AXT (AXTI) 10-Q10 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 01, 2024
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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		44,398,843
Entity Central Index Key	0001051627
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash	$ 25,793,000	$ 37,752,000
Restricted cash	13,807,000	12,362,000
Short-term investments	1,667,000	2,140,000
Accounts receivable, net of allowances for credit losses of $579 and $579 as of March 31, 2024 and December 31, 2023	25,058,000	19,256,000
Inventories	85,943,000	86,503,000
Prepaid expenses and other current assets	11,474,000	12,643,000
Total current assets	163,742,000	170,656,000
Property, plant and equipment, net	163,122,000	166,348,000
Operating lease right-of-use assets	2,657,000	2,799,000
Other assets	19,443,000	18,898,000
Total assets	348,964,000	358,701,000
Current liabilities:
Accounts payable	10,262,000	9,617,000
Accrued liabilities	12,697,000	19,019,000
Short-term loans	49,048,000	52,921,000
Total current liabilities	72,007,000	81,557,000
Noncurrent operating lease liabilities	2,211,000	2,351,000
Other long-term liabilities	9,655,000	5,647,000
Total liabilities	83,873,000	89,555,000
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests (Note 18)	40,581,000	41,663,000
Stockholders' equity:
Preferred stock Series A, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of March 31, 2024 and December 31, 2023 (Liquidation preference of $7,920 and $7,875 as of March 31, 2024 and December 31, 2023)	3,532,000	3,532,000
Common stock, $0.001 par value; 70,000 shares authorized; 44,399 and 44,239 shares issued and outstanding as of March 31, 2024 and December 31, 2023	44,000	44,000
Additional paid-in capital	239,257,000	238,452,000
Accumulated deficit	(34,123,000)	(32,040,000)
Accumulated other comprehensive loss	(7,626,000)	(5,999,000)
Total AXT, Inc. stockholders' equity	201,084,000	203,989,000
Noncontrolling interests	23,426,000	23,494,000
Total stockholders' equity	224,510,000	227,483,000
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 348,964,000	$ 358,701,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Accounts receivable, allowances for doubtful accounts	$ 579	$ 579
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	$ 7,920	$ 7,875
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)	44,399,000	44,239,000
Common stock, shares outstanding (in shares)	44,399,000	44,239,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 22,688	$ 19,405
Cost of revenue	16,594	14,295
Gross profit	6,094	5,110
Operating expenses:
Selling, general and administrative	6,227	5,952
Research and development	3,214	3,595
Total operating expenses	9,441	9,547
Loss from operations	(3,347)	(4,437)
Interest expense, net	(349)	(397)
Equity in income of unconsolidated joint ventures	890	1,034
Other income, net	1,032	282
Loss before provision for income taxes	(1,774)	(3,518)
Provision for income taxes	274	148
Net loss	(2,048)	(3,666)
Less: Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests	(35)	318
Net loss attributable to AXT, Inc.	$ (2,083)	$ (3,348)
Net loss attributable to AXT, Inc. per common share:
Basic	$ (0.05)	$ (0.08)
Diluted	$ (0.05)	$ (0.08)
Weighted-average number of common shares outstanding:
Basic	42,987	42,498
Diluted	42,987	42,498

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net loss	$ (2,048)	$ (3,666)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation gain (loss), net of tax	(2,010)	887
Change in unrealized gain on available-for-sale debt investments, net of tax	7	111
Total other comprehensive income (loss), net of tax	(2,003)	998
Comprehensive loss attributable to AXT, Inc.	(4,051)	(2,668)
Less: Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests	341	178
Comprehensive loss attributable to AXT, Inc.	$ (3,710)	$ (2,490)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (2,048)	$ (3,666)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,192	2,118
Amortization of marketable securities premium		7
Stock-based compensation	809	915
(Gain) Loss on disposal of equipment		5
Equity in income of unconsolidated joint ventures	(890)	(1,034)
Deferred tax assets	40	(10)
Changes in operating assets and liabilities:
Accounts receivable	(6,076)	7,982
Inventories	(720)	(1,466)
Prepaid expenses and other current assets	(375)	1,965
Other assets	65	(1,055)
Accounts payable	815	(3,351)
Accrued liabilities	(558)	(1,568)
Other long-term liabilities	(2,060)	(2,376)
Net cash used in operating activities	(8,806)	(1,534)
Cash flows from investing activities:
Purchases of property, plant and equipment	(4,392)	(3,616)
Proceeds from sales and maturities of available-for-sale debt securities	480	2,903
Net cash used in investing activities	(3,912)	(713)
Cash flows from financing activities:
Proceeds from common stock options exercised	20	8
Proceeds from short-term bank loans	12,858	18,372
Payments on short-term bank loans	(16,541)	(12,810)
Proceeds from capital increase in subsidiary shares from noncontrolling interests		203
Proceeds from long-term loan	5,831
Payments on long-term loan	(168)
Net cash provided by financing activities	2,000	5,773
Effect of exchange rate changes on cash and restricted cash	204	19
Net increase (decrease) in cash and restricted cash	(10,514)	3,545
Cash and restricted cash at the beginning of the year	50,114	41,348
Cash and restricted cash at the end of the period	39,600	44,893
Supplemental disclosure of non-cash flow information:
Notes receivables paid to purchase fixed assets	1,377
Investment in subsidiary shares from noncontrolling interest		$ 72
Consideration payable in connection with construction in progress, included in accrued liabilities	$ 21

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2024
The Company and Summary of Significant Accounting Policies
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, Inc. 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 months ended March 31, 2024 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 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2024. 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 March 31, 2024 and December 31, 2023, we have three companies 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 months ended March 31, 2024, 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. 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. 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 these equity investments. 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 ShuoMei 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. 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”), which 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. In September 2023, Tongmei entered into another joint venture agreement with the same group of investors. This new agreement called for additional investment of approximately $5.6 million, with Tongmei committing to fund approximately $2.3 million. In December 2023, Tongmei made its initial additional 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 their 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 33% minority interest stakeholders of BoYu converted their ownership to a 7.59% minority interest in Tongmei. The 8.5% minority interest stakeholders, employees of JinMei, converted their ownership to a 0.38% minority interest in Tongmei. Further, a number of employees, key managers and contributors purchased a 0.4% minority interest in Tongmei. Additionally, Baoding Tongmei and ChaoYang Tongmei, were assigned to Tongmei as wholly owned subsidiaries. In 2020, the private equity funds (the “Investors”) had transferred approximately $48.1 million of new capital to Tongmei. An additional investment of approximately $1.5 million of new capital was funded in 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 approximately $49 million investment in its entirety on January 25, 2021, at which time the Investors owned a redeemable noncontrolling interest in Tongmei of 7.28%. As of March 31, 2024, Tongmei’s noncontrolling interests and redeemable noncontrolling interests totaled approximately 14.5%. We remain the controlling stakeholder of Tongmei and hold a majority of the board of director positions of Tongmei. In June 2021, we sold AXT-Tongmei to Tongmei for $1. Since Tongmei is 85.5% owned by us, and the transaction was between common interest holders, the transaction was accounted for at net book value and resulted in an increase of $1.2 million to noncontrolling interests and $1.2 million to redeemable noncontrolling interests.

Investments and Fair Value Meas

Investments and Fair Value Measurements	3 Months Ended
Investments and Fair Value Measurements	Mar. 31, 2024
Cash, Cash Equivalents and Investments
Investments and Fair Value Measurements	Note 2. Investments and Fair Value Measurements Our investments consist of instruments with original maturities of more than three months. As of March 31, 2024 and December 31, 2023, our cash and debt investments are classified as follows (in thousands): March 31, 2024 December 31, 2023 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 $ 39,600 $ — $ — $ 39,600 $ 50,114 $ — $ — $ 50,114 Investments (available-for-sale): Certificates of deposit 1 1,680 — (13) 1,667 2,160 — (20) 2,140 Total cash, restricted cash and investments $ 41,280 $ — $ (13) $ 41,267 $ 52,274 $ — $ (20) $ 52,254 Contractual maturities on investments: Due within 1 year 2 $ 1,680 $ 1,667 $ 2,160 $ 2,140 $ 1,680 $ 1,667 $ 2,160 $ 2,140 1. Certificates of deposit with original maturities of more than three months. 2. Classified as “Short-term investments” in our condensed consolidated balance sheets. We manage our debt investments as a single portfolio of highly marketable securities that is intended to be available to meet our current cash requirements. Certificates of deposit and corporate bonds are typically held until maturity. Historically, the gross unrealized losses related to our portfolio of available-for-sale debt securities were immaterial, and primarily due to normal market fluctuations and not due to increased credit risk or other valuation concerns. There was an insignificant amount of gross unrealized losses on our available-for-sale debt securities as of March 31, 2024, 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 March 31, 2024 (in thousands): In Loss Position In Loss Position Total In < 12 months > 12 months Loss Position Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of March 31, 2024 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ — $ — $ 1,667 $ (13) $ 1,667 $ (13) Total in loss position $ — $ — $ 1,667 $ (13) $ 1,667 $ (13) 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, 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 December 31, 2023 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ — $ — $ 2,140 $ (20) $ 2,140 $ (20) Total in loss position $ — $ — $ 2,140 $ (20) $ 2,140 $ (20) Restricted Cash We maintain restricted cash in connection with cash balances temporarily restricted for regular business operations. These balances have been excluded from the Company’s cash balance. As of March 31, 2024, $13.8 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, included in “Other assets” in the condensed consolidated balance sheets, totaled $13.2 million and $12.5 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, there were three 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 months ended March 31, 2024 and 2023. 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 on the investment in Jia Mei. 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 March 31, 2024, 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 Accounting Standards Codification (“ASC”) 321-10-35-2, we adjusted the investment in Jia Mei to its fair value at the time of the sale, which resulted in a gain of Fair Value Measurements We invest primarily in certificates of deposits, corporate bonds and notes, government securities and money market accounts. We review our debt investment portfolio for credit loss at least quarterly or when there are changes in credit risk or other potential valuation concerns. As of March 31, 2024 and December 31, 2023, 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. ASC 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 March 31, 2024, the net change in fair value from the placement of the hedge to settlement at each month end during the quarter had a de minimis impact on the condensed consolidated results. There were no changes in valuation techniques or related inputs in the three months ended March 31, 2024. There have been no transfers between fair The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of March 31, 2024 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs March 31, 2024 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 1,667 $ — $ 1,667 $ — Total $ 1,667 $ — $ 1,667 $ — 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, 2023 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 2,140 $ — $ 2,140 $ — Total $ 2,140 $ — $ 2,140 $ — 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 months ended March 31, 2024 and 2023, respectively.

Inventories

Inventories	3 Months Ended
Inventories	Mar. 31, 2024
Inventories
Inventories	Note 3. Inventories The components of inventories are summarized below (in thousands): March 31, December 31, 2024 2023 Inventories: Raw materials $ 28,501 $ 32,910 Work in process 54,281 50,008 Finished goods 3,161 3,585 $ 85,943 $ 86,503 As of March 31, 2024 and December 31, 2023, carrying values of inventories were net of inventory reserves of $22.2 million and $21.9 million, respectively, for excess and obsolete inventory and $213,000 and $78,000, respectively, for lower of cost or net realizable value reserves.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	3 Months Ended
Property, Plant and Equipment, Net	Mar. 31, 2024
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net	Note 4. Property, Plant and Equipment, Net The components of our property, plant and equipment are summarized below (in thousands): March 31, December 31, 2024 2023 Property, plant and equipment: Machinery and equipment, at cost $ 66,472 $ 65,918 Less: accumulated depreciation and amortization (42,065) (42,112) Building, at cost 124,200 125,786 Less: accumulated depreciation and amortization (23,791) (23,339) Leasehold improvements, at cost 7,470 7,596 Less: accumulated depreciation and amortization (6,014) (5,984) Construction in progress 36,850 38,483 $ 163,122 $ 166,348 As of March 31, 2024, the balance of construction in progress was $36.9 million, of which $29.4 million was related to our buildings in our new Dingxing and Kazuo locations, $2.9 million was for manufacturing equipment purchases not yet placed in service and $4.6 million was for construction in progress for our other consolidated subsidiaries. As of December 31, 2023, the balance of construction in progress was $38.5 million, of which $31.2 million was for our buildings in our new Dingxing and Kazuo locations, $3.1 million was for manufacturing equipment purchases not yet placed in service and $4.2 million was for our construction in progress for our other consolidated subsidiaries.

Accrued Liabilities

Accrued Liabilities	3 Months Ended
Accrued Liabilities	Mar. 31, 2024
Accrued Liabilities
Accrued Liabilities	Note 5. Accrued Liabilities The components of accrued liabilities are summarized below (in thousands): March 31, December 31, 2024 2023 Accrued compensation and related charges $ 2,941 $ 3,707 Preferred stock dividends payable 2,901 2,901 Payable in connection with construction in progress 1,613 7,249 Other tax payable 652 493 Advances from customers 535 305 Accrued product warranty 495 703 Accrued professional services 471 868 Current portion of operating lease liabilities 463 458 Other personnel-related costs 276 286 Accrued income taxes 272 — Accrual for sales returns 34 39 Other accrued liabilities 2,044 2,010 $ 12,697 $ 19,019

Related Party Transactions

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2024
Related Party Transactions
Related Party Transactions	Note 6. Related Party Transactions 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 March 31, 2024, $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	3 Months Ended
Investments in Privately-Held Raw Material Companies	Mar. 31, 2024
Investments in Privately-Held Raw Material Companies
Investments in Privately-Held Raw Material Companies	Note 7. Investments in Privately-Held Raw Material Companies We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business. These companies form part of our overall supply chain strategy. Investment Balance as of March 31, December 31, Accounting Ownership * Company 2024 2023 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 3,122 Consolidated 75.0 % ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. 7,331 7,331 Consolidated * 58.5 % $ 14,211 $ 14,211 Beijing JiYa Semiconductor Material Co., Ltd. $ 4,105 3,806 Equity 39 % Xiaoyi XingAn Gallium Co., Ltd. 5,995 5,516 Equity 25 % ChaoYang KaiMei Quartz Co., Ltd. 3,098 3,154 Equity * 40 % $ 13,198 $ 12,476 Emeishan Jia Mei High Purity Metals Co., Ltd. 551 551 Fair value **** 10 % $ 551 $ 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 their 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 . on the investment in Jia Mei. As a result of the share sale, we recognized a gain of $575,000. Additionally, in accordance with ASC 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 months ended March 31, 2024. In November 2023, our 46% equity ownership interest in Donghai County Dongfang High Purity Electronic Materials Co., Ltd. (“Dongfang”) was sold to a third party for consideration valued at approximately $0.6 million, including raw materials, equipment, and vehicle. As a result, our equity ownership interest of Dongfang decreased from 46% to 0%. The loss resulting from the sale was incorporated as a component of “Equity in income of unconsolidated joint ventures” in the consolidated statements of operations in the fourth quarter of 2023. The loss from the sale includes the following: Amount (in thousands) Fair value of the consideration received $ 585 Carrying value of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd. (1,710) Loss recognized on sale of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ (1,125) 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 $12.5 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, our ownership interests inChaoYang KaiMei, JiYa, Xiaoyi XingAn Gallium Co., Ltd (“Xiaoyi XingAn”) and Jia Mei were 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 and November 2023, Xiaoyi XingAn distributed a dividend of $1.8 million, and JiYa distributed dividends of $2.0 million and $0.5 million, respectively. We have no current intentions to distribute to our investors earnings under our corporate structure. All of these distributions were paid to the PRC companies and the minority shareholders. 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 months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Net revenue $ 8,104 $ 7,974 Gross profit $ 3,929 $ 2,906 Operating income $ 3,371 $ 2,009 Net income $ 3,138 $ 3,945 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 $0.9 million and $1.0 million, respectively, for the three months ended March 31, 2024 and 2023.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2024
Stockholders' Equity
Stockholders' Equity	Note 8. Stockholders’ Equity Condensed Consolidated Statements of Stockholders’ Equity (in thousands) The changes in stockholders’ equity by component for the three months ended March 31, 2024 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, 2023 $ 3,532 $ 44 $ 238,452 $ (32,040) $ (5,999) $ 203,989 $ 23,494 $ 227,483 Common stock options exercised — — 20 — — 20 — 20 Investment in subsidiary with noncontrolling interest — — — — — — — — Investment in subsidiary with redeemable noncontrolling interest — — — — — — — — Noncontrolling interest portion of Tongmei stock-based compensation — — (24) — — (24) 13 (11) Stock-based compensation — — 614 — — 614 — 614 Tongmei stock-based compensation — — 195 — — 195 — 195 Net loss — — — (2,083) — (2,083) 106 (1,977) Other comprehensive income — — — — (1,627) (1,627) (187) (1,814) Balance as of March 31, 2024 $ 3,532 $ 44 $ 239,257 $ (34,123) $ (7,626) $ 201,084 $ 23,426 $ 224,510 Net loss and Other comprehensive loss attributable to redeemable noncontrolling interests were $71,000 and $189,000, respectively, for the three months ended March 31, 2024 and are not shown in the table above. The changes in stockholders’ equity by component for the three months ended March 31, 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 Net loss and Other comprehensive income attributable to redeemable noncontrolling interests were $149,000 and $70,000, respectively, for the three months ended March 31, 2023, and are 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 2023 . During the three months ended March 31, 2024, we did no t repurchase any shares under the approved stock repurchase program. As of March 31, 2024, approximately $2.7 million remained available for future repurchases under this program. Currently, we do not plan to repurchase additional shares.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2024
Employee Benefit Plans and Stock-based Compensation
Stock-Based Compensation	Note 9. Stock-Based Compensation We account for stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data): Three Months Ended March 31, 2024 2023 Cost of revenue $ 105 $ 105 Selling, general and administrative 553 632 Research and development 151 178 Net effect on net income (loss) $ 809 $ 915 As of March 31, 2024, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plan was $0 . We any stock-based compensation to inventory as of March 31, 2024 and December 31, 2023 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 months ended March 31, 2024 and 2023. The following table summarizes the stock option transactions during the three months ended March 31, 2024 (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, 2024 1,198 $ 5.10 4.09 $ 14 Granted — — Exercised (9) 2.20 Canceled and expired — — Balance as of March 31, 2024 1,189 $ 5.12 3.88 $ 684 Options vested as of March 31, 2024 and unvested options expected to vest, net of forfeitures 1,189 $ 5.12 3.88 $ 684 Options exercisable as of March 31, 2024 1,189 $ 5.12 3.88 $ 684 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $4.59 on March 28, 2024, which would have been received by the option holder had all option holders exercised their options on that date. Restricted stock awards A summary of activity related to restricted stock awards for the three months ended March 31, 2024 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2024 1,220 $ 3.75 Granted — $ — Vested (7) $ 12.37 Forfeited — $ — Non-vested as of March 31, 2024 1,213 $ 3.69 As of March 31, 2024, 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 1.3 years. At-Risk, Performance Shares In March 2023 and February 2024, 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. The financial performance metric for the at-risk, performance shares issued in February 2024 is based upon the Company’s year-end actual results in 2024. All performance shares, if earned, are still subject to annual vesting over a four-year on the first anniversary because the performance measurement is based on year-end results for the year 2023 and 2024, 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 2024 and March 2023 was On February 15, 2022, the Compensation Committee recommended, and the Board approved, the grant to Dr. Morris Young of 114,320 at-risk, performance shares under the Plan. On February 15, 2022, the Compensation Committee approved the grant to Gary Fischer of 32,100 at-risk, performance shares under the Plan. If the performance financial metric is less than 50% achieved these shares are forfeited. If the performance financial metric is between 50% and 200% achieved, then a corresponding pro rata portion of the 114,320 shares issued to Dr. Young would be eligible to vest and a corresponding pro rata portion of the 32,100 shares issued to Mr. Fischer would be eligible to vest. Any shares that are not eligible to vest are forfeited. If the target financial metric exceeds 200%, then the maximum number of at-risk performance shares that would be eligible to vest is 114,320 for Dr. Young and 32,100 for Mr. Fischer. 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 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 for fiscal year 2023 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 was exceeded and an additional financial metric for fiscal year 2023 is achieved, then 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 for fiscal year 2023 is not achieved, then these awards are forfeited. On February 20, 2024, the Compensation Committee met and certified that the minimum revenue metric for fiscal year 2023 was not achieved. Therefore, none of the at-risk performance shares became eligible to vest. On February 20, 2024, the Compensation Committee recommended, and the Board approved, the grant to Dr. Morris Young of 223,590 at-risk, performance shares under the Plan. On February 20, 2024, the Compensation Committee approved the grant to Gary Fischer of 77,600 at-risk, performance shares under the Plan. If the minimum financial metric for fiscal year 2024 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, then 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 for fiscal year 2024 is not achieved, then these awards are forfeited. A summary of the status of our unvested at-risk, performance shares as of March 31, 2024 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2024 38 $ 15.37 Granted (1) 151 $ 2.28 Vested — $ — Forfeited — $ — Non-vested as of March 31, 2024 189 $ 4.91 (1) The number of shares presented is based on achieving 100% of the targeted financial performance metric as defined in the at-risk, performance shares agreement. As of March 31, 2024, there was $0.4 million of unrecognized compensation expense related to unvested at-risk, performance shares that is expected to be recognized over a weighted-average period of 1.81 years.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
Net Loss Per Share	Mar. 31, 2024
Net Loss Per Share
Net Loss Per Share	Note 10. Net Loss Per Share Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options and vesting of restricted stock awards. Potentially dilutive common shares are excluded from the computation of weighted-average number of common shares outstanding in net loss years, as their effect would be anti-dilutive to the computation. A reconciliation of the numerators and denominators of the basic and diluted net income loss per share calculations is as follows (in thousands, except per share data): Three Months Ended March 31, 2024 2023 Numerator: Net loss attributable to AXT, Inc. $ (2,083) $ (3,348) Less: Preferred stock dividends (44) (44) Net loss available to common stockholders $ (2,127) $ (3,392) Denominator: Denominator for basic net income (loss) per share - weighted-average common shares 42,987 42,498 Effect of dilutive securities: Common stock options — — Restricted stock awards — — Denominator for dilutive net income (loss) per common shares 42,987 42,498 Net income (loss) attributable to AXT, Inc. per common share: Basic $ (0.05) $ (0.08) Diluted $ (0.05) $ (0.08) Options excluded from diluted net income (loss) per share as the impact is anti-dilutive 1,189 1,203 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive 1,401 1,081 The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of March 31, 2024 and December 31, 2023, valued at $3,532,000, are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the Board of Directors and a $4 per share liquidation preference over common stock, which must be paid before any distribution is made to common stockholders. These preferred shares were issued to Lyte Optronics, Inc. stockholders in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999.

Segment Information and Foreign

Segment Information and Foreign Operations	3 Months Ended
Segment Information and Foreign Operations	Mar. 31, 2024
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 March 31, 2024 2023 Product Type: Substrates $ 16,903 $ 13,489 Raw Materials and Other 5,785 5,916 Total $ 22,688 $ 19,405 Geographical Information The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended March 31, 2024 2023 Geographical region: China $ 11,517 $ 8,102 Taiwan 4,582 2,471 Japan 990 1,535 Asia Pacific (excluding China, Taiwan and Japan) 798 1,091 Europe (primarily Germany) 3,725 3,570 North America (primarily the United States) 1,076 2,636 Total $ 22,688 $ 19,405 Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands): As of March 31, December 31, 2024 2023 Long-lived assets by geographic region, net of depreciation: North America $ 1,562 $ 1,631 China 164,217 167,516 $ 165,779 $ 169,147 Significant Customers One customer represented 12% of our revenue for the three months ended March 31, 2024 and no customers represented 10% of our revenue for the three months ended 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 March 31, 2024 ,

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies
Commitments and Contingencies	Note 12. Commitments and Contingencies Indemnification Agreements We have entered into indemnification agreements with our directors and officers that require us to indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to obtain directors’ and officers’ insurance if available on reasonable terms, which we currently have in place. Product Warranty We provide warranties for our products for a specific period of time, generally twelve months, against material defects. We provide for the estimated future costs of warranty obligations in cost of sales when the related revenue is recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that we expect to incur to repair or replace product parts that fail while still under warranty. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on repair costs. On a quarterly basis, we review the accrued balances and update the historical warranty cost trends. The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Beginning accrued product warranty $ 703 $ 669 Accruals for warranties issued 57 544 Adjustments related to pre-existing warranties including expirations and changes in estimates (210) 25 Cost of warranty repair (55) (323) Ending accrued product warranty $ 495 $ 915 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 March 31, 2024, 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	3 Months Ended
Other Income (expense), Net	Mar. 31, 2024
Other Income (expense), Net
Other Income (expense), Net	Note 13. Other Income (expense), Net Other income (expense), net for the three months ended March 31, 2024 and 2023, includes a grant of $1.0 million and $0.5 million, respectively, from government agencies as awards for technological innovation. In addition, we incurred a foreign currency transaction exchange gain of $58,000 and a loss of $213,000 for the three months ended March 31, 2024 and 2023, respectively.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
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 months ended March 31, 2024 includes no interest and penalties. As of March 31, 2024, we have no accrued interest and penalties related to uncertain tax positions. We file income tax returns in the U.S. federal, various states and foreign jurisdictions. Currently, there is no tax audit in any of the jurisdictions and we do not expect there will be any significant change to this. Provision for income taxes for the three months ended March 31, 2024 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, 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	3 Months Ended
Revenue	Mar. 31, 2024
Revenue
Revenue	Note 15. Revenue Revenue Recognition We manufacture and sell high-performance compound semiconductor substrates including indium phosphide, gallium arsenide and germanium wafers, and our consolidated subsidiaries sell certain raw materials, including high purity gallium (7N Ga), pyrolytic boron nitride (pBN) crucibles and boron oxide (B2O3). After we ship our products, there are no remaining obligations or customer acceptance requirements that would preclude revenue recognition. Our products are typically sold pursuant to purchase orders placed by our customers, and our terms and conditions of sale do not require customer acceptance. We account for a contract with a customer when there is a legally enforceable contract, which could be the customer’s purchase order, the rights of the parties are identified, the contract has commercial terms, and collectibility of the contract consideration is probable. The majority of our contracts have a single performance obligation to transfer products and are short term in nature, usually less than six months. Our revenue is measured based on the consideration specified in the contract with each customer in exchange for transferring products that are generally based upon a negotiated formula, list or fixed price. Revenue is recognized when control of the promised goods is transferred to our customer, which is either upon shipment from our dock, receipt at the customer’s dock, or removal from consignment inventory at the customer’s location, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods. Shipping and handling fees billed to customers in a sales transaction are recorded as an offset to shipping and handling expenses. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from revenue. We do not provide training, installation or commissioning services. We provide for future returns based on historical data, prior experience, current economic trends and changes in customer demand at the time revenue is recognized. We do not recognize any asset associated with the incremental cost of obtaining revenue generating customer contracts. As such, sales commissions are expensed as incurred, given that the expected period of benefit is less than one year. Contract Balances Contract assets are recorded when we have a conditional right to consideration for our completed performance under the contracts. Accounts receivables are recorded when the right to this consideration becomes unconditional. We believe the fair value of our accounts receivable approximates its carrying value due to its short maturities and nominal credit risk. We do not have any material contract assets as of March 31, 2024. In some contracts we require payment in advance of shipment, per a billing schedule reflected in our customer contracts, and the payment is recorded as a contract liability. The following table reflects the contract liabilities balance, which is included in “Accrued liabilities” on the condensed consolidated balance sheets, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Contract liabilities $ 535 $ 305 During the three months ended March 31, 2024, the Company recognized $127,000 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.

Loans and Line of Credit

Loans and Line of Credit	3 Months Ended
Loans and Line of Credit	Mar. 31, 2024
Loans and Line of Credit
Loans and Line of Credit	Note 16. Loans and Line of Credit Our bank loans and credit facilities typically have a term of 12 months or less and are included in “Short-term loans” in our condensed consolidated balance sheets. The following table represents short-term bank loans as of March 31, 2024 and December 31, 2023 (in thousands, except interest rate data): Loan Interest December 31, March 31, Subsidiary Bank Detail Rate Start Date Due Date 2023 2024 Tongmei Bank of China (1) $ 1,848 3.5 % January-23 January-24 $ 1,795 $ - 2,184 2.8 % March-23 March-24 2,118 - 376 2.7 % September-23 September-24 386 378 876 3.5 % November-23 November-24 876 858 1,003 3.5 % November-23 November-24 1,003 985 Bank of China (2) 2,911 3.5 % January-23 January-24 2,825 - 2,770 3.0 % January-24 January-25 - 2,770 Bank of Communications (1) 1,455 3.3 % January-23 January-24 1,414 - 1,380 3.8 % May-23 May-24 1,414 1,386 1,373 3.8 % July-23 May-24 1,414 1,386 China Merchants Bank (1) 4,367 3.7 % January-23 January-24 4,235 - 1,386 3.5 % January-24 January-25 - 1,386 692 3.5 % February-24 February-25 - 692 Bank of Beijing (3) 2,290 4.2 % January-23 January-24 2,220 - 3,541 3.2 % June-23 May-24 3,626 3,560 1,380 3.2 % June-23 February-24 1,414 - 1,414 3.0 % December-23 December-24 1,414 1,386 3,600 3.0 % March-24 February-25 - 3,600 1,386 3.0 % March-24 December-24 - 1,386 Industrial Bank (1) 2,757 4.3 % June-23 June-24 2,825 2,770 2,744 4.3 % July-23 July-24 2,825 2,770 2,744 4.3 % September-23 September-24 2,825 2,770 NingBo Bank (1) 2,744 4.2 % August-23 September-24 2,820 2,765 1,271 4.3 % November-23 November-24 1,271 1,246 2,825 4.3 % December-23 December-24 2,825 2,770 1,647 4.3 % January-24 January-25 - 1,647 Industrial and Commercial Bank of China (1) 2,744 3.3 % September-23 September-24 2,825 2,770 NanJing Bank (1) 2,752 3.8 % October-23 October-24 2,752 2,700 BoYu Industrial and Commercial Bank of China (4) 1,414 2.7 % December-23 December-24 1,414 1,386 Bank of China (1) 1,204 2.4 % January-23 January-24 849 - NingBo Bank (1) 1,414 3.3 % November-23 May-24 1,414 1,386 Industrial Bank (1) 688 3.6 % September-23 September-24 708 692 Bank of Communications (1) 1,414 3.0 % November-23 May-24 1,414 1,386 NanJing Bank (1) 1,386 3.5 % January-24 January-25 - 1,386 Loan Balance $ 52,921 $ 48,217 Collateral for the above bank loans and line of credit (1) Not collateralized. (2) ChaoYang LiMei time deposit. (3) AXT time deposit. (4) BoYu’s land use rights and its building located at its facility in Tianjin, China. In addition, the December 2023 loan attracts a guarantee fee amounting to 0.7% of the loan amount. Long-term Loa ns On January 30, 2024, the Company secured a new line of credit amounting to $9.7 million, structured as a five-year bank loan. The credit facility bears interest at a rate of 6.5% per annum on the amount drawn from the line of credit. The credit facility is collateralized by the real estate properties owned by ChaoYang Tongmei. In January 2024, the Company borrowed $5.8 million against the credit facility. The intended use of the credit facility is for construction projects. As of March 31, 2024, $5.6 million is included in “Other long-term liabilities” and $277,000 is included in “Short-term loans” in our consolidated balance sheets. In December 2023, one of our consolidated subsidiaries, ChaoYang XinMei secured a loan of approximately $2.1 million from an unrelated financing company. According to the agreement, ChaoYang XinMei temporarily transferred ownership of its production line and related equipment to the financing company, while retaining the right to use the property for production. At the end of the 30-month contractual period, ChaoYang XinMei holds the option to repurchase the production line and related equipment for $14.00. As of March 31, 2024, $1.4 million associated with this financing arrangement is included in “Other long-term liabilities” and $554,000 is included in “Short-term loans” in our consolidated balance sheets. As of March 31, 2024, the maturities of our long-term loan liabilities in five years (excluding short-term loans) are as follows (in thousands): Maturity of long term loans 2025 $ 1,038 2026 1,315 2027 969 2028 1,246 2029 2,371 In summary, short-term loans of $49.0 million included under “Short-term loans” in our condensed consolidated balance sheet at March 31, 2024, consisted of $48.2 million of short-term bank loans and $0.8 million of the current portion of long-term debt. Long-term loans of $7.0 million included under “Other long-term liabilities” in our condensed consolidated balance sheet at March 31, 2024 consisted of $5.6 million in a five-year bank loan and $1.4 million in a loan secured by ChaoYang XinMei.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2024
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 remaining lease obligations relate to 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 March 31, 2024, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2024 $ 440 2025 599 2026 613 2027 627 2028 610 Thereafter 150 Total minimum lease payments 3,039 Less: Interest (365) Present value of lease obligations 2,674 Less: Current portion, included in accrued liabilities (463) Long-term portion of lease obligations $ 2,211 The weighted-average remaining lease term and the weighted-average discount rate for our operating leases as of each date is as follows: March 31, December 31, 2024 2023 Weighted-average remaining lease term (years) 4.97 5.22 Weighted-average discount rate 5.14 % 5.14 % Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 146 $ 147 The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations: Three Months Ended March 31, 2024 2023 Operating lease $ 153 $ 129 Short-term lease expense 41 34 Total $ 194 $ 163

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interests	3 Months Ended
Redeemable Noncontrolling Interests	Mar. 31, 2024
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 three months ended March 31, 2024 are presented in the following table (in thousands): Balance as of January 1, 2024 $ 41,663 Equity issuance costs incurred 18 Stock-based compensation attributable to redeemable noncontrolling interests 15 Net loss attributable to redeemable noncontrolling interests (71) Effect of foreign currency translation on redeemable noncontrolling interests (855) Effect of foreign currency translation attributable to redeemable noncontrolling interests (189) Balance as of March 31, 2024 $ 40,581

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2024
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 19. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) released ASU 2023-07— Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, aiming to enhance the transparency and relevance of segment information provided in financial statements. The amendments in this update require that a public entity disclose significant segment expenses, and profit or loss and assets, among other disclosures, for each reportable segment, on an annual and interim basis. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the new standard will have an immaterial effect on our condensed consolidated financial statements. In December 2023, FASB issued ASU 2023-09— Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to help investors better understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities. Furthermore, the update improves to assess income tax information that affects cash flow forecasts and capital allocation decisions. The update is effective for public business entities for annual periods beginning after December 15, 2024, on a prospective basis. Adoption of the new standard will have an immaterial effect on our condensed consolidated financial statements. In March 2024, FASB released ASU 2024-01— Compensation—Stock Compensation (Topic 718). The update adds an illustrative example aimed at clarifying the scope application of a profit interest award in accordance with Topic 718. The update is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Adoption of the new standard will have an immaterial effect on our condensed consolidated financial statements.

Subsequent Event

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2024
Subsequent Event
Subsequent Event	Note 20. Subsequent Event In April 2024, Tongmei obtained $691,000 in a new one-year bank loan with an annual interest rate of 3.5%. The bank loan is unsecured. On May 6, 2024, a putative shareholder class action was filed in U.S. District Court for the Eastern District of New York. Nowakowsky

Investments and Fair Value Me_2

Investments and Fair Value Measurements (Tables)	3 Months Ended
Investments and Fair Value Measurements (Tables)	Mar. 31, 2024
Cash, Cash Equivalents and Investments
Cash, cash equivalents and investments	As of March 31, 2024 and December 31, 2023, our cash and debt investments are classified as follows (in thousands): March 31, 2024 December 31, 2023 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 $ 39,600 $ — $ — $ 39,600 $ 50,114 $ — $ — $ 50,114 Investments (available-for-sale): Certificates of deposit 1 1,680 — (13) 1,667 2,160 — (20) 2,140 Total cash, restricted cash and investments $ 41,280 $ — $ (13) $ 41,267 $ 52,274 $ — $ (20) $ 52,254 Contractual maturities on investments: Due within 1 year 2 $ 1,680 $ 1,667 $ 2,160 $ 2,140 $ 1,680 $ 1,667 $ 2,160 $ 2,140 1. Certificates of deposit with original maturities of more than three months. 2. Classified as “Short-term investments” in our condensed consolidated balance sheets.
Fair value and gross unrealized losses related to available-for-sale securities	The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 (in thousands): In Loss Position In Loss Position Total In < 12 months > 12 months Loss Position Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of March 31, 2024 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ — $ — $ 1,667 $ (13) $ 1,667 $ (13) Total in loss position $ — $ — $ 1,667 $ (13) $ 1,667 $ (13) 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, 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 December 31, 2023 Value (Loss) Value (Loss) Value (Loss) Investments: Certificates of deposit $ — $ — $ 2,140 $ (20) $ 2,140 $ (20) Total in loss position $ — $ — $ 2,140 $ (20) $ 2,140 $ (20)
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 March 31, 2024 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs March 31, 2024 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 1,667 $ — $ 1,667 $ — Total $ 1,667 $ — $ 1,667 $ — 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, 2023 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 2,140 $ — $ 2,140 $ — Total $ 2,140 $ — $ 2,140 $ —

Inventories (Tables)

Inventories (Tables)	3 Months Ended
Inventories (Tables)	Mar. 31, 2024
Inventories
Components of inventories	The components of inventories are summarized below (in thousands): March 31, December 31, 2024 2023 Inventories: Raw materials $ 28,501 $ 32,910 Work in process 54,281 50,008 Finished goods 3,161 3,585 $ 85,943 $ 86,503

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	3 Months Ended
Property, Plant and Equipment, Net (Tables)	Mar. 31, 2024
Property, Plant and Equipment, Net
Schedule of components of property, plant and equipment	The components of our property, plant and equipment are summarized below (in thousands): March 31, December 31, 2024 2023 Property, plant and equipment: Machinery and equipment, at cost $ 66,472 $ 65,918 Less: accumulated depreciation and amortization (42,065) (42,112) Building, at cost 124,200 125,786 Less: accumulated depreciation and amortization (23,791) (23,339) Leasehold improvements, at cost 7,470 7,596 Less: accumulated depreciation and amortization (6,014) (5,984) Construction in progress 36,850 38,483 $ 163,122 $ 166,348

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
Accrued Liabilities (Tables)	Mar. 31, 2024
Accrued Liabilities
Schedule of components of accrued liabilities	The components of accrued liabilities are summarized below (in thousands): March 31, December 31, 2024 2023 Accrued compensation and related charges $ 2,941 $ 3,707 Preferred stock dividends payable 2,901 2,901 Payable in connection with construction in progress 1,613 7,249 Other tax payable 652 493 Advances from customers 535 305 Accrued product warranty 495 703 Accrued professional services 471 868 Current portion of operating lease liabilities 463 458 Other personnel-related costs 276 286 Accrued income taxes 272 — Accrual for sales returns 34 39 Other accrued liabilities 2,044 2,010 $ 12,697 $ 19,019

Investments in Privately-Held_2

Investments in Privately-Held Raw Material Companies (Tables)	3 Months Ended
	Mar. 31, 2024
Investments in Privately-Held Raw Material Companies
Summary of investments	Investment Balance as of March 31, December 31, Accounting Ownership * Company 2024 2023 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 3,122 Consolidated 75.0 % ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. 7,331 7,331 Consolidated * 58.5 % $ 14,211 $ 14,211 Beijing JiYa Semiconductor Material Co., Ltd. $ 4,105 3,806 Equity 39 % Xiaoyi XingAn Gallium Co., Ltd. 5,995 5,516 Equity 25 % ChaoYang KaiMei Quartz Co., Ltd. 3,098 3,154 Equity * 40 % $ 13,198 $ 12,476 Emeishan Jia Mei High Purity Metals Co., Ltd. 551 551 Fair value **** 10 % $ 551 $ 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 their 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 Amount (in thousands) Fair value of the consideration received $ 585 Carrying value of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd. (1,710) Loss recognized on sale of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ (1,125)
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 months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Net revenue $ 8,104 $ 7,974 Gross profit $ 3,929 $ 2,906 Operating income $ 3,371 $ 2,009 Net income $ 3,138 $ 3,945

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
Stockholders' Equity (Tables)	Mar. 31, 2024
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, 2023 $ 3,532 $ 44 $ 238,452 $ (32,040) $ (5,999) $ 203,989 $ 23,494 $ 227,483 Common stock options exercised — — 20 — — 20 — 20 Investment in subsidiary with noncontrolling interest — — — — — — — — Investment in subsidiary with redeemable noncontrolling interest — — — — — — — — Noncontrolling interest portion of Tongmei stock-based compensation — — (24) — — (24) 13 (11) Stock-based compensation — — 614 — — 614 — 614 Tongmei stock-based compensation — — 195 — — 195 — 195 Net loss — — — (2,083) — (2,083) 106 (1,977) Other comprehensive income — — — — (1,627) (1,627) (187) (1,814) Balance as of March 31, 2024 $ 3,532 $ 44 $ 239,257 $ (34,123) $ (7,626) $ 201,084 $ 23,426 $ 224,510 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

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2024
Employee Benefit Plans and Stock-based Compensation
Summary of compensation costs related to stock-based awards	The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data): Three Months Ended March 31, 2024 2023 Cost of revenue $ 105 $ 105 Selling, general and administrative 553 632 Research and development 151 178 Net effect on net income (loss) $ 809 $ 915
Summary of stock option activity	The following table summarizes the stock option transactions during the three months ended March 31, 2024 (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, 2024 1,198 $ 5.10 4.09 $ 14 Granted — — Exercised (9) 2.20 Canceled and expired — — Balance as of March 31, 2024 1,189 $ 5.12 3.88 $ 684 Options vested as of March 31, 2024 and unvested options expected to vest, net of forfeitures 1,189 $ 5.12 3.88 $ 684 Options exercisable as of March 31, 2024 1,189 $ 5.12 3.88 $ 684
Summary of restricted stock awards activity	A summary of activity related to restricted stock awards for the three months ended March 31, 2024 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2024 1,220 $ 3.75 Granted — $ — Vested (7) $ 12.37 Forfeited — $ — Non-vested as of March 31, 2024 1,213 $ 3.69
Summary of unvested at-risk performance shares	A summary of the status of our unvested at-risk, performance shares as of March 31, 2024 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2024 38 $ 15.37 Granted (1) 151 $ 2.28 Vested — $ — Forfeited — $ — Non-vested as of March 31, 2024 189 $ 4.91

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
Net Loss Per Share (Tables)	Mar. 31, 2024
Net 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 March 31, 2024 2023 Numerator: Net loss attributable to AXT, Inc. $ (2,083) $ (3,348) Less: Preferred stock dividends (44) (44) Net loss available to common stockholders $ (2,127) $ (3,392) Denominator: Denominator for basic net income (loss) per share - weighted-average common shares 42,987 42,498 Effect of dilutive securities: Common stock options — — Restricted stock awards — — Denominator for dilutive net income (loss) per common shares 42,987 42,498 Net income (loss) attributable to AXT, Inc. per common share: Basic $ (0.05) $ (0.08) Diluted $ (0.05) $ (0.08) Options excluded from diluted net income (loss) per share as the impact is anti-dilutive 1,189 1,203 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive 1,401 1,081

Segment Information and Forei_2

Segment Information and Foreign Operations (Tables)	3 Months Ended
Segment Information and Foreign Operations (Tables)	Mar. 31, 2024
Segment Information and Foreign Operations
Revenues reported by product type	The following table represents revenue amounts (in thousands) by product type: Three Months Ended March 31, 2024 2023 Product Type: Substrates $ 16,903 $ 13,489 Raw Materials and Other 5,785 5,916 Total $ 22,688 $ 19,405
Revenue reported for products shipped to customers in the corresponding geographic region	The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended March 31, 2024 2023 Geographical region: China $ 11,517 $ 8,102 Taiwan 4,582 2,471 Japan 990 1,535 Asia Pacific (excluding China, Taiwan and Japan) 798 1,091 Europe (primarily Germany) 3,725 3,570 North America (primarily the United States) 1,076 2,636 Total $ 22,688 $ 19,405
Long-lived assets by geographic region	Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands): As of March 31, December 31, 2024 2023 Long-lived assets by geographic region, net of depreciation: North America $ 1,562 $ 1,631 China 164,217 167,516 $ 165,779 $ 169,147

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
Commitments and Contingencies (Tables)	Mar. 31, 2024
Commitments and Contingencies
Product warranty accrued liability	The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Beginning accrued product warranty $ 703 $ 669 Accruals for warranties issued 57 544 Adjustments related to pre-existing warranties including expirations and changes in estimates (210) 25 Cost of warranty repair (55) (323) Ending accrued product warranty $ 495 $ 915

Revenue (Tables)

Revenue (Tables)	3 Months Ended
Revenue (Tables)	Mar. 31, 2024
Revenue
Schedule of amounts recorded in accrued liabilities	The following table reflects the contract liabilities balance, which is included in “Accrued liabilities” on the condensed consolidated balance sheets, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Contract liabilities $ 535 $ 305 During the three months ended March 31, 2024, the Company recognized $127,000

Loans and Line of Credit (Table

Loans and Line of Credit (Tables)	3 Months Ended
Loans and Line of Credit (Tables)	Mar. 31, 2024
Loans and Line of Credit
Schedule of bank loans and line of credit	The following table represents short-term bank loans as of March 31, 2024 and December 31, 2023 (in thousands, except interest rate data): Loan Interest December 31, March 31, Subsidiary Bank Detail Rate Start Date Due Date 2023 2024 Tongmei Bank of China (1) $ 1,848 3.5 % January-23 January-24 $ 1,795 $ - 2,184 2.8 % March-23 March-24 2,118 - 376 2.7 % September-23 September-24 386 378 876 3.5 % November-23 November-24 876 858 1,003 3.5 % November-23 November-24 1,003 985 Bank of China (2) 2,911 3.5 % January-23 January-24 2,825 - 2,770 3.0 % January-24 January-25 - 2,770 Bank of Communications (1) 1,455 3.3 % January-23 January-24 1,414 - 1,380 3.8 % May-23 May-24 1,414 1,386 1,373 3.8 % July-23 May-24 1,414 1,386 China Merchants Bank (1) 4,367 3.7 % January-23 January-24 4,235 - 1,386 3.5 % January-24 January-25 - 1,386 692 3.5 % February-24 February-25 - 692 Bank of Beijing (3) 2,290 4.2 % January-23 January-24 2,220 - 3,541 3.2 % June-23 May-24 3,626 3,560 1,380 3.2 % June-23 February-24 1,414 - 1,414 3.0 % December-23 December-24 1,414 1,386 3,600 3.0 % March-24 February-25 - 3,600 1,386 3.0 % March-24 December-24 - 1,386 Industrial Bank (1) 2,757 4.3 % June-23 June-24 2,825 2,770 2,744 4.3 % July-23 July-24 2,825 2,770 2,744 4.3 % September-23 September-24 2,825 2,770 NingBo Bank (1) 2,744 4.2 % August-23 September-24 2,820 2,765 1,271 4.3 % November-23 November-24 1,271 1,246 2,825 4.3 % December-23 December-24 2,825 2,770 1,647 4.3 % January-24 January-25 - 1,647 Industrial and Commercial Bank of China (1) 2,744 3.3 % September-23 September-24 2,825 2,770 NanJing Bank (1) 2,752 3.8 % October-23 October-24 2,752 2,700 BoYu Industrial and Commercial Bank of China (4) 1,414 2.7 % December-23 December-24 1,414 1,386 Bank of China (1) 1,204 2.4 % January-23 January-24 849 - NingBo Bank (1) 1,414 3.3 % November-23 May-24 1,414 1,386 Industrial Bank (1) 688 3.6 % September-23 September-24 708 692 Bank of Communications (1) 1,414 3.0 % November-23 May-24 1,414 1,386 NanJing Bank (1) 1,386 3.5 % January-24 January-25 - 1,386 Loan Balance $ 52,921 $ 48,217 Collateral for the above bank loans and line of credit (1) Not collateralized. (2) ChaoYang LiMei time deposit. (3) AXT time deposit. (4) BoYu’s land use rights and its building located at its facility in Tianjin, China. In addition, the December 2023 loan attracts a guarantee fee amounting to 0.7% of the loan amount.
Schedule of maturities of long-term loan	As of March 31, 2024, the maturities of our long-term loan liabilities in five years (excluding short-term loans) are as follows (in thousands): Maturity of long term loans 2025 $ 1,038 2026 1,315 2027 969 2028 1,246 2029 2,371

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2024
Leases
Summary of maturities of our operating lease liabilities	As of March 31, 2024, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2024 $ 440 2025 599 2026 613 2027 627 2028 610 Thereafter 150 Total minimum lease payments 3,039 Less: Interest (365) Present value of lease obligations 2,674 Less: Current portion, included in accrued liabilities (463) Long-term portion of lease obligations $ 2,211
Schedule of weighted-average remaining lease term and the weighted-average discount rate of operating leases	March 31, December 31, 2024 2023 Weighted-average remaining lease term (years) 4.97 5.22 Weighted-average discount rate 5.14 % 5.14 %
Schedule of supplemental cash flow information related to leases	Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 146 $ 147
Summary of components of lease expense	The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations: Three Months Ended March 31, 2024 2023 Operating lease $ 153 $ 129 Short-term lease expense 41 34 Total $ 194 $ 163

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interests (Tables)	3 Months Ended
Redeemable Noncontrolling Interests (Tables)	Mar. 31, 2024
Redeemable Noncontrolling Interests
Components of the change in redeemable noncontrolling interests	The components of the change in redeemable noncontrolling interests for the three months ended March 31, 2024 are presented in the following table (in thousands): Balance as of January 1, 2024 $ 41,663 Equity issuance costs incurred 18 Stock-based compensation attributable to redeemable noncontrolling interests 15 Net loss attributable to redeemable noncontrolling interests (71) Effect of foreign currency translation on redeemable noncontrolling interests (855) Effect of foreign currency translation attributable to redeemable noncontrolling interests (189) Balance as of March 31, 2024 $ 40,581

Basis of Presentation (Details)

Basis of Presentation (Details)		1 Months Ended												3 Months Ended	12 Months Ended
Basis of Presentation (Details)	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 ($)	Mar. 31, 2024 USD ($) company	Dec. 31, 2023 USD ($) company	Dec. 31, 2020 USD ($)	Sep. 30, 2023 USD ($)	Jul. 31, 2023 USD ($)	Dec. 31, 2021 USD ($)	Oct. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of equity method investments \| company														3	3
Investments, equity method														$ 13,198,000	$ 12,476,000
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%
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%
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						$ 3,098,000	$ 3,154,000		$ 2,300,000	$ 600,000
Ownership (as a percent)								40%						40%	40%
Initial funding						2,200,000
Investment amount						900,000
Additional investment																	$ 5,600,000
Payment for investment															$ 600,000
Emeishan Jia Mei High Purity Metals Co., Ltd Investment
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
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 outstanding shares																33%
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment \| 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
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%
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	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Cash, cash equivalents and investments [Abstract]
Cash and restricted cash	$ 39,600	$ 50,114
Cash equivalents [Abstract]
Total cash, restricted cash and cash equivalents	39,600	50,114	$ 44,893	$ 41,348
Amortized Cost	1,680	2,160
Cash, restricted cash, cash equivalents and investments, amortized costs	41,280	52,274
Gross Unrealized (Loss)	(13)	(20)
Fair Value	1,667	2,140
Cash, restricted cash, cash equivalents and investments, fair value.	41,267	52,254
Contractual maturities on investments, amortized cost basis [Abstract]
Due within 1 year	1,680	2,160
Investments, amortized cost	1,680	2,160
Contractual maturities on investments, fair value basis [Abstract]
Due within 1 year	1,667	2,140
Investments, fair value	1,667	2,140
Certificates of deposit.
Cash equivalents [Abstract]
Amortized Cost	1,680	2,160
Gross Unrealized (Loss)	(13)	(20)
Fair Value	1,667	2,140
Contractual maturities on investments, amortized cost basis [Abstract]
Investments, amortized cost	1,680	2,160
Contractual maturities on investments, fair value basis [Abstract]
Investments, fair value	$ 1,667	$ 2,140

Investments and Fair Value Me_4

Investments and Fair Value Measurements - Investment Category and Length (Details)	1 Months Ended	3 Months Ended			12 Months Ended
	May 31, 2023 USD ($)	Mar. 31, 2024 USD ($) company	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) company	Jan. 30, 2024 USD ($)
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract]
Fair value, in loss position greater than twelve months		$ 1,667,000			$ 2,140,000
Gross unrealized (loss), in loss position greater than twelve months		(13,000)			(20,000)
Fair value, total in loss position		1,667,000			2,140,000
Gross unrealized (loss), total in loss position		(13,000)			(20,000)
Restricted Cash
Maximum borrowing capacity						$ 9,700,000
Proceeds from short-term bank loans		12,858,000		$ 18,372,000
Restricted cash		13,807,000			12,362,000
Minority Investments
Investments, equity method		$ 13,198,000			$ 12,476,000
Number of equity method investments \| company		3			3
Investments, cost method		$ 551,000			$ 551,000
Emeishan Jia Mei High Purity Metals Co., Ltd Investment
Minority Investments
Ownership (as a percent)	25%	10%
Proceeds from sale of equity method investments	$ 827,000
Investments, cost method		$ 551,000			551,000
Equity ownership percentage	10%	10%
Loss on sale of equity investment	$ 575,000	$ 575,000
Realized gain on adjustment of fair value of investment		383,000
Beijing JiYa Semiconductor Material Co., Ltd Investment
Minority Investments
Investments, equity method		4,105,000			3,806,000
Impairment charge on equity investee			$ 754,000
Equity investment carrying value of asset after write down		$ 0
Ownership (as a percent)		39%
Investments Excluding Beijing JiYa Semiconductor Material Co., Ltd.
Minority Investments
Impairment charge on equity investee		$ 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 greater than twelve months		1,667,000			2,140,000
Gross unrealized (loss), in loss position greater than twelve months		(13,000)			(20,000)
Fair value, total in loss position		1,667,000			2,140,000
Gross unrealized (loss), total in loss position		(13,000)			(20,000)
Other assets
Minority Investments
Investments, equity method		13,200,000			$ 12,500,000
Other noncurrent assets \| Emeishan Jia Mei High Purity Metals Co., Ltd Investment
Minority Investments
Investments, cost method		$ 551,000

Investments and Fair Value Me_5

Investments and Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Assets, Fair Value Disclosure [Abstract]
Investments, amortized cost	$ 1,667	$ 2,140
Fair Value, Transfer Between Level 1 and Level 2, Description and Policy [Abstract]
Transfer from Level 1 to Level 2 , assets	0
Transfer from Level 2 to Level 1 , assets	0
Transfers into Level 3, assets	0
Transfer out of Level 3, assets	0
Recurring
Assets, Fair Value Disclosure [Abstract]
Total	1,667	2,140
Recurring \| Certificates of deposit.
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents, fair value disclosure	1,667	2,140
Recurring \| Significant Other Observable Inputs (Level 2)
Assets, Fair Value Disclosure [Abstract]
Total	1,667	2,140
Recurring \| Significant Other Observable Inputs (Level 2) \| Certificates of deposit.
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents, fair value disclosure	$ 1,667	$ 2,140

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Inventories
Raw materials	$ 28,501,000	$ 32,910,000
Work in process	54,281,000	50,008,000
Finished goods	3,161,000	3,585,000
Inventories, Total	85,943,000	86,503,000
Inventory reserve	22,200,000	21,900,000
Excess and obsolete inventory	$ 213,000	$ 78,000

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, plant and equipment
Property, plant and equipment, net	$ 163,122	$ 166,348
Machinery and equipment
Property, plant and equipment
Property, plant and equipment, gross	66,472	65,918
Less: accumulated depreciation and amortization	(42,065)	(42,112)
Building
Property, plant and equipment
Property, plant and equipment, gross	124,200	125,786
Less: accumulated depreciation and amortization	(23,791)	(23,339)
Leasehold improvements
Property, plant and equipment
Property, plant and equipment, gross	7,470	7,596
Less: accumulated depreciation and amortization	(6,014)	(5,984)
Construction in progress
Property, plant and equipment
Property, plant and equipment, gross	36,850	38,483
Construction in progress Dingxin and Kazuo locations
Property, plant and equipment
Property, plant and equipment, gross	29,400	31,200
Construction in progress manufacturing equipment purchases
Property, plant and equipment
Property, plant and equipment, gross	2,900	3,100
Construction in progress other consolidated subsidiaries
Property, plant and equipment
Property, plant and equipment, gross	$ 4,600	$ 4,200

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Components of accrued liabilities
Accrued compensation and related charges	$ 2,941	$ 3,707
Preferred stock dividends payable	2,901	2,901
Payable in connection with construction in progress	1,613	7,249
Other tax payable	652	493
Advances from customers	535	305
Accrued product warranty	495	703	$ 915	$ 669
Accrued professional services	471	868
Current portion of operating lease liabilities	463	458
Other personnel-related costs	276	286
Accrued income taxes	272
Accrual for sales returns	34	39
Other accrued liabilities	2,044	2,010
Accrued liabilities, Total	$ 12,697	$ 19,019

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)

1 Months Ended

3 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

Mar. 31, 2024

Dec. 31, 2020

May 31, 2021

Feb. 28, 2021

Beijing Tongmei Xtal Technology

Related Party Transactions

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 Transactions

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 Transactions

Increase in noncontrolling interest

1,400,000

ChaoYang XinMei

Related Party Transactions

Sale of subsidiary shares to noncontrolling interests

4,500,000

ChaoYang Xinshuo | Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.

Related Party Transactions

Amount of transaction

$ 1,000,000

$ 900,000

Short-term loan from noncontrolling interest

$ 1,900,000

Sale of subsidiary shares to noncontrolling interests

1,900,000

Amount paid to subsidiary

600,000

700,000

Beijing Tongmei Xtal Technology | Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.

Related Party Transactions

Amount of transaction

$ 1,400,000

Short-term loan from noncontrolling interest

Increase in noncontrolling interest

1,400,000

2,200,000

Increase in redeemable noncontrolling interests

$ 200,000

Sale of subsidiary shares to noncontrolling interests

2,600,000

Amount paid to subsidiary

$ 800,000

$ 1,100,000

Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.

Related Party Transactions

Increase in noncontrolling interest

$ 610,000

Further investment

600,000

Redeemable noncontrolling interest increased

$ 57,000

Ownership (as a percent)

58.50%

Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Beijing Tongmei Xtal Technology

Related Party Transactions

Further investment

$ 800,000

Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | ChaoYang KaiMei Quartz Co., Ltd

Related Party Transactions

Amount of transaction

$ 1,500,000

Proceeds from related party

$ 1,500,000

Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Prepaid expenses and other current assets | ChaoYang KaiMei Quartz Co., Ltd

Related Party Transactions

Amount of transaction

$ 0

Investments in Privately-Held_3

Investments in Privately-Held Raw Material Companies (Details) - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

Jan. 25, 2021

Nov. 30, 2023

Aug. 31, 2023

May 31, 2023

Apr. 30, 2023

Jan. 31, 2023

Aug. 31, 2022

Jul. 31, 2022

Jun. 30, 2022

Jan. 31, 2021

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2020

Sep. 30, 2023

Jul. 31, 2023

Apr. 30, 2022

Jun. 30, 2021

Summary of investments

Investments, equity method

$ 13,198,000

$ 12,476,000

Investments, cost method

551,000

Other Assets

Summary of investments

Investments, equity method

13,200,000

12,500,000

Emeishan Jia Mei High Purity Metals Co., Ltd Investment

Summary of investments

Investments, cost method

$ 551,000

551,000

Percentage of ownership, equity method

25%

10%

Percentage of ownership, cost method

10%

Percentage of equity interest sold

15%

Proceeds from sale of equity method investments

$ 827,000

Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment

Summary of investments

Dividends received

$ 1,300,000

Beijing JiYa Semiconductor Material Co., Ltd Investment

Summary of investments

Investments, equity method

$ 4,105,000

3,806,000

Percentage of ownership, equity method

39%

Dividends received

$ 500,000

$ 2,000,000

$ 125,000

Xiaoyi XingAn Gallium Co., Ltd.

Summary of investments

Investments, equity method

$ 5,995,000

5,516,000

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

$ 3,098,000

$ 3,154,000

$ 2,300,000

$ 600,000

$ 3,000,000

Percentage of ownership, equity method

40%

Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment

Summary of investments

Percentage of ownership, equity method

46%

Percentage of ownership, cost method

Percentage of equity interest sold

46%

Nanjing JinMei Gallium Co., Ltd Investment

Summary of investments

Percentage of outstanding shares

8.50%

Nanjing JinMei Gallium Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment

Summary of investments

Percentage of ownership, equity method

39%

Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment

Summary of investments

Percentage of outstanding shares

33%

Beijing Tongmei Xtal Technology

Summary of investments

Percentage of ownership, consolidated method

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 | 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 | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment

Summary of investments

Private equity ownership percentage

7.59%

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

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

85.50%

ChaoYang JinMei Gallium Co., Ltd.

Summary of investments

Investments, consolidated method

$ 1,820,000

1,820,000

ChaoYang JinMei Gallium Co., Ltd. | ChaoYang JinMei Gallium Co., Ltd.

Summary of investments

Percentage of ownership, consolidated method

85.50%

Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment

Summary of investments

Investments, consolidated method

$ 1,346,000

1,346,000

Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment

Summary of investments

Percentage of ownership, consolidated method

85.50%

ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd.

Summary of investments

Investments, consolidated method

$ 3,122,000

3,122,000

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

75%

Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.

Summary of investments

Investments, consolidated method

$ 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

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		3 Months Ended
	Nov. 30, 2023	May 31, 2023	Mar. 31, 2024	Dec. 31, 2023
Investments in Privately-Held Raw Material Companies
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd.			$ 551,000	$ 551,000
Emeishan Jia Mei High Purity Metals Co., Ltd Investment
Investments in Privately-Held Raw Material Companies
Fair value of the consideration received			779,000
Foreign income tax withholding			48,000
Carrying value			(252,000)
Gain (loss) recognized on sale		$ 575,000	575,000
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd.			551,000	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%
Percentage of ownership, equity method		25%	10%
Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment
Investments in Privately-Held Raw Material Companies
Fair value of the consideration received	$ 600,000			585,000
Carrying value				(1,710,000)
Gain (loss) recognized on sale				$ (1,125,000)
Percentage of equity interest sold	46%			46%
Percentage of ownership, cost method	0%
Percentage of ownership, equity method	46%

Investments in Privately-held_5

Investments in Privately-held Raw Material Companies - Minority Investment Entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract]
Net revenue	$ 22,688	$ 19,405
Gross profit	6,094	5,110
Net income	(2,048)	(3,666)
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	8,104	7,974
Gross profit	3,929	2,906
Operating income	3,371	2,009
Net income	3,138	3,945
Minority investment entities
Entity income (loss) excluding impairment	$ 900	$ 1,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended		12 Months Ended	96 Months Ended
Stockholders' Equity (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2015	Dec. 31, 2023	Oct. 27, 2014
Stockholders' Equity
Balance, beginning of period	$ 227,483,000	$ 244,900,000
Common stock options exercised	20,000	(8,000)
Investment in subsidiary with noncontrolling interest		203,000
Investment in subsidiary with redeemable noncontrolling interest		(36,000)
Noncontrolling interest portion of Tongmei stock-based compensation	(11,000)	17,000
Stock-based compensation	614,000	717,000
Tongmei stock-based compensation	195,000	198,000
Net loss	(1,977,000)	(3,517,000)
Other comprehensive income (loss)	(1,814,000)	928,000
Balance, end of period	224,510,000	243,418,000		$ 227,483,000
Reclassification adjustment from AOCI	0	0
Net income (loss) attributable to redeemable noncontrolling interests	(71,000)	(149,000)
Other comprehensive loss attributable to redeemable noncontrolling interests	$ (189,000)	70,000
Stock repurchase program, authorized amount					$ 5,000,000
Shares repurchased (in shares)	0		908,000	0
Average price of shares repurchased (in dollars per share)			$ 2.52
Total purchase price			$ 2,300,000
Stock repurchase program remaining authorized repurchase amount	$ 2,700,000
Preferred Stock
Stockholders' Equity
Balance, beginning of period	3,532,000	3,532,000
Balance, end of period	3,532,000	3,532,000		$ 3,532,000
Common Stock
Stockholders' Equity
Balance, beginning of period	44,000	44,000
Balance, end of period	44,000	44,000		44,000
Additional Paid-In Capital
Stockholders' Equity
Balance, beginning of period	238,452,000	235,308,000
Common stock options exercised	20,000	(8,000)
Investment in subsidiary with noncontrolling interest		(36,000)
Investment in subsidiary with redeemable noncontrolling interest		(36,000)
Noncontrolling interest portion of Tongmei stock-based compensation	(24,000)	33,000
Stock-based compensation	614,000	717,000
Tongmei stock-based compensation	195,000	198,000
Balance, end of period	239,257,000	236,192,000		238,452,000
Accumulated Deficit
Stockholders' Equity
Balance, beginning of period	(32,040,000)	(14,159,000)
Net loss	(2,083,000)	(3,348,000)
Balance, end of period	(34,123,000)	(17,507,000)		(32,040,000)
Accumulated Other Comprehensive Income (Loss)
Stockholders' Equity
Balance, beginning of period	(5,999,000)	(3,118,000)
Other comprehensive income (loss)	(1,627,000)	858,000
Balance, end of period	(7,626,000)	(2,260,000)		(5,999,000)
AXT, Inc. Stockholders' Equity
Stockholders' Equity
Balance, beginning of period	203,989,000	221,607,000
Common stock options exercised	20,000	(8,000)
Investment in subsidiary with noncontrolling interest		(36,000)
Investment in subsidiary with redeemable noncontrolling interest		(36,000)
Noncontrolling interest portion of Tongmei stock-based compensation	(24,000)	33,000
Stock-based compensation	614,000	717,000
Tongmei stock-based compensation	195,000	198,000
Net loss	(2,083,000)	(3,348,000)
Other comprehensive income (loss)	(1,627,000)	858,000
Balance, end of period	201,084,000	220,001,000		203,989,000
Noncontrolling Interests
Stockholders' Equity
Balance, beginning of period	23,494,000	23,293,000
Investment in subsidiary with noncontrolling interest		239,000
Noncontrolling interest portion of Tongmei stock-based compensation	13,000	(16,000)
Net loss	106,000	(169,000)
Other comprehensive income (loss)	(187,000)	70,000
Balance, end of period	$ 23,426,000	$ 23,417,000		$ 23,494,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Net effect on net income (loss)	$ 809	$ 915
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Net effect on net income (loss)	105	105
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Net effect on net income (loss)	553	632
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Net effect on net income (loss)	$ 151	$ 178

Stock-Based Compensation - Opti

Stock-Based Compensation - Options (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Mar. 28, 2024
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation costs	$ 0
Stock options grants in period	0	0
Number of Options Outstanding
Options outstanding, beginning of period (in shares)	1,198
Exercised (in shares)	(9)
Options outstanding, end of period (in shares)	1,189		1,198
Options vested and unvested options expected to vest, net of forfeitures, end of period (in shares)	1,189
Options exercisable, end of period (in shares)	1,189
Weighted-average Exercise Price
Options outstanding, beginning of period (in dollars per share)	$ 5.10
Exercised (in dollars per share)	2.20
Options outstanding, end of period (in dollars per share)	5.12		$ 5.10
Options vested and unvested options expected to vest, net of forfeitures (in dollars per share)	5.12
Options exercisable, end of period (in dollars per share)	$ 5.12
Weighted average Remaining Contractual Life
Options outstanding	3 years 10 months 17 days		4 years 1 month 2 days
Options vested and unvested options expected to vest, net of forfeitures, end of period	3 years 10 months 17 days
Option exercisable, end of period	3 years 10 months 17 days
Aggregate Intrinsic Value
Options outstanding, beginning of period	$ 14,000
Options outstanding, end of period	684,000		$ 14,000
Options vested and expected to vest, end of period	684,000
Options exercisable, end of period	$ 684,000
Closing price (in dollars per share)				$ 4.59

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU (Details) - Restricted stock awards $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2024 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 3 months 18 days
Shares
Non-vested, beginning of period (in shares) \| shares	1,220
Vested (in shares) \| shares	(7)
Non-vested, end of period (in shares) \| shares	1,213
Weighted Average Grant Date Fair Value
Non-vested, beginning of period (in dollars per share) \| $ / shares	$ 3.75
Vested (in dollars per share) \| $ / shares	12.37
Non-vested, end of period (in dollars per share) \| $ / shares	$ 3.69

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions					1 Months Ended		3 Months Ended
	Feb. 20, 2024	Mar. 15, 2023	Feb. 14, 2023	Feb. 15, 2022	Feb. 29, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Performance Shares
Shares
Non-vested, beginning of period (in shares)							38,000
Granted (in shares)							151,000
Non-vested, end of period (in shares)							189,000
Weighted Average Grant Date Fair Value
Non-vested, beginning of period (in dollars per share)							$ 15.37
Granted (in dollars per share)							2.28
Non-vested, end of period (in dollars per share)							$ 4.91
Weighted-average grant date fair value of stock options granted (in dollars per share)					$ 2.28	$ 3.71
Percentage of performance target cap of award	100%	100%
Percentage of year-over-year annual revenue growth rate			2.70%
Shares eligible to vest	0		0
Unrecognized compensation expense related to restricted stock awards							$ 0.4
Weighted-average remaining contractual terms							1 year 9 months 21 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	223,590		114,320
Performance Shares \| Chief Executive Officer \| Scenario Performance Minimum Financial Metric
Weighted Average Grant Date Fair Value
Share options vested in period	223,590	223,590
Performance Shares \| Chief Financial Officer
Weighted Average Grant Date Fair Value
Stock options grants in period	77,600	77,600		32,100
Performance Shares \| Chief Financial Officer \| Scenario Performance Minimum Financial Metric
Weighted Average Grant Date Fair Value
Share options vested in period	77,600	77,600
Employee Stock Option [Member]
Weighted Average Grant Date Fair Value
Stock options grants in period							0	0

Net Loss Per Share - Reconcilia

Net 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
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net loss attributable to AXT, Inc.	$ (2,083)	$ (3,348)
Less: Preferred stock dividends	(44)	(44)
Net loss available to common stockholders	$ (2,127)	$ (3,392)
Denominator:
Denominator for basic net income (loss) per share - weighted-average common shares	42,987	42,498
Effect of dilutive securities:
Denominator for dilutive net income (loss) per common shares	42,987	42,498
Net loss attributable to AXT, Inc. per common share:
Basic	$ (0.05)	$ (0.08)
Diluted	$ (0.05)	$ (0.08)
Common stock options
Net 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)	1,189	1,203
Restricted stock awards
Net 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)	1,401	1,081

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($)	3 Months Ended	12 Months Ended
Net Loss Per Share (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Net 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	$ 3,532,000	$ 3,532,000
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
	Mar. 31, 2024	Mar. 31, 2023
Revenue by product type
Revenue	$ 22,688	$ 19,405
Substrates
Revenue by product type
Revenue	16,903	13,489
Raw materials and others
Revenue by product type
Revenue	$ 5,785	$ 5,916

Segment Information and Forei_4

Segment Information and Foreign Operations - Segment and Geographical Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 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	$ 22,688	$ 19,405
Long-lived assets by geographic region, net of depreciation:
Long-lived assets	165,779		$ 169,147
China
Long-lived assets by geographic region, net of depreciation:
Long-lived assets	164,217		167,516
North America (primarily the United States)
Long-lived assets by geographic region, net of depreciation:
Long-lived assets	1,562		$ 1,631
Reportable Geographical Components
Net revenues reported for products shipped to customers in corresponding geographic region
Revenue	22,688	19,405
Reportable Geographical Components \| China
Net revenues reported for products shipped to customers in corresponding geographic region
Revenue	11,517	8,102
Reportable Geographical Components \| Taiwan
Net revenues reported for products shipped to customers in corresponding geographic region
Revenue	4,582	2,471
Reportable Geographical Components \| Japan
Net revenues reported for products shipped to customers in corresponding geographic region
Revenue	990	1,535
Reportable Geographical Components \| Asia Pacific (excluding China, Taiwan and Japan)
Net revenues reported for products shipped to customers in corresponding geographic region
Revenue	798	1,091
Reportable Geographical Components \| Europe (primarily Germany)
Net revenues reported for products shipped to customers in corresponding geographic region
Revenue	3,725	3,570
Reportable Geographical Components \| North America (primarily the United States)
Net revenues reported for products shipped to customers in corresponding geographic region
Revenue	$ 1,076	$ 2,636

Segment Information and Forei_5

Segment Information and Foreign Operations - Significant Customers (Details) - customer	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue
Significant Customers
Number of customers representing significant share		0
Accounts receivable
Significant Customers
Number of customers representing significant share	0		0
One customer \| Revenue
Significant Customers
Number of customers representing significant share	1
One customer \| Revenue \| Customer concentration
Significant Customers
Percentage share generated by major customers	12%	10%
One customer \| Accounts receivable \| Customer concentration
Significant Customers
Percentage share generated by major customers	10%		10%
Top five customers \| Revenue
Significant Customers
Number of customers representing significant share	5	5
Top five customers \| Revenue \| Customer concentration
Significant Customers
Percentage share generated by major customers	33%	28%

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Product Warranty
Period of warranty	12 months
Change in warranty accrual
Beginning accrued product warranty	$ 703	$ 669
Accruals for warranties issued	57	544
Adjustments related to pre-existing warranties including expirations and changes in estimates	(210)	25
Cost of warranty repair	(55)	(323)
Ending accrued product warranty	495	$ 915
Bank Loans [Abstract]
Long-term loans	$ 7,000
Cross License Agreement
Preferred label sub abstract as Contractual Obligations
Term of agreement	10 years
Dingxing
Preferred label sub abstract as Contractual Obligations
Total investment agreement value	$ 90,000
Kazuo
Preferred label sub abstract as Contractual Obligations
Total investment agreement value	15,000
Kazuo \| Beijing BoYu Semiconductor Vessel Craftwork Technology Co
Preferred label sub abstract as Contractual Obligations
Total investment agreement value	$ 8,000

Other Income (expense), Net (De

Other Income (expense), Net (Details) - USD ($)	3 Months Ended
Other Income (expense), Net (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Other Income (expense), Net
Income from government grants	$ 1,000,000	$ 500,000
Foreign exchange gain (loss)	$ 58,000	$ (213,000)

Income Taxes (Details)

Income Taxes (Details) $ in Thousands	3 Months Ended
Income Taxes (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Income Taxes
Unrecognized tax benefit interest and penalties expense	$ 0
Unrecognized tax benefits accrued interest and penalties	$ 0

Revenue - Contract Balances (De

Revenue - Contract Balances (Details) - USD ($)	3 Months Ended
Revenue - Contract Balances (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue
Contract liabilities	$ 535,000		$ 305,000
Revenue recognized, included in contract balances	$ 127,000	$ 286,000

Revenue - Disaggregated Revenue

Revenue - Disaggregated Revenue and Revenue Recognition (Details)	3 Months Ended
	Mar. 31, 2024 segment
Revenue:
Number of operating segments	1
Maximum
Revenue:
Sales commissions benefit period	1 year

Loans and Line of Credit - Sche

Loans and Line of Credit - Schedule of Bank Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2024	Dec. 31, 2023
Bank Loans and Line of Credit
Loan Balance		$ 48,217	$ 52,921
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			$ 1,795
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			$ 2,118
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		378	$ 386
Beijing Tongmei Xtal Technology \| Bank of China \| Bank Loan with 3.5 Percent, November 2024 Due Date One
Bank Loans and Line of Credit
Loan Detail		$ 876
Interest Rate		3.50%
Loan Balance		$ 858	876
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			2,825
Beijing Tongmei Xtal Technology \| Bank of China \| Bank Loan with 3.0 Percent, January 2025 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 2,770
Interest Rate		3%
Loan Balance		$ 2,770
Beijing Tongmei Xtal Technology \| Bank of China \| Bank Loan with 3.5 Percent, November 2024 Due Date Two
Bank Loans and Line of Credit
Loan Detail		$ 1,003
Interest Rate		3.50%
Loan Balance		$ 985	1,003
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	$ 1,455
Interest Rate			3.30%
Loan Balance			$ 1,414
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		$ 1,386	1,414
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		$ 1,386	1,414
Beijing Tongmei Xtal Technology \| Bank of Communications \| Bank Loan with 3.0 Percent, May 2024 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 1,414
Interest Rate		3%
Loan Balance		$ 1,386	1,414
Beijing Tongmei Xtal Technology \| China Merchants Bank \| Bank Loan with 3.5 Percent, January 2025 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 1,386
Interest Rate		3.50%
Loan Balance		$ 1,386
Beijing Tongmei Xtal Technology \| China Merchants Bank \| Bank Loan with 3.5 Percent, February 2025 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 692
Interest Rate		3.50%
Loan Balance		$ 692
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			4,235
Beijing Tongmei Xtal Technology \| Bank of Beijing \| Bank Loan with 4.2 Percent One, January 2024 Due Date
Bank Loans and Line of Credit
Loan Detail			$ 2,290
Interest Rate			4.20%
Loan Balance			$ 2,220
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		$ 3,560	3,626
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			1,414
Beijing Tongmei Xtal Technology \| Bank of Beijing \| Bank Loan with 3.0 Percent, December 2024 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 1,414
Interest Rate		3%
Loan Balance		$ 1,386	1,414
Beijing Tongmei Xtal Technology \| Bank of Beijing \| Bank Loan with 3.0 Percent, December 2024 Due Date Two
Bank Loans and Line of Credit
Loan Detail		$ 1,386
Interest Rate		3%
Loan Balance		$ 1,386
Beijing Tongmei Xtal Technology \| Bank of Beijing \| Bank Loan with 3.0 Percent, February 2025 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 3,600
Interest Rate		3%
Loan Balance		$ 3,600
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		2,770	$ 2,825
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	$ 2,744
Interest Rate		4.30%	4.30%
Loan Balance		$ 2,770	$ 2,825
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		$ 2,770	2,825
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		$ 2,765	2,820
Beijing Tongmei Xtal Technology \| NingBo Bank \| Bank Loan with 4.3 Percent, November 2024 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 1,271
Interest Rate		4.30%
Loan Balance		$ 1,246	1,271
Beijing Tongmei Xtal Technology \| NingBo Bank \| Bank Loan with 4.3 Percent, December 2024 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 2,825	$ 2,825
Interest Rate		4.30%	4.30%
Loan Balance		$ 2,770	$ 2,825
Beijing Tongmei Xtal Technology \| NingBo Bank \| Bank Loan with 4.3 Percent, January 2025 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 1,647
Interest Rate		4.30%
Loan Balance		$ 1,647
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	$ 2,744
Interest Rate		3.30%	3.30%
Loan Balance		$ 2,770	$ 2,825
Beijing Tongmei Xtal Technology \| NanJing Bank \| Bank Loan with 3.5 Percent, January 2025 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 1,386
Interest Rate		3.50%
Loan Balance		$ 1,386
Beijing Tongmei Xtal Technology \| NanJing Bank \| Bank Loan with 3.8 Percent, October 2024 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 2,752
Interest Rate		3.80%
Loan Balance		$ 2,700	2,752
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			849
Beijing BoYu Semiconductor Vessel Craftwork Technology Co \| Industrial Bank
Bank Loans and Line of Credit
Guarantee fee (as a percent)	0.70%
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		$ 692	708
Beijing BoYu Semiconductor Vessel Craftwork Technology Co \| NingBo Bank \| Bank Loan with 3.3 Percent, May 2024 Due Date
Bank Loans and Line of Credit
Loan Detail			1,414
Interest Rate		3.30%
Loan Balance		$ 1,386	1,414
Beijing BoYu Semiconductor Vessel Craftwork Technology Co \| Industrial and Commercial Bank of China \| Bank Loan with 2.7 Percent, December 2024 Due Date
Bank Loans and Line of Credit
Loan Detail		$ 1,414	$ 1,414
Interest Rate		2.70%	2.70%
Loan Balance		$ 1,386	$ 1,414

Loans and Line of Credit - Long

Loans and Line of Credit - Long-Term Loans (Details) - USD ($)	1 Months Ended
	Jan. 31, 2024	Mar. 31, 2024	Jan. 30, 2024	Dec. 31, 2023
Long-term Loans
Maximum borrowing capacity			$ 9,700,000
Term of loan			5 years
Interest rate			6.50%
Line of credit, Non Current		$ 7,000,000
Line of credit, Current		49,000,000
Loan Balance		48,217,000		$ 52,921,000
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd
Long-term Loans
Loan amount				2,100,000
Value of option to repurchase production line				$ 14
Long term loan		1,400,000
Loan Balance		554,000
Chao Yang Tongmei High Purity Semiconductor Materials Co. Ltd [Member]
Long-term Loans
Proceeds from bank loan	$ 5,800,000
Line of credit, Non Current		5,600,000
Line of credit, Current		277,000
Long term loan		$ 5,600,000

Loans and Line of Credit - Matu

Loans and Line of Credit - Maturities of Long-Term Liabilities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Maturities of long-term liabilities
2025	$ 1,038
2026	1,315
2027	969
2028	1,246
2029	$ 2,371

Loans and Line of Credit - Bala

Loans and Line of Credit - Balances (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Long-term Loans
Line of credit, Current	$ 49,000,000
Loan Balance	48,217,000	$ 52,921,000
Current portion of long term dent	800,000
Line of credit, Non Current	7,000,000
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd
Long-term Loans
Loan Balance	554,000
Long term loan	$ 1,400,000

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Mar. 31, 2024 USD ($) ft²	May 31, 2020
Leases
Variable lease payments \| $	$ 0
Area of leased property (in square feet) \| ft²	19,467
Operating lease, extension term	5 years	3 years

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Future minimum lease payments
2024	$ 440
2025	599
2026	613
2027	627
2028	610
Thereafter	150
Total minimum lease payments	3,039
Less: Interest	(365)
Present value of lease obligations	2,674
Less: Current portion, included in accrued liabilities	$ (463)	$ (458)
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current
Long-term portion of lease obligations	$ 2,211	$ 2,351

Leases - Weighted-Average Remai

Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Leases
Weighted-average remaining lease term (years)	4 years 11 months 19 days		5 years 2 months 19 days
Weighted-average discount rate	5.14%		5.14%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 146	$ 147

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lease expense
Operating lease	$ 153	$ 129
Short-term lease expense	41	34
Total	$ 194	$ 163

Redeemable Noncontrolling Int_3

Redeemable Noncontrolling Interests (Details) - Beijing Tongmei Xtal Technology - USD ($) $ in Millions		1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 25, 2021	Jan. 31, 2021	Mar. 31, 2024	Dec. 31, 2020
Noncontrolling Interest
Increase in redeemable noncontrolling interests due to issuance of Tongmei's common stock		$ 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
	Mar. 31, 2024	Mar. 31, 2023
Redeemable Noncontrolling Interests
Redeemable noncontrolling interests beginning balance	$ 41,663,000
Equity issuance costs incurred	18,000
Stock-based compensation attributable to redeemable noncontrolling interests	15,000
Net loss attributable to redeemable noncontrolling interests	(71,000)	$ (149,000)
Effect of foreign currency translation on redeemable noncontrolling interests	(855,000)
Effect of foreign currency translation attributable to redeemable noncontrolling interests	(189,000)
Redeemable noncontrolling interests ending balance	$ 40,581,000

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Events - Beijing Tongmei Xtal Technology	Apr. 30, 2024 USD ($)
Subsequent Event
Loan amount	$ 691,000
Interest Rate	3.50%

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (2,083)	$ (3,348)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
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