Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.001 par value | |
Trading Symbol | AXTI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,644,313 | |
Entity Central Index Key | 0001051627 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 28,522 | $ 34,948 |
Restricted cash | 10,778 | 6,400 |
Short-term investments | 4,270 | 9,339 |
Accounts receivable, net of allowances of $243 and $307 as of September 30, 2023 and December 31, 2022 | 18,883 | 29,252 |
Inventories | 86,383 | 89,629 |
Prepaid expenses and other current assets | 11,474 | 13,977 |
Total current assets | 160,310 | 183,545 |
Long-term investments | 2,118 | |
Property, plant and equipment, net | 158,773 | 161,017 |
Operating lease right-of-use assets | 2,878 | 1,761 |
Other assets | 20,229 | 21,631 |
Total assets | 342,190 | 370,072 |
Current liabilities: | ||
Accounts payable | 6,369 | 10,084 |
Accrued liabilities | 15,520 | 18,164 |
Bank loans | 45,776 | 47,078 |
Total current liabilities | 67,665 | 75,326 |
Noncurrent operating lease liabilities | 2,437 | 1,322 |
Other long-term liabilities | 4,007 | 3,678 |
Total liabilities | 74,109 | 80,326 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interests (Note 18) | 40,634 | 44,846 |
Stockholders' equity: | ||
Preferred stock Series A, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of September 30, 2023 and December 31, 2022 (Liquidation preference of $7,831 and $7,699 as of September 30, 2023 and December 31, 2022) | 3,532 | 3,532 |
Common stock, $0.001 par value; 70,000 shares authorized; 43,644 and 43,554 shares issued and outstanding as of September 30, 2023 and December 31, 2022 | 44 | 44 |
Additional paid-in capital | 237,653 | 235,308 |
Accumulated deficit | (28,419) | (14,159) |
Accumulated other comprehensive loss | (8,581) | (3,118) |
Total AXT, Inc. stockholders' equity | 204,229 | 221,607 |
Noncontrolling interests | 23,218 | 23,293 |
Total stockholders' equity | 227,447 | 244,900 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 342,190 | $ 370,072 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Accounts receivable, allowances for doubtful accounts | $ 243 | $ 307 |
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 | $ 7,831 | $ 7,699 |
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) | 43,644,000 | 43,554,000 |
Common stock, shares outstanding (in shares) | 43,644,000 | 43,554,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 17,366 | $ 35,183 | $ 55,366 | $ 114,323 |
Cost of revenue | 15,500 | 20,401 | 46,675 | 70,798 |
Gross profit | 1,866 | 14,782 | 8,691 | 43,525 |
Operating expenses: | ||||
Selling, general and administrative | 5,667 | 6,576 | 17,439 | 19,719 |
Research and development | 2,926 | 3,639 | 9,261 | 10,251 |
Total operating expenses | 8,593 | 10,215 | 26,700 | 29,970 |
Income (loss) from operations | (6,727) | 4,567 | (18,009) | 13,555 |
Interest expense, net | (381) | (299) | (1,143) | (670) |
Equity in income of unconsolidated joint ventures | 369 | 2,006 | 2,344 | 5,308 |
Other income, net | 223 | 957 | 1,282 | 1,242 |
Income (loss) before provision (benefit) for income taxes | (6,516) | 7,231 | (15,526) | 19,435 |
Provision (benefit) for income taxes | (101) | 501 | (92) | 2,188 |
Net income (loss) | (6,415) | 6,730 | (15,434) | 17,247 |
Less: Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 592 | (971) | 1,174 | (2,777) |
Net income (loss) attributable to AXT, Inc. | $ (5,823) | $ 5,759 | $ (14,260) | $ 14,470 |
Net income (loss) attributable to AXT, Inc. per common share: | ||||
Basic | $ (0.14) | $ 0.14 | $ (0.34) | $ 0.34 |
Diluted | $ (0.14) | $ 0.13 | $ (0.34) | $ 0.34 |
Weighted-average number of common shares outstanding: | ||||
Basic | 42,638 | 42,163 | 42,574 | 42,011 |
Diluted | 42,638 | 42,982 | 42,574 | 42,718 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ (6,415) | $ 6,730 | $ (15,434) | $ 17,247 |
Other comprehensive loss, net of tax: | ||||
Change in foreign currency translation loss, net of tax | (580) | (7,299) | (6,938) | (13,772) |
Change in unrealized gain (loss) on available-for-sale debt investments, net of tax | 65 | (58) | 253 | (301) |
Total other comprehensive loss, net of tax | (515) | (7,357) | (6,685) | (14,073) |
Comprehensive income (loss) attributable to AXT, Inc. | (6,930) | (627) | (22,119) | 3,174 |
Less: Comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 701 | 293 | 2,396 | (460) |
Comprehensive income (loss) attributable to AXT, Inc. | $ (6,229) | $ (334) | $ (19,723) | $ 2,714 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (15,434) | $ 17,247 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6,424 | 6,050 |
Amortization of marketable securities premium | 18 | 50 |
Stock-based compensation | 2,718 | 3,261 |
(Gain) Loss on disposal of equipment | 18 | (136) |
Return of equity method investments as dividends | 3,666 | 1,608 |
Equity in income of unconsolidated joint ventures | (2,344) | (5,308) |
Deferred tax assets | 122 | 165 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 9,594 | (5,406) |
Inventories | (1,013) | (32,659) |
Prepaid expenses and other current assets | 1,909 | 6,445 |
Other assets | 219 | (1,461) |
Accounts payable | (3,375) | (1,635) |
Accrued liabilities | (1,742) | (2,927) |
Other long-term liabilities | 1,194 | 5,405 |
Net cash provided by (used in) operating activities | 1,974 | (9,301) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (11,178) | (28,765) |
Purchases of available-for-sale debt securities | (2,160) | |
Proceeds from sales and maturities of available-for-sale debt securities | 7,423 | 5,400 |
Proceeds from sales of equity securities - 15% of Jia Mei | 827 | |
Investments in non-marketable equity investments | (1,918) | |
Net cash used in investing activities | (4,846) | (25,525) |
Cash flows from financing activities: | ||
Proceeds from common stock options exercised | 10 | 517 |
Proceeds from bank loans | 42,197 | 42,352 |
Payments on bank loans | (40,673) | (9,826) |
Proceeds from capital increase in subsidiary shares from noncontrolling interests | 708 | 2,232 |
Net cash provided by financing activities | 2,242 | 35,275 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1,418) | (394) |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (2,048) | 55 |
Cash and cash equivalents, and restricted cash at the beginning of the year | 41,348 | 36,763 |
Cash and cash equivalents, and restricted cash at the end of the period | 39,300 | 36,818 |
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 | 308 | 937 |
Bank loan proceeds paid directly to a third-party vendor, included in accounts payable | 474 | |
Sales of land and building to unconsolidated joint venture | 976 | |
Consideration payable in connection with construction in progress, included in accrued liabilities | $ 3,315 | $ 3,378 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 9 Months Ended |
Sep. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Percentage of equity interest sold | 15% |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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 (“U.S. 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 U.S. 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 U.S. 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 and nine months ended September 30, 2023 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 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2023 and our Quarterly Reports on Form 10-Q for the three months ended March 31, 2023 and June 30, 2023 filed with the SEC on May 10, 2023 and August 9, 2023, respectively. 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”), ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. (“ChaoYang ShuoMei”), MaAnShan JinMei Gallium Ltd., (“MaAnShan JinMei”) 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 September 30, 2023 and December 31, 2022, we have four and five companies, respectively, accounted for by the equity method. In May 2023, we reduced our ownership in Emeishan Jia Mei High Purity Metals Co., Ltd. (“Jia Mei”) from 25% to 10% by selling a portion of our Jia Mei shares to an unrelated third party for approximately $827,000. As a result of our decreased ownership and the fact that we do not have the ability to exercise significant influence over Jia Mei’s operations, as of May 2023, we no longer reported Jia Mei as an equity investment in our condensed consolidated balance sheets. Our Jia Mei investment was re-measured to fair value at the time of sale. Any future changes to the fair value are recognized through net income (“fair value 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 warranted by favorable market conditions, we intend to construct facilities at the ChaoYang LiMei location to provide us with additional production capacity. For the three and nine months ended September 30, 2023, 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, Tongmei and 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, Tongmei and 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. In April 2022, Tongmei entered into a capital increase agreement (the “Capital Increase Agreement”) with minority investors to further invest approximately $4.5 million in ChaoYang XinMei. Tongmei’s portion of the investment was approximately $2.6 million, of which $1.1 million was invested in April 2022 and $0.8 million was invested in May 2022. The minority investors’ portion of the investment was approximately $1.9 million, of which $0.7 million was invested in April 2022 and $0.6 million was invested in May 2022. As a result, noncontrolling interests increased $1.4 million and redeemable noncontrolling interests increased $0.1 million. Tongmei’s ownership remained at 58.5% after the April 2022 and May 2022 equity investments. In July 2022, Tongmei and the minority investors further invested $0.8 million and $0.6 million in ChaoYang XinMei, respectively. This completed the investment obligations under the Capital Increase Agreement. As a result, noncontrolling interests increased $610,000 and redeemable noncontrolling interests increased $57,000. Tongmei’s ownership remained at 58.5% after the July 2022 equity investment. In April 2022, ChaoYang JinMei signed a joint venture agreement with certain investors to fund a new company, ChaoYang ShuoMei, our consolidated subsidiary (the “ChaoYang ShouMei Joint Venture Agreement”). The ChaoYang ShuoMei Joint Venture Agreement called for a total investment of approximately $4.4 million, of which ChaoYang JinMei would fund approximately $3.3 million for a 75 percent ownership of ChaoYang ShuoMei. In July and August 2022, ChaoYang JinMei completed the initial funding of $1.0 million in ChaoYang ShuoMei. In August 2022, the investor invested $334,000 in ChaoYang ShuoMei. As a result, noncontrolling interests increased $406,000 and redeemable noncontrolling interests increased $73,000. In January 2023, ChaoYang ShuoMei received $0.5 million in funding from ChaoYang JinMei and $0.2 million in funding from one of the minority investors. As a result, noncontrolling interests increased $0.2 million and redeemable noncontrolling interests increased $36,000. ChaoYang JinMei’s ownership of ChaoYang ShuoMei remained at 75% after these equity investments. In May 2023, ChaoYang ShuoMei received $1.0 million in funding from ChaoYang JinMei and $0.3 million in funding from one of the minority investors. As a result, noncontrolling interests increased $0.4 million and redeemable noncontrolling interests increased $75,000. In August 2023, ChaoYang ShuoMei received $0.6 million in funding from ChaoYang JinMei and $0.2 million in funding from one of the minority investors. As a result, noncontrolling interests increased $0.2 million and redeemable noncontrolling interests increased $44,000. ChaoYang JinMei has completed its investment obligations under the ChaoYang ShuoMei Joint Venture Agreement. ChaoYang JinMei’s ownership of ChaoYang ShuoMei remained at 75% after these equity investments. In April 2022, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang KaiMei Quartz Co., Ltd (“ChaoYang KaiMei”) (the “ChaoYang KaiMei Joint Venture Agreement called for a total investment of approximately $7.6 million, of which Tongmei would fund approximately $3.0 million for a 40 percent ownership of ChaoYang KaiMei. In July 2022, Tongmei and the investors completed the initial funding of approximately $2.2 million. Tongmei’s portion of the investment was approximately $0.9 million. In January 2023, Tongmei made an investment of $0.9 million to ChaoYang KaiMei. In each of July 2023 and August 2023, Tongmei made an investment of approximately $0.6 million in ChaoYang KaiMei. These contributions culminated in the fulfillment of all of Tongmei’s financial obligations under the ChaoYang KaiMei Joint Venture Agreement. Tongmei’s ownership of ChaoYang KaiMei remained at 40% after these equity investments. All activities for MaAnShan JinMei ceased during the first half of 2022 and the subsidiary was subsequently dissolved in May 2022. The dissolution of MaAnShan JinMei had a de minimis impact on the condensed consolidated results. 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 | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022, our cash, cash equivalents and debt investments are classified as follows (in thousands): September 30, 2023 December 31, 2022 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash and restricted cash $ 39,300 $ — $ — $ 39,300 $ 41,348 $ — $ — $ 41,348 Cash equivalents: Certificates of deposit 1 — — — — — — — — Total cash, restricted cash and cash equivalents 39,300 — — 39,300 41,348 — — 41,348 Investments (available-for-sale): Certificates of deposit 2 4,320 — (50) 4,270 6,440 — (175) 6,265 Corporate bonds — — — — 5,320 — (128) 5,192 Total investments 4,320 — (50) 4,270 11,760 — (303) 11,457 Total cash, restricted cash, cash equivalents and investments $ 43,620 $ — $ (50) $ 43,570 $ 53,108 $ — $ (303) $ 52,805 Contractual maturities on investments: Due within 1 year 3 $ 4,320 $ 4,270 $ 9,600 $ 9,339 Due after 1 through 5 years 4 — — 2,160 2,118 $ 4,320 $ 4,270 $ 11,760 $ 11,457 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 September 30, 2023, 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. 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 September 30, 2023 (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 September 30, 2023 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ — $ — $ 4,270 $ (50) $ 4,270 $ (50) Corporate bonds — — — — — Total in loss position $ — $ — $ 4,270 $ (50) $ 4,270 $ (50) 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, 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 December 31, 2022 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ 2,118 $ (42) $ 4,146 $ (133) $ 6,264 $ (175) Corporate bonds — — 4,842 (128) 4,842 (128) Total in loss position $ 2,118 $ (42) $ 8,988 $ (261) $ 11,106 $ (303) Restricted Cash We maintain restricted cash in connection with cash balances temporarily restricted for regular business operations. In May 2022, Tongmei and the Bank of Beijing signed a credit facility for $3.4 million. As a condition of the credit facility we must maintain a time deposit at the Bank of Beijing as collateral, and therefore we placed time deposits of $2.9 million and $1.0 million at the Bank of Beijing in April 2022 and May 2022, respectively. In December 2022, we placed another time deposit of $2.5 million at the Bank of Beijing as collateral for a bank loan of $2.3 million received by Tongmei in January 2023. In January 2023, our consolidated subsidiary, ChaoYang LiMei, placed a time deposit of $3.0 million at the Bank of China as collateral for a bank loan of $2.9 million received by Tongmei in January 2023. When the May 2022 bank loan under the credit facility matured, we utilized the same time deposit of $3.9 million as collateral for a new bank loan of $3.5 million from the Bank of Beijing in June 2023. Furthermore, during June 2023, we placed another time deposit of $1.5 million at the Bank of Beijing as collateral for a bank loan of $1.4 million received by Tongmei. Each of the bank loans has a term of 12 months. Therefore, the January 2023 bank loans and June 2023 bank loans, along with the respective time deposits, are classified as short-term investments in our condensed consolidated balance sheets. The time deposits have been excluded from the Company’s cash and cash equivalents balance. As of September 30, 2023, $10.8 million was included in restricted cash in our condensed consolidated balance sheets. 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 $13.2 million and $14.6 million as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, there were four companies accounted for under the equity method. One of our equity investments, Beijing JiYa Semiconductor Material Co., Ltd. (“JiYa”), determined one of their equity investments was fully impaired and wrote the asset balance down to zero. This resulted in a $754,000 impairment charge in our second quarter 2023 financial results. Except as mentioned above, there were no impairment charges for the remainder of these investments during the three and nine months ended September 30, 2023 and 2022. In May 2023, we reduced our ownership in Jia Mei from 25% to 10% by selling a portion of our Jia Mei shares to an unrelated third party for approximately $827,000. As a result of our decreased ownership and the fact that we do not have the ability to exercise significant influence over Jia Mei’s operations, we adopted the fair value method of accounting to report Jia Mei’s financial statements. Our investments under the fair value method are reviewed for other-than-temporary declines in value on a quarterly basis. We monitor our investments for impairment and record reductions in carrying value when events or changes in circumstances indicate that the carrying value may not be recoverable. As of September 30, 2023, our investments in this unconsolidated company had a carrying value of $551,000 and were included in “Other assets” in the condensed consolidated balance sheets. As a result of the share sale, we recognized a gain of $575,000. Additionally, in accordance with ASC 321-10-35-2, we adjusted the investment in Jia Mei to its fair value at the time of electing the fair value method, which resulted in a gain of $383,000. The gain resulting from the sale and the subsequent remeasurement was incorporated as a component of “Equity in income of unconsolidated joint ventures” in the condensed consolidated statements of operations for the three months ended June 30, 2023 and nine months ended September 30, 2023. 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 September 30, 2023 and December 31, 2022, 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 includes 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 U.S. GAAP. At quarter end, any foreign currency hedges not settled are netted in “Accrued liabilities” on the condensed consolidated balance sheets and classified as Level 3 assets and liabilities. As of September 30, 2023, 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 and nine months ended September 30, 2023. There have been no transfers between fair value measurements levels during the three and nine months ended September 30, 2023. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of September 30, 2023 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs September 30, 2023 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 4,270 $ — $ 4,270 $ — Corporate bonds — — — — Total $ 4,270 $ — $ 4,270 $ — 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, 2022 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 6,265 $ — $ 6,265 $ — Corporate bonds 5,192 — 5,192 — Total $ 11,457 $ — $ 11,457 $ — 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 fair value method (see Note 7). We did not record any other-than-temporary impairment charges for these investments during the three and nine months ended September 30, 2023 and 2022, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventories | |
Inventories | Note 3. Inventories The components of inventories are summarized below (in thousands): September 30, December 31, 2023 2022 Inventories: Raw materials $ 34,955 $ 46,476 Work in process 47,649 39,956 Finished goods 3,779 3,197 $ 86,383 $ 89,629 As of September 30, 2023 and December 31, 2022, carrying values of inventories were net of inventory reserves of $24.7 million and $24.7 million, respectively, for excess and obsolete inventory and $127,000 and $47,000, respectively, for lower of cost or net realizable value reserves. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
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): September 30, December 31, 2023 2022 Property, plant and equipment: Machinery and equipment, at cost $ 64,030 $ 62,797 Less: accumulated depreciation and amortization (40,416) (38,477) Building, at cost 113,101 118,550 Less: accumulated depreciation and amortization (21,741) (20,403) Leasehold improvements, at cost 7,374 7,430 Less: accumulated depreciation and amortization (5,704) (5,559) Construction in progress 42,129 36,679 $ 158,773 $ 161,017 As of September 30, 2023, the balance of construction in progress was $42.1 million, of which $35.4 million was related to our buildings in our new Dingxing and Kazuo locations, $3.5 million was for manufacturing equipment purchases not yet placed in service and $3.2 million was for construction in progress for our other consolidated subsidiaries. As of December 31, 2022, the balance of construction in progress was $36.7 million, of which $27.2 million was for our buildings in our new Dingxing and Kazuo locations, $5.4 million was for manufacturing equipment purchases not yet placed in service and $4.1 million was for our construction in progress for our other consolidated subsidiaries. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities | |
Accrued Liabilities | Note 5. Accrued Liabilities The components of accrued liabilities are summarized below (in thousands): September 30, December 31, 2023 2022 Payable in connection with construction in progress $ 3,779 $ 4,135 Accrued compensation and related charges 3,151 4,774 Preferred stock dividends payable 2,901 2,901 Accrued product warranty 876 669 Accrued professional services 775 930 Other tax payable 621 867 Advances from customers 563 338 Current portion of operating lease liabilities 443 485 Other personnel-related costs 356 291 Accrual for sales returns 53 112 Accrued income taxes 25 729 Other accrued liabilities 1,977 1,933 $ 15,520 $ 18,164 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions | |
Related Party Transactions | Note 6. Related Party Transactions ChaoYang Tongmei purchases raw materials from one of our equity investment entities, Donghai County Dongfang High Purity Electronic Materials Co., Ltd., (“Dongfang”) for production in the ordinary course of business. As of September 30, 2023 and December 31, 2022, amounts payable of $97,000 and $103,000 , respectively, were included in “Accounts payable 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. As of December 31, 2021, $1.9 million was included in short-term loan from noncontrolling interest in our condensed consolidated balance sheets. 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 ChaoYang XinMei as an equity investment. As a result, noncontrolling interests increased In September 2022, our consolidated subsidiary, ChaoYang LiMei completed the sale of land and its attached buildings to our equity investment entity , ChaoYang KaiMei, for a total consideration of $1.5 million. In January 2023, ChaoYang KaiMei paid to ChaoYang LiMei $1.5 million. As of September 30, 2023, $0 million was included in “Prepaid expenses and other current assets” in our condensed consolidated balance sheets. Our Related Party Transactions Policy seeks to prohibit all conflicts |
Investments in Privately-Held R
Investments in Privately-Held Raw Material Companies | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, December 31, Accounting Ownership * Company 2023 2022 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 ShuoMei High Purity Semiconductor Materials Co., Ltd. 3,122 1,000 Consolidated **** 75.0 % ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. 7,331 7,331 Consolidated *** 58.5 % $ 14,211 $ 12,089 Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ 1,716 $ 1,887 Equity ** 46 % Beijing JiYa Semiconductor Material Co., Ltd. 4,004 6,381 Equity 39 % Xiaoyi XingAn Gallium Co., Ltd. 4,904 5,094 Equity ** 25 % ChaoYang KaiMei Quartz Co., Ltd. 2,577 827 Equity ***** 40 % Emeishan Jia Mei High Purity Metals Co., Ltd. N/A 418 Equity ****** 25 % $ 13,201 $ 14,607 Emeishan Jia Mei High Purity Metals Co., Ltd. 551 N/A Fair value ****** 10 % $ 551 $ — * 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 *** In February 2021, Tongmei signed a joint venture agreement with certain investors to fund ChaoYang XinMei. **** In April 2022, ChaoYang JinMei signed a joint venture agreement with certain investor to fund a new company, ChaoYang ShuoMei. ***** In April 2022, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang KaiMei. ****** In May 2023, we sold 15% of our equity investments in Jia Mei to a third party. We now own 10% of Jia Mei and account for it under the fair value method. In May 2023, we reduced our ownership in Jia Mei from 25% to 10% by selling a portion of our Jia Mei shares to an unrelated third party for approximately $827,000 . Amount (in thousands) Fair value of the consideration received $ 779 Foreign income tax withholding 48 Carrying value of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd. (252) Gain recognized on sale of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd. $ 575 Amount (in thousands) Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd. $ 551 Carrying value of retained noncontrolling investment (10%) (168) Gain on retained noncontrolling investment due to remeasurement (10%) $ 383 The Jia Mei investment is reviewed for other-than-temporary declines in value on a quarterly basis. We did not record any other-than-temporary impairment charges for Jia Mei investment during the three and nine months ended September 30, 2023. 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. 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 $13.2 million and $14.6 million as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, our respective ownership interests in Dongfang, ChaoYang KaiMei, JiYa, Xiaoyi XingAn Gallium Co., Ltd (“Xiaoyi XingAn”) and Jia Mei was 46%, 40%, 39%, 25%, and 10%, respectively. 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 2022, we received a $1.3 million dividend from BoYu. In July 2022, we received a $1.5 million dividend from one of our equity investment entities, Xiaoyi XingAn. In August 2022, we received a $125,000 dividend from one of our equity investment entities, JiYa. In April 2023, each of Xiaoyi XingAn and JiYa AXT’s minority investment entities are not consolidated and are accounted for under the equity method. The equity investment entities had the following summarized statements of operations information (in thousands) for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net revenue $ 8,834 $ 13,658 $ 24,486 $ 38,491 Gross profit $ 2,620 $ 8,687 $ 8,174 $ 23,412 Operating income $ 1,962 $ 8,039 $ 7,134 $ 21,308 Net income $ 1,449 $ 6,088 $ 6,307 $ 17,039 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 an income of $0.4 million and $2.0 million, respectively, for the three months ended September 30, 2023 and 2022. 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 $1.4 million and $5.3 million, respectively, for the nine months ended September 30, 2023 and 2022. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
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 and nine months ended September 30, 2023 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, 2022 $ 3,532 $ 44 $ 235,308 $ (14,159) $ (3,118) $ 221,607 $ 23,293 $ 244,900 Common stock options exercised — — 8 — — 8 — 8 Investment in subsidiary with noncontrolling interest — — (36) — — (36) 239 203 Investment in subsidiary with redeemable noncontrolling interest — — (36) — — (36) — (36) Noncontrolling interest portion of Tongmei stock-based compensation — — 33 — — 33 (16) 17 Stock-based compensation — — 717 — — 717 — 717 Tongmei stock-based compensation — — 198 — — 198 — 198 Net loss — — — (3,348) — (3,348) (169) (3,517) Other comprehensive income — — — — 858 858 70 928 Balance as of March 31, 2023 $ 3,532 $ 44 $ 236,192 $ (17,507) $ (2,260) $ 220,001 $ 23,417 $ 243,418 Common stock options exercised — — 2 — — 2 — 2 Investment in subsidiary with noncontrolling interest — — (74) — — (74) 380 306 Investment in subsidiary with redeemable noncontrolling interest — — (75) — — (75) — (75) Noncontrolling interest portion of Tongmei stock-based compensation — — 31 — — 31 (14) 17 Stock-based compensation — — 720 — — 720 — 720 Tongmei stock-based compensation — — 192 — — 192 — 192 Net loss — — — (5,089) — (5,089) 38 (5,051) Other comprehensive income (loss) — — — — (5,915) (5,915) (623) (6,538) Balance as of June 30, 2023 $ 3,532 $ 44 $ 236,988 $ (22,596) $ (8,175) $ 209,793 $ 23,198 $ 232,991 Common stock options exercised — — — — — — — — Investment in subsidiary with noncontrolling interest — — (43) — — (43) 242 199 Investment in subsidiary with redeemable noncontrolling interest (44) — — (44) — (44) Noncontrolling interest portion of Tongmei stock-based compensation — — (139) — — (139) 68 (71) Stock-based compensation — — 703 — — 703 — 703 Tongmei stock-based compensation — — 188 — — 188 — 188 Net loss — — — (5,823) — (5,823) (236) (6,059) Other comprehensive income (loss) — — — — (406) (406) (54) (460) Balance as of September 30, 2023 $ 3,532 $ 44 $ 237,653 $ (28,419) $ (8,581) $ 204,229 $ 23,218 $ 227,447 Net loss and Other comprehensive loss attributable to redeemable noncontrolling interests were $356,000 and $55,000, respectively, for the three months ended September 30, 2023 and $807,000 and $615,000, respectively, for the nine months ended September 30, 2023 and are not shown in the table above. The changes in stockholders’ equity by component for the three and nine months ended September 30, 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 Common stock options exercised — — 146 — — 146 — 146 Investment in subsidiary with noncontrolling interest — — (268) — — (268) 1,447 1,179 Noncontrolling interest portion of Tongmei stock-based compensation — — 32 — — 32 (16) 16 Stock-based compensation — — 919 — — 919 — 919 Tongmei stock-based compensation — — 218 — — 218 — 218 Net income — — — 5,546 — 5,546 450 5,996 Other comprehensive income (loss) — — — — (5,992) (5,992) (569) (6,561) Balance as of June 30, 2022 $ 3,532 $ 43 $ 233,364 $ (21,259) $ 637 $ 216,317 $ 22,147 $ 238,464 Common stock options exercised — — 371 — — 371 — 371 Investment in subsidiary with noncontrolling interest — — (259) — — (259) 1,048 789 Noncontrolling interest portion of Tongmei stock-based compensation — — 20 — — 20 (4) 16 Stock-based compensation — — 921 — — 921 — 921 Tongmei stock-based compensation — — 115 — — 115 — 115 Net income — — — 5,759 — 5,759 446 6,205 Other comprehensive income (loss) — — — — (6,094) (6,094) (628) (6,722) Balance as of September 30, 2022 $ 3,532 $ 43 $ 234,532 $ (15,500) $ (5,457) $ 217,150 $ 23,009 $ 240,159 Net income and Other comprehensive loss attributable to redeemable noncontrolling interests were $525,000 and $635,000, respectively, for the three months ended September 30, 2022, and $1.5 million and $1.2 million, respectively, for the nine months ended September 30, 2022 not shown in the table above. 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 2022. During the three and nine months ended September 30, 2023, we did no t repurchase any shares under the approved stock repurchase program. As of September 30, 2023, 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 | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Cost of revenue $ 102 $ 51 $ 310 $ 277 Selling, general and administrative 639 806 1,926 2,480 Research and development 150 179 482 504 Net effect on net income (loss) $ 891 $ 1,036 $ 2,718 $ 3,261 As of September 30, 2023, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plan was approximately $18,000 , net of estimated forfeitures of $2,000 . 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 September 30, 2023 and December 31, 2022 due to the immateriality of the amount. We estimate the fair value of stock options using the Black-Scholes option pricing model, consistent with the provisions of ASC 718. There were no options granted in the three and nine months ended September 30, 2023 and 2022. The following table summarizes the stock option transactions during the nine months ended September 30, 2023 (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, 2023 1,206 $ 5.09 5.08 $ 630 Granted — — Exercised (4) 2.30 Canceled and expired (2) 4.79 Balance as of September 30, 2023 1,200 $ 5.10 4.34 $ 14 Options vested as of September 30, 2023 and unvested options expected to vest, net of forfeitures 1,200 $ 5.10 4.34 $ 14 Options exercisable as of September 30, 2023 1,177 $ 5.14 4.31 $ 14 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $2.40 on September 29, 2023, 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 nine months ended September 30, 2023 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2023 984 $ 5.55 Granted 90 $ 3.65 Vested (141) $ 5.89 Forfeited (3) $ 5.40 Non-vested as of September 30, 2023 930 $ 5.31 As of September 30, 2023, the unamortized compensation costs related to unvested restricted stock awards was approximately $3.5 million, which is to be amortized on a straight-line basis over a weighted-average period of approximately 1.1 years. At-Risk, Performance Shares In February 2022 and March 2023, 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 2022 is based upon year-end 2021 actual results as compared to the Company’s year-end actual results in 2022. The financial performance metrics for the at-risk, performance shares issued in March 2023 are based upon the Company’s year-end actual results in 2023. 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 2022 and 2023, 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 2022 and March 2023 was On February 17, 2021, the Compensation Committee recommended, and the Board of Directors 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 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 of Directors 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. On February 14, 2023, the Compensation Committee met and certified the year-over-year annual revenue growth rate achieved for fiscal year 2022, expressed as a percentage, was 2.7%. Therefore, none of the at-risk performance shares became eligible to vest. On March 15, 2023, the Compensation Committee recommended, and the Board of Directors approved, the grant to Dr. Morris Young of 223,590 at-risk, performance shares under the Plan. On March 15, 2023, the Compensation Committee approved, the grant to Gary Fischer of 77,600 at-risk, performance shares under the Plan. If the minimum financial metric is achieved, then based upon a performance formula, a corresponding portion of the 223,590 shares issued to Dr. Young would be eligible to vest and a corresponding portion of the 77,600 shares issued to Mr. Fischer would be eligible to vest. If the target financial metric is exceeded and an additional financial metric is achieved, additional shares above the target number of shares are earned based on such performance formula and the maximum number of additional shares earned is capped at 100% of the target. If the minimum financial metric is not achieved, then these awards are forfeited based upon the pre-determined revenue metric for the year ending December 31, 2023. A summary of the status of our unvested at-risk, performance shares as of September 30, 2023 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2023 76 $ 15.37 Granted 13 $ 3.71 Vested — $ Forfeited (13) $ 3.71 Non-vested as of September 30, 2023 76 $ 15.37 As of September 30, 2023, there was $0.2 million of unrecognized compensation expense related to unvested at-risk, performance shares that is expected to be recognized over a weighted-average period of 0.6 years. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Numerator: Net income (loss) attributable to AXT, Inc. $ (5,823) $ 5,759 $ (14,260) $ 14,470 Less: Preferred stock dividends (44) (44) (132) (132) Net income (loss) available to common stockholders $ (5,867) $ 5,715 $ (14,392) $ 14,338 Denominator: Denominator for basic net income (loss) per share - weighted-average common shares 42,638 42,163 42,574 42,011 Effect of dilutive securities: Common stock options — 440 — 399 Restricted stock awards — 379 — 308 Denominator for dilutive net income (loss) per common shares 42,638 42,982 42,574 42,718 Net income (loss) attributable to AXT, Inc. per common share: Basic $ (0.14) $ 0.14 $ (0.34) $ 0.34 Diluted $ (0.14) $ 0.13 $ (0.34) $ 0.34 Options excluded from diluted net income (loss) per share as the impact is anti-dilutive — 184 — 201 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive — 69 — 202 The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of September 30, 2023 and December 31, 2022, 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 | 9 Months Ended |
Sep. 30, 2023 | |
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. In accordance with ASC Topic 280, Segment Reporting, our chief operating decision maker has been identified as the 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Product Type: Substrates $ 10,385 $ 26,861 $ 34,901 $ 90,300 Raw Materials and Other 6,981 8,322 20,465 24,023 Total $ 17,366 $ 35,183 $ 55,366 $ 114,323 Geographical Information The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Geographical region: China $ 10,307 $ 12,314 $ 28,698 $ 48,239 Taiwan 2,491 7,816 6,369 21,719 Japan 558 2,671 3,489 8,196 Asia Pacific (excluding China, Taiwan and Japan) 894 765 2,722 3,183 Europe (primarily Germany) 2,407 4,989 8,992 16,682 North America (primarily the United States) 709 6,628 5,096 16,304 Total $ 17,366 $ 35,183 $ 55,366 $ 114,323 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 September 30, December 31, 2023 2022 Long-lived assets by geographic region, net of depreciation: North America $ 1,698 $ 346 China 159,953 162,432 $ 161,651 $ 162,778 Significant Customers No customers represented 10% of our revenue for the three months ended September 30, 2023 and one customer, Landmark, represented 18% of our revenue for the three months ended No customers represented 10% of our revenue for the nine months ended customer, Landmark, represented 14% of our revenue for the nine months ended September 30, 2022 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. No customers accounted for 10% of our accounts receivable balance as of September 30, 2023 , |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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 and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Beginning accrued product warranty $ 852 $ 839 $ 669 $ 743 Accruals for warranties issued 104 95 762 842 Adjustments related to pre-existing warranties including expirations and changes in estimates 21 (102) (18) (291) Cost of warranty repair (101) (65) (537) (527) Ending accrued product warranty $ 876 $ 767 $ 876 $ 767 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 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 September 30, 2023, 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 Income (expense), Net
Other Income (expense), Net | 9 Months Ended |
Sep. 30, 2023 | |
Other Income (expense), Net | |
Other Income (expense), Net | Note 13. Other Income (expense), Net Other income (expense), net for the three months ended September 30, 2023 and 2022, includes a grant of $0.1 million and $0 million, respectively, from government agencies as awards for technological innovation and job creation. Other income (expense), net for the nine months ended September 30, 2023 and 2022, includes a grant of $1.9 million and $0.2 million, respectively, from government agencies as awards for technological innovation and job creation. In addition, we incurred a foreign currency transaction exchange gain of $146,000 and $540,000 for the three months ended September 30, 2023 and 2022, respectively. We incurred a foreign currency transaction exchange loss of $57,000 and a gain of $542,000 for the nine months ended September 30, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Income Taxes | Note 14. Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes 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 and nine months ended September 30, 2023 includes no interest and penalties. As of September 30, 2023, 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 and nine months ended September 30, 2023 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. 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 incurred by 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 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023. 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 September 30, 2023 and December 31, 2022 (in thousands): September 30, December 31, 2023 2022 Contract liabilities $ 563 $ 338 During the three and nine months ended September 30, 2023, the Company recognized $1,000 and $278,000, respectively, 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 | 9 Months Ended |
Sep. 30, 2023 | |
Bank Loans and Line of Credit | |
Bank Loans and Line of Credit | Note 16. Bank Loans and Line of Credit Our bank loans and credit facilities typically have a term of 12 months or less and are included in “Bank loan” in our condensed consolidated balance sheets. The following table represents bank loans as of September 30, 2023 and December 31, 2022 (in thousands, except interest rate data): Loan Interest December 31, September 30, Subsidiary Bank Detail Rate Start Date Due Date 2022 2023 Tongmei Bank of China (1) $ 2,108 2.7 % September-22 March-23 $ 2,175 $ - 3,935 4.6 % January-22 January-23 4,059 - 1,405 4.2 % April-22 April-23 1,450 - Bank of China (5) 1,848 3.5 % January-23 January-24 - 1,741 2,184 2.8 % March-23 March-24 - 2,056 376 2.7 % September-23 September-24 - 376 Bank of China (3) 2,911 3.5 % January-23 January-24 - 2,746 Bank of Communications (2) 1,405 3.3 % January-22 January-23 1,450 - 1,405 3.3 % January-22 January-23 1,450 - Bank of Communications (5) 1,450 3.3 % December-22 December-23 1,450 1,373 1,455 3.3 % January-23 January-24 - 1,373 1,380 3.8 % May-23 May-24 - 1,373 1,373 3.8 % July-23 May-24 - 1,373 China Merchants Bank (5) 4,367 3.7 % January-23 January-24 - 4,112 Bank of Beijing (4) 3,192 4.2 % May-22 May-23 3,292 - 2,290 4.2 % January-23 January-24 - 2,157 3,541 3.2 % June-23 May-24 - 3,522 1,380 3.2 % June-23 February-24 - 1,373 Industrial Bank (5) 5,621 4.4 % June-22 June-23 5,798 - 2,811 4.4 % September-22 September-23 2,900 - 2,757 4.3 % June-23 June-24 - 2,744 2,744 4.3 % July-23 July-24 - 2,744 2,744 4.3 % September-23 September-24 - 2,744 NingBo Bank (5) 1,405 4.8 % June-22 June-23 1,450 - 1,405 4.8 % August-22 August-23 1,450 - 1,405 4.8 % September-22 September-23 1,450 - 1,406 4.5 % November-22 November-23 1,450 1,373 2,900 4.5 % December-22 December-23 2,900 - 1,382 4.5 % January-23 January-24 - 1,303 2,744 4.2 % August-23 September-24 - 2,744 Industrial and Commercial Bank of China (5) 5,621 3.2 % September-22 July-23 5,800 - 2,744 3.3 % September-23 September-24 - 2,744 NanJing Bank (5) 2,811 4.3 % September-22 September-23 2,899 - 1,265 4.3 % November-22 November-23 1,305 1,234 BoYu Industrial and Commercial Bank of China (6) 1,450 2.8 % December-22 December-23 1,450 1,373 Bank of China (5) 1,204 2.4 % January-23 January-24 - 1,134 NingBo Bank (5) 703 4.8 % September-22 March-23 725 - 1,406 3.6 % November-22 May-23 1,450 - 725 4.8 % December-22 June-23 725 - 690 3.7 % May-23 November-23 - 688 690 3.7 % June-23 December-23 - 688 Industrial Bank (5) 688 3.6 % September-23 September-24 - 688 Loan Balance $ 47,078 $ 45,776 Collateral for the above bank loans and line of credit (1) Baoding Tongmei’s land use rights and all of its buildings located at its facility in Dingxing, China. (2) ChaoYang Tongmei’s land use rights and all of its buildings located at its facility in Kazuo, China. (3) ChaoYang LiMei time deposit. (4) AXT time deposit. (5) Not collateralized. (6) BoYu’s land use rights and its building located at its facility in Tianjin, China and BoYu’s accounts receivable . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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 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. Furthermore, in September 2023, we entered into another agreement to extend the lease for an additional five years, commencing December 2023. There are no variable lease payments, residual value guarantees or any restrictions or covenants imposed by the facility lease. The remainder 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. All other operating leases have a term of 12 months or less. 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 September 30, 2023, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2023 $ 144 2024 584 2025 597 2026 611 2027 625 Thereafter 755 Total minimum lease payments 3,316 Less: Interest (436) Present value of lease obligations 2,880 Less: Current portion, included in accrued liabilities (443) Long-term portion of lease obligations $ 2,437 The weighted-average remaining lease term and the weighted-average discount rate for our operating leases as of each date is as follows: September 30, December 31, 2023 2022 Weighted-average remaining lease term (years) 5.47 5.89 Weighted-average discount rate 5.14 % 4.61 % Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 432 $ 431 The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating lease $ 136 $ 132 $ 393 $ 399 Short-term lease expense 36 33 107 98 Total $ 172 $ 165 $ 500 $ 497 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2023 | |
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 the IPO fails to pass the audit of the Shanghai Stock Exchange, is not approved by the Chinese Securities Regulatory Commission (“CSRC”) or Tongmei cancels the IPO application. The aggregate redemption amount is approximately $49 million, subject to the foreign exchange rate variable at time of redemption. Tongmei submitted its IPO application to the Shanghai Stock Exchange in December 2021 and it was formally accepted for review on January 10, 2022. The Shanghai Stock Exchange approved the IPO application on July 12, 2022. On August 1, 2022, the CSRC accepted for review Tongmei’s IPO application. The STAR Market IPO remains subject to review and approval by the CSRC and other authorities. The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Subject to review and approval by the CSRC and other authorities, Tongmei hopes to accomplish this goal in the coming months. 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 nine months ended September 30, 2023 are presented in the following table (in thousands): Balance as of January 1, 2023 $ 44,846 Investment in subsidiary with redeemable noncontrolling interest 155 Equity issuance costs incurred (431) Stock-based compensation attributable to redeemable noncontrolling interests 37 Net loss attributable to redeemable noncontrolling interests (807) Effect of foreign currency translation on redeemable noncontrolling interests (2,551) Effect of foreign currency translation attributable to redeemable noncontrolling interests (615) Balance as of September 30, 2023 $ 40,634 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 19. Recent Accounting Pronouncements In March 2022, FASB pronouncement ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures was issued as an amendment to Accounting Standards Update 2016-13, Financial Instruments-Credit Losses. ASU 2022-02 aims to modify disclosure requirements for certain loan refinancings and restructurings by creditors. The amendment also require that an entity disclose current-period gross write offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the new standard had a de minimis effect on our condensed consolidated financial statements. In September 2022, FASB issued Accounting Standards Update No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, to enhance the transparency about the use of supplier finance programs for investors. The amendments in this Update require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the new standard had a de minimis effect on our condensed consolidated financial statements. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Event | |
Subsequent Event | Note 20. Subsequent Event In October and November 2023, the Company obtained a total of $3.5 million in new one-year bank loans with interest rates ranging from 3.45% to 3.8%. The new bank loans are unsecured. The Company repaid $2.7 million of existing loans in October 2023. |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments and Fair Value Measurements | |
Cash, cash equivalents and investments | As of September 30, 2023 and December 31, 2022, our cash, cash equivalents and debt investments are classified as follows (in thousands): September 30, 2023 December 31, 2022 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash and restricted cash $ 39,300 $ — $ — $ 39,300 $ 41,348 $ — $ — $ 41,348 Cash equivalents: Certificates of deposit 1 — — — — — — — — Total cash, restricted cash and cash equivalents 39,300 — — 39,300 41,348 — — 41,348 Investments (available-for-sale): Certificates of deposit 2 4,320 — (50) 4,270 6,440 — (175) 6,265 Corporate bonds — — — — 5,320 — (128) 5,192 Total investments 4,320 — (50) 4,270 11,760 — (303) 11,457 Total cash, restricted cash, cash equivalents and investments $ 43,620 $ — $ (50) $ 43,570 $ 53,108 $ — $ (303) $ 52,805 Contractual maturities on investments: Due within 1 year 3 $ 4,320 $ 4,270 $ 9,600 $ 9,339 Due after 1 through 5 years 4 — — 2,160 2,118 $ 4,320 $ 4,270 $ 11,760 $ 11,457 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 September 30, 2023 (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 September 30, 2023 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ — $ — $ 4,270 $ (50) $ 4,270 $ (50) Corporate bonds — — — — — Total in loss position $ — $ — $ 4,270 $ (50) $ 4,270 $ (50) 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, 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 December 31, 2022 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ 2,118 $ (42) $ 4,146 $ (133) $ 6,264 $ (175) Corporate bonds — — 4,842 (128) 4,842 (128) Total in loss position $ 2,118 $ (42) $ 8,988 $ (261) $ 11,106 $ (303) |
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 September 30, 2023 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs September 30, 2023 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 4,270 $ — $ 4,270 $ — Corporate bonds — — — — Total $ 4,270 $ — $ 4,270 $ — 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, 2022 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 6,265 $ — $ 6,265 $ — Corporate bonds 5,192 — 5,192 — Total $ 11,457 $ — $ 11,457 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventories | |
Components of inventories | The components of inventories are summarized below (in thousands): September 30, December 31, 2023 2022 Inventories: Raw materials $ 34,955 $ 46,476 Work in process 47,649 39,956 Finished goods 3,779 3,197 $ 86,383 $ 89,629 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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): September 30, December 31, 2023 2022 Property, plant and equipment: Machinery and equipment, at cost $ 64,030 $ 62,797 Less: accumulated depreciation and amortization (40,416) (38,477) Building, at cost 113,101 118,550 Less: accumulated depreciation and amortization (21,741) (20,403) Leasehold improvements, at cost 7,374 7,430 Less: accumulated depreciation and amortization (5,704) (5,559) Construction in progress 42,129 36,679 $ 158,773 $ 161,017 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities | |
Schedule of components of accrued liabilities | The components of accrued liabilities are summarized below (in thousands): September 30, December 31, 2023 2022 Payable in connection with construction in progress $ 3,779 $ 4,135 Accrued compensation and related charges 3,151 4,774 Preferred stock dividends payable 2,901 2,901 Accrued product warranty 876 669 Accrued professional services 775 930 Other tax payable 621 867 Advances from customers 563 338 Current portion of operating lease liabilities 443 485 Other personnel-related costs 356 291 Accrual for sales returns 53 112 Accrued income taxes 25 729 Other accrued liabilities 1,977 1,933 $ 15,520 $ 18,164 |
Investments in Privately-Held_2
Investments in Privately-Held Raw Material Companies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments in Privately-Held Raw Material Companies | |
Summary of investments | Investment Balance as of September 30, December 31, Accounting Ownership * Company 2023 2022 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 ShuoMei High Purity Semiconductor Materials Co., Ltd. 3,122 1,000 Consolidated **** 75.0 % ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. 7,331 7,331 Consolidated *** 58.5 % $ 14,211 $ 12,089 Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ 1,716 $ 1,887 Equity ** 46 % Beijing JiYa Semiconductor Material Co., Ltd. 4,004 6,381 Equity 39 % Xiaoyi XingAn Gallium Co., Ltd. 4,904 5,094 Equity ** 25 % ChaoYang KaiMei Quartz Co., Ltd. 2,577 827 Equity ***** 40 % Emeishan Jia Mei High Purity Metals Co., Ltd. N/A 418 Equity ****** 25 % $ 13,201 $ 14,607 Emeishan Jia Mei High Purity Metals Co., Ltd. 551 N/A Fair value ****** 10 % $ 551 $ — * 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 *** In February 2021, Tongmei signed a joint venture agreement with certain investors to fund ChaoYang XinMei. **** In April 2022, ChaoYang JinMei signed a joint venture agreement with certain investor to fund a new company, ChaoYang ShuoMei. ***** In April 2022, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang KaiMei. ****** In May 2023, we sold 15% of our equity investments in Jia Mei to a third party. We now own 10% of Jia Mei and account for it under the fair value method. |
Schedule of gain (loss) on sale and re measurement of equity method investments | Amount (in thousands) Fair value of the consideration received $ 779 Foreign income tax withholding 48 Carrying value of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd. (252) Gain recognized on sale of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd. $ 575 Amount (in thousands) Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd. $ 551 Carrying value of retained noncontrolling investment (10%) (168) Gain on retained noncontrolling investment due to remeasurement (10%) $ 383 |
Summarized income information | AXT’s minority investment entities are not consolidated and are accounted for under the equity method. The equity investment entities had the following summarized statements of operations information (in thousands) for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net revenue $ 8,834 $ 13,658 $ 24,486 $ 38,491 Gross profit $ 2,620 $ 8,687 $ 8,174 $ 23,412 Operating income $ 1,962 $ 8,039 $ 7,134 $ 21,308 Net income $ 1,449 $ 6,088 $ 6,307 $ 17,039 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity | |
Consolidated statements of stockholders' equity | 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, 2022 $ 3,532 $ 44 $ 235,308 $ (14,159) $ (3,118) $ 221,607 $ 23,293 $ 244,900 Common stock options exercised — — 8 — — 8 — 8 Investment in subsidiary with noncontrolling interest — — (36) — — (36) 239 203 Investment in subsidiary with redeemable noncontrolling interest — — (36) — — (36) — (36) Noncontrolling interest portion of Tongmei stock-based compensation — — 33 — — 33 (16) 17 Stock-based compensation — — 717 — — 717 — 717 Tongmei stock-based compensation — — 198 — — 198 — 198 Net loss — — — (3,348) — (3,348) (169) (3,517) Other comprehensive income — — — — 858 858 70 928 Balance as of March 31, 2023 $ 3,532 $ 44 $ 236,192 $ (17,507) $ (2,260) $ 220,001 $ 23,417 $ 243,418 Common stock options exercised — — 2 — — 2 — 2 Investment in subsidiary with noncontrolling interest — — (74) — — (74) 380 306 Investment in subsidiary with redeemable noncontrolling interest — — (75) — — (75) — (75) Noncontrolling interest portion of Tongmei stock-based compensation — — 31 — — 31 (14) 17 Stock-based compensation — — 720 — — 720 — 720 Tongmei stock-based compensation — — 192 — — 192 — 192 Net loss — — — (5,089) — (5,089) 38 (5,051) Other comprehensive income (loss) — — — — (5,915) (5,915) (623) (6,538) Balance as of June 30, 2023 $ 3,532 $ 44 $ 236,988 $ (22,596) $ (8,175) $ 209,793 $ 23,198 $ 232,991 Common stock options exercised — — — — — — — — Investment in subsidiary with noncontrolling interest — — (43) — — (43) 242 199 Investment in subsidiary with redeemable noncontrolling interest (44) — — (44) — (44) Noncontrolling interest portion of Tongmei stock-based compensation — — (139) — — (139) 68 (71) Stock-based compensation — — 703 — — 703 — 703 Tongmei stock-based compensation — — 188 — — 188 — 188 Net loss — — — (5,823) — (5,823) (236) (6,059) Other comprehensive income (loss) — — — — (406) (406) (54) (460) Balance as of September 30, 2023 $ 3,532 $ 44 $ 237,653 $ (28,419) $ (8,581) $ 204,229 $ 23,218 $ 227,447 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 Common stock options exercised — — 146 — — 146 — 146 Investment in subsidiary with noncontrolling interest — — (268) — — (268) 1,447 1,179 Noncontrolling interest portion of Tongmei stock-based compensation — — 32 — — 32 (16) 16 Stock-based compensation — — 919 — — 919 — 919 Tongmei stock-based compensation — — 218 — — 218 — 218 Net income — — — 5,546 — 5,546 450 5,996 Other comprehensive income (loss) — — — — (5,992) (5,992) (569) (6,561) Balance as of June 30, 2022 $ 3,532 $ 43 $ 233,364 $ (21,259) $ 637 $ 216,317 $ 22,147 $ 238,464 Common stock options exercised — — 371 — — 371 — 371 Investment in subsidiary with noncontrolling interest — — (259) — — (259) 1,048 789 Noncontrolling interest portion of Tongmei stock-based compensation — — 20 — — 20 (4) 16 Stock-based compensation — — 921 — — 921 — 921 Tongmei stock-based compensation — — 115 — — 115 — 115 Net income — — — 5,759 — 5,759 446 6,205 Other comprehensive income (loss) — — — — (6,094) (6,094) (628) (6,722) Balance as of September 30, 2022 $ 3,532 $ 43 $ 234,532 $ (15,500) $ (5,457) $ 217,150 $ 23,009 $ 240,159 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Cost of revenue $ 102 $ 51 $ 310 $ 277 Selling, general and administrative 639 806 1,926 2,480 Research and development 150 179 482 504 Net effect on net income (loss) $ 891 $ 1,036 $ 2,718 $ 3,261 |
Summary of stock option activity | The following table summarizes the stock option transactions during the nine months ended September 30, 2023 (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, 2023 1,206 $ 5.09 5.08 $ 630 Granted — — Exercised (4) 2.30 Canceled and expired (2) 4.79 Balance as of September 30, 2023 1,200 $ 5.10 4.34 $ 14 Options vested as of September 30, 2023 and unvested options expected to vest, net of forfeitures 1,200 $ 5.10 4.34 $ 14 Options exercisable as of September 30, 2023 1,177 $ 5.14 4.31 $ 14 |
Summary of restricted stock awards activity | A summary of activity related to restricted stock awards for the nine months ended September 30, 2023 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2023 984 $ 5.55 Granted 90 $ 3.65 Vested (141) $ 5.89 Forfeited (3) $ 5.40 Non-vested as of September 30, 2023 930 $ 5.31 |
Summary of unvested at-risk performance shares | A summary of the status of our unvested at-risk, performance shares as of September 30, 2023 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2023 76 $ 15.37 Granted 13 $ 3.71 Vested — $ Forfeited (13) $ 3.71 Non-vested as of September 30, 2023 76 $ 15.37 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Net Income (Loss) Per Share | |
Reconciliation of numerators and denominators of basic and diluted net income 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Numerator: Net income (loss) attributable to AXT, Inc. $ (5,823) $ 5,759 $ (14,260) $ 14,470 Less: Preferred stock dividends (44) (44) (132) (132) Net income (loss) available to common stockholders $ (5,867) $ 5,715 $ (14,392) $ 14,338 Denominator: Denominator for basic net income (loss) per share - weighted-average common shares 42,638 42,163 42,574 42,011 Effect of dilutive securities: Common stock options — 440 — 399 Restricted stock awards — 379 — 308 Denominator for dilutive net income (loss) per common shares 42,638 42,982 42,574 42,718 Net income (loss) attributable to AXT, Inc. per common share: Basic $ (0.14) $ 0.14 $ (0.34) $ 0.34 Diluted $ (0.14) $ 0.13 $ (0.34) $ 0.34 Options excluded from diluted net income (loss) per share as the impact is anti-dilutive — 184 — 201 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive — 69 — 202 |
Segment Information and Forei_2
Segment Information and Foreign Operations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Information and Foreign Operations | |
Revenues reported by product type | The following table represents revenue amounts (in thousands) by product type: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Product Type: Substrates $ 10,385 $ 26,861 $ 34,901 $ 90,300 Raw Materials and Other 6,981 8,322 20,465 24,023 Total $ 17,366 $ 35,183 $ 55,366 $ 114,323 |
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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Geographical region: China $ 10,307 $ 12,314 $ 28,698 $ 48,239 Taiwan 2,491 7,816 6,369 21,719 Japan 558 2,671 3,489 8,196 Asia Pacific (excluding China, Taiwan and Japan) 894 765 2,722 3,183 Europe (primarily Germany) 2,407 4,989 8,992 16,682 North America (primarily the United States) 709 6,628 5,096 16,304 Total $ 17,366 $ 35,183 $ 55,366 $ 114,323 |
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 September 30, December 31, 2023 2022 Long-lived assets by geographic region, net of depreciation: North America $ 1,698 $ 346 China 159,953 162,432 $ 161,651 $ 162,778 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Guarantees | |
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 and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Beginning accrued product warranty $ 852 $ 839 $ 669 $ 743 Accruals for warranties issued 104 95 762 842 Adjustments related to pre-existing warranties including expirations and changes in estimates 21 (102) (18) (291) Cost of warranty repair (101) (65) (537) (527) Ending accrued product warranty $ 876 $ 767 $ 876 $ 767 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022 (in thousands): September 30, December 31, 2023 2022 Contract liabilities $ 563 $ 338 During the three and nine months ended September 30, 2023, the Company recognized $1,000 and $278,000, respectively, |
Bank Loans and Line of Credit (
Bank Loans and Line of Credit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Bank Loans and Line of Credit | |
Schedule of bank loans and line of credit | The following table represents bank loans as of September 30, 2023 and December 31, 2022 (in thousands, except interest rate data): Loan Interest December 31, September 30, Subsidiary Bank Detail Rate Start Date Due Date 2022 2023 Tongmei Bank of China (1) $ 2,108 2.7 % September-22 March-23 $ 2,175 $ - 3,935 4.6 % January-22 January-23 4,059 - 1,405 4.2 % April-22 April-23 1,450 - Bank of China (5) 1,848 3.5 % January-23 January-24 - 1,741 2,184 2.8 % March-23 March-24 - 2,056 376 2.7 % September-23 September-24 - 376 Bank of China (3) 2,911 3.5 % January-23 January-24 - 2,746 Bank of Communications (2) 1,405 3.3 % January-22 January-23 1,450 - 1,405 3.3 % January-22 January-23 1,450 - Bank of Communications (5) 1,450 3.3 % December-22 December-23 1,450 1,373 1,455 3.3 % January-23 January-24 - 1,373 1,380 3.8 % May-23 May-24 - 1,373 1,373 3.8 % July-23 May-24 - 1,373 China Merchants Bank (5) 4,367 3.7 % January-23 January-24 - 4,112 Bank of Beijing (4) 3,192 4.2 % May-22 May-23 3,292 - 2,290 4.2 % January-23 January-24 - 2,157 3,541 3.2 % June-23 May-24 - 3,522 1,380 3.2 % June-23 February-24 - 1,373 Industrial Bank (5) 5,621 4.4 % June-22 June-23 5,798 - 2,811 4.4 % September-22 September-23 2,900 - 2,757 4.3 % June-23 June-24 - 2,744 2,744 4.3 % July-23 July-24 - 2,744 2,744 4.3 % September-23 September-24 - 2,744 NingBo Bank (5) 1,405 4.8 % June-22 June-23 1,450 - 1,405 4.8 % August-22 August-23 1,450 - 1,405 4.8 % September-22 September-23 1,450 - 1,406 4.5 % November-22 November-23 1,450 1,373 2,900 4.5 % December-22 December-23 2,900 - 1,382 4.5 % January-23 January-24 - 1,303 2,744 4.2 % August-23 September-24 - 2,744 Industrial and Commercial Bank of China (5) 5,621 3.2 % September-22 July-23 5,800 - 2,744 3.3 % September-23 September-24 - 2,744 NanJing Bank (5) 2,811 4.3 % September-22 September-23 2,899 - 1,265 4.3 % November-22 November-23 1,305 1,234 BoYu Industrial and Commercial Bank of China (6) 1,450 2.8 % December-22 December-23 1,450 1,373 Bank of China (5) 1,204 2.4 % January-23 January-24 - 1,134 NingBo Bank (5) 703 4.8 % September-22 March-23 725 - 1,406 3.6 % November-22 May-23 1,450 - 725 4.8 % December-22 June-23 725 - 690 3.7 % May-23 November-23 - 688 690 3.7 % June-23 December-23 - 688 Industrial Bank (5) 688 3.6 % September-23 September-24 - 688 Loan Balance $ 47,078 $ 45,776 Collateral for the above bank loans and line of credit (1) Baoding Tongmei’s land use rights and all of its buildings located at its facility in Dingxing, China. (2) ChaoYang Tongmei’s land use rights and all of its buildings located at its facility in Kazuo, China. (3) ChaoYang LiMei time deposit. (4) AXT time deposit. (5) Not collateralized. (6) BoYu’s land use rights and its building located at its facility in Tianjin, China and BoYu’s accounts receivable . |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Summary of maturities of our operating lease liabilities | As of September 30, 2023, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2023 $ 144 2024 584 2025 597 2026 611 2027 625 Thereafter 755 Total minimum lease payments 3,316 Less: Interest (436) Present value of lease obligations 2,880 Less: Current portion, included in accrued liabilities (443) Long-term portion of lease obligations $ 2,437 |
Schedule of weighted-average remaining lease term and the weighted-average discount rate of operating leases | September 30, December 31, 2023 2022 Weighted-average remaining lease term (years) 5.47 5.89 Weighted-average discount rate 5.14 % 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): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 432 $ 431 |
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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating lease $ 136 $ 132 $ 393 $ 399 Short-term lease expense 36 33 107 98 Total $ 172 $ 165 $ 500 $ 497 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Redeemable Noncontrolling Interests | |
Components of the change in redeemable noncontrolling interests | The components of the change in redeemable noncontrolling interests for the nine months ended September 30, 2023 are presented in the following table (in thousands): Balance as of January 1, 2023 $ 44,846 Investment in subsidiary with redeemable noncontrolling interest 155 Equity issuance costs incurred (431) Stock-based compensation attributable to redeemable noncontrolling interests 37 Net loss attributable to redeemable noncontrolling interests (807) Effect of foreign currency translation on redeemable noncontrolling interests (2,551) Effect of foreign currency translation attributable to redeemable noncontrolling interests (615) Balance as of September 30, 2023 $ 40,634 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
Jan. 25, 2021 USD ($) | Aug. 31, 2023 USD ($) | May 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jul. 31, 2022 USD ($) | May 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Jan. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | May 31, 2021 USD ($) | Feb. 28, 2021 USD ($) | Jan. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) company | Dec. 31, 2022 USD ($) company | Dec. 31, 2020 USD ($) | Jul. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Nov. 30, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Number of equity method investments | company | 4 | 5 | |||||||||||||||||||
Investments, equity method | $ 13,201,000 | $ 14,607,000 | |||||||||||||||||||
Proceeds from Sale of Equity Method Investments | $ 827,000 | ||||||||||||||||||||
Percentage of equity interest sold | 15% | ||||||||||||||||||||
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 | ||||||||||||||||||||
Minority investors | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Loan amount | $ 200,000 | $ 300,000 | $ 200,000 | ||||||||||||||||||
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Loan from related party | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Sale of subsidiary shares to noncontrolling interests | $ 4,500,000 | ||||||||||||||||||||
Increase in redeemable noncontrolling interests | $ 100,000 | ||||||||||||||||||||
Chao Yang 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 | $ 1,000,000 | $ 900,000 | |||||||||||||||||||
Sale of subsidiary shares to noncontrolling interests | 1,900,000 | ||||||||||||||||||||
Amount paid to subsidiary | 600,000 | 700,000 | |||||||||||||||||||
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Loan from related party | Beijing Tongmei Xtal Technology | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Sale of subsidiary shares to noncontrolling interests | 2,600,000 | ||||||||||||||||||||
Amount paid to subsidiary | 800,000 | $ 1,100,000 | |||||||||||||||||||
Increase in noncontrolling interest | $ 1,400,000 | $ 2,200,000 | |||||||||||||||||||
Increase in redeemable noncontrolling interests | $ 200,000 | ||||||||||||||||||||
Chao Yang 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 | $ 1,800,000 | $ 3,000,000 | |||||||||||||||||||
Investments, equity method | $ 1,800,000 | ||||||||||||||||||||
Ownership (as a percent) | 58.50% | 58.50% | 58.50% | 58.50% | 58.50% | 58.50% | |||||||||||||||
Initial funding | $ 1,500,000 | $ 1,500,000 | |||||||||||||||||||
Increase in noncontrolling interest | $ 610,000 | ||||||||||||||||||||
Further investment | 600,000 | ||||||||||||||||||||
Redeemable noncontrolling interest increased | 57,000 | ||||||||||||||||||||
ChaoYang ShuoMei 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 | $ 4,400,000 | ||||||||||||||||||||
Investments, equity method | $ 3,300,000 | ||||||||||||||||||||
Ownership (as a percent) | 75% | 75% | 75% | ||||||||||||||||||
Initial funding | $ 334,000 | ||||||||||||||||||||
Increase in noncontrolling interest | 406,000 | ||||||||||||||||||||
Redeemable noncontrolling interest increased | 73,000 | ||||||||||||||||||||
ChaoYang KaiMei Quartz Co., Ltd | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Investment value, agreement amount | $ 7,600,000 | ||||||||||||||||||||
Investments, equity method | $ 600,000 | $ 900,000 | $ 3,000,000 | $ 2,577,000 | 827,000 | $ 600,000 | |||||||||||||||
Ownership (as a percent) | 40% | 40% | 40% | 40% | |||||||||||||||||
Initial funding | 2,200,000 | ||||||||||||||||||||
Investment amount | 900,000 | ||||||||||||||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd Investment | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Investments, equity method | $ 418,000 | ||||||||||||||||||||
Ownership (as a percent) | 25% | 10% | |||||||||||||||||||
Proceeds from Sale of Equity Method Investments | $ 827,000 | ||||||||||||||||||||
Percentage of equity interest sold | 15% | 15% | |||||||||||||||||||
Percentage of ownership, cost method | 10% | 10% | |||||||||||||||||||
ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Increase in noncontrolling interest | $ 200,000 | $ 400,000 | 200,000 | ||||||||||||||||||
Increase in redeemable noncontrolling interests | 44,000 | 75,000 | 36,000 | ||||||||||||||||||
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 ownership | 67% | 63% | |||||||||||||||||||
Percentage of outstanding shares | 33% | ||||||||||||||||||||
Beijing Tongmei Xtal Technology | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Percentage of ownership | 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% | ||||||||||||||||||||
Investment in new facility | $ 49,000,000 | $ 48,100,000 | |||||||||||||||||||
Raised additional capital | $ 1,500,000 | ||||||||||||||||||||
Transaction results in increase to noncontrolling interests | $ 1,200,000 | ||||||||||||||||||||
Transaction results in increase to redeemable noncontrolling interests | $ 1,200,000 | ||||||||||||||||||||
Increase in redeemable noncontrolling interests | $ 1,500,000 | $ 48,100,000 | |||||||||||||||||||
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 | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Loan amount | $ 1,400,000 | $ 1,400,000 | |||||||||||||||||||
Beijing Tongmei Xtal Technology | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Loan from related party | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Increase in noncontrolling interest | $ 1,400,000 | ||||||||||||||||||||
Beijing Tongmei Xtal Technology | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Investment amount | $ 900,000 | $ 900,000 | |||||||||||||||||||
Further investment | 800,000 | ||||||||||||||||||||
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% | ||||||||||||||||||||
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% | ||||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Emeishan Jia Mei High Purity Metals Co., Ltd Investment | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Ownership (as a percent) | 25% | ||||||||||||||||||||
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Initial funding | $ 1,000,000 | $ 1,000,000 | |||||||||||||||||||
ChaoYang JinMei Gallium Ltd. | ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Loan amount | $ 500,000 | ||||||||||||||||||||
ChaoYang JinMei Gallium Ltd. | ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | |||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||
Loan amount | $ 600,000 | $ 1,000,000 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Cash, cash equivalents and investments [Abstract] | ||||
Cash and restricted cash | $ 39,300 | $ 41,348 | ||
Cash equivalents [Abstract] | ||||
Total cash, restricted cash and cash equivalents | 39,300 | 41,348 | $ 36,818 | $ 36,763 |
Amortized Cost | 4,320 | 11,760 | ||
Cash, restricted cash, cash equivalents and investments, amortized costs | 43,620 | 53,108 | ||
Gross Unrealized (Loss) | (50) | (303) | ||
Fair Value | 4,270 | 11,457 | ||
Cash, restricted cash, cash equivalents and investments, fair value. | 43,570 | 52,805 | ||
Contractual maturities on investments, amortized cost basis [Abstract] | ||||
Due within 1 year | 4,320 | 9,600 | ||
Due after 1 through 5 years | 2,160 | |||
Investments, amortized cost | 4,320 | 11,760 | ||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Due within 1 year | 4,270 | 9,339 | ||
Due after 1 through 5 years | 2,118 | |||
Investments, fair value | 4,270 | 11,457 | ||
Investments | ||||
Cash equivalents [Abstract] | ||||
Amortized Cost | 4,320 | 11,760 | ||
Gross Unrealized (Loss) | (50) | (303) | ||
Fair Value | 4,270 | 11,457 | ||
Contractual maturities on investments, amortized cost basis [Abstract] | ||||
Investments, amortized cost | 4,320 | 11,760 | ||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Investments, fair value | 4,270 | 11,457 | ||
Certificates of deposit. | ||||
Cash equivalents [Abstract] | ||||
Amortized Cost | 4,320 | 6,440 | ||
Gross Unrealized (Loss) | (50) | (175) | ||
Fair Value | 4,270 | 6,265 | ||
Contractual maturities on investments, amortized cost basis [Abstract] | ||||
Investments, amortized cost | 4,320 | 6,440 | ||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Investments, fair value | $ 4,270 | 6,265 | ||
Corporate bonds | ||||
Cash equivalents [Abstract] | ||||
Amortized Cost | 5,320 | |||
Gross Unrealized (Loss) | (128) | |||
Fair Value | 5,192 | |||
Contractual maturities on investments, amortized cost basis [Abstract] | ||||
Investments, amortized cost | 5,320 | |||
Contractual maturities on investments, fair value basis [Abstract] | ||||
Investments, fair value | $ 5,192 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Investment Category and Length (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
May 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) company | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) company | May 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||||||||
Fair value, in loss position less than twelve months | $ 2,118,000 | |||||||||
Gross unrealized (loss), in loss position less than twelve months | (42,000) | |||||||||
Fair value, in loss position greater than twelve months | $ 4,270,000 | $ 4,270,000 | 8,988,000 | |||||||
Gross unrealized (loss), in loss position greater than twelve months | (50,000) | (50,000) | (261,000) | |||||||
Fair value, total in loss position | 4,270,000 | 4,270,000 | 11,106,000 | |||||||
Gross unrealized (loss), total in loss position | (50,000) | (50,000) | (303,000) | |||||||
Restricted Cash | ||||||||||
Proceeds from bank loans | 42,197,000 | $ 42,352,000 | ||||||||
Restricted cash | 10,778,000 | 10,778,000 | 6,400,000 | |||||||
Minority Investments | ||||||||||
Investments, equity method | 13,201,000 | $ 13,201,000 | $ 14,607,000 | |||||||
Number of equity method investments | company | 4 | 5 | ||||||||
Proceeds from sale of equity method investments | $ 827,000 | |||||||||
Investment, cost method | 551,000 | 551,000 | ||||||||
Bank Of Beijing | ||||||||||
Restricted Cash | ||||||||||
Maximum borrowing capacity | $ 3,400,000 | |||||||||
Bank Of Beijing | Secured debt | ||||||||||
Restricted Cash | ||||||||||
Time deposit | $ 2,500,000 | $ 1,000,000 | $ 2,900,000 | |||||||
Proceeds from bank loans | $ 2,300,000 | |||||||||
June 2023 bank loan two | Secured debt | ||||||||||
Restricted Cash | ||||||||||
Time deposit | 3,900,000 | 3,900,000 | ||||||||
Proceeds from bank loans | 3,500,000 | |||||||||
June 2023 bank loan one | Secured debt | ||||||||||
Restricted Cash | ||||||||||
Time deposit | $ 1,500,000 | 1,500,000 | ||||||||
Proceeds from bank loans | $ 1,400,000 | |||||||||
Bank Of China | Secured debt | ||||||||||
Restricted Cash | ||||||||||
Time deposit | 3,000,000 | |||||||||
Proceeds from bank loans | $ 2,900,000 | |||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd Investment | ||||||||||
Minority Investments | ||||||||||
Investments, equity method | 418,000 | |||||||||
Ownership (as a percent) | 25% | 10% | 10% | |||||||
Proceeds from sale of equity method investments | $ 827,000 | |||||||||
Investment, cost method | $ 551,000 | $ 551,000 | ||||||||
Equity ownership percentage | 10% | 10% | 10% | |||||||
Gain from share sale | $ 575,000 | $ 575,000 | ||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | ||||||||||
Minority Investments | ||||||||||
Investments, equity method | $ 4,004,000 | 4,004,000 | 6,381,000 | |||||||
Impairment charge on equity investee | $ 754,000 | |||||||||
Equity investment carrying value of asset after write down | $ 0 | $ 0 | ||||||||
Ownership (as a percent) | 39% | 39% | ||||||||
Investments Excluding Beijing JiYa Semiconductor Material Co., Ltd. | ||||||||||
Minority Investments | ||||||||||
Impairment charge on equity investee | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Certificates of deposit. | ||||||||||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||||||||
Fair value, in loss position less than twelve months | 2,118,000 | |||||||||
Gross unrealized (loss), in loss position less than twelve months | (42,000) | |||||||||
Fair value, in loss position greater than twelve months | 4,270,000 | 4,270,000 | 4,146,000 | |||||||
Gross unrealized (loss), in loss position greater than twelve months | (50,000) | (50,000) | (133,000) | |||||||
Fair value, total in loss position | 4,270,000 | 4,270,000 | 6,264,000 | |||||||
Gross unrealized (loss), total in loss position | (50,000) | (50,000) | (175,000) | |||||||
Corporate bonds | ||||||||||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||||||||
Fair value, in loss position greater than twelve months | 4,842,000 | |||||||||
Gross unrealized (loss), in loss position greater than twelve months | (128,000) | |||||||||
Fair value, total in loss position | 4,842,000 | |||||||||
Gross unrealized (loss), total in loss position | (128,000) | |||||||||
Other assets | ||||||||||
Minority Investments | ||||||||||
Investments, equity method | 13,200,000 | 13,200,000 | $ 14,600,000 | |||||||
Other noncurrent assets | Emeishan Jia Mei High Purity Metals Co., Ltd Investment | ||||||||||
Minority Investments | ||||||||||
Investment, cost method | $ 551,000 | $ 551,000 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets, Fair Value Disclosure [Abstract] | |||
Investments, amortized cost | $ 4,270 | $ 4,270 | $ 11,457 |
Fair Value, Transfer Between Level 1 and Level 2, Description and Policy [Abstract] | |||
Transfer from Level 1 to Level 2 , assets | 0 | 0 | |
Transfer from Level 2 to Level 1 , assets | 0 | 0 | |
Transfers into Level 3, assets | 0 | 0 | |
Transfer out of Level 3, assets | 0 | 0 | |
Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total | 4,270 | 4,270 | 11,457 |
Recurring | Certificates of deposit. | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash and cash equivalents, fair value disclosure | 4,270 | 4,270 | 6,265 |
Recurring | Corporate bonds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Investments, amortized cost | 5,192 | ||
Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total | 4,270 | 4,270 | 11,457 |
Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit. | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash and cash equivalents, fair value disclosure | $ 4,270 | $ 4,270 | 6,265 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Assets, Fair Value Disclosure [Abstract] | |||
Investments, amortized cost | $ 5,192 |
Inventories (Details)
Inventories (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventories | ||
Raw materials | $ 34,955,000 | $ 46,476,000 |
Work in process | 47,649,000 | 39,956,000 |
Finished goods | 3,779,000 | 3,197,000 |
Inventories, Total | 86,383,000 | 89,629,000 |
Inventory reserve | 24,700,000 | 24,700,000 |
Excess and obsolete inventory | $ 127,000 | $ 47,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, plant and equipment | ||
Property, plant and equipment, net | $ 158,773 | $ 161,017 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 64,030 | 62,797 |
Less: accumulated depreciation and amortization | (40,416) | (38,477) |
Building | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 113,101 | 118,550 |
Less: accumulated depreciation and amortization | (21,741) | (20,403) |
Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 7,374 | 7,430 |
Less: accumulated depreciation and amortization | (5,704) | (5,559) |
Construction in progress | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 42,129 | 36,679 |
Construction in progress Dingxin and Kazuo locations | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 35,400 | 27,200 |
Construction in progress manufacturing equipment purchases | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 3,500 | 5,400 |
Construction in progress other consolidated subsidiaries | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 3,200 | $ 4,100 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Components of accrued liabilities | ||||||
Payable in connection with construction in progress | $ 3,779 | $ 4,135 | ||||
Accrued compensation and related charges | 3,151 | 4,774 | ||||
Preferred stock dividends payable | 2,901 | 2,901 | ||||
Accrued product warranty | 876 | $ 852 | 669 | $ 767 | $ 839 | $ 743 |
Accrued professional services | 775 | 930 | ||||
Other tax payable | 621 | 867 | ||||
Advances from customers | 563 | 338 | ||||
Current portion of operating lease liabilities | 443 | 485 | ||||
Other personnel-related costs | 356 | 291 | ||||
Accrual for sales returns | 53 | 112 | ||||
Accrued income taxes | 25 | 729 | ||||
Other accrued liabilities | 1,977 | 1,933 | ||||
Accrued liabilities, Total | $ 15,520 | $ 18,164 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2023 | Sep. 30, 2022 | Jul. 31, 2022 | May 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Jan. 31, 2021 | Sep. 30, 2023 | Dec. 31, 2020 | Dec. 31, 2022 | May 31, 2021 | Feb. 28, 2021 | |
Related Party Transaction [Line Items] | |||||||||||||||
Amount payable to related party | $ 6,369,000 | $ 10,084,000 | |||||||||||||
Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Increase in redeemable noncontrolling interests | $ 1,500,000 | $ 48,100,000 | |||||||||||||
Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Increase in redeemable noncontrolling interests | $ 100,000 | ||||||||||||||
Sale of subsidiary shares to noncontrolling interests | $ 4,500,000 | ||||||||||||||
Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Increase in noncontrolling interest | 1,400,000 | ||||||||||||||
ChaoYang XinMei | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Sale of subsidiary shares to noncontrolling interests | 4,500,000 | ||||||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd | Raw materials purchases from related party | Accounts payable | Chao Yang Tongmei Xtal Technology Co., Ltd. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount payable to related party | 97,000 | $ 103,000 | |||||||||||||
ChaoYang LiMei Semiconductor Technology Co., Ltd. | ChaoYang KaiMei Quartz Co., Ltd | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount of transaction | $ 1,500,000 | ||||||||||||||
Proceeds from related party | $ 1,500,000 | ||||||||||||||
ChaoYang LiMei Semiconductor Technology Co., Ltd. | Prepaid expenses and other current assets | ChaoYang KaiMei Quartz Co., Ltd | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount of transaction | $ 0 | ||||||||||||||
ChaoYang Xinshuo | Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount of transaction | $ 1,000,000 | $ 900,000 | |||||||||||||
Short-term loan from noncontrolling interest | $ 1,900,000 | ||||||||||||||
Amount paid to subsidiary | 600,000 | 700,000 | |||||||||||||
Sale of subsidiary shares to noncontrolling interests | 1,900,000 | ||||||||||||||
Beijing Tongmei Xtal Technology | Related party loan | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount paid to subsidiary | 800,000 | 1,100,000 | |||||||||||||
Beijing Tongmei Xtal Technology | Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount of transaction | $ 1,400,000 | $ 1,400,000 | |||||||||||||
Short-term loan from noncontrolling interest | 0 | ||||||||||||||
Amount paid to subsidiary | 800,000 | 1,100,000 | |||||||||||||
Increase in redeemable noncontrolling interests | 200,000 | ||||||||||||||
Increase in noncontrolling interest | $ 1,400,000 | $ 2,200,000 | |||||||||||||
Sale of subsidiary shares to noncontrolling interests | $ 2,600,000 | ||||||||||||||
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Ownership (as a percent) | 58.50% | 58.50% | 58.50% | 58.50% | 58.50% | 58.50% | |||||||||
Increase in noncontrolling interest | $ 610,000 | ||||||||||||||
Further investment | 600,000 | ||||||||||||||
Redeemable noncontrolling interest increased | 57,000 | ||||||||||||||
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Further investment | $ 800,000 |
Investments in Privately-Held_3
Investments in Privately-Held Raw Material Companies (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 25, 2021 USD ($) | Aug. 31, 2023 USD ($) | May 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Jan. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jul. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jan. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Aug. 31, 2020 USD ($) | Sep. 30, 2023 USD ($) employee | Dec. 31, 2020 USD ($) employee | Jul. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Jun. 30, 2021 | Nov. 30, 2020 | Jul. 31, 2020 | |
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 13,201,000 | $ 14,607,000 | |||||||||||||||||
Investment, cost method | $ 551,000 | ||||||||||||||||||
Percentage of equity interest sold | 15% | ||||||||||||||||||
Proceeds from sale of equity method investments | $ 827,000 | ||||||||||||||||||
Other assets | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | 13,200,000 | 14,600,000 | |||||||||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 1,716,000 | 1,887,000 | |||||||||||||||||
Percentage of ownership, equity method | 46% | ||||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 4,004,000 | 6,381,000 | |||||||||||||||||
Percentage of ownership, equity method | 39% | ||||||||||||||||||
Dividends received | $ 1,800,000 | $ 125,000 | |||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Dividends received | $ 1,300,000 | ||||||||||||||||||
Xiaoyi XingAn Gallium Co., Ltd. | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 4,904,000 | 5,094,000 | |||||||||||||||||
Percentage of ownership, equity method | 25% | ||||||||||||||||||
Dividends received | $ 1,800,000 | $ 1,500,000 | |||||||||||||||||
ChaoYang KaiMei Quartz Co., Ltd | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | $ 600,000 | $ 900,000 | $ 2,577,000 | $ 600,000 | 827,000 | $ 3,000,000 | |||||||||||||
Percentage of ownership, equity method | 40% | 40% | 40% | 40% | |||||||||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, equity method | 418,000 | ||||||||||||||||||
Investment, cost method | $ 551,000 | ||||||||||||||||||
Percentage of ownership, equity method | 25% | 10% | |||||||||||||||||
Percentage of ownership, cost method | 10% | 10% | |||||||||||||||||
Percentage of equity interest sold | 15% | 15% | |||||||||||||||||
Proceeds from sale of equity method investments | $ 827,000 | ||||||||||||||||||
Gain from share sale | 575,000 | $ 575,000 | |||||||||||||||||
Gain from fair value adjustment | $ 383,000 | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of outstanding shares | 8.50% | 8.50% | |||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, equity method | 39% | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Emeishan Jia Mei High Purity Metals Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, equity method | 25% | ||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 67% | 67% | 63% | ||||||||||||||||
Percentage of outstanding shares | 33% | 33% | |||||||||||||||||
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 | ||||||||||||||||||
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 | $ 14,211,000 | 12,089,000 | |||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 592,000 | 592,000 | |||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 85.50% | ||||||||||||||||||
ChaoYang Jin Mei Gallium Co., Ltd | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 1,820,000 | 1,820,000 | |||||||||||||||||
ChaoYang Jin Mei Gallium Co., Ltd | ChaoYang Jin Mei Gallium Co., Ltd | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 91.50% | 85.50% | 100% | ||||||||||||||||
Private equity ownership percentage | 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 | 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 | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 85.50% | ||||||||||||||||||
ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 3,122,000 | 1,000,000 | |||||||||||||||||
Increase in redeemable noncontrolling interests | $ 44,000 | $ 75,000 | $ 36,000 | ||||||||||||||||
ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 75% | ||||||||||||||||||
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | |||||||||||||||||||
Summary of investments | |||||||||||||||||||
Investments, consolidated method | $ 7,331,000 | $ 7,331,000 | |||||||||||||||||
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Chao Yang 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 - Gain (loss) on sale and remeasurement of equity method investments (Details) - USD ($) | 1 Months Ended | 9 Months Ended |
May 31, 2023 | Sep. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd. | $ 551,000 | |
Percentage of equity interest sold | 15% | |
Emeishan Jia Mei High Purity Metals Co., Ltd Investment | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair value of the consideration received | $ 779,000 | |
Foreign income tax withholding | 48,000 | |
Carrying value of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd. | (252,000) | |
Gain recognized on sale of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd. | $ 575,000 | 575,000 |
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd. | 551,000 | |
Carrying value of retained noncontrolling investment (10%) | (168,000) | |
Gain on retained noncontrolling investment due to remeasurement (10%) | $ 383,000 | |
Percentage of equity interest sold | 15% | 15% |
Percentage of ownership, cost method | 10% | 10% |
Investments in Privately-Held_5
Investments in Privately-Held Raw Material Companies - Minority Investment Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ||||
Net revenue | $ 17,366 | $ 35,183 | $ 55,366 | $ 114,323 |
Gross profit | 1,866 | 14,782 | 8,691 | 43,525 |
Net income | (6,415) | 6,730 | (15,434) | 17,247 |
Five Minority Investments | ||||
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ||||
Net revenue | 8,834 | 13,658 | 24,486 | 38,491 |
Gross profit | 2,620 | 8,687 | 8,174 | 23,412 |
Operating income | 1,962 | 8,039 | 7,134 | 21,308 |
Net income | 1,449 | 6,088 | 6,307 | 17,039 |
Minority investment entities | ||||
Entity income (loss) excluding impairment | $ 400 | $ 2,000 | $ 1,400 | $ 5,300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 84 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2015 | Dec. 31, 2022 | Oct. 27, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | $ 232,991,000 | $ 243,418,000 | $ 244,900,000 | $ 238,464,000 | $ 236,551,000 | $ 229,846,000 | $ 244,900,000 | $ 229,846,000 | |||
Common stock options exercised | 2,000 | 8,000 | 371,000 | 146,000 | |||||||
Investment in subsidiary with noncontrolling interest | 199,000 | 306,000 | 203,000 | 789,000 | 1,179,000 | (206,000) | |||||
Investment in subsidiary with redeemable noncontrolling interest | (44,000) | (75,000) | (36,000) | (155,000) | |||||||
Noncontrolling interest portion of Tongmei stock-based compensation | (71,000) | 17,000 | 17,000 | 16,000 | 16,000 | 10,000 | |||||
Stock-based compensation | 703,000 | 720,000 | 717,000 | 921,000 | 919,000 | 875,000 | |||||
Tongmei stock-based compensation | 188,000 | 192,000 | 198,000 | 115,000 | 218,000 | 213,000 | |||||
Investment in subsidiary from noncontrolling interest | 1,887,000 | ||||||||||
Net income (loss) | (6,059,000) | (5,051,000) | (3,517,000) | 6,205,000 | 5,996,000 | 3,554,000 | |||||
Other comprehensive income (loss) | (460,000) | (6,538,000) | 928,000 | (6,722,000) | (6,561,000) | 372,000 | |||||
Balance, end of period | 227,447,000 | 232,991,000 | 243,418,000 | 240,159,000 | 238,464,000 | 236,551,000 | 227,447,000 | 240,159,000 | $ 244,900,000 | ||
Reclassification adjustment from AOCI | 0 | 0 | 0 | 0 | |||||||
Net income (loss) attributable to redeemable noncontrolling interests | (356,000) | 525,000 | (807,000) | 1,500,000 | |||||||
Other comprehensive loss attributable to redeemable noncontrolling interests | $ (55,000) | (635,000) | $ (615,000) | (1,200,000) | |||||||
Stock repurchase program, authorized amount | $ 5,000,000 | ||||||||||
Shares repurchased (in shares) | 0 | 0 | 908,000 | 0 | |||||||
Average price of shares repurchased (in dollars per share) | $ 2.52 | ||||||||||
Total purchase price | $ 2,300,000 | ||||||||||
Stock repurchase program remaining authorized repurchase amount | $ 2,700,000 | $ 2,700,000 | |||||||||
Preferred Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | |||
Balance, end of period | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | $ 3,532,000 | ||
Common Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 44,000 | 44,000 | 44,000 | 43,000 | 43,000 | 43,000 | 44,000 | 43,000 | |||
Balance, end of period | 44,000 | 44,000 | 44,000 | 43,000 | 43,000 | 43,000 | 44,000 | 43,000 | 44,000 | ||
Additional Paid-In Capital | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 236,988,000 | 236,192,000 | 235,308,000 | 233,364,000 | 232,317,000 | 231,622,000 | 235,308,000 | 231,622,000 | |||
Common stock options exercised | 2,000 | 8,000 | 371,000 | 146,000 | |||||||
Investment in subsidiary with noncontrolling interest | (43,000) | (74,000) | (36,000) | (259,000) | (268,000) | (410,000) | |||||
Investment in subsidiary with redeemable noncontrolling interest | (44,000) | (75,000) | (36,000) | ||||||||
Noncontrolling interest portion of Tongmei stock-based compensation | (139,000) | 31,000 | 33,000 | 20,000 | 32,000 | 17,000 | |||||
Stock-based compensation | 703,000 | 720,000 | 717,000 | 921,000 | 919,000 | 875,000 | |||||
Tongmei stock-based compensation | 188,000 | 192,000 | 198,000 | 115,000 | 218,000 | 213,000 | |||||
Balance, end of period | 237,653,000 | 236,988,000 | 236,192,000 | 234,532,000 | 233,364,000 | 232,317,000 | 237,653,000 | 234,532,000 | 235,308,000 | ||
Accumulated Deficit | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | (22,596,000) | (17,507,000) | (14,159,000) | (21,259,000) | (26,805,000) | (29,970,000) | (14,159,000) | (29,970,000) | |||
Net income (loss) | (5,823,000) | (5,089,000) | (3,348,000) | 5,759,000 | 5,546,000 | 3,165,000 | |||||
Balance, end of period | (28,419,000) | (22,596,000) | (17,507,000) | (15,500,000) | (21,259,000) | (26,805,000) | (28,419,000) | (15,500,000) | (14,159,000) | ||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | (8,175,000) | (2,260,000) | (3,118,000) | 637,000 | 6,629,000 | 6,302,000 | (3,118,000) | 6,302,000 | |||
Other comprehensive income (loss) | (406,000) | (5,915,000) | 858,000 | (6,094,000) | (5,992,000) | 327,000 | |||||
Balance, end of period | (8,581,000) | (8,175,000) | (2,260,000) | (5,457,000) | 637,000 | 6,629,000 | (8,581,000) | (5,457,000) | (3,118,000) | ||
AXT, Inc. Stockholders' Equity | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 209,793,000 | 220,001,000 | 221,607,000 | 216,317,000 | 215,716,000 | 211,529,000 | 221,607,000 | 211,529,000 | |||
Common stock options exercised | 2,000 | 8,000 | 371,000 | 146,000 | |||||||
Investment in subsidiary with noncontrolling interest | (43,000) | (74,000) | (36,000) | (259,000) | (268,000) | (410,000) | |||||
Investment in subsidiary with redeemable noncontrolling interest | (44,000) | (75,000) | (36,000) | ||||||||
Noncontrolling interest portion of Tongmei stock-based compensation | (139,000) | 31,000 | 33,000 | 20,000 | 32,000 | 17,000 | |||||
Stock-based compensation | 703,000 | 720,000 | 717,000 | 921,000 | 919,000 | 875,000 | |||||
Tongmei stock-based compensation | 188,000 | 192,000 | 198,000 | 115,000 | 218,000 | 213,000 | |||||
Net income (loss) | (5,823,000) | (5,089,000) | (3,348,000) | 5,759,000 | 5,546,000 | 3,165,000 | |||||
Other comprehensive income (loss) | (406,000) | (5,915,000) | 858,000 | (6,094,000) | (5,992,000) | 327,000 | |||||
Balance, end of period | 204,229,000 | 209,793,000 | 220,001,000 | 217,150,000 | 216,317,000 | 215,716,000 | 204,229,000 | 217,150,000 | 221,607,000 | ||
Noncontrolling Interests | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 23,198,000 | 23,417,000 | 23,293,000 | 22,147,000 | 20,835,000 | 18,317,000 | 23,293,000 | 18,317,000 | |||
Investment in subsidiary with noncontrolling interest | 242,000 | 380,000 | 239,000 | 1,048,000 | 1,447,000 | 204,000 | |||||
Noncontrolling interest portion of Tongmei stock-based compensation | 68,000 | (14,000) | (16,000) | (4,000) | (16,000) | (7,000) | |||||
Investment in subsidiary from noncontrolling interest | 1,887,000 | ||||||||||
Net income (loss) | (236,000) | 38,000 | (169,000) | 446,000 | 450,000 | 389,000 | |||||
Other comprehensive income (loss) | (54,000) | (623,000) | 70,000 | (628,000) | (569,000) | 45,000 | |||||
Balance, end of period | $ 23,218,000 | $ 23,198,000 | $ 23,417,000 | $ 23,009,000 | $ 22,147,000 | $ 20,835,000 | $ 23,218,000 | $ 23,009,000 | $ 23,293,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Net effect on net income (loss) | $ 891 | $ 1,036 | $ 2,718 | $ 3,261 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Net effect on net income (loss) | 102 | 51 | 310 | 277 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Net effect on net income (loss) | 639 | 806 | 1,926 | 2,480 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Net effect on net income (loss) | $ 150 | $ 179 | $ 482 | $ 504 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unamortized compensation costs | $ 18,000 | |
Value of estimated forfeitures | $ 2,000 | |
Weighted-average period of amortization | 1 month 6 days | |
Number of Options Outstanding | ||
Options outstanding, beginning of period (in shares) | 1,206 | |
Exercised (in shares) | (4) | |
Canceled and expired (in shares) | (2) | |
Options outstanding, end of period (in shares) | 1,200 | 1,206 |
Options vested and unvested options expected to vest, net of forfeitures, end of period (in shares) | 1,200 | |
Options exercisable, end of period (in shares) | 1,177 | |
Weighted-average Exercise Price | ||
Options outstanding, beginning of period (in dollars per share) | $ 5.09 | |
Exercised (in dollars per share) | 2.30 | |
Canceled and expired (in dollars per share) | 4.79 | |
Options outstanding, end of period (in dollars per share) | 5.10 | $ 5.09 |
Options vested and unvested options expected to vest, net of forfeitures (in dollars per share) | 5.10 | |
Options exercisable, end of period (in dollars per share) | $ 5.14 | |
Weighted average Remaining Contractual Life | ||
Options outstanding | 4 years 4 months 2 days | 5 years 29 days |
Options vested and unvested options expected to vest, net of forfeitures, end of period | 4 years 4 months 2 days | |
Option exercisable, end of period | 4 years 3 months 21 days | |
Aggregate Intrinsic Value | ||
Options outstanding, beginning of period | $ 630,000 | |
Options outstanding, end of period | 14,000 | $ 630,000 |
Options vested and expected to vest, end of period | 14,000 | |
Options exercisable, end of period | $ 14,000 | |
Closing price (in dollars per share) | $ 2.40 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU (Details) - Restricted stock awards $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Unamortized compensation cost related to restricted stock awards | $ | $ 3.5 |
Weighted-average remaining contractual terms | 1 year 1 month 6 days |
Shares | |
Non-vested, beginning of period (in shares) | shares | 984 |
Granted (in shares) | shares | 90 |
Vested (in shares) | shares | (141) |
Forfeited (in shares) | shares | (3) |
Non-vested, end of period (in shares) | shares | 930 |
Weighted Average Grant Date Fair Value | |
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 5.55 |
Granted (in dollars per share) | $ / shares | 3.65 |
Vested (in dollars per share) | $ / shares | 5.89 |
Forfeited (in dollars per share) | $ / shares | 5.40 |
Non-vested, end of period (in dollars per share) | $ / shares | $ 5.31 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Mar. 15, 2023 | Feb. 14, 2023 | Mar. 14, 2022 | Feb. 15, 2022 | Feb. 17, 2021 | Mar. 31, 2023 | Feb. 28, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Performance Shares | |||||||||||
Shares | |||||||||||
Non-vested, beginning of period (in shares) | 76,000 | ||||||||||
Granted (in shares) | 13,000 | ||||||||||
Forfeited (in shares) | (13,000) | ||||||||||
Non-vested, end of period (in shares) | 76,000 | 76,000 | |||||||||
Weighted Average Grant Date Fair Value | |||||||||||
Non-vested, beginning of period (in dollars per share) | $ 15.37 | ||||||||||
Granted (in dollars per share) | 3.71 | ||||||||||
Forfeited (in dollars per share) | 3.71 | ||||||||||
Non-vested, end of period (in dollars per share) | $ 15.37 | $ 15.37 | |||||||||
Weighted-average grant date fair value of stock options granted (in dollars per share) | $ 3.71 | $ 7.83 | |||||||||
Percentage of performance target cap of award | 100% | ||||||||||
Percentage of year-over-year annual revenue growth rate | 2.70% | 44% | |||||||||
Shares eligible to vest | 0 | ||||||||||
Unrecognized compensation expense related to restricted stock awards | $ 0.2 | $ 0.2 | |||||||||
Weighted-average remaining contractual terms | 7 months 6 days | ||||||||||
Performance Shares | First Anniversary | |||||||||||
Shares | |||||||||||
Vested (in shares) | 0 | ||||||||||
Weighted Average Grant Date Fair Value | |||||||||||
Vesting period | 4 years | ||||||||||
Performance Shares | Chief Executive Officer | |||||||||||
Weighted Average Grant Date Fair Value | |||||||||||
Stock options grants in period | 223,590 | 114,320 | 113,130 | ||||||||
Performance Shares | Chief Executive Officer | Scenario Performance Minimum Financial Metric | |||||||||||
Weighted Average Grant Date Fair Value | |||||||||||
Share options vested in period | 223,590 | ||||||||||
Performance Shares | Chief Financial Officer | |||||||||||
Weighted Average Grant Date Fair Value | |||||||||||
Stock options grants in period | 77,600 | 32,100 | 38,475 | ||||||||
Performance Shares | Chief Financial Officer | Scenario Performance Minimum Financial Metric | |||||||||||
Weighted Average Grant Date Fair Value | |||||||||||
Share options vested in period | 77,600 | ||||||||||
Employee Stock Option [Member] | |||||||||||
Weighted Average Grant Date Fair Value | |||||||||||
Stock options grants in period | 0 | 0 | 0 | 0 |
Net Income (Loss) Per Share - R
Net Income (Loss) Per Share - Reconciliation of basic and diluted net income (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income (loss) attributable to AXT, Inc. | $ (5,823) | $ 5,759 | $ (14,260) | $ 14,470 |
Less: Preferred stock dividends | (44) | (44) | (132) | (132) |
Net income (loss) available to common stockholders | $ (5,867) | $ 5,715 | $ (14,392) | $ 14,338 |
Denominator: | ||||
Denominator for basic net income (loss) per share - weighted-average common shares | 42,638 | 42,163 | 42,574 | 42,011 |
Effect of dilutive securities: | ||||
Denominator for dilutive net income (loss) per common shares | 42,638 | 42,982 | 42,574 | 42,718 |
Net income (loss) attributable to AXT, Inc. per common share: | ||||
Basic | $ (0.14) | $ 0.14 | $ (0.34) | $ 0.34 |
Diluted | $ (0.14) | $ 0.13 | $ (0.34) | $ 0.34 |
Common stock options | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 440 | 399 | ||
Net income (loss) attributable to AXT, Inc. per common share: | ||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 184 | 201 | ||
Restricted stock awards | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 379 | 308 | ||
Net income (loss) attributable to AXT, Inc. per common share: | ||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 69 | 202 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Net Income (Loss) Per Share | ||
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% | 5% |
Liquidation preference over common stock (in dollars per share) | $ 4 | $ 4 |
Segment Information and Forei_3
Segment Information and Foreign Operations - Product Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue by product type | ||||
Revenue | $ 17,366 | $ 35,183 | $ 55,366 | $ 114,323 |
Substrates | ||||
Revenue by product type | ||||
Revenue | 10,385 | 26,861 | 34,901 | 90,300 |
Raw Materials and Other | ||||
Revenue by product type | ||||
Revenue | $ 6,981 | $ 8,322 | $ 20,465 | $ 24,023 |
Segment Information and Forei_4
Segment Information and Foreign Operations - Segment and Geographical Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Information and Foreign Operations | |||||
Number of operating segments | segment | 1 | ||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | $ 17,366 | $ 35,183 | $ 55,366 | $ 114,323 | |
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 161,651 | 161,651 | $ 162,778 | ||
China | |||||
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 159,953 | 159,953 | 162,432 | ||
North America (primarily the United States) | |||||
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 1,698 | 1,698 | $ 346 | ||
Reportable Geographical Components | |||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | 17,366 | 35,183 | 55,366 | 114,323 | |
Reportable Geographical Components | China | |||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | 10,307 | 12,314 | 28,698 | 48,239 | |
Reportable Geographical Components | Taiwan | |||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | 2,491 | 7,816 | 6,369 | 21,719 | |
Reportable Geographical Components | Japan | |||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | 558 | 2,671 | 3,489 | 8,196 | |
Reportable Geographical Components | Asia Pacific (excluding China, Taiwan and Japan) | |||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | 894 | 765 | 2,722 | 3,183 | |
Reportable Geographical Components | Europe (primarily Germany) | |||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | 2,407 | 4,989 | 8,992 | 16,682 | |
Reportable Geographical Components | North America (primarily the United States) | |||||
Net revenues reported for products shipped to customers in corresponding geographic region | |||||
Revenue | $ 709 | $ 6,628 | $ 5,096 | $ 16,304 |
Segment Information and Forei_5
Segment Information and Foreign Operations - Significant Customers (Details) - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue | |||||
Significant Customers | |||||
Number of customers representing significant share | 0 | 0 | |||
Accounts receivable | |||||
Significant Customers | |||||
Number of customers representing significant share | 0 | ||||
One customer | Revenue | |||||
Significant Customers | |||||
Number of customers representing significant share | 1 | 1 | |||
One customer | Revenue | Customer concentration | |||||
Significant Customers | |||||
Percentage share generated by major customers | 10% | 18% | 10% | 14% | |
One customer | Accounts receivable | Customer concentration | |||||
Significant Customers | |||||
Percentage share generated by major customers | 10% | ||||
Two customer | Accounts receivable | |||||
Significant Customers | |||||
Number of customers representing significant share | 2 | ||||
Two customer | Accounts receivable | Customer concentration | |||||
Significant Customers | |||||
Percentage share generated by major customers | 10% | ||||
Top five customers | Revenue | |||||
Significant Customers | |||||
Number of customers representing significant share | 5 | 5 | 5 | 5 | |
Top five customers | Revenue | Customer concentration | |||||
Significant Customers | |||||
Percentage share generated by major customers | 31% | 40% | 25% | 33% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Product Warranty | ||||
Period of warranty | 12 months | |||
Change in warranty accrual | ||||
Beginning accrued product warranty | $ 852 | $ 839 | $ 669 | $ 743 |
Accruals for warranties issued | 104 | 95 | 762 | 842 |
Adjustments related to pre-existing warranties including expirations and changes in estimates | 21 | (102) | (18) | (291) |
Cost of warranty repair | (101) | (65) | (537) | (527) |
Ending accrued product warranty | 876 | $ 767 | $ 876 | $ 767 |
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 | $ 90,000 | ||
Kazuo | ||||
Preferred label sub abstract as Contractual Obligations | ||||
Total investment agreement value | 15,000 | 15,000 | ||
Kazuo | Beijing BoYu Semiconductor Vessel Craftwork Technology Co | ||||
Preferred label sub abstract as Contractual Obligations | ||||
Total investment agreement value | $ 8,000 | $ 8,000 |
Other Income (expense), Net (De
Other Income (expense), Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income (expense), Net | ||||
Income from government grants | $ 100,000 | $ 0 | $ 1,900,000 | $ 200,000 |
Foreign currency transaction exchange gain (loss) | $ 146,000 | $ 540,000 | $ (57,000) | $ 542,000 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Income Taxes | ||
Unrecognized tax benefit interest and penalties expense | $ 0 | $ 0 |
Unrecognized tax benefits accrued interest and penalties | $ 0 | $ 0 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue | |||
Contract liabilities | $ 563,000 | $ 563,000 | $ 338,000 |
Revenue recognized, included in contract balances | $ 1,000 | $ 278,000 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue & Revenue Recognition (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Revenue: | |
Number of operating segments | 1 |
Maximum | |
Revenue: | |
Sales commissions benefit period | 1 year |
Bank Loans and Line of Credit -
Bank Loans and Line of Credit - Schedule of Bank Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Bank Loans and Line of Credit | ||
Loan Balance | $ 45,776 | $ 47,078 |
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 2.7 Percent, March 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,108 | |
Interest Rate | 2.70% | |
Loan Balance | $ 2,175 | |
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 4.6 Percent, January 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 3,935 | |
Interest Rate | 4.60% | |
Loan Balance | $ 4,059 | |
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 4.2 Percent, April 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,405 | |
Interest Rate | 4.20% | |
Loan Balance | $ 1,450 | |
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 3.5 Percent, January 2024 Due Date One | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,848 | |
Interest Rate | 3.50% | |
Loan Balance | $ 1,741 | |
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 2.8 Percent, March 2024 Due Date One | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,184 | |
Interest Rate | 2.80% | |
Loan Balance | $ 2,056 | |
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 2.7 Percent, September 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 376 | |
Interest Rate | 2.70% | |
Loan Balance | $ 376 | |
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 3.5 Percent, January 2024 Due Date Two | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,911 | |
Interest Rate | 3.50% | |
Loan Balance | $ 2,746 | |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.3 Percent, January 2023 Due Date One | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,405 | |
Interest Rate | 3.30% | |
Loan Balance | $ 1,450 | |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.3 Percent, December 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,450 | $ 1,450 |
Interest Rate | 3.30% | 3.30% |
Loan Balance | $ 1,373 | $ 1,450 |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.3 Percent, January 2024 Due Date Two | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,455 | |
Interest Rate | 3.30% | |
Loan Balance | $ 1,373 | |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.8 Percent, May 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,380 | |
Interest Rate | 3.80% | |
Loan Balance | $ 1,373 | |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.8 Percent, May 2024 Due Date One | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,373 | |
Interest Rate | 3.80% | |
Loan Balance | $ 1,373 | |
Beijing Tongmei Xtal Technology | China Merchants Bank | Bank Loan with 3.7 Percent, January 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 4,367 | |
Interest Rate | 3.70% | |
Loan Balance | $ 4,112 | |
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 4.2 Percent, May 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 3,192 | |
Interest Rate | 4.20% | |
Loan Balance | $ 3,292 | |
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 4.2 Percent, January 2024 Due Date Three | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,290 | |
Interest Rate | 4.20% | |
Loan Balance | $ 2,157 | |
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.2 Percent, May 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 3,541 | |
Interest Rate | 3.20% | |
Loan Balance | $ 3,522 | |
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.2 Percent, February 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,380 | |
Interest Rate | 3.20% | |
Loan Balance | $ 1,373 | |
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.4 Percent, June 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 5,621 | |
Interest Rate | 4.40% | |
Loan Balance | $ 5,798 | |
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.4 Percent, September 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,811 | $ 2,811 |
Interest Rate | 4.40% | 4.40% |
Loan Balance | $ 2,900 | |
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.3 Percent, June 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,757 | |
Interest Rate | 4.30% | |
Loan Balance | $ 2,744 | |
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.3 Percent, July 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,744 | |
Interest Rate | 4.30% | |
Loan Balance | $ 2,744 | |
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.3 Percent, September 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,744 | |
Interest Rate | 4.30% | |
Loan Balance | $ 2,744 | |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.8 Percent, June 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,405 | |
Interest Rate | 4.80% | |
Loan Balance | $ 1,450 | |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.8 Percent, August 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,405 | |
Interest Rate | 4.80% | |
Loan Balance | $ 1,450 | |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.8 Percent, September 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,405 | $ 1,405 |
Interest Rate | 4.80% | 4.80% |
Loan Balance | $ 1,450 | |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.5 Percent, November 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,406 | $ 1,406 |
Interest Rate | 4.50% | 4.50% |
Loan Balance | $ 1,373 | $ 1,450 |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.5 Percent, December 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,900 | $ 2,900 |
Interest Rate | 4.50% | 4.50% |
Loan Balance | $ 2,900 | |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.5 Percent, January 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,382 | |
Interest Rate | 4.50% | |
Loan Balance | $ 1,303 | |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.2 Percent, September 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,744 | |
Interest Rate | 4.20% | |
Loan Balance | $ 2,744 | |
Beijing Tongmei Xtal Technology | Industrial and Commercial Bank of China | Bank Loan with 3.2 Percent, July 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 5,621 | $ 5,621 |
Interest Rate | 3.20% | 3.20% |
Loan Balance | $ 5,800 | |
Beijing Tongmei Xtal Technology | Industrial and Commercial Bank of China | Bank Loan with 3.3 Percent, September 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,744 | |
Interest Rate | 3.30% | |
Loan Balance | $ 2,744 | |
Beijing Tongmei Xtal Technology | NanJing Bank | Bank Loan with 4.3 Percent, September 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,811 | $ 2,811 |
Interest Rate | 4.30% | 4.30% |
Loan Balance | $ 2,899 | |
Beijing Tongmei Xtal Technology | NanJing Bank | Bank Loan with 4.3 Percent, November 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,265 | $ 1,265 |
Interest Rate | 4.30% | 4.30% |
Loan Balance | $ 1,234 | $ 1,305 |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Bank of China | Bank Loan with 2.4 Percent, January 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,204 | |
Interest Rate | 2.40% | |
Loan Balance | $ 1,134 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Industrial Bank | Bank Loan With 3.6 Percent September 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 688 | |
Interest Rate | 3.60% | |
Loan Balance | $ 688 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | NingBo Bank | Bank Loan with 4.8 Percent, March 2023 Due Date. | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 703 | |
Interest Rate | 4.80% | |
Loan Balance | $ 725 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | NingBo Bank | Bank Loan with 3.6 Percent, May 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,406 | |
Interest Rate | 3.60% | |
Loan Balance | $ 1,450 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | NingBo Bank | Bank Loan with 4.8 Percent, June 2023 Due Date Two | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 725 | |
Interest Rate | 4.80% | |
Loan Balance | $ 725 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | NingBo Bank | Bank Loan with 3.7 Percent, November 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 690 | |
Interest Rate | 3.70% | |
Loan Balance | $ 688 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | NingBo Bank | Bank Loan with 3.7 Percent, December 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 690 | |
Interest Rate | 3.70% | |
Loan Balance | $ 688 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Industrial and Commercial Bank of China | Bank Loan with 2.8 Percent, December 2023 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,450 | $ 1,450 |
Interest Rate | 2.80% | 2.80% |
Loan Balance | $ 1,373 | $ 1,450 |
Leases (Details)
Leases (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) ft² | May 31, 2020 | |
Leases | ||
Area of leased property (in square feet) | ft² | 19,467 | |
Operating lease, extension term | 5 years | 3 years |
Facility lease | ||
Leases | ||
Variable lease payments | $ 0 | |
Equipment lease | ||
Leases | ||
Variable lease payments | $ 0 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Future minimum lease payments | ||
2023 | $ 144 | |
2024 | 584 | |
2025 | 597 | |
2026 | 611 | |
2027 | 625 | |
Thereafter | 755 | |
Total minimum lease payments | 3,316 | |
Less: Interest | (436) | |
Present value of lease obligations | 2,880 | |
Less: Current portion, included in accrued liabilities | $ (443) | $ (485) |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | |
Long-term portion of lease obligations | $ 2,437 | $ 1,322 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Leases | |||
Weighted-average remaining lease term (years) | 5 years 5 months 19 days | 5 years 10 months 20 days | |
Weighted-average discount rate | 5.14% | 4.61% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 432 | $ 431 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lease expense | ||||
Operating lease | $ 136 | $ 132 | $ 393 | $ 399 |
Short-term lease expense | 36 | 33 | 107 | 98 |
Total | $ 172 | $ 165 | $ 500 | $ 497 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - Beijing Tongmei Xtal Technology - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 25, 2021 | Jan. 31, 2021 | Sep. 30, 2023 | Dec. 31, 2020 | |
Noncontrolling Interest | ||||
Increase in 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) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Redeemable Noncontrolling Interests | ||||||
Redeemable noncontrolling interests beginning balance | $ 44,846,000 | $ 44,846,000 | ||||
Investment in subsidiary with redeemable noncontrolling interest | $ 44,000 | $ 75,000 | $ 36,000 | 155,000 | ||
Equity issuance costs incurred | (431,000) | |||||
Stock-based compensation attributable to redeemable noncontrolling interests | 37,000 | |||||
Net loss attributable to redeemable noncontrolling interests | (356,000) | $ 525,000 | (807,000) | $ 1,500,000 | ||
Effect of foreign currency translation on redeemable noncontrolling interests | (2,551,000) | |||||
Effect of foreign currency translation attributable to redeemable noncontrolling interests | (615,000) | |||||
Redeemable noncontrolling interests ending balance | $ 40,634,000 | $ 40,634,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended |
Oct. 31, 2023 | Nov. 30, 2023 | |
Subsequent Event | ||
Loan amount | $ 3.5 | |
Term of loan | 1 year | |
Repayments of loan | $ 2.7 | |
Minimum | ||
Subsequent Event | ||
Interest Rate | 3.45% | |
Maximum | ||
Subsequent Event | ||
Interest Rate | 3.80% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (5,823) | $ 5,759 | $ (14,260) | $ 14,470 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |