchants Bank | Secured Debt | Beijing Tongmei Xtal Technology | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,600 | |||||||||||||||
Interest rate | 3.55% | |||||||||||||||
Guarantee fee (as a percent) | 1.50% | |||||||||||||||
Amount of guarantee fee | $ 24 | |||||||||||||||
China Merchants Bank | Unsecured Debt | Beijing Tongmei Xtal Technology | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,600 | |||||||||||||||
Interest rate | 4.22% | |||||||||||||||
China Merchants Bank | Unsecured Debt | Beijing Tongmei Xtal Technology | Lines OF Credit, Current | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit outstanding | 1,600 | |||||||||||||||
Combined loans renewed | $ 1,600 |
Leases (Details)
Leases (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
May 31, 2020 | Mar. 31, 2022USD ($)ft² | |
Leases | ||
Area of leased property (in square feet) | ft² | 19,467 | |
Operating lease, option to extend | true | |
Operating lease, extension term | 3 years | |
Variable lease payments | $ 0 | |
Residual value guarantee | $ 0 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Future minimum lease payments | ||
2022 | $ 444 | |
2023 | 582 | |
2024 | 293 | |
2025 | 293 | |
2026 | 293 | |
Thereafter | 757 | |
Total minimum lease payments | 2,662 | |
Less: Interest | (353) | |
Present value of lease obligations | 2,309 | |
Less: Current portion, included in accrued liabilities | $ (499) | $ (488) |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | |
Long-term portion of lease obligations | $ 1,810 | $ 1,935 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Leases | |||
Weighted-average remaining lease term (years) | 6 years 3 months 14 days | 6 years 5 months 8 days | |
Weighted-average discount rate | 4.61% | 4.61% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 147 | $ 141 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease expense | ||
Operating lease | $ 134 | $ 133 |
Short-term lease expense | 36 | 24 |
Total | $ 170 | $ 157 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - Beijing Tongmei Xtal Technology - USD ($) $ in Millions | Jan. 25, 2021 | Jan. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2020 |
Noncontrolling Interest [Line Items] | ||||
Issue of redeemable noncontrolling interests | $ 1.5 | $ 48.1 | ||
Redeemable noncontrolling interests ownership percentage | 7.06% | |||
Investments, government approved | $ 49 | |||
Percentage of equity issued on conversion of noncontrolling interests | 7.28% | 14.50% | ||
Redemption value | $ 49 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Components of the Change in Redeemable Noncontrolling Interests (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Redeemable Noncontrolling Interests | |
Redeemable noncontrolling interests beginning balance | $ 50,385 |
Investment in subsidiary with redeemable noncontrolling interest | 206 |
Equity issuance costs incurred | (227) |
Stock-based compensation attributable to redeemable noncontrolling interests | (6) |
Net income attributable to redeemable noncontrolling interests | 418 |
Effect of foreign currency translation on redeemable noncontrolling interests | 149 |
Effect of foreign currency translation attributable to redeemable noncontrolling interests | 46 |
Redeemable noncontrolling interests ending balance | $ 50,971 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2022 | Jan. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Subsequent Event | ||||
Investment in subsidiary with noncontrolling interest | $ 206 | $ 576 | ||
Loan from related party | Beijing Tongmei Xtal Technology | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ||||
Subsequent Event | ||||
Increase in noncontrolling interest | $ 2,200 | |||
Increase in redeemable noncontrolling interests | $ 200 | |||
Percentage of ownership, equity method | 58.50% | |||
Subsequent Event | Loan from related party | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ||||
Subsequent Event | ||||
Investment in subsidiary with noncontrolling interest | $ 4,500 | |||
Increase in redeemable noncontrolling interests | 100 | |||
Subsequent Event | Loan from related party | Beijing Tongmei Xtal Technology | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ||||
Subsequent Event | ||||
Amount paid to subsidiary | 1,100 | |||
Investment in subsidiary with noncontrolling interest | 2,600 | |||
Increase in noncontrolling interest | $ 800 | |||
Percentage of ownership, equity method | 58.50% | |||
Subsequent Event | Loan from related party | ChaoYang Xinshuo | ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd | ||||
Subsequent Event | ||||
Amount paid to subsidiary | $ 700 | |||
Investment in subsidiary with noncontrolling interest | $ 1,900 |