Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Securities Act 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, $0.001 par value | |
Trading Symbol | AXTI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,482,215 | |
Entity Central Index Key | 0001051627 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash | $ 27,808,000 | $ 37,752,000 |
Restricted cash | 13,789,000 | 12,362,000 |
Short-term investments | 1,675,000 | 2,140,000 |
Accounts receivable, net of allowances for credit losses of $263 and $579 as of June 30, 2024 and December 31, 2023 | 27,163,000 | 19,256,000 |
Inventories | 85,774,000 | 86,503,000 |
Prepaid expenses and other current assets | 11,187,000 | 12,643,000 |
Total current assets | 167,396,000 | 170,656,000 |
Property, plant and equipment, net | 161,332,000 | 166,348,000 |
Operating lease right-of-use assets | 2,531,000 | 2,799,000 |
Other assets | 18,154,000 | 18,898,000 |
Total assets | 349,413,000 | 358,701,000 |
Current liabilities: | ||
Accounts payable | 11,655,000 | 9,617,000 |
Accrued liabilities | 12,268,000 | 19,019,000 |
Short-term loans | 50,724,000 | 52,921,000 |
Total current liabilities | 74,647,000 | 81,557,000 |
Noncurrent operating lease liabilities | 2,083,000 | 2,351,000 |
Other long-term liabilities | 9,570,000 | 5,647,000 |
Total liabilities | 86,300,000 | 89,555,000 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interests (Note 18) | 39,761,000 | 41,663,000 |
Stockholders' equity: | ||
Preferred stock Series A, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of June 30, 2024 and December 31, 2023 (Liquidation preference of $7,964 and $7,875 as of June 30, 2024 and December 31, 2023) | 3,532,000 | 3,532,000 |
Common stock, $0.001 par value; 70,000 shares authorized; 44,482 and 44,239 shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 44,000 | 44,000 |
Additional paid-in capital | 239,962,000 | 238,452,000 |
Accumulated deficit | (35,639,000) | (32,040,000) |
Accumulated other comprehensive loss | (8,227,000) | (5,999,000) |
Total AXT, Inc. stockholders' equity | 199,672,000 | 203,989,000 |
Noncontrolling interests | 23,680,000 | 23,494,000 |
Total stockholders' equity | 223,352,000 | 227,483,000 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 349,413,000 | $ 358,701,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Accounts receivable, allowances for doubtful accounts | $ 263 | $ 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 | $ 7,964 | $ 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) | 44,482,000 | 44,239,000 |
Common stock, shares outstanding (in shares) | 44,482,000 | 44,239,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 27,923 | $ 18,595 | $ 50,611 | $ 38,000 |
Cost of revenue | 20,271 | 16,880 | 36,865 | 31,175 |
Gross profit | 7,652 | 1,715 | 13,746 | 6,825 |
Operating expenses: | ||||
Selling, general and administrative | 5,779 | 5,820 | 12,006 | 11,772 |
Research and development | 3,758 | 2,740 | 6,972 | 6,335 |
Total operating expenses | 9,537 | 8,560 | 18,978 | 18,107 |
Loss from operations | (1,885) | (6,845) | (5,232) | (11,282) |
Interest expense, net | (282) | (365) | (631) | (762) |
Equity in income of unconsolidated joint ventures | 598 | 941 | 1,488 | 1,975 |
Other income, net | 491 | 777 | 1,523 | 1,059 |
Loss before provision (benefit) for income taxes | (1,078) | (5,492) | (2,852) | (9,010) |
Provision (benefit) for income taxes | 121 | (139) | 395 | 9 |
Net loss | (1,199) | (5,353) | (3,247) | (9,019) |
Less: Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (317) | 264 | (352) | 582 |
Net loss attributable to AXT, Inc. | $ (1,516) | $ (5,089) | $ (3,599) | $ (8,437) |
Net loss attributable to AXT, Inc. per common share: | ||||
Basic | $ (0.04) | $ (0.12) | $ (0.09) | $ (0.20) |
Diluted | $ (0.04) | $ (0.12) | $ (0.09) | $ (0.20) |
Weighted-average number of common shares outstanding: | ||||
Basic | 43,092 | 42,586 | 43,039 | 42,542 |
Diluted | 43,092 | 42,586 | 43,039 | 42,542 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net loss | $ (1,199) | $ (5,353) | $ (3,247) | $ (9,019) |
Other comprehensive loss, net of tax: | ||||
Change in foreign currency translation loss, net of tax | (747) | (7,245) | (2,757) | (6,358) |
Change in unrealized gain on available-for-sale debt investments, net of tax | 8 | 77 | 15 | 188 |
Total other comprehensive loss, net of tax | (739) | (7,168) | (2,742) | (6,170) |
Comprehensive loss attributable to AXT, Inc. | (1,938) | (12,521) | (5,989) | (15,189) |
Less: Comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (179) | 1,517 | 162 | 1,695 |
Comprehensive loss attributable to AXT, Inc. | $ (2,117) | $ (11,004) | $ (5,827) | $ (13,494) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (3,247) | $ (9,019) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 4,440 | 4,243 |
Amortization of marketable securities premium | 14 | |
Stock-based compensation | 1,524 | 1,827 |
(Gain) loss on disposal of equipment | 4 | |
Return of equity method investments as dividends | 2,063 | 3,666 |
Equity in income of unconsolidated joint ventures | (1,488) | (1,975) |
Deferred tax assets | 53 | 110 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,363) | 8,741 |
Inventories | (1,045) | (1,223) |
Prepaid expenses and other current assets | (1,317) | 2,944 |
Other assets | 89 | (597) |
Accounts payable | 2,299 | (5,192) |
Accrued liabilities | (807) | (1,605) |
Other long-term liabilities | (2,164) | 828 |
Net cash provided by (used in) operating activities | (7,963) | 2,766 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (4,663) | (6,792) |
Proceeds from sales and maturities of available-for-sale debt securities | 480 | 2,903 |
Proceeds from sales of equity securities - 15% Jia Mei | 827 | |
Investments in non-marketable equity investments | (275) | |
Net cash used in investing activities | (4,458) | (3,062) |
Cash flows from financing activities: | ||
Proceeds from common stock options exercised | 25 | 10 |
Proceeds from short-term bank loans | 26,488 | 28,803 |
Payments on short-term bank loans | (28,332) | (27,653) |
Proceeds from capital increase in subsidiary shares from noncontrolling interests | 509 | |
Proceeds from long-term loan | 5,831 | |
Payments on long-term loan | (333) | |
Net cash provided by financing activities | 3,679 | 1,669 |
Effect of exchange rate changes on cash and restricted cash | 225 | (1,835) |
Net decrease in cash and restricted cash | (8,517) | (462) |
Cash and restricted cash at the beginning of the year | 50,114 | 41,348 |
Cash and restricted cash at the end of the period | 41,597 | 40,886 |
Supplemental disclosure of non-cash flow information: | ||
Notes receivables paid to purchase fixed assets | 2,545 | |
Investment in subsidiary shares from noncontrolling interest | 221 | |
Consideration payable in connection with construction in progress, included in accrued liabilities | $ 144 | $ 3,926 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 6 Months Ended |
Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Percentage of equity interest sold | 15% |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying condensed consolidated financial statements of AXT, Inc., a Delaware corporation (“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 for complete consolidated financial statements. 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 the Company for all periods presented. Our management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements in conformity with U.S. GAAP. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. These estimates and assumptions may change as new events occur and additional information is obtained. Actual results could differ materially from those estimates. The results of operations for the three and six months ended June 30, 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 audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2024, and our Quarterly Report on Form 10-Q for the three months ended March 31, 2024 filed with the SEC on May 10, 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 June 30, 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 a third party for approximately $827,000. As a result of our decreased ownership and the fact that we do not have the ability to exercise significant influence over Jia Mei’s operations, as of May 2023, we no longer reported Jia Mei as an equity investment in our condensed consolidated balance sheets. Our Jia Mei investment was re-measured to fair value at the time of sale. Any future changes to the fair value are recognized through net income (“fair value method”). For the majority-owned subsidiaries that we consolidate, we reflect the portion we do not own as either noncontrolling interests in stockholder’s equity or as redeemable noncontrolling interests in temporary equity on our condensed consolidated balance sheets and in our condensed consolidated statements of operations. When warranted by favorable market conditions, we intend to construct facilities at the ChaoYang LiMei location to provide us with additional production capacity. For the three and six months ended June 30, 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, followed by a second additional investment of approximately $0.3 million in June 2024. 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 June 30, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Investments and Fair Value Measurements | |
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 June 30, 2024 and December 31, 2023, our cash and debt investments are classified as follows (in thousands): June 30, 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 $ 41,597 $ — $ — $ 41,597 $ 50,114 $ — $ — $ 50,114 Investments (available-for-sale): Certificates of deposit 1 1,680 — (5) 1,675 2,160 — (20) 2,140 Total cash, restricted cash and investments $ 43,277 $ — $ (5) $ 43,272 $ 52,274 $ — $ (20) $ 52,254 Contractual maturities on investments: Due within 1 year 2 $ 1,680 $ 1,675 $ 2,160 $ 2,140 $ 1,680 $ 1,675 $ 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 June 30, 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 June 30, 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 June 30, 2024 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ — $ — $ 1,675 $ (5) $ 1,675 $ (5) Total in loss position $ — $ — $ 1,675 $ (5) $ 1,675 $ (5) 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 June 30, 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 $11.9 million and $12.5 million as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 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 and six months ended June 30, 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 a 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 June 30, 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 June 30, 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 June 30, 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 and six months ended June 30, 2024. There have been no transfers between fair value measurements levels during the three and six months ended June 30, 2024. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of June 30, 2024 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs June 30, 2024 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 1,675 $ — $ 1,675 $ — Total $ 1,675 $ — $ 1,675 $ — 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 and six months ended June 30, 2024 and 2023, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventories | |
Inventories | Note 3. Inventories The components of inventories are summarized below (in thousands): June 30, December 31, 2024 2023 Inventories: Raw materials $ 28,939 $ 32,910 Work in process 53,854 50,008 Finished goods 2,981 3,585 $ 85,774 $ 86,503 As of June 30, 2024 and December 31, 2023, carrying values of inventories were net of inventory reserves of $23.1 million and $21.9 million, respectively, for excess and obsolete inventory and $161,000 and $78,000, respectively, for lower of cost or net realizable value reserves. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
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): June 30, December 31, 2024 2023 Property, plant and equipment: Machinery and equipment, at cost $ 66,958 $ 65,918 Less: accumulated depreciation and amortization (42,793) (42,112) Building, at cost 137,407 125,786 Less: accumulated depreciation and amortization (24,562) (23,339) Leasehold improvements, at cost 7,571 7,596 Less: accumulated depreciation and amortization (6,115) (5,984) Construction in progress 22,866 38,483 $ 161,332 $ 166,348 As of June 30, 2024, the balance of construction in progress was $22.9 million, of which $16.3 million was related to our buildings in our new Dingxing and Kazuo locations, $2.3 million was for manufacturing equipment purchases not yet placed in service and $4.2 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 | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities | |
Accrued Liabilities | Note 5. Accrued Liabilities The components of accrued liabilities are summarized below (in thousands): June 30, December 31, 2024 2023 Preferred stock dividends payable $ 2,901 $ 2,901 Accrued compensation and related charges 2,193 3,707 Payable in connection with construction in progress 1,478 7,249 Advances from customers 1,106 305 Other tax payable 527 493 Current portion of operating lease liabilities 471 458 Accrued professional services 470 868 Accrued product warranty 421 703 Accrued income taxes 362 — Other personnel-related costs 276 286 Accrual for sales returns 47 39 Other accrued liabilities 2,016 2,010 $ 12,268 $ 19,019 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
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 June 30, 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. $ 4,400 3,806 Equity 39 % Xiaoyi XingAn Gallium Co., Ltd. 4,233 5,516 Equity ** 25 % ChaoYang KaiMei Quartz Co., Ltd. 3,316 3,154 Equity ***** 40 % $ 11,949 $ 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 a third party for approximately $827,000. Considering our decreased ownership and we no longer have significant influence over its operations and financial policies, we adopted the fair value method of accounting to report 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 six months ended June 30, 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 $11.9 million and $12.5 million as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, our ownership interests in ChaoYang 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. In May 2024, Xiaoyi XingAn distributed a $2.1 million dividend to us. 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 and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net revenue $ 9,338 $ 7,678 $ 17,442 $ 15,652 Gross profit $ 4,161 $ 2,648 $ 8,090 $ 5,554 Operating income $ 4,035 $ 3,163 $ 7,406 $ 5,172 Net income $ 2,044 $ 913 $ 5,182 $ 4,858 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 $0.6 million and a loss of $18,000, respectively, for the three months ended June 30, 2024 and 2023. Our portion of the income and losses from these minority investment entities that are not consolidated and are accounted for under the equity method was income of $1.5 million and $1.0 million, respectively, for the six months ended June 30, 2024 and 2023. In the condensed consolidated statements of operations for the second quarter of 2023, the "Equity in income of unconsolidated joint ventures" included a gain of $958,000 from the Jia Mei sale, resulting in an income of $0.9 million and $2.0 million for the three and six months ended June 30, 2023, respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 Common stock options exercised — — 5 — — 5 — 5 Investment in subsidiary with noncontrolling interest — — — — — — — Investment in subsidiary with redeemable noncontrolling interest — — — — — — — — Noncontrolling interest portion of Tongmei stock-based compensation — — (15) — — (15) 7 (8) Stock-based compensation — — 621 — — 621 — 621 Tongmei stock-based compensation — — 94 — — 94 — 94 Net loss — — — (1,516) — (1,516) 316 (1,200) Other comprehensive income (loss) — — — — (601) (601) (69) (670) Balance as of June 30, 2024 $ 3,532 $ 44 $ 239,962 $ (35,639) $ (8,227) $ 199,672 $ 23,680 $ 223,352 Net income (loss) and Other comprehensive income (loss) attributable to redeemable noncontrolling interests were $1,000 and ($69,000), respectively, for the three months ended June 30, 2024 and ($70,000) and ($258,000), respectively, for the six months ended June 30, 2024 and are not shown in the table above. The changes in stockholders’ equity by component for the three and six months ended June 30, 2023 are as follows: Accumulated Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive Stockholders’ Noncontrolling Stockholders’ Stock Stock Paid-In Capital Deficit Income (Loss) Equity Interests Equity Balance as of December 31, 2022 $ 3,532 $ 44 $ 235,308 $ (14,159) $ (3,118) $ 221,607 $ 23,293 $ 244,900 Common stock options exercised — — 8 — — 8 — 8 Investment in subsidiary with noncontrolling interest — — (36) — — (36) 239 203 Investment in subsidiary with redeemable noncontrolling interest — — (36) — — (36) — (36) Noncontrolling interest portion of Tongmei stock-based compensation — — 33 — — 33 (16) 17 Stock-based compensation — — 717 — — 717 — 717 Tongmei stock-based compensation — — 198 — — 198 — 198 Net loss — — — (3,348) — (3,348) (169) (3,517) Other comprehensive income — — — — 858 858 70 928 Balance as of March 31, 2023 $ 3,532 $ 44 $ 236,192 $ (17,507) $ (2,260) $ 220,001 $ 23,417 $ 243,418 Common stock options exercised — — 2 — — 2 — 2 Investment in subsidiary with noncontrolling interest — — (74) — — (74) 380 306 Investment in subsidiary with redeemable noncontrolling interest — — (75) — — (75) — (75) Noncontrolling interest portion of Tongmei stock-based compensation — — 31 — — 31 (14) 17 Stock-based compensation — — 720 — — 720 — 720 Tongmei stock-based compensation — — 192 — — 192 — 192 Net income (loss) — — — (5,089) — (5,089) 38 (5,051) Other comprehensive income (loss) — — — — (5,915) (5,915) (623) (6,538) Balance as of June 30, 2023 $ 3,532 $ 44 $ 236,988 $ (22,596) $ (8,175) $ 209,793 $ 23,198 $ 232,991 Net loss and Other comprehensive income attributable to redeemable noncontrolling interests were $302,000 and $630,000, respectively, for the three months ended June 30, 2023, and $451,000 and $560,000, respectively, for the six months ended June 30, 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 and six months ended June 30, 2024, we did no t repurchase any shares under the approved stock repurchase program. As of June 30, 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 In May 2015, our stockholders approved our 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan is a replacement of the 2007 Plan. The 399,562 share reserve of the 2007 Plan became the reserve of the 2015 Plan, together with 3,000,000 additional shares approved for issuance under the 2015 Plan. In May 2019, our stockholders approved 1,600,000 of additional shares for issuance under the 2015 Plan. In May 2021, our stockholders approved 3,600,000 of additional shares for issuance under the 2015 Plan. In May 2024, our stockholders approved an amendment to the 2015 Plan to increase the number of shares reserved for issuance by an additional 3,600,000 shares. Awards that may be made under the 2015 Plan are stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, deferred compensation awards and other stock-based awards. Stock options and stock appreciation rights awarded under the 2015 Plan may not be repriced without stockholder approval. Stock options and stock appreciation rights may not be granted below fair market value. Stock options or stock appreciation rights generally shall not be fully vested over a period of less than four years from the date of grant and cannot be exercised more than 10 years from the date of grant. Restricted stock, restricted stock units, and performance awards generally shall not vest faster than over a three-year period (or a twelve-month period if vesting is based on a performance measure). However, options granted to consultants and restricted stock awards granted to independent board members typically vest in one year and the 2015 Plan does allow for similar vesting to employees. The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Cost of revenue $ 68 $ 103 $ 173 $ 208 Selling, general and administrative 526 655 1,079 1,287 Research and development 121 154 272 332 Net effect on net loss $ 715 $ 912 $ 1,524 $ 1,827 As of June 30, 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 June 30, 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 and six months ended June 30, 2024 and 2023. The following table summarizes the stock option transactions during the six months ended June 30, 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 (11) 2.22 Canceled and expired — — Balance as of June 30, 2024 1,187 $ 5.13 3.63 $ 189 Options vested as of June 30, 2024 and unvested options expected to vest, net of forfeitures 1,187 $ 5.13 3.63 $ 189 Options exercisable as of June 30, 2024 1,187 $ 5.13 3.63 $ 189 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $3.38 on June 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 six months ended June 30, 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 85 $ 3.47 Vested (165) $ 5.05 Forfeited (4) $ 3.20 Non-vested as of June 30, 2024 1,136 $ 3.54 As of June 30, 2024, the unamortized compensation costs related to unvested restricted stock awards was approximately $3.3 million, which is to be amortized on a straight-line basis over a weighted-average period of approximately 1.2 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 June 30, 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 June 30, 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 June 30, 2024, there was $0.3 million of unrecognized compensation expense related to unvested at-risk, performance shares that is expected to be recognized over a weighted-average period of 1.56 years. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 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 loss per share calculations is as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Numerator: Net loss attributable to AXT, Inc. $ (1,516) $ (5,089) $ (3,599) $ (8,437) Less: Preferred stock dividends (44) (44) (88) (88) Net loss available to common stockholders $ (1,560) $ (5,133) $ (3,687) $ (8,525) Denominator: Denominator for basic net loss per share - weighted-average common shares 43,092 42,586 43,039 42,542 Effect of dilutive securities: Common stock options — — — — Restricted stock awards — — — — Denominator for dilutive net loss per common shares 43,092 42,586 43,039 42,542 Net loss attributable to AXT, Inc. per common share: Basic $ (0.04) $ (0.12) $ (0.09) $ (0.20) Diluted $ (0.04) $ (0.12) $ (0.09) $ (0.20) Options excluded from diluted net loss per share as the impact is anti-dilutive 1,187 1,200 1,187 1,200 Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive 1,325 1,019 1,325 1,019 The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of June 30, 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Product Type: Substrates $ 19,745 $ 11,027 $ 36,648 $ 24,516 Raw Materials and Other 8,178 7,568 13,963 13,484 Total $ 27,923 $ 18,595 $ 50,611 $ 38,000 Geographical Information The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Geographical region: China $ 16,947 $ 10,289 $ 28,464 $ 18,391 Taiwan 3,420 1,407 8,002 3,878 Japan 796 1,396 1,786 2,931 Asia Pacific (excluding China, Taiwan and Japan) 712 737 1,510 1,828 Europe (primarily Germany) 4,689 3,015 8,414 6,585 North America (primarily the United States) 1,359 1,751 2,435 4,387 Total $ 27,923 $ 18,595 $ 50,611 $ 38,000 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 June 30, December 31, 2024 2023 Long-lived assets by geographic region, net of depreciation: North America $ 1,493 $ 1,631 China 162,370 167,516 $ 163,863 $ 169,147 Significant Customers No customer represented 10% of our revenue for the three months ended June 30, 2024 and 2023 One customer represented 10% of our revenue for the six months ended June 30, 2024 and no customer represented 10% of our revenue for the six months ended June 30, 2023. Our top five customers, although not the same five customers for each period, represented 32% and 24% of our revenue for the six months ended June 30, 2024 and 2023, respectively. 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 June 30, 2024 , |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Indemnification Agreements We have entered into indemnification agreements with our directors and officers that require us to indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to obtain directors’ and officers’ insurance if available on reasonable terms, which we currently have in place. Product Warranty We provide warranties for our products for a specific period of time, generally twelve months, against material defects. We provide for the estimated future costs of warranty obligations in cost of sales when the related revenue is recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that we expect to incur to repair or replace product parts that fail while still under warranty. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on repair costs. On a quarterly basis, we review the accrued balances and update the historical warranty cost trends. The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Beginning accrued product warranty $ 495 $ 915 $ 703 $ 669 Accruals for warranties issued 131 114 188 658 Adjustments related to pre-existing warranties including expirations and changes in estimates (50) (64) (260) (39) Cost of warranty repair (155) (113) (210) (436) Ending accrued product warranty $ 421 $ 852 $ 421 $ 852 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 10-year period. Land Purchase and Investment Agreement In 2017, Baoding Tongmei established a wafer process production line in Dingxing, China. In addition to a land rights and building purchase agreement that Baoding Tongmei entered into with a private real estate development company to acquire our new manufacturing facility, Baoding Tongmei 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 Baoding Tongmei as Baoding Tongmei achieves certain milestones. Baoding Tongmei, 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 Baoding Tongmei 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. Chaoyang Tongmei has a similar agreement with the city of Kazuo, China, although on a smaller scale. The total investment targeted by Chaoyang Tongmei in Kazuo is approximately $15 million in value, assets and capital. In addition, BoYu has a similar agreement with the city of Kazuo. The total investment targeted by BoYu in Kazuo is approximately $8 million in value, assets and capital. Purchase Obligations with Penalties for Cancellation In the normal course of business, we issue purchase orders to various suppliers. In certain cases, we may incur a penalty if we cancel the purchase order. As of June 30, 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. On May 6, 2024, a shareholder class action complaint was filed in the U.S. District Court for the Eastern District of New York on behalf of persons or entities who purchased or acquired our publicly traded securities, against us, Morris S. Young, our Chief Executive Officer, and Gary L. Fischer, our Chief Financial Officer. The complaint asserts a putative class period from March 24, 2021 and April 3, 2024, inclusive (the “Class Period”). The complaint asserts that the defendants issued materially false and misleading statements about our business and financial condition in certain filings made with the SEC during the Class Period, alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder by the defendants, and seeks unspecified monetary relief, interest, and attorneys’ fees. The Court has ordered the case to be transferred to the Northern District of California, where our headquarters is located. It is not possible at this time to reasonably assess the final outcome of this litigation or reasonably to estimate the possible loss or range of loss with respect to this litigation. Management believes these claims to be meritless and intends to vigorously defend against them. |
Other Income (expense), Net
Other Income (expense), Net | 6 Months Ended |
Jun. 30, 2024 | |
Other Income (expense), Net | |
Other Income (expense), Net | Note 13. Other Income (expense), Net Other income (expense), net for the three months ended June 30, 2024 and 2023, includes a grant of $0.4 million and $1.3 million, respectively, from government agencies as awards for technological innovation and job creation. Other income (expense), net for the six months ended June 30, 2024 and 2023, includes a grant of $1.4 million and $1.8 million, respectively, from government agencies as awards for technological innovation and job creation. In addition, we incurred a foreign currency transaction exchange gain of $42,000 and $10,000 for the three months ended June 30, 2024 and 2023, respectively. We incurred a foreign currency transaction exchange gain of $100,000 and a loss of $203,000 for the six months ended June 30, 2024 and 2023, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes We provide for income taxes based upon the geographic composition of worldwide earnings and tax regulations governing each region, particularly China. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws, particularly in foreign countries such as China. We recognize interest and penalties related to uncertain tax positions in income tax expense. Income tax expense for the three and six months ended June 30, 2024 includes no interest and penalties. As of June 30, 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 and six months ended June 30, 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. California Senate Bill 167 was signed into law by the acting governor on June 27, 2024. The bill makes several tax changes designed to alleviate the 2024-2025 budget. For tax years beginning on or after January 1, 2024, and before January 1, 2027, net operating losses (NOLs) are suspended for both corporate and personal income taxes. The suspension will not apply to any taxpayer with net business income or modified adjusted income of less than $1 million. Another provision in Senate Bill 167 limits the use of credits for tax years beginning on or after January 1, 2024, and before January 1, 2027. During this period, a business (including all taxpayers that are members of a combined report) may claim a total of only $5 million in credits under both the Corporation and Personal Income Tax laws (including the carryover of any business credit). Since the Company’s profit level is below $1 million, Bill 167 has no impact on the Company. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
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 June 30, 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 June 30, 2024 and December 31, 2023 (in thousands): June 30, December 31, 2024 2023 Contract liabilities $ 1,106 $ 305 During the three and six months ended June 30, 2024, the Company recognized $27,000 and $154,000 , respectively, of revenue that was included in the contract balances as of December 31, 2023. During the three and six months ended June 30, 2023, the Company recognized $3,000 and $277,000 , respectively, of revenue that was included in the contract balances as of December 31, 2022. 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2024 and December 31, 2023 (in thousands, except interest rate data): Loan Interest December 31, June 30, 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-24 386 376 876 3.5 % November-23 November-24 876 855 1,003 3.5 % November-23 November-24 1,003 980 Bank of China (2) 2,911 3.5 % January-23 January-24 2,825 - 2,770 3.0 % January-24 January-25 - 2,755 Bank of Communications (1) 1,455 3.3 % January-23 January-24 1,414 - 1,380 3.8 % May-23 May-24 1,414 - 1,373 3.8 % July-23 May-24 1,414 - 1,376 3.0 % May-24 May-25 - 1,376 2,480 3.0 % June-24 May-25 - 2,480 China Merchants Bank (1) 4,367 3.7 % January-23 January-24 4,235 - 1,386 3.5 % January-24 January-25 - 1,376 692 3.5 % February-24 February-25 - 690 692 3.5 % April-24 April-25 - 690 Bank of Beijing (3) 2,290 4.2 % January-23 January-24 2,220 - 3,541 3.2 % June-23 May-24 3,626 - 1,380 3.2 % June-23 February-24 1,414 - 1,414 3.0 % December-23 December-24 1,414 1,376 3,600 3.0 % March-24 February-25 - 3,577 1,386 3.0 % March-24 December-24 - 1,376 3,580 3.0 % June-24 June-25 - 3,577 Industrial Bank (1) 2,757 4.3 % June-23 June-24 2,825 - 2,744 4.3 % July-23 July-24 2,825 2,752 2,744 4.3 % September-23 September-24 2,825 2,752 NingBo Bank (1) 2,744 4.2 % August-23 September-24 2,820 2,746 1,271 4.3 % November-23 November-24 1,271 1,238 2,825 4.3 % December-23 December-24 2,825 2,752 1,647 4.3 % January-24 January-25 - 1,637 1,258 4.3 % May-24 March-25 - 1,258 Industrial and Commercial Bank of China (1) 2,744 3.3 % September-23 September-24 2,825 2,752 NanJing Bank (1) 2,752 3.8 % October-23 October-24 2,752 2,683 China Citic Bank (1) 2,752 3.0 % June-24 June-25 - 2,752 BoYu Industrial and Commercial Bank of China (4) 1,414 2.7 % December-23 December-24 1,414 1,376 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 - 1,376 3.0 % May-24 November-24 - 1,376 Industrial Bank (1) 688 3.6 % September-23 September-24 708 690 Bank of Communications (1) 1,414 3.0 % November-23 May-24 1,414 - 275 3.0 May-24 May-25 - 275 NanJing Bank (1) 1,386 3.5 % January-24 January-25 - 1,376 Loan Balance $ 52,921 $ 49,899 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 June 30, 2024, $5.5 million is included in “Other long-term liabilities” and $275,000 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 June 30, 2024, $1.2 million associated with this financing arrangement is included in “Other long-term liabilities” and $550,000 is included in “Short-term loans” in our consolidated balance sheets. As of June 30, 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 $ 894 2026 1,307 2027 963 2028 1,238 2029 2,357 In summary, short-term loans of $50.7 million included under “Short-term loans” in our condensed consolidated balance sheet at June 30, 2024, consisted of $49.9 million of short-term bank loans and $0.8 million of the current portion of long-term debt. Long-term loans of $6.7 million included under “Other long-term liabilities” in our condensed consolidated balance sheet at June 30, 2024 consisted of $5.5 million in a five-year bank loan and $1.2 million in a loan secured by ChaoYang XinMei . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
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 June 30, 2024, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2024 $ 293 2025 598 2026 612 2027 626 2028 608 Thereafter 149 Total minimum lease payments 2,886 Less: Interest (332) Present value of lease obligations 2,554 Less: Current portion, included in accrued liabilities (471) Long-term portion of lease obligations $ 2,083 The weighted-average remaining lease term and the weighted-average discount rate for our operating leases as of each date is as follows: June 30, December 31, 2024 2023 Weighted-average remaining lease term (years) 4.72 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): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 292 $ 289 The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Operating lease $ 153 $ 128 $ 306 $ 257 Short-term lease expense 42 37 83 71 Total $ 195 $ 165 $ 389 $ 328 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2024 are presented in the following table (in thousands): Balance as of January 1, 2024 $ 41,663 Equity issuance costs incurred (466) Stock-based compensation attributable to redeemable noncontrolling interests 22 Net loss attributable to redeemable noncontrolling interests (70) Effect of foreign currency translation on redeemable noncontrolling interests (1,130) Effect of foreign currency translation attributable to redeemable noncontrolling interests (258) Balance as of June 30, 2024 $ 39,761 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 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 not have a material 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 | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Event | |
Subsequent Event | Note 20. Subsequent Event In July 2024, the Company secured $3.9 million in new one-year, unsecured bank loans with interest rates ranging from 2.9% to 3.2%. During the same month, the Company repaid $4.3 million of existing loans. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (1,516) | $ (5,089) | $ (3,599) | $ (8,437) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments and Fair Value Measurements | |
Cash, cash equivalents and investments | As of June 30, 2024 and December 31, 2023, our cash and debt investments are classified as follows (in thousands): June 30, 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 $ 41,597 $ — $ — $ 41,597 $ 50,114 $ — $ — $ 50,114 Investments (available-for-sale): Certificates of deposit 1 1,680 — (5) 1,675 2,160 — (20) 2,140 Total cash, restricted cash and investments $ 43,277 $ — $ (5) $ 43,272 $ 52,274 $ — $ (20) $ 52,254 Contractual maturities on investments: Due within 1 year 2 $ 1,680 $ 1,675 $ 2,160 $ 2,140 $ 1,680 $ 1,675 $ 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 June 30, 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 June 30, 2024 Value (Losses) Value (Losses) Value (Losses) Investments: Certificates of deposit $ — $ — $ 1,675 $ (5) $ 1,675 $ (5) Total in loss position $ — $ — $ 1,675 $ (5) $ 1,675 $ (5) 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 June 30, 2024 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs June 30, 2024 (Level 1) (Level 2) (Level 3) Assets: Investments: Certificates of deposit $ 1,675 $ — $ 1,675 $ — Total $ 1,675 $ — $ 1,675 $ — 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) | 6 Months Ended |
Jun. 30, 2024 | |
Inventories | |
Components of inventories | The components of inventories are summarized below (in thousands): June 30, December 31, 2024 2023 Inventories: Raw materials $ 28,939 $ 32,910 Work in process 53,854 50,008 Finished goods 2,981 3,585 $ 85,774 $ 86,503 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property, plant and equipment | The components of our property, plant and equipment are summarized below (in thousands): June 30, December 31, 2024 2023 Property, plant and equipment: Machinery and equipment, at cost $ 66,958 $ 65,918 Less: accumulated depreciation and amortization (42,793) (42,112) Building, at cost 137,407 125,786 Less: accumulated depreciation and amortization (24,562) (23,339) Leasehold improvements, at cost 7,571 7,596 Less: accumulated depreciation and amortization (6,115) (5,984) Construction in progress 22,866 38,483 $ 161,332 $ 166,348 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities | |
Schedule of components of accrued liabilities | The components of accrued liabilities are summarized below (in thousands): June 30, December 31, 2024 2023 Preferred stock dividends payable $ 2,901 $ 2,901 Accrued compensation and related charges 2,193 3,707 Payable in connection with construction in progress 1,478 7,249 Advances from customers 1,106 305 Other tax payable 527 493 Current portion of operating lease liabilities 471 458 Accrued professional services 470 868 Accrued product warranty 421 703 Accrued income taxes 362 — Other personnel-related costs 276 286 Accrual for sales returns 47 39 Other accrued liabilities 2,016 2,010 $ 12,268 $ 19,019 |
Investments in Privately-Held_2
Investments in Privately-Held Raw Material Companies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of investments | Investment Balance as of June 30, 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. $ 4,400 3,806 Equity 39 % Xiaoyi XingAn Gallium Co., Ltd. 4,233 5,516 Equity ** 25 % ChaoYang KaiMei Quartz Co., Ltd. 3,316 3,154 Equity ***** 40 % $ 11,949 $ 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 and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net revenue $ 9,338 $ 7,678 $ 17,442 $ 15,652 Gross profit $ 4,161 $ 2,648 $ 8,090 $ 5,554 Operating income $ 4,035 $ 3,163 $ 7,406 $ 5,172 Net income $ 2,044 $ 913 $ 5,182 $ 4,858 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 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 Common stock options exercised — — 5 — — 5 — 5 Investment in subsidiary with noncontrolling interest — — — — — — — Investment in subsidiary with redeemable noncontrolling interest — — — — — — — — Noncontrolling interest portion of Tongmei stock-based compensation — — (15) — — (15) 7 (8) Stock-based compensation — — 621 — — 621 — 621 Tongmei stock-based compensation — — 94 — — 94 — 94 Net loss — — — (1,516) — (1,516) 316 (1,200) Other comprehensive income (loss) — — — — (601) (601) (69) (670) Balance as of June 30, 2024 $ 3,532 $ 44 $ 239,962 $ (35,639) $ (8,227) $ 199,672 $ 23,680 $ 223,352 Accumulated Other AXT, Inc. Total Preferred Common Additional Accumulated Comprehensive Stockholders’ Noncontrolling Stockholders’ Stock Stock Paid-In Capital Deficit Income (Loss) Equity Interests Equity Balance as of December 31, 2022 $ 3,532 $ 44 $ 235,308 $ (14,159) $ (3,118) $ 221,607 $ 23,293 $ 244,900 Common stock options exercised — — 8 — — 8 — 8 Investment in subsidiary with noncontrolling interest — — (36) — — (36) 239 203 Investment in subsidiary with redeemable noncontrolling interest — — (36) — — (36) — (36) Noncontrolling interest portion of Tongmei stock-based compensation — — 33 — — 33 (16) 17 Stock-based compensation — — 717 — — 717 — 717 Tongmei stock-based compensation — — 198 — — 198 — 198 Net loss — — — (3,348) — (3,348) (169) (3,517) Other comprehensive income — — — — 858 858 70 928 Balance as of March 31, 2023 $ 3,532 $ 44 $ 236,192 $ (17,507) $ (2,260) $ 220,001 $ 23,417 $ 243,418 Common stock options exercised — — 2 — — 2 — 2 Investment in subsidiary with noncontrolling interest — — (74) — — (74) 380 306 Investment in subsidiary with redeemable noncontrolling interest — — (75) — — (75) — (75) Noncontrolling interest portion of Tongmei stock-based compensation — — 31 — — 31 (14) 17 Stock-based compensation — — 720 — — 720 — 720 Tongmei stock-based compensation — — 192 — — 192 — 192 Net income (loss) — — — (5,089) — (5,089) 38 (5,051) Other comprehensive income (loss) — — — — (5,915) (5,915) (623) (6,538) Balance as of June 30, 2023 $ 3,532 $ 44 $ 236,988 $ (22,596) $ (8,175) $ 209,793 $ 23,198 $ 232,991 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Cost of revenue $ 68 $ 103 $ 173 $ 208 Selling, general and administrative 526 655 1,079 1,287 Research and development 121 154 272 332 Net effect on net loss $ 715 $ 912 $ 1,524 $ 1,827 |
Summary of stock option activity | The following table summarizes the stock option transactions during the six months ended June 30, 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 (11) 2.22 Canceled and expired — — Balance as of June 30, 2024 1,187 $ 5.13 3.63 $ 189 Options vested as of June 30, 2024 and unvested options expected to vest, net of forfeitures 1,187 $ 5.13 3.63 $ 189 Options exercisable as of June 30, 2024 1,187 $ 5.13 3.63 $ 189 |
Summary of restricted stock awards activity | A summary of activity related to restricted stock awards for the six months ended June 30, 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 85 $ 3.47 Vested (165) $ 5.05 Forfeited (4) $ 3.20 Non-vested as of June 30, 2024 1,136 $ 3.54 |
Summary of unvested at-risk performance shares | A summary of the status of our unvested at-risk, performance shares as of June 30, 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 June 30, 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. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 loss per share calculations is as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Numerator: Net loss attributable to AXT, Inc. $ (1,516) $ (5,089) $ (3,599) $ (8,437) Less: Preferred stock dividends (44) (44) (88) (88) Net loss available to common stockholders $ (1,560) $ (5,133) $ (3,687) $ (8,525) Denominator: Denominator for basic net loss per share - weighted-average common shares 43,092 42,586 43,039 42,542 Effect of dilutive securities: Common stock options — — — — Restricted stock awards — — — — Denominator for dilutive net loss per common shares 43,092 42,586 43,039 42,542 Net loss attributable to AXT, Inc. per common share: Basic $ (0.04) $ (0.12) $ (0.09) $ (0.20) Diluted $ (0.04) $ (0.12) $ (0.09) $ (0.20) Options excluded from diluted net loss per share as the impact is anti-dilutive 1,187 1,200 1,187 1,200 Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive 1,325 1,019 1,325 1,019 |
Segment Information and Forei_2
Segment Information and Foreign Operations (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Product Type: Substrates $ 19,745 $ 11,027 $ 36,648 $ 24,516 Raw Materials and Other 8,178 7,568 13,963 13,484 Total $ 27,923 $ 18,595 $ 50,611 $ 38,000 |
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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Geographical region: China $ 16,947 $ 10,289 $ 28,464 $ 18,391 Taiwan 3,420 1,407 8,002 3,878 Japan 796 1,396 1,786 2,931 Asia Pacific (excluding China, Taiwan and Japan) 712 737 1,510 1,828 Europe (primarily Germany) 4,689 3,015 8,414 6,585 North America (primarily the United States) 1,359 1,751 2,435 4,387 Total $ 27,923 $ 18,595 $ 50,611 $ 38,000 |
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 June 30, December 31, 2024 2023 Long-lived assets by geographic region, net of depreciation: North America $ 1,493 $ 1,631 China 162,370 167,516 $ 163,863 $ 169,147 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty accrued liability | The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Beginning accrued product warranty $ 495 $ 915 $ 703 $ 669 Accruals for warranties issued 131 114 188 658 Adjustments related to pre-existing warranties including expirations and changes in estimates (50) (64) (260) (39) Cost of warranty repair (155) (113) (210) (436) Ending accrued product warranty $ 421 $ 852 $ 421 $ 852 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
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 June 30, 2024 and December 31, 2023 (in thousands): June 30, December 31, 2024 2023 Contract liabilities $ 1,106 $ 305 During the three and six months ended June 30, 2024, the Company recognized $27,000 and $154,000 , respectively, of revenue that was included in the contract balances as of December 31, 2023. During the three and six months ended June 30, 2023, the Company recognized $3,000 and $277,000 , respectively, of revenue that was included in the contract balances as of December 31, 2022. |
Loans and Line of Credit (Table
Loans and Line of Credit (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Line of Credit | |
Schedule of bank loans and line of credit | The following table represents short-term bank loans as of June 30, 2024 and December 31, 2023 (in thousands, except interest rate data): Loan Interest December 31, June 30, 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-24 386 376 876 3.5 % November-23 November-24 876 855 1,003 3.5 % November-23 November-24 1,003 980 Bank of China (2) 2,911 3.5 % January-23 January-24 2,825 - 2,770 3.0 % January-24 January-25 - 2,755 Bank of Communications (1) 1,455 3.3 % January-23 January-24 1,414 - 1,380 3.8 % May-23 May-24 1,414 - 1,373 3.8 % July-23 May-24 1,414 - 1,376 3.0 % May-24 May-25 - 1,376 2,480 3.0 % June-24 May-25 - 2,480 China Merchants Bank (1) 4,367 3.7 % January-23 January-24 4,235 - 1,386 3.5 % January-24 January-25 - 1,376 692 3.5 % February-24 February-25 - 690 692 3.5 % April-24 April-25 - 690 Bank of Beijing (3) 2,290 4.2 % January-23 January-24 2,220 - 3,541 3.2 % June-23 May-24 3,626 - 1,380 3.2 % June-23 February-24 1,414 - 1,414 3.0 % December-23 December-24 1,414 1,376 3,600 3.0 % March-24 February-25 - 3,577 1,386 3.0 % March-24 December-24 - 1,376 3,580 3.0 % June-24 June-25 - 3,577 Industrial Bank (1) 2,757 4.3 % June-23 June-24 2,825 - 2,744 4.3 % July-23 July-24 2,825 2,752 2,744 4.3 % September-23 September-24 2,825 2,752 NingBo Bank (1) 2,744 4.2 % August-23 September-24 2,820 2,746 1,271 4.3 % November-23 November-24 1,271 1,238 2,825 4.3 % December-23 December-24 2,825 2,752 1,647 4.3 % January-24 January-25 - 1,637 1,258 4.3 % May-24 March-25 - 1,258 Industrial and Commercial Bank of China (1) 2,744 3.3 % September-23 September-24 2,825 2,752 NanJing Bank (1) 2,752 3.8 % October-23 October-24 2,752 2,683 China Citic Bank (1) 2,752 3.0 % June-24 June-25 - 2,752 BoYu Industrial and Commercial Bank of China (4) 1,414 2.7 % December-23 December-24 1,414 1,376 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 - 1,376 3.0 % May-24 November-24 - 1,376 Industrial Bank (1) 688 3.6 % September-23 September-24 708 690 Bank of Communications (1) 1,414 3.0 % November-23 May-24 1,414 - 275 3.0 May-24 May-25 - 275 NanJing Bank (1) 1,386 3.5 % January-24 January-25 - 1,376 Loan Balance $ 52,921 $ 49,899 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 June 30, 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 $ 894 2026 1,307 2027 963 2028 1,238 2029 2,357 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Summary of maturities of our operating lease liabilities | As of June 30, 2024, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2024 $ 293 2025 598 2026 612 2027 626 2028 608 Thereafter 149 Total minimum lease payments 2,886 Less: Interest (332) Present value of lease obligations 2,554 Less: Current portion, included in accrued liabilities (471) Long-term portion of lease obligations $ 2,083 |
Schedule of weighted-average remaining lease term and the weighted-average discount rate of operating leases | June 30, December 31, 2024 2023 Weighted-average remaining lease term (years) 4.72 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): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 292 $ 289 |
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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Operating lease $ 153 $ 128 $ 306 $ 257 Short-term lease expense 42 37 83 71 Total $ 195 $ 165 $ 389 $ 328 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Redeemable Noncontrolling Interests | |
Components of the change in redeemable noncontrolling interests | The components of the change in redeemable noncontrolling interests for the six months ended June 30, 2024 are presented in the following table (in thousands): Balance as of January 1, 2024 $ 41,663 Equity issuance costs incurred (466) Stock-based compensation attributable to redeemable noncontrolling interests 22 Net loss attributable to redeemable noncontrolling interests (70) Effect of foreign currency translation on redeemable noncontrolling interests (1,130) Effect of foreign currency translation attributable to redeemable noncontrolling interests (258) Balance as of June 30, 2024 $ 39,761 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jan. 25, 2021 USD ($) | Jun. 30, 2024 USD ($) | 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 ($) | Jan. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2024 USD ($) company | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) 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 | ||||||||||||||||||||||
Proceeds from sale of equity method investments | $ 827,000 | |||||||||||||||||||||||
Investments, equity method | $ 11,949,000 | $ 11,949,000 | $ 12,476,000 | |||||||||||||||||||||
Payment for investment | $ 275,000 | |||||||||||||||||||||||
AXT-Tongmei, Inc | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||||||||||||||||||||||
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] | ||||||||||||||||||||||||
Ownership (as a percent) | 58.50% | 58.50% | 58.50% | |||||||||||||||||||||
Investment value, agreement amount | $ 1,800,000 | $ 3,000,000 | ||||||||||||||||||||||
Investments, equity method | 1,800,000 | |||||||||||||||||||||||
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] | ||||||||||||||||||||||||
Ownership (as a percent) | 75% | 75% | ||||||||||||||||||||||
Investment value, agreement amount | $ 4,400,000 | |||||||||||||||||||||||
Investments, equity method | $ 3,300,000 | |||||||||||||||||||||||
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] | ||||||||||||||||||||||||
Ownership (as a percent) | 40% | 40% | 40% | 40% | ||||||||||||||||||||
Investment value, agreement amount | $ 7,600,000 | |||||||||||||||||||||||
Investments, equity method | $ 3,316,000 | 600,000 | 900,000 | $ 3,000,000 | $ 3,316,000 | $ 3,154,000 | $ 2,300,000 | $ 600,000 | ||||||||||||||||
Initial funding | 2,200,000 | |||||||||||||||||||||||
Investment amount | 900,000 | |||||||||||||||||||||||
Additional investment | $ 5,600,000 | |||||||||||||||||||||||
Payment for investment | $ 300,000 | $ 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) | 10% | 25% | 10% | |||||||||||||||||||||
Percentage of ownership, cost method | 10% | 10% | 10% | |||||||||||||||||||||
Proceeds from sale of equity method investments | $ 827,000 | |||||||||||||||||||||||
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% | 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] | ||||||||||||||||||||||||
Increase in redeemable noncontrolling interests | $ 1,500,000 | $ 48,100,000 | $ 48,100,000 | |||||||||||||||||||||
Percentage of outstanding shares | 7.28% | 14.50% | 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 | $ 48,100,000 | |||||||||||||||||||||
Raised additional capital | $ 1,500,000 | |||||||||||||||||||||||
Percentage of ownership | 85.50% | |||||||||||||||||||||||
Transaction results in increase to noncontrolling interests | $ 1,200,000 | |||||||||||||||||||||||
Transaction results in increase to redeemable noncontrolling interests | $ 1,200,000 | |||||||||||||||||||||||
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% | 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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | ||||
Cash and restricted cash | $ 41,597 | $ 50,114 | ||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Total cash, restricted cash and cash equivalents | 41,597 | 50,114 | $ 40,886 | $ 41,348 |
Amortized Cost | 1,680 | 2,160 | ||
Cash, restricted cash, cash equivalents and investments, amortized costs | 43,277 | 52,274 | ||
Gross Unrealized (Loss) | (5) | (20) | ||
Fair Value | 1,675 | 2,140 | ||
Cash, restricted cash, cash equivalents and investments, fair value. | 43,272 | 52,254 | ||
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||||
Due within 1 year | 1,680 | 2,160 | ||
Investments, amortized cost | 1,680 | 2,160 | ||
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Due within 1 year | 1,675 | 2,140 | ||
Investments, fair value | 1,675 | 2,140 | ||
Certificates of Deposit [Member] | ||||
Cash Equivalents, at Carrying Value [Abstract] | ||||
Amortized Cost | 1,680 | 2,160 | ||
Gross Unrealized (Loss) | (5) | (20) | ||
Fair Value | 1,675 | 2,140 | ||
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||||
Investments, amortized cost | 1,680 | 2,160 | ||
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Investments, fair value | $ 1,675 | $ 2,140 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Investment Category and Length (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) company | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) company | |
Available-for-Sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||||||
Fair value, in loss position greater than twelve months | $ 1,675,000 | $ 1,675,000 | $ 2,140,000 | |||
Gross unrealized (loss), in loss position greater than twelve months | (5,000) | (5,000) | (20,000) | |||
Fair value, total in loss position | 1,675,000 | 1,675,000 | 2,140,000 | |||
Gross unrealized (loss), total in loss position | (5,000) | (5,000) | (20,000) | |||
Restricted Cash | ||||||
Restricted cash | 13,789,000 | 13,789,000 | 12,362,000 | |||
Investments in Privately-Held Raw Material Companies | ||||||
Investments, equity method | 11,949,000 | $ 11,949,000 | $ 12,476,000 | |||
Number of equity method investments | company | 3 | 3 | ||||
Proceeds from sale of equity method investments | $ 827,000 | |||||
Investments, cost method | $ 551,000 | $ 551,000 | $ 551,000 | |||
Emeishan Jia Mei High Purity Metals Co., Ltd Investment | ||||||
Investments in Privately-Held Raw Material Companies | ||||||
Ownership (as a percent) | 25% | 10% | 10% | |||
Equity ownership percentage | 10% | 10% | 10% | |||
Proceeds from sale of equity method investments | $ 827,000 | |||||
Investments, cost method | $ 551,000 | $ 551,000 | 551,000 | |||
Loss on sale of equity investment | $ 575,000 | $ 958,000 | 575,000 | |||
Realized gain on adjustment of fair value of investment | 383,000 | |||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | ||||||
Investments in Privately-Held Raw Material Companies | ||||||
Investments, equity method | 4,400,000 | 4,400,000 | 3,806,000 | |||
Equity investment carrying value of asset after write down | $ 0 | $ 0 | ||||
Impairment charge on equity investee | 754,000 | |||||
Ownership (as a percent) | 39% | 39% | ||||
Investments Excluding Beijing JiYa Semiconductor Material Co., Ltd. | ||||||
Investments in Privately-Held Raw Material Companies | ||||||
Impairment charge on equity investee | $ 0 | $ 0 | $ 0 | $ 0 | ||
Certificates of Deposit [Member] | ||||||
Available-for-Sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||||||
Fair value, in loss position greater than twelve months | 1,675,000 | 1,675,000 | 2,140,000 | |||
Gross unrealized (loss), in loss position greater than twelve months | (5,000) | (5,000) | (20,000) | |||
Fair value, total in loss position | 1,675,000 | 1,675,000 | 2,140,000 | |||
Gross unrealized (loss), total in loss position | (5,000) | (5,000) | (20,000) | |||
Other Assets [Member] | ||||||
Investments in Privately-Held Raw Material Companies | ||||||
Investments, equity method | 11,900,000 | 11,900,000 | $ 12,500,000 | |||
Other noncurrent assets | Emeishan Jia Mei High Purity Metals Co., Ltd Investment | ||||||
Investments in Privately-Held Raw Material Companies | ||||||
Investments, cost method | $ 551,000 | $ 551,000 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets, Fair Value Disclosure [Abstract] | |||
Investments, amortized cost | $ 1,675 | $ 1,675 | $ 2,140 |
Fair Value, Transfer Between Level 1 and Level 2, Description and Policy [Abstract] | |||
Transfer from Level 1 to Level 2 , assets | 0 | 0 | |
Transfer from Level 2 to Level 1 , assets | 0 | 0 | |
Transfers into Level 3, assets | 0 | 0 | |
Transfer out of Level 3, assets | 0 | 0 | |
Fair Value, Recurring [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total | 1,675 | 1,675 | 2,140 |
Fair Value, Recurring [Member] | Certificates of Deposit [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash and cash equivalents, fair value disclosure | 1,675 | 1,675 | 2,140 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total | 1,675 | 1,675 | 2,140 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash and cash equivalents, fair value disclosure | $ 1,675 | $ 1,675 | $ 2,140 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Inventories | ||
Raw materials | $ 28,939,000 | $ 32,910,000 |
Work in process | 53,854,000 | 50,008,000 |
Finished goods | 2,981,000 | 3,585,000 |
Inventories, Total | 85,774,000 | 86,503,000 |
Inventory reserve | 23,100,000 | 21,900,000 |
Excess and obsolete inventory | $ 161,000 | $ 78,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, plant and equipment | ||
Property, plant and equipment, net | $ 161,332 | $ 166,348 |
Machinery and Equipment [Member] | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 66,958 | 65,918 |
Less: accumulated depreciation and amortization | (42,793) | (42,112) |
Building [Member] | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 137,407 | 125,786 |
Less: accumulated depreciation and amortization | (24,562) | (23,339) |
Leasehold Improvements [Member] | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 7,571 | 7,596 |
Less: accumulated depreciation and amortization | (6,115) | (5,984) |
Construction in Progress [Member] | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 22,866 | 38,483 |
Construction in progress Dingxin and Kazuo locations | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 16,300 | 31,200 |
Construction in progress manufacturing equipment purchases | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,300 | 3,100 |
Construction in progress other consolidated subsidiaries | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 4,200 | $ 4,200 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||||||
Preferred stock dividends payable | $ 2,901 | $ 2,901 | ||||
Accrued compensation and related charges | 2,193 | 3,707 | ||||
Payable in connection with construction in progress | 1,478 | 7,249 | ||||
Advances from customers | 1,106 | 305 | ||||
Other tax payable | 527 | 493 | ||||
Current portion of operating lease liabilities | 471 | 458 | ||||
Accrued professional services | 470 | 868 | ||||
Accrued product warranty | 421 | $ 495 | 703 | $ 852 | $ 915 | $ 669 |
Accrued income taxes | 362 | |||||
Other personnel-related costs | 276 | 286 | ||||
Accrual for sales returns | 47 | 39 | ||||
Other accrued liabilities | 2,016 | 2,010 | ||||
Accrued liabilities, Total | $ 12,268 | $ 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 | Dec. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2024 | May 31, 2021 | Feb. 28, 2021 | |
Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transactions | |||||||||||||||
Increase in redeemable noncontrolling interests | $ 1,500,000 | $ 48,100,000 | $ 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 | $ 1,400,000 | |||||||||||||
Short-term loan from noncontrolling interest | 0 | ||||||||||||||
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% | 58.50% | 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 | |||||||||||||||
Other receivables | $ 0 |
Investments in Privately-Held_3
Investments in Privately-Held Raw Material Companies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 25, 2021 | May 31, 2024 | 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 | Dec. 31, 2023 | Dec. 31, 2020 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2020 | Sep. 30, 2023 | Jul. 31, 2023 | Apr. 30, 2022 | Jun. 30, 2021 | |
Summary of investments | ||||||||||||||||||||
Investments, equity method | $ 12,476,000 | $ 11,949,000 | ||||||||||||||||||
Investments, cost method | 551,000 | 551,000 | ||||||||||||||||||
Percentage of equity interest sold | 15% | |||||||||||||||||||
Proceeds from sale of equity method investments | $ 827,000 | |||||||||||||||||||
Dividend received | 2,063,000 | $ 3,666,000 | ||||||||||||||||||
Other Assets | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, equity method | 12,500,000 | 11,900,000 | ||||||||||||||||||
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% | 10% | ||||||||||||||||||
Percentage of equity interest sold | 15% | 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 | 3,806,000 | $ 4,400,000 | ||||||||||||||||||
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 | 5,516,000 | $ 4,233,000 | ||||||||||||||||||
Percentage of ownership, equity method | 25% | |||||||||||||||||||
Dividends received | $ 2,100,000 | $ 1,800,000 | $ 1,800,000 | $ 1,500,000 | ||||||||||||||||
ChaoYang KaiMei Quartz Co., Ltd | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, equity method | $ 600,000 | $ 900,000 | $ 3,154,000 | $ 3,316,000 | $ 2,300,000 | $ 600,000 | $ 3,000,000 | |||||||||||||
Percentage of ownership, equity method | 40% | 40% | 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 | 0% | |||||||||||||||||||
Percentage of equity interest sold | 46% | 46% | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of outstanding shares | 8.50% | 8.50% | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, equity method | 39% | |||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of outstanding shares | 33% | 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 | $ 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% | |||||||||||||||||||
Subsidiaries [Member] | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, consolidated method | $ 14,211,000 | $ 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 | $ 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 | 6 Months Ended | ||||
Nov. 30, 2023 | May 31, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 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 | $ 551,000 | ||||
Percentage of equity interest sold | 15% | ||||||
Equity in income of unconsolidated joint ventures | 598,000 | $ 941,000 | 1,488,000 | $ 1,975,000 | |||
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 | 958,000 | 575,000 | ||||
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd. | $ 551,000 | 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% | 10% | ||||
Percentage of ownership, equity method | 25% | 10% | 10% | ||||
Equity in income of unconsolidated joint ventures | $ 900,000 | $ 2,000,000 | |||||
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 ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest [Abstract] | ||||
Net revenue | $ 27,923,000 | $ 18,595,000 | $ 50,611,000 | $ 38,000,000 |
Gross profit | 7,652,000 | 1,715,000 | 13,746,000 | 6,825,000 |
Net income | (1,199,000) | (5,353,000) | (3,247,000) | (9,019,000) |
Five Minority Investments | ||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest [Abstract] | ||||
Net revenue | 9,338,000 | 7,678,000 | 17,442,000 | 15,652,000 |
Gross profit | 4,161,000 | 2,648,000 | 8,090,000 | 5,554,000 |
Operating income | 4,035,000 | 3,163,000 | 7,406,000 | 5,172,000 |
Net income | 2,044,000 | 913,000 | 5,182,000 | 4,858,000 |
Gross Profit [Abstract] | ||||
Entity income (loss) excluding impairment | $ 600,000 | $ 18,000 | $ 1,500,000 | $ 1,000,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 96 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2015 | Dec. 31, 2023 | Oct. 27, 2014 | |
Stockholders' Equity | |||||||||
Balance, beginning of period | $ 224,510,000 | $ 227,483,000 | $ 243,418,000 | $ 244,900,000 | $ 227,483,000 | $ 244,900,000 | |||
Common stock options exercised | 5,000 | 20,000 | 2,000 | (8,000) | |||||
Investment in subsidiary with noncontrolling interest | 306,000 | 203,000 | |||||||
Investment in subsidiary with redeemable noncontrolling interest | (75,000) | (36,000) | |||||||
Noncontrolling interest portion of Tongmei stock-based compensation | (8,000) | (11,000) | 17,000 | 17,000 | |||||
Stock-based compensation | 621,000 | 614,000 | 720,000 | 717,000 | |||||
Tongmei stock-based compensation | 94,000 | 195,000 | 192,000 | 198,000 | |||||
Net loss | (1,200,000) | (1,977,000) | (5,051,000) | (3,517,000) | |||||
Other comprehensive income (loss) | (670,000) | (1,814,000) | (6,538,000) | 928,000 | |||||
Balance, end of period | 223,352,000 | 224,510,000 | 232,991,000 | 243,418,000 | 223,352,000 | 232,991,000 | $ 227,483,000 | ||
Net income (loss) attributable to redeemable noncontrolling interests | (1,000) | (302,000) | (70,000) | 451,000 | |||||
Other comprehensive loss attributable to redeemable noncontrolling interests | 69,000 | 630,000 | (258,000) | 560,000 | |||||
Reclassification adjustment from AOCI | $ 0 | 0 | $ 0 | 0 | |||||
Stock repurchase program, authorized amount | $ 5,000,000 | ||||||||
Shares repurchased (in shares) | 0 | 0 | 908,000 | 0 | |||||
Average price of shares repurchased (in dollars per share) | $ 2.52 | ||||||||
Total purchase price | $ 2,300,000 | ||||||||
Stock repurchase program remaining authorized repurchase amount | $ 2,700,000 | $ 2,700,000 | |||||||
Preferred Stock | |||||||||
Stockholders' Equity | |||||||||
Balance, beginning of period | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | |||
Balance, end of period | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | 3,532,000 | $ 3,532,000 | ||
Common Stock | |||||||||
Stockholders' Equity | |||||||||
Balance, beginning of period | 44,000 | 44,000 | 44,000 | 44,000 | 44,000 | 44,000 | |||
Balance, end of period | 44,000 | 44,000 | 44,000 | 44,000 | 44,000 | 44,000 | 44,000 | ||
Additional Paid-In Capital | |||||||||
Stockholders' Equity | |||||||||
Balance, beginning of period | 239,257,000 | 238,452,000 | 236,192,000 | 235,308,000 | 238,452,000 | 235,308,000 | |||
Common stock options exercised | 5,000 | 20,000 | 2,000 | (8,000) | |||||
Investment in subsidiary with noncontrolling interest | (74,000) | (36,000) | |||||||
Investment in subsidiary with redeemable noncontrolling interest | (75,000) | (36,000) | |||||||
Noncontrolling interest portion of Tongmei stock-based compensation | (15,000) | (24,000) | 31,000 | 33,000 | |||||
Stock-based compensation | 621,000 | 614,000 | 720,000 | 717,000 | |||||
Tongmei stock-based compensation | 94,000 | 195,000 | 192,000 | 198,000 | |||||
Balance, end of period | 239,962,000 | 239,257,000 | 236,988,000 | 236,192,000 | 239,962,000 | 236,988,000 | 238,452,000 | ||
Accumulated Deficit | |||||||||
Stockholders' Equity | |||||||||
Balance, beginning of period | (34,123,000) | (32,040,000) | (17,507,000) | (14,159,000) | (32,040,000) | (14,159,000) | |||
Net loss | (1,516,000) | (2,083,000) | (5,089,000) | (3,348,000) | |||||
Balance, end of period | (35,639,000) | (34,123,000) | (22,596,000) | (17,507,000) | (35,639,000) | (22,596,000) | (32,040,000) | ||
Accumulated Other Comprehensive Income (Loss) | |||||||||
Stockholders' Equity | |||||||||
Balance, beginning of period | (7,626,000) | (5,999,000) | (2,260,000) | (3,118,000) | (5,999,000) | (3,118,000) | |||
Other comprehensive income (loss) | (601,000) | (1,627,000) | (5,915,000) | 858,000 | |||||
Balance, end of period | (8,227,000) | (7,626,000) | (8,175,000) | (2,260,000) | (8,227,000) | (8,175,000) | (5,999,000) | ||
AXT, Inc. Stockholders' Equity | |||||||||
Stockholders' Equity | |||||||||
Balance, beginning of period | 201,084,000 | 203,989,000 | 220,001,000 | 221,607,000 | 203,989,000 | 221,607,000 | |||
Common stock options exercised | 5,000 | 20,000 | 2,000 | (8,000) | |||||
Investment in subsidiary with noncontrolling interest | (74,000) | (36,000) | |||||||
Investment in subsidiary with redeemable noncontrolling interest | (75,000) | (36,000) | |||||||
Noncontrolling interest portion of Tongmei stock-based compensation | (15,000) | (24,000) | 31,000 | 33,000 | |||||
Stock-based compensation | 621,000 | 614,000 | 720,000 | 717,000 | |||||
Tongmei stock-based compensation | 94,000 | 195,000 | 192,000 | 198,000 | |||||
Net loss | (1,516,000) | (2,083,000) | (5,089,000) | (3,348,000) | |||||
Other comprehensive income (loss) | (601,000) | (1,627,000) | (5,915,000) | 858,000 | |||||
Balance, end of period | 199,672,000 | 201,084,000 | 209,793,000 | 220,001,000 | 199,672,000 | 209,793,000 | 203,989,000 | ||
Noncontrolling Interests | |||||||||
Stockholders' Equity | |||||||||
Balance, beginning of period | 23,426,000 | 23,494,000 | 23,417,000 | 23,293,000 | 23,494,000 | 23,293,000 | |||
Investment in subsidiary with noncontrolling interest | 380,000 | 239,000 | |||||||
Noncontrolling interest portion of Tongmei stock-based compensation | 7,000 | 13,000 | (14,000) | (16,000) | |||||
Net loss | 316,000 | 106,000 | 38,000 | (169,000) | |||||
Other comprehensive income (loss) | (69,000) | (187,000) | (623,000) | 70,000 | |||||
Balance, end of period | $ 23,680,000 | $ 23,426,000 | $ 23,198,000 | $ 23,417,000 | $ 23,680,000 | $ 23,198,000 | $ 23,494,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - 2015 Equity Incentive Plan - shares | 1 Months Ended | 6 Months Ended | |||
May 31, 2024 | May 31, 2021 | May 31, 2019 | May 31, 2015 | Jun. 30, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Number of shares authorized for issuance (in shares) | 399,562 | ||||
Number of additional shares authorized for issuance (in shares) | 3,600,000 | 3,600,000 | 1,600,000 | 3,000,000 | |
Employee Stock Option [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Restricted Stock [Member] | Consultant | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Restricted Stock [Member] | Time based vesting | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted Stock [Member] | Performance Based Vesting | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting period | 12 months | ||||
Maximum [Member] | Employee Stock Option [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Expected term | 10 years |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Net effect on net loss | $ 715 | $ 912 | $ 1,524 | $ 1,827 |
Cost of revenue | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Net effect on net loss | 68 | 103 | 173 | 208 |
Selling, general and administrative | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Net effect on net loss | 526 | 655 | 1,079 | 1,287 |
Research and development | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Net effect on net loss | $ 121 | $ 154 | $ 272 | $ 332 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jun. 28, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Unamortized compensation costs | $ 0 | $ 0 | ||||
Stock options grants in period | 0 | 0 | 0 | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options outstanding, beginning of period (in shares) | 1,198 | |||||
Exercised (in shares) | (11) | |||||
Options outstanding, end of period (in shares) | 1,187 | 1,187 | 1,198 | |||
Options vested and unvested options expected to vest, net of forfeitures, end of period (in shares) | 1,187 | 1,187 | ||||
Options exercisable, end of period (in shares) | 1,187 | 1,187 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Options outstanding, beginning of period (in dollars per share) | $ 5.10 | |||||
Exercised (in dollars per share) | 2.22 | |||||
Options outstanding, end of period (in dollars per share) | $ 5.13 | 5.13 | $ 5.10 | |||
Options vested and unvested options expected to vest, net of forfeitures (in dollars per share) | 5.13 | 5.13 | ||||
Options exercisable, end of period (in dollars per share) | $ 5.13 | $ 5.13 | ||||
Weighted average Remaining Contractual Life | ||||||
Options outstanding | 3 years 7 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 7 months 17 days | |||||
Option exercisable, end of period | 3 years 7 months 17 days | |||||
Aggregate Intrinsic Value | ||||||
Options outstanding, beginning of period | $ 14,000 | |||||
Options outstanding, end of period | $ 189,000 | 189,000 | $ 14,000 | |||
Options vested and expected to vest, end of period | 189,000 | 189,000 | ||||
Options exercisable, end of period | $ 189,000 | $ 189,000 | ||||
Closing price (in dollars per share) | $ 3.38 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU (Details) - Restricted Stock [Member] $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unamortized compensation cost related to restricted stock awards | $ | $ 3.3 |
Weighted-average remaining contractual terms | 1 year 2 months 12 days |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested, beginning of period (in shares) | shares | 1,220 |
Granted (in shares) | shares | 85 |
Vested (in shares) | shares | (165) |
Forfeited (in shares) | shares | (4) |
Non-vested, end of period (in shares) | shares | 1,136 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 3.75 |
Granted (in dollars per share) | $ / shares | 3.47 |
Vested (in dollars per share) | $ / shares | 5.05 |
Forfeited (in dollars per share) | $ / shares | 3.20 |
Non-vested, end of period (in dollars per share) | $ / shares | $ 3.54 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Feb. 20, 2024 | Mar. 15, 2023 | Feb. 14, 2023 | Feb. 15, 2022 | Feb. 29, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Performance Shares [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||
Non-vested, beginning of period (in shares) | 38,000 | |||||||||
Granted (in shares) | 151,000 | |||||||||
Non-vested, end of period (in shares) | 189,000 | 189,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
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 | $ 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 | ||||||||
Percentage of targeted financial performance | 100% | |||||||||
Unrecognized compensation expense related to restricted stock awards | $ 0.3 | $ 0.3 | ||||||||
Weighted-average remaining contractual terms | 1 year 6 months 21 days | |||||||||
Performance Shares [Member] | Minimum [Member] | Scenario Performance Financial Metric Less Than 50% | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Percentage of targeted financial performance | 50% | |||||||||
Performance Shares [Member] | Minimum [Member] | Scenario Performance Financial Metric is Between 50% to 200% | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Percentage of targeted financial performance | 50% | |||||||||
Performance Shares [Member] | Minimum [Member] | Scenario Performance Financial Metric Greater Than 200% | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Percentage of targeted financial performance | 200% | |||||||||
Performance Shares [Member] | Maximum [Member] | Scenario Performance Financial Metric is Between 50% to 200% | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Percentage of targeted financial performance | 200% | |||||||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||
Vested (in shares) | 0 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Vesting period | 4 years | |||||||||
Performance Shares [Member] | Chief Executive Officer [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Stock options grants in period | 223,590 | 223,590 | 114,320 | |||||||
Performance Shares [Member] | Chief Executive Officer [Member] | Scenario Performance Minimum Financial Metric | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Share options vested in period | 223,590 | 223,590 | ||||||||
Performance Shares [Member] | Chief Executive Officer [Member] | Scenario Performance Financial Metric is Between 50% to 200% | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Stock options grants in period | 114,320 | |||||||||
Performance Shares [Member] | Chief Executive Officer [Member] | Scenario Performance Financial Metric Greater Than 200% | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Stock options grants in period | 114,320 | |||||||||
Performance Shares [Member] | Chief Financial Officer [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Stock options grants in period | 77,600 | 77,600 | 32,100 | |||||||
Performance Shares [Member] | Chief Financial Officer [Member] | Scenario Performance Minimum Financial Metric | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Share options vested in period | 77,600 | 77,600 | ||||||||
Performance Shares [Member] | Chief Financial Officer [Member] | Scenario Performance Financial Metric is Between 50% to 200% | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Stock options grants in period | 32,100 | |||||||||
Employee Stock Option [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||||
Stock options grants in period | 0 | 0 | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net loss attributable to AXT, Inc. | $ (1,516) | $ (5,089) | $ (3,599) | $ (8,437) |
Less: Preferred stock dividends | (44) | (44) | (88) | (88) |
Net loss available to common stockholders | $ (1,560) | $ (5,133) | $ (3,687) | $ (8,525) |
Denominator: | ||||
Denominator for basic net income (loss) per share - weighted-average common shares | 43,092 | 42,586 | 43,039 | 42,542 |
Effect of dilutive securities: | ||||
Denominator for dilutive net income (loss) per common shares | 43,092 | 42,586 | 43,039 | 42,542 |
Net loss attributable to AXT, Inc. per common share: | ||||
Basic | $ (0.04) | $ (0.12) | $ (0.09) | $ (0.20) |
Diluted | $ (0.04) | $ (0.12) | $ (0.09) | $ (0.20) |
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) | 1,187 | 1,200 | 1,187 | 1,200 |
Restricted Stock [Member] | ||||
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) | 1,325 | 1,019 | 1,325 | 1,019 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue by product type | ||||
Revenue | $ 27,923 | $ 18,595 | $ 50,611 | $ 38,000 |
Substrates | ||||
Revenue by product type | ||||
Revenue | 19,745 | 11,027 | 36,648 | 24,516 |
Raw materials and others | ||||
Revenue by product type | ||||
Revenue | $ 8,178 | $ 7,568 | $ 13,963 | $ 13,484 |
Segment Information and Forei_4
Segment Information and Foreign Operations - Segment and Geographical Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Information and Foreign Operations | |||||
Number of operating segments | segment | 1 | ||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | $ 27,923 | $ 18,595 | $ 50,611 | $ 38,000 | |
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 163,863 | 163,863 | $ 169,147 | ||
CHINA | |||||
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 162,370 | 162,370 | 167,516 | ||
North America (primarily the United States) | |||||
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 1,493 | 1,493 | $ 1,631 | ||
Reportable Geographical Components [Member] | |||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | 27,923 | 18,595 | 50,611 | 38,000 | |
Reportable Geographical Components [Member] | CHINA | |||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | 16,947 | 10,289 | 28,464 | 18,391 | |
Reportable Geographical Components [Member] | TAIWAN | |||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | 3,420 | 1,407 | 8,002 | 3,878 | |
Reportable Geographical Components [Member] | JAPAN | |||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | 796 | 1,396 | 1,786 | 2,931 | |
Reportable Geographical Components [Member] | Asia Pacific (excluding China, Taiwan and Japan) | |||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | 712 | 737 | 1,510 | 1,828 | |
Reportable Geographical Components [Member] | Europe (primarily Germany) | |||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | 4,689 | 3,015 | 8,414 | 6,585 | |
Reportable Geographical Components [Member] | North America (primarily the United States) | |||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||
Revenue | $ 1,359 | $ 1,751 | $ 2,435 | $ 4,387 |
Segment Information and Forei_5
Segment Information and Foreign Operations - Significant Customers (Details) - customer | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | Customer Concentration Risk [Member] | ||||
Significant Customers | ||||
Number of customers representing significant share | 0 | |||
Accounts receivable | ||||
Significant Customers | ||||
Number of customers representing significant share | 0 | |||
One customer | Revenue | Customer Concentration Risk [Member] | ||||
Significant Customers | ||||
Number of customers representing significant share | 0 | 0 | 1 | |
One customer | Accounts receivable | Customer Concentration Risk [Member] | ||||
Significant Customers | ||||
Percentage share generated by major customers | 10% | |||
Top five customers | Revenue | Customer Concentration Risk [Member] | ||||
Significant Customers | ||||
Number of customers representing significant share | 5 | 5 | 5 | 5 |
Percentage share generated by major customers | 32% | 24% | 32% | 24% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Standard Product Warranty Disclosure [Abstract] | ||||
Period of warranty | 12 months | |||
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Beginning accrued product warranty | $ 495 | $ 915 | $ 703 | $ 669 |
Accruals for warranties issued | 131 | 114 | 188 | 658 |
Adjustments related to pre-existing warranties including expirations and changes in estimates | (50) | (64) | (260) | (39) |
Cost of warranty repair | (155) | (113) | (210) | (436) |
Ending accrued product warranty | 421 | $ 852 | 421 | $ 852 |
Bank Loans [Abstract] | ||||
Long-term loans | 6,700 | $ 6,700 | ||
Cross License Agreement | ||||
Other Commitments [Abstract] | ||||
Term of agreement | 10 years | |||
Dingxing | ||||
Other Commitments [Abstract] | ||||
Total investment agreement value | 90,000 | $ 90,000 | ||
Kazuo | ||||
Other Commitments [Abstract] | ||||
Total investment agreement value | $ 15,000 | $ 15,000 |
Other Income (expense), Net (De
Other Income (expense), Net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income (expense), Net | ||||
Income from government grants | $ 400,000 | $ 1,300,000 | $ 1,400,000 | $ 1,800,000 |
Foreign exchange gain (loss) | $ 42,000 | $ 10,000 | $ 100,000 | $ (203,000) |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefit interest and penalties expense | $ 0 | $ 0 |
Unrecognized tax benefits accrued interest and penalties | $ 0 | $ 0 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract liabilities | $ 1,106,000 | $ 1,106,000 | $ 305,000 | ||
Revenue recognized, included in contract balances | $ 27,000 | $ 3,000 | $ 154,000 | $ 277,000 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue and Revenue Recognition (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Revenue: | |
Number of operating segments | 1 |
Maximum [Member] | |
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, 2023 | Jun. 30, 2024 | |
Bank Loans and Line of Credit | ||
Loan Balance | $ 52,921 | $ 49,899 |
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 | $ 376 |
Interest rate | 2.70% | 2.70% |
Loan Balance | $ 386 | $ 376 |
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 | $ 876 |
Interest rate | 3.50% | 3.50% |
Loan Balance | $ 876 | $ 855 |
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 | $ 2,755 | |
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 | $ 1,003 |
Interest rate | 3.50% | 3.50% |
Loan Balance | $ 1,003 | $ 980 |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.3 Percent, January 2024 Due Date Two | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,455 | |
Interest rate | 3.30% | |
Loan Balance | $ 1,414 | |
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 | $ 1,414 | |
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 | $ 1,414 | |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.0 Percent, May 2025 Due Date One | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,376 | |
Interest rate | 3% | |
Loan Balance | $ 1,376 | |
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.0 Percent, May 2025 Due Date Two | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,480 | |
Interest rate | 3% | |
Loan Balance | $ 2,480 | |
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 | $ 1,376 | |
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 | $ 690 | |
Beijing Tongmei Xtal Technology | China Merchants Bank | Bank Loan with 3.5 Percent, April 2025 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 692 | |
Interest rate | 3.50% | |
Loan Balance | $ 690 | |
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 | $ 3,626 | |
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 | $ 1,414 |
Interest rate | 3% | 3% |
Loan Balance | $ 1,414 | $ 1,376 |
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 | $ 1,376 | |
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 | $ 3,577 | |
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.0 Percent, June 2025 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 3,580 | |
Interest rate | 3% | |
Loan Balance | $ 3,577 | |
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 | $ 2,825 | |
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 | $ 2,825 | $ 2,752 |
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 | $ 2,744 |
Interest rate | 4.30% | 4.30% |
Loan Balance | $ 2,825 | $ 2,752 |
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 | $ 2,744 |
Interest rate | 4.20% | 4.20% |
Loan Balance | $ 2,820 | $ 2,746 |
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 | $ 1,271 |
Interest rate | 4.30% | 4.30% |
Loan Balance | $ 1,271 | $ 1,238 |
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 | $ 2,825 | $ 2,752 |
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 | $ 1,637 | |
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.3 Percent, March 2025 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,258 | |
Interest rate | 4.30% | |
Loan Balance | $ 1,258 | |
Beijing Tongmei Xtal Technology | China Citic Bank | Bank Loan with 3.0 Percent, June 2025 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 2,752 | |
Interest rate | 3% | |
Loan Balance | $ 2,752 | |
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 | $ 2,825 | $ 2,752 |
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 | $ 1,376 | |
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 | $ 2,752 |
Interest rate | 3.80% | 3.80% |
Loan Balance | $ 2,752 | $ 2,683 |
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 | Bank of Communications | Bank Loan with 3.0 Percent, May 2025 Due Date One | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 275 | |
Interest rate | 3% | |
Loan Balance | $ 275 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | 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 | $ 1,414 | |
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 | $ 688 |
Interest rate | 3.60% | 3.60% |
Loan Balance | $ 708 | $ 690 |
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 | $ 1,414 | |
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | NingBo Bank | Bank Loan with 3.0 Percent, November 2024 Due Date | ||
Bank Loans and Line of Credit | ||
Loan Detail | $ 1,376 | |
Interest rate | 3% | |
Loan Balance | $ 1,376 | |
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 | $ 1,414 | $ 1,376 |
Loans and Line of Credit - Long
Loans and Line of Credit - Long-Term Loans (Details) - USD ($) | 1 Months Ended | |||
Jan. 31, 2024 | Jun. 30, 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 | $ 6,700,000 | |||
Line of credit, Current | 50,700,000 | |||
Loan Balance | $ 49,899,000 | $ 52,921,000 | ||
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd | ||||
Long-term Loans | ||||
Term of loan | 5 years | |||
Loan amount | 2,100,000 | |||
Value of option to repurchase production line | $ 14 | |||
Long term loan | $ 1,200,000 | |||
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd | Other long-term liabilities | ||||
Long-term Loans | ||||
Long term loan | 1,200,000 | |||
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd | Short-term loans | ||||
Long-term Loans | ||||
Loan Balance | 550,000 | |||
Chao Yang Tongmei High Purity Semiconductor Materials Co. Ltd [Member] | ||||
Long-term Loans | ||||
Proceeds from bank loan | $ 5,800,000 | |||
Long term loan | 5,500,000 | |||
Chao Yang Tongmei High Purity Semiconductor Materials Co. Ltd [Member] | Other long-term liabilities | ||||
Long-term Loans | ||||
Line of credit, Non Current | 5,500,000 | |||
Chao Yang Tongmei High Purity Semiconductor Materials Co. Ltd [Member] | Short-term loans | ||||
Long-term Loans | ||||
Line of credit, Current | $ 275,000 |
Loans and Line of Credit - Matu
Loans and Line of Credit - Maturities of Long-Term Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Maturities of long-term liabilities | |
2025 | $ 894 |
2026 | 1,307 |
2027 | 963 |
2028 | 1,238 |
2029 | $ 2,357 |
Loans and Line of Credit - Bala
Loans and Line of Credit - Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jan. 30, 2024 | Dec. 31, 2023 |
Long-term Loans | |||
Line of credit, Current | $ 50,700 | ||
Loan Balance | 49,899 | $ 52,921 | |
Current portion of long term dent | 800 | ||
Line of credit, Non Current | 6,700 | ||
Term of loan | 5 years | ||
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd | |||
Long-term Loans | |||
Long term loan | $ 1,200 | ||
Term of loan | 5 years |
Leases (Details)
Leases (Details) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) ft² | Sep. 30, 2023 | May 31, 2020 | |
Facility (Fremont, California) | |||
Leases | |||
Variable lease payments | $ 0 | ||
Area of leased property (in square feet) | ft² | 19,467 | ||
Operating lease, extension term | 5 years | 3 years | |
Equipment lease | |||
Leases | |||
Variable lease payments | $ 0 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Future minimum lease payments | ||
2024 | $ 293 | |
2025 | 598 | |
2026 | 612 | |
2027 | 626 | |
2028 | 608 | |
Thereafter | 149 | |
Total minimum lease payments | 2,886 | |
Less: Interest | (332) | |
Present value of lease obligations | 2,554 | |
Less: Current portion, included in accrued liabilities | $ (471) | $ (458) |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | |
Long-term portion of lease obligations | $ 2,083 | $ 2,351 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Weighted-average remaining lease term (years) | 4 years 8 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 | $ 292 | $ 289 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Lease, Cost [Abstract] | ||||
Operating lease | $ 153 | $ 128 | $ 306 | $ 257 |
Short-term lease expense | 42 | 37 | 83 | 71 |
Total | $ 195 | $ 165 | $ 389 | $ 328 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - Beijing Tongmei Xtal Technology - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 25, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2024 | Dec. 31, 2020 | |
Noncontrolling Interest [Line Items] | |||||
Increase in redeemable noncontrolling interests due to issuance of Tongmei's common stock | $ 1.5 | $ 48.1 | $ 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Redeemable Noncontrolling Interests | ||||
Redeemable noncontrolling interests beginning balance | $ 41,663,000 | |||
Equity issuance costs incurred | (466,000) | |||
Stock-based compensation attributable to redeemable noncontrolling interests | 22,000 | |||
Net loss attributable to redeemable noncontrolling interests | $ (1,000) | $ (302,000) | (70,000) | $ 451,000 |
Effect of foreign currency translation on redeemable noncontrolling interests | (1,130,000) | |||
Effect of foreign currency translation attributable to redeemable noncontrolling interests | (258,000) | |||
Redeemable noncontrolling interests ending balance | $ 39,761,000 | $ 39,761,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Events - Unsecured bank loan with 2.9% to 3.2% interest rate $ in Millions | Jul. 24, 2024 USD ($) |
Subsequent Event | |
Loan amount | $ 3.9 |
Term of loan | 1 year |
Repayment of loan | $ 4.3 |
Minimum [Member] | |
Subsequent Event | |
Interest rate | 2.90% |
Maximum [Member] | |
Subsequent Event | |
Interest rate | 3.20% |