AXT INC, 10-Q filed on 5/10/2024
Quarterly Report
v3.24.1.1.u2
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2024
May 01, 2024
Document And Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 000-24085  
Entity Registrant Name AXT INC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 94-3031310  
Entity Address, Address Line One 4281 Technology Drive  
Entity Address, City or Town Fremont  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94538  
City Area Code 510  
Local Phone Number 438-4700  
Title of 12(b) Security Common Stock, $0.001 par value  
Trading Symbol AXTI  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   44,398,843
Entity Central Index Key 0001051627  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.24.1.1.u2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash $ 25,793,000 $ 37,752,000
Restricted cash 13,807,000 12,362,000
Short-term investments 1,667,000 2,140,000
Accounts receivable, net of allowances for credit losses of $579 and $579 as of March 31, 2024 and December 31, 2023 25,058,000 19,256,000
Inventories 85,943,000 86,503,000
Prepaid expenses and other current assets 11,474,000 12,643,000
Total current assets 163,742,000 170,656,000
Property, plant and equipment, net 163,122,000 166,348,000
Operating lease right-of-use assets 2,657,000 2,799,000
Other assets 19,443,000 18,898,000
Total assets 348,964,000 358,701,000
Current liabilities:    
Accounts payable 10,262,000 9,617,000
Accrued liabilities 12,697,000 19,019,000
Short-term loans 49,048,000 52,921,000
Total current liabilities 72,007,000 81,557,000
Noncurrent operating lease liabilities 2,211,000 2,351,000
Other long-term liabilities 9,655,000 5,647,000
Total liabilities 83,873,000 89,555,000
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests (Note 18) 40,581,000 41,663,000
Stockholders' equity:    
Preferred stock Series A, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of March 31, 2024 and December 31, 2023 (Liquidation preference of $7,920 and $7,875 as of March 31, 2024 and December 31, 2023) 3,532,000 3,532,000
Common stock, $0.001 par value; 70,000 shares authorized; 44,399 and 44,239 shares issued and outstanding as of March 31, 2024 and December 31, 2023 44,000 44,000
Additional paid-in capital 239,257,000 238,452,000
Accumulated deficit (34,123,000) (32,040,000)
Accumulated other comprehensive loss (7,626,000) (5,999,000)
Total AXT, Inc. stockholders' equity 201,084,000 203,989,000
Noncontrolling interests 23,426,000 23,494,000
Total stockholders' equity 224,510,000 227,483,000
Total liabilities, redeemable noncontrolling interests and stockholders' equity $ 348,964,000 $ 358,701,000
v3.24.1.1.u2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Accounts receivable, allowances for doubtful accounts $ 579 $ 579
Stockholders' equity:    
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 2,000,000 2,000,000
Preferred stock, shares issued (in shares) 883,000 883,000
Preferred stock, shares outstanding (in shares) 883,000 883,000
Preferred stock, liquidation preference $ 7,920 $ 7,875
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 70,000,000 70,000,000
Common stock, shares issued (in shares) 44,399,000 44,239,000
Common stock, shares outstanding (in shares) 44,399,000 44,239,000
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS    
Revenue $ 22,688 $ 19,405
Cost of revenue 16,594 14,295
Gross profit 6,094 5,110
Operating expenses:    
Selling, general and administrative 6,227 5,952
Research and development 3,214 3,595
Total operating expenses 9,441 9,547
Loss from operations (3,347) (4,437)
Interest expense, net (349) (397)
Equity in income of unconsolidated joint ventures 890 1,034
Other income, net 1,032 282
Loss before provision for income taxes (1,774) (3,518)
Provision for income taxes 274 148
Net loss (2,048) (3,666)
Less: Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests (35) 318
Net loss attributable to AXT, Inc. $ (2,083) $ (3,348)
Net loss attributable to AXT, Inc. per common share:    
Basic $ (0.05) $ (0.08)
Diluted $ (0.05) $ (0.08)
Weighted-average number of common shares outstanding:    
Basic 42,987 42,498
Diluted 42,987 42,498
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)    
Net loss $ (2,048) $ (3,666)
Other comprehensive income (loss), net of tax:    
Change in foreign currency translation gain (loss), net of tax (2,010) 887
Change in unrealized gain on available-for-sale debt investments, net of tax 7 111
Total other comprehensive income (loss), net of tax (2,003) 998
Comprehensive loss attributable to AXT, Inc. (4,051) (2,668)
Less: Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests 341 178
Comprehensive loss attributable to AXT, Inc. $ (3,710) $ (2,490)
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities:    
Net loss $ (2,048) $ (3,666)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,192 2,118
Amortization of marketable securities premium   7
Stock-based compensation 809 915
(Gain) Loss on disposal of equipment   5
Equity in income of unconsolidated joint ventures (890) (1,034)
Deferred tax assets 40 (10)
Changes in operating assets and liabilities:    
Accounts receivable (6,076) 7,982
Inventories (720) (1,466)
Prepaid expenses and other current assets (375) 1,965
Other assets 65 (1,055)
Accounts payable 815 (3,351)
Accrued liabilities (558) (1,568)
Other long-term liabilities (2,060) (2,376)
Net cash used in operating activities (8,806) (1,534)
Cash flows from investing activities:    
Purchases of property, plant and equipment (4,392) (3,616)
Proceeds from sales and maturities of available-for-sale debt securities 480 2,903
Net cash used in investing activities (3,912) (713)
Cash flows from financing activities:    
Proceeds from common stock options exercised 20 8
Proceeds from short-term bank loans 12,858 18,372
Payments on short-term bank loans (16,541) (12,810)
Proceeds from capital increase in subsidiary shares from noncontrolling interests   203
Proceeds from long-term loan 5,831  
Payments on long-term loan (168)  
Net cash provided by financing activities 2,000 5,773
Effect of exchange rate changes on cash and restricted cash 204 19
Net increase (decrease) in cash and restricted cash (10,514) 3,545
Cash and restricted cash at the beginning of the year 50,114 41,348
Cash and restricted cash at the end of the period 39,600 44,893
Supplemental disclosure of non-cash flow information:    
Notes receivables paid to purchase fixed assets 1,377  
Investment in subsidiary shares from noncontrolling interest   $ 72
Consideration payable in connection with construction in progress, included in accrued liabilities $ 21  
v3.24.1.1.u2
Basis of Presentation
 3 Months Ended
Mar. 31, 2024
The Company and Summary of Significant Accounting Policies  
Basis of Presentation

Note 1. Basis of Presentation

​

The accompanying condensed consolidated financial statements of AXT, Inc. (“AXT,” the “Company,” “we,” “us,” and “our” refer to AXT, Inc. and all of its consolidated subsidiaries) are unaudited, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, this interim quarterly financial report does not include all disclosures required by U.S. GAAP. In the opinion of our management, the unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the financial position, results of operations and cash flows of AXT, Inc. for all periods presented.

​

Our management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements in conformity with U.S. GAAP. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. These estimates and assumptions may change as new events occur and additional information is obtained. Actual results could differ materially from those estimates.

​

The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected in the future or for the full fiscal year. It is recommended that these condensed consolidated financial statements be read in conjunction with our consolidated financial statements and the notes thereto included in our 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2024.

​

The condensed consolidated financial statements include the accounts of AXT and our consolidated subsidiaries, Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), AXT-Tongmei, Inc. (“AXT-Tongmei”), Baoding Tongmei Xtal Technology Co., Ltd. (“Baoding Tongmei”), ChaoYang Tongmei Xtal Technology Co., Ltd. (“ChaoYang Tongmei”), ChaoYang LiMei Semiconductor Technology Co., Ltd. (“ChaoYang LiMei”), ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd. (“ChaoYang XinMei”), Nanjing JinMei Gallium Co., Ltd. (“JinMei”), ChaoYang JinMei Gallium Ltd. (“ChaoYang JinMei”), ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd. (“ChaoYang ShuoMei”), MaAnShan JinMei Gallium Ltd., (“MaAnShan JinMei”) and Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. (“BoYu”). All significant inter-company accounts and transactions have been eliminated. Investments in business entities in which we do not have controlling interests, but have the ability to exercise significant influence over operating and financial policies (generally 20-50% ownership), are accounted for by the equity method. As of March 31, 2024 and December 31, 2023, we have three companies accounted for by the equity method. In May 2023, we reduced our ownership in Emeishan Jia Mei High Purity Metals Co., Ltd. (“Jia Mei”) from 25% to 10% by selling a portion of our Jia Mei shares to an unrelated third party for approximately $827,000. As a result of our decreased ownership and the fact that we do not have the ability to exercise significant influence over Jia Mei’s operations, as of May 2023, we no longer reported Jia Mei as an equity investment in our condensed consolidated balance sheets. Our Jia Mei investment was re-measured to fair value at the time of sale. Any future changes to the fair value are recognized through net income (“fair value method”). For the majority-owned subsidiaries that we consolidate, we reflect the portion we do not own as either noncontrolling interests in stockholder’s equity or as redeemable noncontrolling interests in temporary equity on our condensed consolidated balance sheets and in our condensed consolidated statements of operations.

​

When warranted by favorable market conditions, we intend to construct facilities at the ChaoYang LiMei location to provide us with additional production capacity. For the three months ended March 31, 2024, expenses associated with ChaoYang LiMei had a de minimis impact on our condensed consolidated financial statements.

​

In February 2021, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang XinMei. The agreement called for a total investment of approximately $3.0 million, of which Tongmei would

fund approximately $1.8 million for a 58.5 percent ownership of ChaoYang XinMei. In February 2021, Tongmei and the investors completed the initial funding of approximately $1.5 million. Tongmei’s portion of the investment was approximately $0.9 million. In May 2021, Tongmei and the investors completed the funding of the remaining balance of approximately $1.5 million. Tongmei’s portion of the final investment was approximately $0.9 million, for a total investment of approximately $1.8 million for a 58.5 percent ownership of ChaoYang XinMei. In September 2021 and October 2021, ChaoYang XinMei received funding from a minority investor of $0.9 million and $1.0 million, respectively. In December 2021 and January 2022, ChaoYang XinMei received funding from Tongmei of $1.4 million and $1.4 million, respectively. In January 2022, the China local government certified this additional funding in ChaoYang XinMei as an equity investment. In April 2022, Tongmei entered into a capital increase agreement (the “Capital Increase Agreement”) with minority investors to further invest approximately $4.5 million in ChaoYang XinMei. Tongmei’s portion of the investment was approximately $2.6 million, of which $1.1 million was invested in April 2022 and $0.8 million was invested in May 2022. The minority investors’ portion of the investment was approximately $1.9 million, of which $0.7 million was invested in April 2022 and $0.6 million was invested in May 2022. As a result, noncontrolling interests increased $1.4 million and redeemable noncontrolling interests increased $0.1 million. In July 2022, Tongmei and the minority investors further invested $0.8 million and $0.6 million in ChaoYang XinMei, respectively. This completed the investment obligations under the Capital Increase Agreement. As a result, noncontrolling interests increased $610,000 and redeemable noncontrolling interests increased $57,000. Tongmei’s ownership remained at 58.5% after these equity investments.

​

In April 2022, ChaoYang JinMei signed a joint venture agreement with certain investors to fund a new company, ChaoYang ShuoMei, our consolidated subsidiary (the “ChaoYang ShuoMei Joint Venture Agreement”). The ChaoYang ShuoMei Joint Venture Agreement called for a total investment of approximately $4.4 million, of which ChaoYang JinMei would fund approximately $3.3 million for a 75 percent ownership of ChaoYang ShuoMei. In July and August 2022, ChaoYang JinMei completed the initial funding of $1.0 million in ChaoYang ShuoMei. In August 2022, the investor invested $334,000 in ChaoYang ShuoMei. As a result, noncontrolling interests increased $406,000 and redeemable noncontrolling interests increased $73,000. In January 2023, ChaoYang ShuoMei received $0.5 million in funding from ChaoYang JinMei and $0.2 million in funding from one of the minority investors. As a result, noncontrolling interests increased $0.2 million and redeemable noncontrolling interests increased $36,000. In May 2023, ChaoYang ShuoMei received $1.0 million in funding from ChaoYang JinMei and $0.3 million in funding from one of the minority investors. As a result, noncontrolling interests increased $0.4 million and redeemable noncontrolling interests increased $75,000. In August 2023, ChaoYang ShuoMei received $0.6 million in funding from ChaoYang JinMei and $0.2 million in funding from one of the minority investors. As a result, noncontrolling interests increased $0.2 million and redeemable noncontrolling interests increased $44,000. ChaoYang JinMei has completed its investment obligations under the ChaoYang ShuoMei Joint Venture Agreement. ChaoYang JinMei’s ownership of ChaoYang ShuoMei remained at 75% after these equity investments.

​

In April 2022, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang KaiMei Quartz Co., Ltd. (“ChaoYang KaiMei”) (the “ChaoYang KaiMei Joint Venture Agreement”), which called for a total investment of approximately $7.6 million, of which Tongmei would fund approximately $3.0 million for a 40 percent ownership of ChaoYang KaiMei. In July 2022, Tongmei and the investors completed the initial funding of approximately $2.2 million. Tongmei’s portion of the investment was approximately $0.9 million. In January 2023, Tongmei made an investment of $0.9 million to ChaoYang KaiMei. In each of July 2023 and August 2023, Tongmei made an investment of approximately $0.6 million in ChaoYang KaiMei. In September 2023, Tongmei entered into another joint venture agreement with the same group of investors. This new agreement called for additional investment of approximately $5.6 million, with Tongmei committing to fund approximately $2.3 million. In December 2023, Tongmei made its initial additional investment of approximately $0.6 million in ChaoYang KaiMei. These contributions culminated in the fulfillment of all of Tongmei’s financial obligations under the ChaoYang KaiMei Joint Venture Agreement. Tongmei’s ownership of ChaoYang KaiMei remained at 40% after these equity investments.
​

All activities for MaAnShan JinMei ceased during the first half of 2022 and the subsidiary was subsequently dissolved in May 2022. The dissolution of MaAnShan JinMei had a de minimis impact on the condensed consolidated results.

​

During the quarter ended December 31, 2020, Tongmei entered into two sets of definitive transaction documents, each consisting of a capital increase agreement along with certain supplemental agreements in substantially the same form (collectively, the “Capital Investment Agreements”), with several private equity investors in China.

​

In preparation for Tongmei’s application for a listing of shares in an initial public offering (the “IPO”) on the Shanghai Stock Exchange’s Sci-Tech innovAtion boaRd (the “STAR Market”), in late December 2020, we reorganized our entity structures in China. JinMei and BoYu and their subsidiaries were assigned to Tongmei and effectively merged with Tongmei although they retained their own respective legal entity status and are wholly owned subsidiaries of Tongmei. The 33% minority interest stakeholders of BoYu converted their ownership to a 7.59% minority interest in Tongmei. The 8.5% minority interest stakeholders, employees of JinMei, converted their ownership to a 0.38% minority interest in Tongmei. Further, a number of employees, key managers and contributors purchased a 0.4% minority interest in Tongmei. Additionally, Baoding Tongmei and ChaoYang Tongmei, were assigned to Tongmei as wholly owned subsidiaries. In 2020, the private equity funds (the “Investors”) had transferred approximately $48.1 million of new capital to Tongmei. An additional investment of approximately $1.5 million of new capital was funded in January 2021. Under China regulations these investments must be formally approved by the appropriate government agency and are not deemed to be dilutive until such approval is granted. The government approved the approximately $49 million investment in its entirety on January 25, 2021, at which time the Investors owned a redeemable noncontrolling interest in Tongmei of 7.28%. As of March 31, 2024, Tongmei’s noncontrolling interests and redeemable noncontrolling interests totaled approximately 14.5%. We remain the controlling stakeholder of Tongmei and hold a majority of the board of director positions of Tongmei. In June 2021, we sold AXT-Tongmei to Tongmei for $1. Since Tongmei is 85.5% owned by us, and the transaction was between common interest holders, the transaction was accounted for at net book value and resulted in an increase of $1.2 million to noncontrolling interests and $1.2 million to redeemable noncontrolling interests.

v3.24.1.1.u2
Investments and Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
Cash, Cash Equivalents and Investments  
Investments and Fair Value Measurements

Note 2. Investments and Fair Value Measurements

​

Our investments consist of instruments with original maturities of more than three months. As of March 31, 2024 and December 31, 2023, our cash and debt investments are classified as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

December 31, 2023

 

​

    

​

​

    

Gross

    

Gross

    

​

​

    

​

​

    

Gross

    

Gross

    

​

​

 

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

 

​

    

Cost

    

Gain

    

(Loss)

    

Value

    

Cost

    

Gain

    

(Loss)

    

Value

 

Classified as:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and restricted cash

​

$

39,600

​

$

—

​

$

—

​

$

39,600

​

$

50,114

​

$

—

​

$

—

​

$

50,114

​

Investments (available-for-sale):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit 1

​

 

1,680

​

 

—

​

​

(13)

​

 

1,667

​

 

2,160

​

 

—

​

​

(20)

​

 

2,140

​

Total cash, restricted cash and investments

​

$

41,280

​

$

—

​

$

(13)

​

$

41,267

​

$

52,274

​

$

—

​

$

(20)

​

$

52,254

​

Contractual maturities on investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Due within 1 year 2

​

$

1,680

​

​

​

​

​

​

​

$

1,667

​

$

2,160

​

​

​

​

​

​

​

$

2,140

​

​

​

$

1,680

​

​

​

​

​

​

​

$

1,667

​

$

2,160

​

​

​

​

​

​

​

$

2,140

​

1.Certificates of deposit with original maturities of more than three months.
2.Classified as “Short-term investments” in our condensed consolidated balance sheets.

​

We manage our debt investments as a single portfolio of highly marketable securities that is intended to be available to meet our current cash requirements. Certificates of deposit and corporate bonds are typically held until maturity.

​

Historically, the gross unrealized losses related to our portfolio of available-for-sale debt securities were immaterial, and primarily due to normal market fluctuations and not due to increased credit risk or other valuation concerns. There was an insignificant amount of gross unrealized losses on our available-for-sale debt securities as of March 31, 2024, and historically, such gross unrealized losses have been temporary in nature and we believe that it is

probable the principal and interest will be collected in accordance with the contractual terms. We review our debt investment portfolio at least quarterly, or when there are changes in credit risks or other potential valuation concerns, to identify and evaluate whether an allowance for credit losses or impairment would be necessary. Factors considered in determining whether a loss is temporary include the magnitude of the decline in market value, the length of time the market value has been below cost (or adjusted cost), credit quality, and our ability and intent to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value.

​

The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

In Loss Position

​

In Loss Position

​

Total In

 

​

​

< 12 months

​

> 12 months

​

Loss Position

 

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

​

​

Gross

 

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

 

As of March 31, 2024

    

Value

    

(Losses)

    

Value

    

(Losses)

    

Value

    

(Losses)

 

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

—

​

$

—

​

$

1,667

​

$

(13)

​

$

1,667

​

$

(13)

​

Total in loss position

​

$

—

​

$

—

​

$

1,667

​

$

(13)

​

$

1,667

​

$

(13)

​

​

The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

In Loss Position

​

In Loss Position

​

Total In

 

​

​

< 12 months

​

> 12 months

​

Loss Position

 

​

    

    

​

    

Gross

    

    

​

    

Gross

    

    

​

    

Gross

 

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

 

As of December 31, 2023

​

Value

​

(Loss)

​

Value

​

(Loss)

​

Value

​

(Loss)

 

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

—

​

$

—

​

$

2,140

​

$

(20)

​

$

2,140

​

$

(20)

​

Total in loss position

​

$

—

​

$

—

​

$

2,140

​

$

(20)

​

$

2,140

​

$

(20)

​

​

Restricted Cash

​

We maintain restricted cash in connection with cash balances temporarily restricted for regular business operations. These balances have been excluded from the Company’s cash balance. As of March 31, 2024, $13.8 million was included in restricted cash in our condensed consolidated balance sheets.

​

Investments in Privately-held Raw Material Companies

​

We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business (see Note 7). The investment balances for the non-consolidated companies are accounted for under the equity method, included in “Other assets” in the condensed consolidated balance sheets, totaled $13.2 million and $12.5 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, there were three companies accounted for under the equity method. One of our equity investments, Beijing JiYa Semiconductor Material Co., Ltd. (“JiYa”), determined one of their equity investments was fully impaired and wrote the asset balance down to zero. This resulted in a $754,000 impairment charge in our second quarter 2023 financial results. Except as mentioned above, there were no impairment charges for the remainder of these investments during the three months ended March 31, 2024 and 2023.

​

In May 2023, we reduced our ownership in Jia Mei from 25% to 10% by selling a portion of our Jia Mei shares to an unrelated third party for approximately $827,000. As a result of our decreased ownership and the fact that we do not have the ability to exercise significant influence over Jia Mei’s operations, we adopted the fair value method of accounting to report on the investment in Jia Mei. Our investments under the fair value method are reviewed for other-than-temporary declines in value on a quarterly basis. We monitor our investments for impairment and record reductions

in carrying value when events or changes in circumstances indicate that the carrying value may not be recoverable. As of March 31, 2024, our investments in this unconsolidated company had a carrying value of $551,000 and were included in “Other assets” in the condensed consolidated balance sheets. As a result of the share sale, we recognized a gain of $575,000. Additionally, in accordance with Accounting Standards Codification (“ASC”) 321-10-35-2, we adjusted the investment in Jia Mei to its fair value at the time of the sale, which resulted in a gain of $383,000. The gain resulting from the sale and the subsequent remeasurement was incorporated as a component of “Equity in income of unconsolidated joint ventures” in the condensed consolidated statements of operations in the second quarter of 2023.

​

Fair Value Measurements

​

We invest primarily in certificates of deposits, corporate bonds and notes, government securities and money market accounts. We review our debt investment portfolio for credit loss at least quarterly or when there are changes in credit risk or other potential valuation concerns. As of March 31, 2024 and December 31, 2023, the total unrealized loss, net of tax, included in accumulated other comprehensive income was immaterial. We believe it is probable the principal and interest will be collected in accordance with the contractual terms, and the unrealized loss on these securities was due to normal market fluctuations, and not due to increased credit risk or other valuation concerns. ASC 820, Fair Value Measurements and Disclosures, establishes three levels of inputs that may be used to measure fair value. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets of the asset or identical assets. Level 2 instrument valuations are obtained from readily- available, observable pricing sources for comparable instruments. Level 3 instrument valuations are obtained from unobservable inputs in which there is little or no market data, which require us to develop our own assumptions. On a recurring basis, we measure certain financial assets and liabilities at fair value, primarily consisting of our short-term and long-term debt investments.

​

The type of instrument valued based on quoted market prices in active markets includes our money market funds, which are generally classified within Level 1 of the fair value hierarchy. We classify our available-for-sale debt securities, including certificates of deposit and corporate bonds, as having Level 2 inputs. The valuation techniques used to measure the fair value of these financial instruments having Level 2 inputs were derived from bank statements, quoted market prices, broker or dealer statements or quotations, or alternative pricing sources with reasonable levels of price transparency.

​

We place short-term foreign currency hedges that are intended to offset the potential cash exposure related to fluctuations in the exchange rate between the United States dollar and Japanese yen. We measure the fair value of these foreign currency hedges at each month end and quarter end using current exchange rates and in accordance with U.S. GAAP. At quarter end, any foreign currency hedges not settled are netted in “Accrued liabilities” on the condensed consolidated balance sheets and classified as Level 3 assets and liabilities. As of March 31, 2024, the net change in fair value from the placement of the hedge to settlement at each month end during the quarter had a de minimis impact on the condensed consolidated results.

​

There were no changes in valuation techniques or related inputs in the three months ended March 31, 2024. There have been no transfers between fair value measurements levels during the three months ended March 31, 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 March 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Quoted Prices in

    

​

​

​

Significant

 

​

​

​

​

​

Active Markets of

​

Significant Other

​

Unobservable

 

​

​

Balance as of

​

Identical Assets

​

Observable Inputs

​

Inputs

 

​

    

March 31, 2024

    

(Level 1)

    

(Level 2)

    

(Level 3)

 

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

1,667

​

$

—

​

$

1,667

​

$

—

​

Total

​

$

1,667

​

$

—

​

$

1,667

​

$

—

​

​

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Quoted Prices in

    

​

​

​

Significant

 

​

​

​

​

​

Active Markets of

​

Significant Other

​

Unobservable

 

​

​

Balance as of

​

Identical Assets

​

Observable Inputs

​

Inputs

 

​

    

December 31, 2023

    

(Level 1)

    

(Level 2)

    

(Level 3)

 

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

2,140

​

$

—

​

$

2,140

​

$

—

​

Total

​

$

2,140

​

$

—

​

$

2,140

​

$

—

​

​

Items Measured at Fair Value on a Nonrecurring Basis

​

Certain assets that are subject to nonrecurring fair value measurements are not included in the table above. These assets include investments in privately-held companies accounted for by the equity or fair value method (see Note 7). We did not record any other-than-temporary impairment charges for these investments during the three months ended March 31, 2024 and 2023, respectively.

v3.24.1.1.u2
Inventories
 3 Months Ended
Mar. 31, 2024
Inventories  
Inventories

Note 3. Inventories

​

The components of inventories are summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

 

Inventories:

​

​

​

​

​

​

​

Raw materials

​

$

28,501

​

$

32,910

​

Work in process

​

 

54,281

​

 

50,008

​

Finished goods

​

 

3,161

​

 

3,585

​

​

​

$

85,943

​

$

86,503

​

​

As of March 31, 2024 and December 31, 2023, carrying values of inventories were net of inventory reserves of $22.2 million and $21.9 million, respectively, for excess and obsolete inventory and $213,000 and $78,000, respectively, for lower of cost or net realizable value reserves.

v3.24.1.1.u2
Property, Plant and Equipment, Net
 3 Months Ended
Mar. 31, 2024
Property, Plant and Equipment, Net  
Property, Plant and Equipment, Net

Note 4. Property, Plant and Equipment, Net

​

The components of our property, plant and equipment are summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

​

2024

​

2023

​

Property, plant and equipment:

​

​

​

​

​

​

​

Machinery and equipment, at cost

​

$

66,472

​

$

65,918

​

Less: accumulated depreciation and amortization

​

​

(42,065)

​

​

(42,112)

​

Building, at cost

​

​

124,200

​

​

125,786

​

Less: accumulated depreciation and amortization

​

​

(23,791)

​

​

(23,339)

​

Leasehold improvements, at cost

​

 

7,470

​

 

7,596

​

Less: accumulated depreciation and amortization

​

​

(6,014)

​

​

(5,984)

​

Construction in progress

​

 

36,850

​

 

38,483

​

​

​

$

163,122

​

$

166,348

​

​

As of March 31, 2024, the balance of construction in progress was $36.9 million, of which $29.4 million was related to our buildings in our new Dingxing and Kazuo locations, $2.9 million was for manufacturing equipment purchases not yet placed in service and $4.6 million was for construction in progress for our other consolidated subsidiaries. As of December 31, 2023, the balance of construction in progress was $38.5 million, of which $31.2

million was for our buildings in our new Dingxing and Kazuo locations, $3.1 million was for manufacturing equipment purchases not yet placed in service and $4.2 million was for our construction in progress for our other consolidated subsidiaries. 
v3.24.1.1.u2
Accrued Liabilities
 3 Months Ended
Mar. 31, 2024
Accrued Liabilities  
Accrued Liabilities

Note 5. Accrued Liabilities

​

The components of accrued liabilities are summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

 

Accrued compensation and related charges

​

$

2,941

​

$

3,707

​

Preferred stock dividends payable

​

​

2,901

​

​

2,901

​

Payable in connection with construction in progress

​

​

1,613

​

​

7,249

​

Other tax payable

​

​

652

​

​

493

​

Advances from customers

​

​

535

​

​

305

​

Accrued product warranty

​

​

495

​

​

703

​

Accrued professional services

​

​

471

​

​

868

​

Current portion of operating lease liabilities

​

​

463

​

​

458

​

Other personnel-related costs

​

​

276

​

​

286

​

Accrued income taxes

​

​

272

​

​

—

​

Accrual for sales returns

​

​

34

​

​

39

​

Other accrued liabilities

​

​

2,044

​

​

2,010

​

​

​

$

12,697

​

$

19,019

​

​

​

​

​

​

​

​

​

​
v3.24.1.1.u2
Related Party Transactions
 3 Months Ended
Mar. 31, 2024
Related Party Transactions  
Related Party Transactions

Note 6. Related Party Transactions

​

In September 2021 and October 2021, our consolidated subsidiary, ChaoYang XinMei, received funding from a minority investor of $0.9 million and $1.0 million, respectively. As of December 31, 2021, $1.9 million was included in short-term loan from noncontrolling interest in our condensed consolidated balance sheets. In December 2021 and January 2022, the same subsidiary received funding from Tongmei of $1.4 million and $1.4 million, respectively. In January 2022, the China local government certified this additional funding in ChaoYang XinMei as an equity investment. As a result, noncontrolling interests increased $2.2 million and redeemable noncontrolling interests increased $0.2 million. Short-term loan from noncontrolling interest decreased to $0. In April 2022, Tongmei entered into the Capital Increase Agreement with minority investors to further invest $4.5 million in ChaoYang XinMei. In April 2022 and May 2022, ChaoYang XinMei received funding from Tongmei of $1.1 million and $0.8 million, respectively, as equity investments. In April 2022 and May 2022, the minority investors invested $0.7 million and $0.6 million, respectively. 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 September 2022, our consolidated subsidiary, ChaoYang LiMei completed the sale of land and its attached buildings to our equity investment entity, ChaoYang KaiMei, for a total consideration of $1.5 million. In January 2023, ChaoYang KaiMei paid to ChaoYang LiMei $1.5 million. As of March 31, 2024, $0 million was included in “Prepaid expenses and other current assets” in our condensed consolidated balance sheets.

​

Our Related Party Transactions Policy seeks to prohibit all conflicts of interest in transactions between related parties and us, unless they have been approved by our Board of Directors. This policy applies to all of our employees, directors, and our consolidated subsidiaries. Our executive officers retain board seats on the board of directors of the companies in which we have invested in our China joint ventures. See Note 7 for further details.

​
v3.24.1.1.u2
Investments in Privately-Held Raw Material Companies
 3 Months Ended
Mar. 31, 2024
Investments in Privately-Held Raw Material Companies  
Investments in Privately-Held Raw Material Companies

Note 7. Investments in Privately-Held Raw Material Companies

​

We have made strategic investments in private companies located in China in order to gain access at a competitive cost to raw materials that are critical to our substrate business. These companies form part of our overall supply chain strategy.

​

As of March 31, 2024, the investments are summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment Balance as of

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

Accounting

​

Ownership

*

Company

    

2024

    

2023

    

Method

    

Percentage

​

Nanjing JinMei Gallium Co., Ltd.

​

$

592

​

$

592

 

Consolidated

 

** 85.5

%

ChaoYang JinMei Gallium Co., Ltd.

​

​

1,820

​

​

1,820

​

Consolidated

​

** 85.5

%

Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd.

​

 

1,346

​

 

1,346

 

Consolidated

 

** 85.5

%

ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd.

​

​

3,122

​

​

3,122

​

Consolidated

​

**** 75.0

%

ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd.

​

​

7,331

​

​

7,331

​

Consolidated

 

*** 58.5

%

​

​

$

14,211

​

$

14,211

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beijing JiYa Semiconductor Material Co., Ltd.

​

$

4,105

​

​

3,806

​

Equity

​

39

%

Xiaoyi XingAn Gallium Co., Ltd.

​

​

5,995

​

​

5,516

​

Equity

​

** 25

%

ChaoYang KaiMei Quartz Co., Ltd.

​

​

3,098

​

​

3,154

​

Equity

​

***** 40

%

​

​

$

13,198

​

$

12,476

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Emeishan Jia Mei High Purity Metals Co., Ltd.

​

 

551

​

 

551

 

Fair value

 

****** 10

%

​

​

$

551

​

$

551

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

* These percentages reflect the ownership currently in effect upon the completion of the reorganization in China and the ownership in effect upon the completion of the new capital funding by private equity investors in January 2021.

​

** 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 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. In 2020, the Investors transferred approximately $48.1 million of new capital to 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 approximately $49 million investment in its entirety on January 25, 2021 at which time the Investors owned a redeemable noncontrolling interest in Tongmei of 7.28%. As of March 31, 2024, Tongmei’s noncontrolling interests and redeemable noncontrolling interests totaled approximately 14.5%. AXT remains the controlling stakeholder of Tongmei and holds a majority of the Board of Director positions of Tongmei.

​

*** In February 2021, Tongmei signed a joint venture agreement with certain investors to fund ChaoYang XinMei.

​

**** In April 2022, ChaoYang JinMei signed a joint venture agreement with certain investor to fund a new company, ChaoYang ShuoMei.

​

***** In April 2022, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang KaiMei.

​

****** In May 2023, we sold 15% of our equity investments in Jia Mei to a third party. We now own 10% of Jia Mei and account for it under the fair value method.

​

In May 2023, we reduced our ownership in Jia Mei from 25% to 10% by selling a portion of our Jia Mei shares to an unrelated third party for approximately $827,000. 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 321-10-35-2, we adjusted the investment in Jia Mei to its fair value at the time of the sale. The gain resulting from the sale and the subsequent remeasurement was incorporated as a component of “Equity in income of unconsolidated joint ventures” in the consolidated statements of operations in the second quarter of 2023. The gain from the sale and the subsequent remeasurement includes the following:

​

​

​

​

​

​

​

Amount

​

    

(in thousands)

Fair value of the consideration received

​

$

779

Foreign income tax withholding

​

​

48

Carrying value of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd.

​

​

(252)

Gain recognized on sale of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd.

​

$

575

​

​

​

​

​

​

​

​

​

​

Amount

​

​

(in thousands)

Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd.

​

$

551

Carrying value of retained noncontrolling investment (10%)

​

​

(168)

Gain on retained noncontrolling investment due to remeasurement (10%)

​

$

383

​

The Jia Mei investment is reviewed for other-than-temporary declines in value on a quarterly basis. We did not record any other-than-temporary impairment charges for Jia Mei investment during the three months ended March 31, 2024.

​

In November 2023, our 46% equity ownership interest in Donghai County Dongfang High Purity Electronic Materials Co., Ltd. (“Dongfang”) was sold to a third party for consideration valued at approximately $0.6 million, including raw materials, equipment, and vehicle. As a result, our equity ownership interest of Dongfang decreased from 46% to 0%. The loss resulting from the sale was incorporated as a component of “Equity in income of unconsolidated joint ventures” in the consolidated statements of operations in the fourth quarter of 2023. The loss from the sale includes the following:

​

​

​

​

​

​

​

Amount

​

    

(in thousands)

Fair value of the consideration received

​

$

585

Carrying value of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd.

​

​

(1,710)

Loss recognized on sale of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd.

​

$

(1,125)

​

Although we have representation on the board of directors of each of the privately held raw material companies, the daily operations of each of these companies are managed by local management and not by us. Decisions concerning their respective short-term strategy and operations, ordinary course of business capital expenditures and sales of finished product, are made by local management with regular guidance and input from us.

​

For AXT’s minority investment entities that are not consolidated, the investment balances are included in “Other assets” in our condensed consolidated balance sheets and totaled $13.2 million and $12.5 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, our ownership interests inChaoYang KaiMei, JiYa, Xiaoyi XingAn Gallium Co., Ltd (“Xiaoyi XingAn”) and Jia Mei were 40%, 39%, 25%, and 10%, respectively. These minority investment entities are not considered variable interest entities because:

​

●all minority investment entities have sustainable businesses of their own;

​

●our voting power is proportionate to our ownership interests;

​

●we only recognize our respective share of the losses and/or residual returns generated by the companies if they occur; and

​

●we do not have controlling financial interest in, do not maintain operational or management control of, do not control the board of directors of, and are not required to provide additional investment or financial support to any of these companies.

​

In June 2022, we received a $1.3 million dividend from BoYu. In July 2022, we received a $1.5 million dividend from one of our equity investment entities, Xiaoyi XingAn. In August 2022, we received a $125,000 dividend from one of our equity investment entities, JiYa. In April 2023 and November 2023, Xiaoyi XingAn distributed a dividend of $1.8 million, and JiYa distributed dividends of $2.0 million and $0.5 million, respectively. We have no current intentions to distribute to our investors earnings under our corporate structure. All of these distributions were paid to the PRC companies and the minority shareholders.

​

AXT’s minority investment entities are not consolidated and are accounted for under the equity method. The equity investment entities had the following summarized statements of operations information (in thousands) for the three months ended March 31, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

March 31, 

​

​

​

    

2024

    

2023

    

 

Net revenue

​

$

8,104

​

$

7,974

​

​

Gross profit

​

$

3,929

​

$

2,906

​

​

Operating income

​

$

3,371

​

$

2,009

​

​

Net income

​

$

3,138

​

$

3,945

​

​

​

Our portion of the income and losses from these minority investment entities that are not consolidated and are accounted for under the equity method was an income of $0.9 million and $1.0 million, respectively, for the three months ended March 31, 2024 and 2023.
v3.24.1.1.u2
Stockholders' Equity
 3 Months Ended
Mar. 31, 2024
Stockholders' Equity  
Stockholders' Equity

Note 8. Stockholders’ Equity

​

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

​

The changes in stockholders’ equity by component for the three months ended March 31, 2024 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

 

 

 

 

 

 

 

 

Accumulated

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

AXT, Inc.

 

 

 

Total

​

​

 

Preferred

 

Common

 

Additional

 

Accumulated

 

Comprehensive

​

Stockholders’

 

Noncontrolling

 

Stockholders’

​

​

  

Stock

  

Stock

  

Paid-In Capital

  

Deficit

  

Income (Loss)

  

Equity

  

Interests

  

Equity

 

Balance as of December 31, 2023

 

$

3,532

 

$

44

 

$

238,452

 

$

(32,040)

 

$

(5,999)

​

$

203,989

 

$

23,494

 

$

227,483

​

Common stock options exercised

​

​

—

​

​

—

​

​

20

​

​

—

​

​

—

​

​

20

​

​

—

​

​

20

​

Investment in subsidiary with noncontrolling interest

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

Investment in subsidiary with redeemable noncontrolling interest

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

Noncontrolling interest portion of Tongmei stock-based compensation

​

​

—

​

​

—

​

​

(24)

​

​

—

​

​

—

​

​

(24)

​

​

13

​

​

(11)

​

Stock-based compensation

​

​

—

​

​

—

​

​

614

​

​

—

​

​

—

​

​

614

​

​

—

​

​

614

​

Tongmei stock-based compensation

​

​

—

​

​

—

​

​

195

​

​

—

​

​

—

​

​

195

​

​

—

​

​

195

​

Net loss

​

​

—

​

​

—

​

​

—

​

​

(2,083)

​

​

—

​

​

(2,083)

​

​

106

​

​

(1,977)

​

Other comprehensive income

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(1,627)

​

​

(1,627)

​

​

(187)

​

​

(1,814)

​

Balance as of March 31, 2024

​

$

3,532

​

$

44

​

$

239,257

​

$

(34,123)

​

$

(7,626)

​

$

201,084

​

$

23,426

​

$

224,510

​

​

Net loss and Other comprehensive loss attributable to redeemable noncontrolling interests were $71,000 and $189,000, respectively, for the three months ended March 31, 2024 and are not shown in the table above.

​

The changes in stockholders’ equity by component for the three months ended March 31, 2023 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

 

 

 

 

 

 

 

 

Accumulated

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

AXT, Inc.

 

 

 

Total

​

 

Preferred

 

Common

 

Additional

 

Accumulated

 

Comprehensive

​

Stockholders’

 

Noncontrolling

 

Stockholders’

​

  

Stock

  

Stock

  

Paid-In Capital

  

Deficit

  

Income (Loss)

  

Equity

  

Interests

  

Equity

Balance as of December 31, 2022

 

$

3,532

 

$

44

 

$

235,308

 

$

(14,159)

 

$

(3,118)

​

$

221,607

 

$

23,293

 

$

244,900

Common stock options exercised

​

​

—

​

​

—

​

​

8

​

​

—

​

​

—

​

​

8

​

​

—

​

​

8

Investment in subsidiary with noncontrolling interest

​

​

—

​

​

—

​

​

(36)

​

​

—

​

​

—

​

​

(36)

​

​

239

​

​

203

Investment in subsidiary with redeemable noncontrolling interest

​

​

—

​

​

—

​

​

(36)

​

​

—

​

​

—

​

​

(36)

​

​

—

​

​

(36)

Noncontrolling interest portion of Tongmei stock-based compensation

​

​

—

​

​

—

​

​

33

​

​

—

​

​

—

​

​

33

​

​

(16)

​

​

17

Stock-based compensation

​

​

—

​

​

—

​

​

717

​

​

—

​

​

—

​

​

717

​

​

—

​

​

717

Tongmei stock-based compensation

​

​

—

​

​

—

​

​

198

​

​

—

​

​

—

​

​

198

​

​

—

​

​

198

Net loss

​

​

—

​

​

—

​

​

—

​

​

(3,348)

​

​

—

​

​

(3,348)

​

​

(169)

​

​

(3,517)

Other comprehensive income

​

​

—

​

​

—

​

​

—

​

​

—

​

​

858

​

​

858

​

​

70

​

​

928

Balance as of March 31, 2023

​

$

3,532

​

$

44

​

$

236,192

​

$

(17,507)

​

$

(2,260)

​

$

220,001

​

$

23,417

​

$

243,418

​

Net loss and Other comprehensive income attributable to redeemable noncontrolling interests were $149,000 and $70,000, respectively, for the three months ended March 31, 2023, and are not shown in the table above.

​

There were no reclassification adjustments from accumulated other comprehensive income (loss) for the three months ended March 31, 2024 and 2023.

​

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. During 2015, we repurchased approximately 908,000 shares at an average price of $2.52 per share for a total purchase price of approximately $2.3 million under the stock repurchase program.  No shares were repurchased from 2016 through 2023. During the three months ended March 31, 2024, we did not repurchase any shares under the approved stock repurchase program. As of March 31, 2024, approximately $2.7 million remained available for future repurchases under this program. Currently, we do not plan to repurchase additional shares.
v3.24.1.1.u2
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Employee Benefit Plans and Stock-based Compensation  
Stock-Based Compensation

Note 9. Stock-Based Compensation

​

We account for stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation (“ASC 718”), which established accounting for stock-based awards exchanged for employee services. Stock-based compensation cost is measured at each grant date, based on the fair value of the award, and is recognized as expense over the employee’s requisite service period of the award. All of our stock compensation is accounted for as an equity instrument.

​

The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

 

Cost of revenue

​

$

105

​

$

105

​

Selling, general and administrative

​

 

553

​

 

632

​

Research and development

​

 

151

​

 

178

​

Net effect on net income (loss)

​

$

809

​

$

915

​

​

As of March 31, 2024, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plan was $0. We did not capitalize any stock-based compensation to inventory as of March 31, 2024 and December 31, 2023 due to the immateriality of the amount.

​

We estimate the fair value of stock options using the Black-Scholes option pricing model, consistent with the provisions of ASC 718. There were no options granted in the three months ended March 31, 2024 and 2023.

​

The following table summarizes the stock option transactions during the three months ended March 31, 2024 (in thousands, except per share data):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

​

    

​

    

​

​

    

average

    

​

​

 

​

​

​

​

Weighted-

​

Remaining

​

​

​

 

​

​

Number of

​

average

​

Contractual

​

Aggregate

 

​

​

Options

​

Exercise

​

Life

​

Intrinsic

 

Stock Options

    

Outstanding

    

Price

    

(in years)

    

Value

 

Balance as of January 1, 2024

​

1,198

​

$

5.10

 

4.09

​

$

14

​

Granted

 

—

​

 

—

​

​

​

​

​

​

Exercised

 

(9)

​

​

2.20

​

​

​

​

​

​

Canceled and expired

 

—

​

​

—

​

​

​

​

​

​

Balance as of March 31, 2024

 

1,189

​

$

5.12

 

3.88

​

$

684

​

Options vested as of March 31, 2024 and unvested options expected to vest, net of forfeitures

 

1,189

​

$

5.12

 

3.88

​

$

684

​

Options exercisable as of March 31, 2024

 

1,189

​

$

5.12

 

3.88

​

$

684

​

​

The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $4.59 on March 28, 2024, which would have been received by the option holder had all option holders exercised their options on that date.

​

Restricted stock awards

​

A summary of activity related to restricted stock awards for the three months ended March 31, 2024 is presented below (in thousands, except per share data):

​

​

​

​

​

​

​

​

    

​

    

Weighted-Average

 

​

​

​

​

Grant Date

 

Stock Awards

    

Shares

    

Share Value

 

Non-vested as of January 1, 2024

​

1,220

​

$

3.75

​

Granted

 

—

​

$

—

​

Vested

 

(7)

​

$

12.37

​

Forfeited

​

—

​

$

—

​

Non-vested as of March 31, 2024

 

1,213

​

$

3.69

​

​

As of March 31, 2024, the unamortized compensation costs related to unvested restricted stock awards was approximately $3.5 million, which is to be amortized on a straight-line basis over a weighted-average period of approximately 1.3 years.

​

At-Risk, Performance Shares

​

In March 2023 and February 2024, the Company issued at-risk, performance shares classified as equity awards. Expense is recognized quarterly on a straight-line method over the requisite service period, based on the probability of achieving the specified financial performance metric, with changes in expectations recognized as an adjustment to earnings in the period of change. Compensation cost is not recognized for at-risk, performance shares that do not vest because service or performance conditions are not satisfied and any previously recognized compensation cost is reversed. At-risk, performance shares are eligible to receive dividend equivalents under the Company’s 2015 Equity Incentive Plan (the “Plan”), as determined by the Board of Directors. The Company will recognize forfeitures as they occur.

​

The Company’s at-risk, performance shares are classified as equity and contain performance and service conditions that must be satisfied for an employee to receive the shares. The financial performance metric for the at-risk, performance shares issued in February 2022 is based upon year-end 2021 actual results as compared to the Company’s year-end actual results in 2022. The financial performance metrics for the at-risk, performance shares issued in March 2023 are based upon the Company’s year-end actual results in 2023. The financial performance metric for the at-risk, performance shares issued in February 2024 is based upon the Company’s year-end actual results in 2024. All performance shares, if earned, are still subject to annual vesting over a four-year period, except that no shares are vested

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 $2.28 and $3.71, respectively.

​

On February 15, 2022, the Compensation Committee recommended, and the Board approved, the grant to Dr. Morris Young of 114,320 at-risk, performance shares under the Plan. On February 15, 2022, the Compensation Committee approved the grant to Gary Fischer of 32,100 at-risk, performance shares under the Plan. If the performance financial metric is less than 50% achieved these shares are forfeited. If the performance financial metric is between 50% and 200% achieved, then a corresponding pro rata portion of the 114,320 shares issued to Dr. Young would be eligible to vest and a corresponding pro rata portion of the 32,100 shares issued to Mr. Fischer would be eligible to vest. Any shares that are not eligible to vest are forfeited. If the target financial metric exceeds 200%, then the maximum number of at-risk performance shares that would be eligible to vest is 114,320 for Dr. Young and 32,100 for Mr. Fischer. On February 14, 2023, the Compensation Committee met and certified the year-over-year annual revenue growth rate achieved for fiscal year 2022, expressed as a percentage, was 2.7%. Therefore, none of the at-risk performance shares became eligible to vest.

​

On March 15, 2023, the Compensation Committee recommended, and the Board approved, the grant to Dr. Morris Young of 223,590 at-risk, performance shares under the Plan. On March 15, 2023, the Compensation Committee approved the grant to Gary Fischer of 77,600 at-risk, performance shares under the Plan. If the minimum financial metric for fiscal year 2023 is achieved, then based upon a performance formula, a corresponding portion of the 223,590 shares issued to Dr. Young would be eligible to vest and a corresponding portion of the 77,600 shares issued to Mr. Fischer would be eligible to vest. If the target financial metric was exceeded and an additional financial metric for fiscal year 2023 is achieved, then additional shares above the target number of shares are earned based on such performance formula and the maximum number of additional shares earned is capped at 100% of the target. If the minimum financial metric for fiscal year 2023 is not achieved, then these awards are forfeited. On February 20, 2024, the Compensation Committee met and certified that the minimum revenue metric for fiscal year 2023 was not achieved. Therefore, none of the at-risk performance shares became eligible to vest.

​

On February 20, 2024, the Compensation Committee recommended, and the Board approved, the grant to Dr. Morris Young of 223,590 at-risk, performance shares under the Plan. On February 20, 2024, the Compensation Committee approved the grant to Gary Fischer of 77,600 at-risk, performance shares under the Plan. If the minimum financial metric for fiscal year 2024 is achieved, then based upon a performance formula, a corresponding portion of the 223,590 shares issued to Dr. Young would be eligible to vest and a corresponding portion of the 77,600 shares issued to Mr. Fischer would be eligible to vest. If the target financial metric is exceeded, then additional shares above the target number of shares are earned based on such performance formula and the maximum number of additional shares earned is capped at 100% of the target. If the minimum financial metric for fiscal year 2024 is not achieved, then these awards are forfeited.

​

A summary of the status of our unvested at-risk, performance shares as of March 31, 2024 is presented below (in thousands, except per share data):

​

​

​

​

​

​

​

    

​

    

Weighted-Average

​

​

​

​

Grant Date

Stock Awards

    

Shares

    

Share Value

Non-vested as of January 1, 2024

​

38

​

$

15.37

Granted (1)

 

151

​

$

2.28

Vested

 

—

​

$

—

Forfeited

​

—

​

$

—

Non-vested as of March 31, 2024

 

189

​

$

4.91

​

(1)The number of shares presented is based on achieving 100% of the targeted financial performance metric as defined in the at-risk, performance shares agreement.

​

As of March 31, 2024, there was $0.4 million of unrecognized compensation expense related to unvested at-risk, performance shares that is expected to be recognized over a weighted-average period of 1.81 years.
v3.24.1.1.u2
Net Loss Per Share
 3 Months Ended
Mar. 31, 2024
Net Loss Per Share  
Net Loss Per Share

Note 10. Net Loss Per Share

​

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options and vesting of restricted stock awards. Potentially dilutive common shares are excluded from the computation of weighted-average number of common shares outstanding in net loss years, as their effect would be anti-dilutive to the computation.

​

A reconciliation of the numerators and denominators of the basic and diluted net income loss per share calculations is as follows (in thousands, except per share data):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

 

Numerator:

​

​

​

​

​

​

​

Net loss attributable to AXT, Inc.

​

$

(2,083)

​

$

(3,348)

​

Less: Preferred stock dividends

​

 

(44)

​

 

(44)

​

Net loss available to common stockholders

​

$

(2,127)

​

$

(3,392)

​

Denominator:

​

​

​

​

​

​

​

Denominator for basic net income (loss) per share - weighted-average common shares

​

 

42,987

​

 

42,498

​

Effect of dilutive securities:

​

​

​

​

​

​

​

Common stock options

​

 

—

​

 

—

​

Restricted stock awards

​

 

—

​

 

—

​

Denominator for dilutive net income (loss) per common shares

​

 

42,987

​

 

42,498

​

Net income (loss) attributable to AXT, Inc. per common share:

​

​

​

​

​

​

​

Basic

​

$

(0.05)

​

$

(0.08)

​

Diluted

​

$

(0.05)

​

$

(0.08)

​

​

​

​

​

​

​

​

​

Options excluded from diluted net income (loss) per share as the impact is anti-dilutive

​

 

1,189

​

 

1,203

​

Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive

​

 

1,401

​

 

1,081

​

​

The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of March 31, 2024 and December 31, 2023, valued at $3,532,000, are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the Board of Directors and a $4 per share liquidation preference over common stock, which must be paid before any distribution is made to common stockholders. These preferred shares were issued to Lyte Optronics, Inc. stockholders in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999.
v3.24.1.1.u2
Segment Information and Foreign Operations
 3 Months Ended
Mar. 31, 2024
Segment Information and Foreign Operations  
Segment Information and Foreign Operations

Note 11. Segment Information and Foreign Operations

​

Segment Information

​

We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. In

accordance with ASC Topic 280, Segment Reporting, our chief operating decision maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the condensed consolidated financial statements.

​

Product Information

​

The following table represents revenue amounts (in thousands) by product type:

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

March 31, 

​

​

​

    

2024

    

2023

 

 

Product Type:

​

​

​

​

​

​

​

​

Substrates

​

$

16,903

​

$

13,489

​

​

Raw Materials and Other

​

 

5,785

​

 

5,916

​

​

Total

​

$

22,688

​

$

19,405

​

​

​

Geographical Information

​

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

March 31, 

​

​

​

    

2024

    

2023

 

 

Geographical region:

​

​

​

​

​

​

​

​

China

​

$

11,517

​

$

8,102

​

​

Taiwan

​

​

4,582

​

​

2,471

​

​

Japan

​

 

990

​

 

1,535

​

​

Asia Pacific (excluding China, Taiwan and Japan)

​

​

798

​

​

1,091

​

​

Europe (primarily Germany)

​

​

3,725

​

​

3,570

​

​

North America (primarily the United States)

​

 

1,076

​

 

2,636

​

​

Total

​

$

22,688

​

$

19,405

​

​

​

Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

As of

​

​

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

 

Long-lived assets by geographic region, net of depreciation:

​

​

​

​

​

​

​

North America

​

$

1,562

​

$

1,631

​

China

​

 

164,217

​

 

167,516

​

​

​

$

165,779

​

$

169,147

​

​

Significant Customers

​

One customer represented 12% of our revenue for the three months ended March 31, 2024 and no customers represented 10% of our revenue for the three months ended March 31, 2023. Our top five customers, although not the same five customers for each period, represented 33% and 28% of our revenue for the three months ended March 31, 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 March 31, 2024, and no customers accounted for more than 10% of our accounts receivable as of December 31, 2023.

v3.24.1.1.u2
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies  
Commitments and Contingencies

Note 12. Commitments and Contingencies

​

Indemnification Agreements

​

We have entered into indemnification agreements with our directors and officers that require us to indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to obtain directors’ and officers’ insurance if available on reasonable terms, which we currently have in place.

​

Product Warranty

​

We provide warranties for our products for a specific period of time, generally twelve months, against material defects. We provide for the estimated future costs of warranty obligations in cost of sales when the related revenue is recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that we expect to incur to repair or replace product parts that fail while still under warranty. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on repair costs. On a quarterly basis, we review the accrued balances and update the historical warranty cost trends.

​

The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three months ended March 31, 2024 and 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

    

Beginning accrued product warranty

​

$

703

​

$

669

​

Accruals for warranties issued

​

 

57

​

 

544

​

Adjustments related to pre-existing warranties including expirations and changes in estimates

​

 

(210)

​

 

25

​

Cost of warranty repair

​

 

(55)

​

 

(323)

​

Ending accrued product warranty

​

$

495

​

$

915

​

​

Contractual Obligations

​

In 2020, we and a competitor entered into a cross license and covenant agreement (the “Cross License Agreement”), which has a term that began on January 1, 2020 and expires on December 31, 2029. The Cross License Agreement is a fixed-cost cross license and not a variable-cost cross license that is based on revenue or units. Under the Cross License Agreement, we are obligated to make annual payments over a 10-year period.

​

Land Purchase and Investment Agreement

​

We have established a wafer process production line in Dingxing, China. In addition to a land rights and building purchase agreement that we entered into with a private real estate development company to acquire our new manufacturing facility, we also entered into a cooperation agreement with the Dingxing local government. In addition to pledging its full support and cooperation, the Dingxing local government will issue certain credits or rebates to us as we achieve certain milestones. We, in turn, agreed to hire local workers over time, pay taxes when due and eventually demonstrate a total investment of approximately $90 million in value, assets and capital. The investment will include cash paid for the land and buildings, cash on deposit in our name at local banks, the gross value of new and used equipment (including future equipment that might be used for indium phosphide and germanium substrates production), the deemed value for our customer list or the end user of our substrates, for example, the end users of 3-D sensing VCSELs (vertical cavity surface emitting lasers), a deemed value for employment of local citizens, a deemed value for our proprietary process technology, other intellectual property, other intangibles and additional items of value. There is no timeline or deadline by which this must be accomplished, rather it is a good faith covenant entered into between AXT and the Dingxing local government. Further, there is no specific penalty contemplated if either party breaches the agreement. However, the agreement does state that each party has a right to seek from the other party compensation for

losses. Under certain conditions, the Dingxing local government may purchase the land and building at the appraised value. We believe that such cooperation agreements are normal, customary and usual in China and that the future valuation is flexible. We have a similar agreement with the city of Kazuo, China, although on a smaller scale. The total investment targeted by AXT in Kazuo is approximately $15 million in value, assets and capital. In addition, BoYu has a similar agreement with the city of Kazuo. The total investment targeted by BoYu in Kazuo is approximately $8 million in value, assets and capital.

​

Purchase Obligations with Penalties for Cancellation

​

In the normal course of business, we issue purchase orders to various suppliers. In certain cases, we may incur a penalty if we cancel the purchase order. As of March 31, 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.
v3.24.1.1.u2
Other Income (expense), Net
 3 Months Ended
Mar. 31, 2024
Other Income (expense), Net  
Other Income (expense), Net

Note 13. Other Income (expense), Net

​

Other income (expense), net for the three months ended March 31, 2024 and 2023, includes a grant of $1.0 million and $0.5 million, respectively, from government agencies as awards for technological innovation.

​

In addition, we incurred a foreign currency transaction exchange gain of $58,000 and a loss of $213,000 for the three months ended March 31, 2024 and 2023, respectively.

v3.24.1.1.u2
Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Taxes  
Income Taxes

Note 14. Income Taxes

​

We account for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized.

​

We provide for income taxes based upon the geographic composition of worldwide earnings and tax regulations governing each region, particularly China. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws, particularly in foreign countries such as China.

​

We recognize interest and penalties related to uncertain tax positions in income tax expense. Income tax expense for the three months ended March 31, 2024 includes no interest and penalties. As of March 31, 2024, we have no accrued interest and penalties related to uncertain tax positions. We file income tax returns in the U.S. federal, various states and foreign jurisdictions. Currently, there is no tax audit in any of the jurisdictions and we do not expect there will be any significant change to this. 

Provision for income taxes for the three months ended March 31, 2024 was mostly related to our wholly owned China subsidiaries and our partially owned subsidiaries in China. Income taxes and certain state taxes, have been provided for our U.S. operations as most of the income in the U.S. had been fully offset by utilization of federal and state net operating loss carryforwards.

​

Under the 2017 Tax Cuts and Jobs Act, research and experimental (“R&E”), expenditures incurred or paid for tax years beginning after December 31, 2021 will no longer be immediately deductible for tax purposes. Instead, businesses are now required to capitalize and amortize R&E expenditures over a period of five years for research conducted within the U.S. or 15 years for research conducted in a foreign jurisdiction. We capitalize the R&E expense incurred by our China subsidiaries and amortize it over 15 years.

​

On June 29, 2020, California Governor Gavin Newsom signed Assembly Bill 85 (“AB 85”) into law as part of the California 2020 Budget Act, which temporarily suspends the use of California net operating losses and imposes a cap on the amount of business incentive tax credits that companies can utilize against their net income for tax years 2020, 2021, and 2022. We analyzed the provisions of AB 85 and determined there was no impact on our provision for income taxes for the current period and will continue to evaluate the impact, if any, AB 85 may have on the Company’s condensed consolidated financial statements and disclosures.

​
v3.24.1.1.u2
Revenue
 3 Months Ended
Mar. 31, 2024
Revenue  
Revenue

Note 15. Revenue

​

Revenue Recognition

​

We manufacture and sell high-performance compound semiconductor substrates including indium phosphide, gallium arsenide and germanium wafers, and our consolidated subsidiaries sell certain raw materials, including high purity gallium (7N Ga), pyrolytic boron nitride (pBN) crucibles and boron oxide (B2O3). After we ship our products, there are no remaining obligations or customer acceptance requirements that would preclude revenue recognition. Our products are typically sold pursuant to purchase orders placed by our customers, and our terms and conditions of sale do not require customer acceptance. We account for a contract with a customer when there is a legally enforceable contract, which could be the customer’s purchase order, the rights of the parties are identified, the contract has commercial terms, and collectibility of the contract consideration is probable. The majority of our contracts have a single performance obligation to transfer products and are short term in nature, usually less than six months. Our revenue is measured based on the consideration specified in the contract with each customer in exchange for transferring products that are generally based upon a negotiated formula, list or fixed price. Revenue is recognized when control of the promised goods is transferred to our customer, which is either upon shipment from our dock, receipt at the customer’s dock, or removal from consignment inventory at the customer’s location, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods.

​

We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods. Shipping and handling fees billed to customers in a sales transaction are recorded as an offset to shipping and handling expenses. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from revenue.

​

We do not provide training, installation or commissioning services. We provide for future returns based on historical data, prior experience, current economic trends and changes in customer demand at the time revenue is recognized. We do not recognize any asset associated with the incremental cost of obtaining revenue generating customer contracts. As such, sales commissions are expensed as incurred, given that the expected period of benefit is less than one year.

​

Contract Balances

​

Contract assets are recorded when we have a conditional right to consideration for our completed performance under the contracts. Accounts receivables are recorded when the right to this consideration becomes unconditional. We believe the fair value of our accounts receivable approximates its carrying value due to its short maturities and nominal credit risk. We do not have any material contract assets as of March 31, 2024. In some contracts we require payment in advance of shipment, per a billing schedule reflected in our customer contracts, and the payment is recorded as a contract liability. The following table reflects the contract liabilities balance, which is included in “Accrued liabilities” on the condensed consolidated balance sheets, as of March 31, 2024 and December 31, 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31,

​

​

​

2024

​

2023

​

Contract liabilities

​

$

535

​

$

305

​

During the three months ended March 31, 2024, the Company recognized $127,000 of revenue that was included in the contract balances as of December 31, 2023. During the three months ended March 31, 2023, the Company recognized $286,000 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.
v3.24.1.1.u2
Loans and Line of Credit
 3 Months Ended
Mar. 31, 2024
Loans and Line of Credit  
Loans and Line of Credit

Note 16. Loans and Line of Credit

​

Our bank loans and credit facilities typically have a term of 12 months or less and are included in “Short-term loans” in our condensed consolidated balance sheets. The following table represents short-term bank loans as of March 31, 2024 and December 31, 2023 (in thousands, except interest rate data):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loan

Interest

​

​

​

​

​

December 31, 

​

March 31, 

Subsidiary

Bank

​

Detail

Rate

​

Start Date

​

Due Date

​

2023

​

2024

Tongmei

Bank of China (1)

$

1,848

3.5

%  

January-23

​

January-24

$

1,795

$

-

​

​

​

2,184

2.8

%  

March-23

​

March-24

​

2,118

​

-

​

​

​

376

2.7

%  

September-23

​

September-24

​

386

​

378

​

​

​

876

3.5

%  

November-23

​

November-24

​

876

​

858

​

​

​

1,003

3.5

%  

November-23

​

November-24

​

1,003

​

985

​

Bank of China (2)

​

2,911

3.5

%  

January-23

​

January-24

​

2,825

​

-

​

​

​

2,770

3.0

%  

January-24

​

January-25

​

-

​

2,770

​

Bank of Communications (1)

​

1,455

3.3

%  

January-23

​

January-24

​

1,414

​

-

​

​

​

1,380

3.8

%  

May-23

​

May-24

​

1,414

​

1,386

​

​

​

1,373

3.8

%  

July-23

​

May-24

​

1,414

​

1,386

​

China Merchants Bank (1)

​

4,367

3.7

%  

January-23

​

January-24

​

4,235

​

-

​

​

​

1,386

3.5

%  

January-24

​

January-25

​

-

​

1,386

​

​

​

692

3.5

%  

February-24

​

February-25

​

-

​

692

​

Bank of Beijing (3)

​

2,290

4.2

%  

January-23

​

January-24

​

2,220

​

-

​

​

​

3,541

3.2

%  

June-23

​

May-24

​

3,626

​

3,560

​

​

​

1,380

3.2

%  

June-23

​

February-24

​

1,414

​

-

​

​

​

1,414

3.0

%  

December-23

​

December-24

​

1,414

​

1,386

​

​

​

3,600

3.0

%  

March-24

​

February-25

​

-

​

3,600

​

​

​

1,386

3.0

%  

March-24

​

December-24

​

-

​

1,386

​

Industrial Bank (1)

​

2,757

4.3

%  

June-23

​

June-24

​

2,825

​

2,770

​

​

​

2,744

4.3

%  

July-23

​

July-24

​

2,825

​

2,770

​

​

​

2,744

4.3

%  

September-23

​

September-24

​

2,825

​

2,770

​

NingBo Bank (1)

​

2,744

4.2

%  

August-23

​

September-24

​

2,820

​

2,765

​

​

​

1,271

4.3

%  

November-23

​

November-24

​

1,271

​

1,246

​

​

​

2,825

4.3

%  

December-23

​

December-24

​

2,825

​

2,770

​

​

​

1,647

4.3

%  

January-24

​

January-25

​

-

​

1,647

​

Industrial and Commercial Bank of China (1)

​

2,744

3.3

%  

September-23

​

September-24

​

2,825

​

2,770

​

NanJing Bank (1)

​

2,752

3.8

%  

October-23

​

October-24

​

2,752

​

2,700

BoYu

Industrial and Commercial Bank of China (4)

​

1,414

2.7

%  

December-23

​

December-24

​

1,414

​

1,386

​

Bank of China (1)

​

1,204

2.4

%  

January-23

​

January-24

​

849

​

-

​

NingBo Bank (1)

​

1,414

3.3

%  

November-23

​

May-24

​

1,414

​

1,386

​

Industrial Bank (1)

​

688

3.6

%  

September-23

​

September-24

​

708

​

692

​

Bank of Communications (1)

​

1,414

3.0

%  

November-23

​

May-24

​

1,414

​

1,386

​

NanJing Bank (1)

​

1,386

3.5

%  

January-24

​

January-25

​

-

​

1,386

​

Loan Balance

​

​

​

​

​

​

​

$

52,921

$

48,217

​

Collateral for the above bank loans and line of credit

(1)Not collateralized.
(2)ChaoYang LiMei time deposit.
(3)AXT time deposit.
(4)BoYu’s land use rights and its building located at its facility in Tianjin, China. In addition, the December 2023 loan attracts a guarantee fee amounting to 0.7% of the loan amount.

​

Long-term Loans

​

On January 30, 2024, the Company secured a new line of credit amounting to $9.7 million, structured as a five-year bank loan. The credit facility bears interest at a rate of 6.5% per annum on the amount drawn from the line of credit. The credit facility is collateralized by the real estate properties owned by ChaoYang Tongmei. In January 2024, the Company borrowed $5.8 million against the credit facility. The intended use of the credit facility is for construction projects. As of March 31, 2024, $5.6 million is included in “Other long-term liabilities” and $277,000 is included in “Short-term loans” in our consolidated balance sheets.

​

In December 2023, one of our consolidated subsidiaries, ChaoYang XinMei secured a loan of approximately $2.1 million from an unrelated financing company. According to the agreement, ChaoYang XinMei temporarily transferred ownership of its production line and related equipment to the financing company, while retaining the right to use the property for production. At the end of the 30-month contractual period, ChaoYang XinMei holds the option to repurchase the production line and related equipment for $14.00. As of March 31, 2024, $1.4 million associated with this financing arrangement is included in “Other long-term liabilities” and $554,000 is included in “Short-term loans” in our consolidated balance sheets.
​

As of March 31, 2024, the maturities of our long-term loan liabilities in five years (excluding short-term loans) are as follows (in thousands):

​

​

​

​

Maturity of long term loans

    

​

2025

$

1,038

2026

​

1,315

2027

​

969

2028

​

1,246

2029

​

2,371

​

In summary, short-term loans of $49.0 million included under “Short-term loans” in our condensed consolidated balance sheet at March 31, 2024, consisted of $48.2 million of short-term bank loans and $0.8 million of the current portion of long-term debt. Long-term loans of $7.0 million included under “Other long-term liabilities” in our condensed consolidated balance sheet at March 31, 2024 consisted of $5.6 million in a five-year bank loan and $1.4 million in a loan secured by ChaoYang XinMei.
v3.24.1.1.u2
Leases
 3 Months Ended
Mar. 31, 2024
Leases  
Leases

Note 17. Leases

​

We lease certain equipment, office space, warehouse and facilities under long-term operating leases expiring at various dates through July 2029. The majority of our lease obligations relate to our lease agreement for our facility in Fremont, California with approximately 19,467 square feet, which was scheduled to expire in 2020. Under the terms of the facility lease agreement, in May 2020, we were granted an extension to the term of the lease for an additional three years. Furthermore, in September 2023, we entered into another agreement to extend the lease for an additional five years, commencing December 2023. There are no variable lease payments, residual value guarantees or any restrictions or covenants imposed by the facility lease. The remaining lease obligations relate to a nitrogen system to be used during the manufacturing process for our facility in Dingxing, China. The equipment lease became effective in August 2019 and will expire in July 2029. There are no variable lease payments, residual value guarantees or any restrictions or covenants imposed by the equipment lease. All other operating leases have a term of 12 months or less.

​

Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease

contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. All of our leases are classified as operating leases and substantially all of our operating leases are comprised of equipment and office space leases. None of our leases are classified as finance leases.

​

For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease.

​

The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our secured incremental borrowing rate for the same term as the underlying lease.

​

Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early.

​

Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term.

​

We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on our right-of-use asset and lease liability was not material.

​

As of March 31, 2024, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands):

​

​

​

​

Maturity of Lease Liabilities

    

​

2024

$

440

2025

​

599

2026

​

613

2027

​

627

2028

​

610

Thereafter

​

150

Total minimum lease payments

​

3,039

Less: Interest

​

(365)

Present value of lease obligations

​

2,674

Less: Current portion, included in accrued liabilities

​

(463)

Long-term portion of lease obligations

$

2,211

​

The weighted-average remaining lease term and the weighted-average discount rate for our operating leases as of each date is as follows:

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

​

2024

​

2023

​

Weighted-average remaining lease term (years)

​

4.97

​

5.22

​

Weighted-average discount rate

​

5.14

%

5.14

%

​

​

Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

​

2023

​

Cash paid for amounts included in the measurement of lease liabilities:

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

146

​

$

147

​

​

The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations:

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

​

2024

​

2023

Operating lease

​

$

153

​

$

129

Short-term lease expense

​

​

41

​

​

34

Total

​

$

194

​

$

163

​
v3.24.1.1.u2
Redeemable Noncontrolling Interests
 3 Months Ended
Mar. 31, 2024
Redeemable Noncontrolling Interests  
Redeemable Noncontrolling Interests

Note 18. Redeemable Noncontrolling Interests

As discussed in Note 1, during the quarter ended December 31, 2020, Tongmei entered into the Capital Investment Agreements with Investors that invested approximately $48.1 million in the form of redeemable noncontrolling interests representing 7.06% of the outstanding shares of Tongmei. An additional investment of approximately $1.5 million of new capital was funded in early January 2021. Under China regulations these investments must be formally approved by the appropriate government agency and are not deemed to be dilutive until such approval is granted. The government approved the entire approximately $49 million investment on January 25, 2021, at which time the Investors owned a redeemable noncontrolling interest in Tongmei of 7.28%. The initial carrying amount of the redeemable noncontrolling interest was recorded at fair value on the date of issuance of Tongmei’s common stock, net of issuance costs and presented in temporary equity on the condensed consolidated balance sheets. This classification is due to the existence of certain contingencies that could result in potential redemption at the fixed purchase price as described below. We currently do not believe that this is probable thus no amortization of the issuance costs has been recorded.

Pursuant to the Capital Investment Agreements with the Investors, each Investor has the right to require AXT to redeem any or all Tongmei shares held by such Investor at the original purchase price paid by such Investor, without interest, in the event the IPO fails to pass the audit of the Shanghai Stock Exchange, is not approved by the Chinese Securities Regulatory Commission (“CSRC”) or Tongmei cancels the IPO application. The aggregate redemption amount is approximately $49 million, subject to the foreign exchange rate variable at time of redemption.

​

Tongmei submitted its IPO application to the Shanghai Stock Exchange in December 2021 and it was formally accepted for review on January 10, 2022. The Shanghai Stock Exchange approved the IPO application on July 12, 2022. On August 1, 2022, the CSRC accepted for review Tongmei’s IPO application. The STAR Market IPO remains subject to review and approval by the CSRC and other authorities. The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Subject to review and approval by the CSRC and other authorities, Tongmei hopes to accomplish this goal in the coming months. The listing of Tongmei on the STAR Market will not change the status of AXT as a U.S. public company.

​

The components of the change in redeemable noncontrolling interests for the three months ended March 31, 2024 are presented in the following table (in thousands):

​

​

​

Balance as of January 1, 2024

$

41,663

Equity issuance costs incurred

​

18

Stock-based compensation attributable to redeemable noncontrolling interests

​

15

Net loss attributable to redeemable noncontrolling interests

​

(71)

Effect of foreign currency translation on redeemable noncontrolling interests

​

(855)

Effect of foreign currency translation attributable to redeemable noncontrolling interests

​

(189)

Balance as of March 31, 2024

$

40,581

​
v3.24.1.1.u2
Recent Accounting Pronouncements
 3 Months Ended
Mar. 31, 2024
Recent Accounting Pronouncements  
Recent Accounting Pronouncements

​

Note 19. Recent Accounting Pronouncements

​

In November 2023, the Financial Accounting Standards Board (“FASB”) released ASU 2023-07— Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, aiming to enhance the transparency and relevance of segment information provided in financial statements. The amendments in this update require that a public entity disclose significant segment expenses, and profit or loss and assets, among other disclosures, for each reportable segment, on an annual and interim basis. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the new standard will have an immaterial effect on our condensed consolidated financial statements.

​

In December 2023, FASB issued ASU 2023-09— Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to help investors better understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities. Furthermore, the update improves to assess income tax information that affects cash flow forecasts and capital allocation decisions. The update is effective for public business entities for annual periods beginning after December 15, 2024, on a prospective basis. Adoption of the new standard will have an immaterial effect on our condensed consolidated financial statements.

​

In March 2024, FASB released ASU 2024-01— Compensation—Stock Compensation (Topic 718). The update adds an illustrative example aimed at clarifying the scope application of a profit interest award in accordance with Topic 718. The update is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Adoption of the new standard will have an immaterial effect on our condensed consolidated financial statements.

​
v3.24.1.1.u2
Subsequent Event
 3 Months Ended
Mar. 31, 2024
Subsequent Event  
Subsequent Event

​

Note 20. Subsequent Event

​

In April 2024, Tongmei obtained $691,000 in a new one-year bank loan with an annual interest rate of 3.5%. The bank loan is unsecured.

​

On May 6, 2024, a putative shareholder class action was filed in U.S. District Court for the Eastern District of New York. Nowakowsky vs. AXT, Inc., 1:24-cv-03341-DLI-JRC. Named as defendants are the Company, Morris Young, and Gary Fischer. The case alleges claims under the Securities Exchange Act of 1934. That Court has ordered the case to be transferred to the Northern District of California, where the Company’s headquarters is located.

​
v3.24.1.1.u2
Investments and Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Cash, Cash Equivalents and Investments  
Cash, cash equivalents and investments As of March 31, 2024 and December 31, 2023, our cash and debt investments are classified as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

December 31, 2023

 

​

    

​

​

    

Gross

    

Gross

    

​

​

    

​

​

    

Gross

    

Gross

    

​

​

 

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

 

​

    

Cost

    

Gain

    

(Loss)

    

Value

    

Cost

    

Gain

    

(Loss)

    

Value

 

Classified as:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and restricted cash

​

$

39,600

​

$

—

​

$

—

​

$

39,600

​

$

50,114

​

$

—

​

$

—

​

$

50,114

​

Investments (available-for-sale):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit 1

​

 

1,680

​

 

—

​

​

(13)

​

 

1,667

​

 

2,160

​

 

—

​

​

(20)

​

 

2,140

​

Total cash, restricted cash and investments

​

$

41,280

​

$

—

​

$

(13)

​

$

41,267

​

$

52,274

​

$

—

​

$

(20)

​

$

52,254

​

Contractual maturities on investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Due within 1 year 2

​

$

1,680

​

​

​

​

​

​

​

$

1,667

​

$

2,160

​

​

​

​

​

​

​

$

2,140

​

​

​

$

1,680

​

​

​

​

​

​

​

$

1,667

​

$

2,160

​

​

​

​

​

​

​

$

2,140

​

1.Certificates of deposit with original maturities of more than three months.
2.Classified as “Short-term investments” in our condensed consolidated balance sheets.
Fair value and gross unrealized losses related to available-for-sale securities

The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

In Loss Position

​

In Loss Position

​

Total In

 

​

​

< 12 months

​

> 12 months

​

Loss Position

 

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

​

​

Gross

 

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

 

As of March 31, 2024

    

Value

    

(Losses)

    

Value

    

(Losses)

    

Value

    

(Losses)

 

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

—

​

$

—

​

$

1,667

​

$

(13)

​

$

1,667

​

$

(13)

​

Total in loss position

​

$

—

​

$

—

​

$

1,667

​

$

(13)

​

$

1,667

​

$

(13)

​

​

The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

In Loss Position

​

In Loss Position

​

Total In

 

​

​

< 12 months

​

> 12 months

​

Loss Position

 

​

    

    

​

    

Gross

    

    

​

    

Gross

    

    

​

    

Gross

 

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

 

As of December 31, 2023

​

Value

​

(Loss)

​

Value

​

(Loss)

​

Value

​

(Loss)

 

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

—

​

$

—

​

$

2,140

​

$

(20)

​

$

2,140

​

$

(20)

​

Total in loss position

​

$

—

​

$

—

​

$

2,140

​

$

(20)

​

$

2,140

​

$

(20)

​
Summary of financial assets and liabilities measured at fair value on a recurring basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of March 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Quoted Prices in

    

​

​

​

Significant

 

​

​

​

​

​

Active Markets of

​

Significant Other

​

Unobservable

 

​

​

Balance as of

​

Identical Assets

​

Observable Inputs

​

Inputs

 

​

    

March 31, 2024

    

(Level 1)

    

(Level 2)

    

(Level 3)

 

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

1,667

​

$

—

​

$

1,667

​

$

—

​

Total

​

$

1,667

​

$

—

​

$

1,667

​

$

—

​

​

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Quoted Prices in

    

​

​

​

Significant

 

​

​

​

​

​

Active Markets of

​

Significant Other

​

Unobservable

 

​

​

Balance as of

​

Identical Assets

​

Observable Inputs

​

Inputs

 

​

    

December 31, 2023

    

(Level 1)

    

(Level 2)

    

(Level 3)

 

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

Certificates of deposit

​

$

2,140

​

$

—

​

$

2,140

​

$

—

​

Total

​

$

2,140

​

$

—

​

$

2,140

​

$

—

​

​
v3.24.1.1.u2
Inventories (Tables)
 3 Months Ended
Mar. 31, 2024
Inventories  
Components of inventories

The components of inventories are summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

 

Inventories:

​

​

​

​

​

​

​

Raw materials

​

$

28,501

​

$

32,910

​

Work in process

​

 

54,281

​

 

50,008

​

Finished goods

​

 

3,161

​

 

3,585

​

​

​

$

85,943

​

$

86,503

​
v3.24.1.1.u2
Property, Plant and Equipment, Net (Tables)
 3 Months Ended
Mar. 31, 2024
Property, Plant and Equipment, Net  
Schedule of components of property, plant and equipment

The components of our property, plant and equipment are summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

​

2024

​

2023

​

Property, plant and equipment:

​

​

​

​

​

​

​

Machinery and equipment, at cost

​

$

66,472

​

$

65,918

​

Less: accumulated depreciation and amortization

​

​

(42,065)

​

​

(42,112)

​

Building, at cost

​

​

124,200

​

​

125,786

​

Less: accumulated depreciation and amortization

​

​

(23,791)

​

​

(23,339)

​

Leasehold improvements, at cost

​

 

7,470

​

 

7,596

​

Less: accumulated depreciation and amortization

​

​

(6,014)

​

​

(5,984)

​

Construction in progress

​

 

36,850

​

 

38,483

​

​

​

$

163,122

​

$

166,348

​
v3.24.1.1.u2
Accrued Liabilities (Tables)
 3 Months Ended
Mar. 31, 2024
Accrued Liabilities  
Schedule of components of accrued liabilities

The components of accrued liabilities are summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

 

Accrued compensation and related charges

​

$

2,941

​

$

3,707

​

Preferred stock dividends payable

​

​

2,901

​

​

2,901

​

Payable in connection with construction in progress

​

​

1,613

​

​

7,249

​

Other tax payable

​

​

652

​

​

493

​

Advances from customers

​

​

535

​

​

305

​

Accrued product warranty

​

​

495

​

​

703

​

Accrued professional services

​

​

471

​

​

868

​

Current portion of operating lease liabilities

​

​

463

​

​

458

​

Other personnel-related costs

​

​

276

​

​

286

​

Accrued income taxes

​

​

272

​

​

—

​

Accrual for sales returns

​

​

34

​

​

39

​

Other accrued liabilities

​

​

2,044

​

​

2,010

​

​

​

$

12,697

​

$

19,019

​

​

​

​

​

​

​

​

​
v3.24.1.1.u2
Investments in Privately-Held Raw Material Companies (Tables)
 3 Months Ended
Mar. 31, 2024
Investments in Privately-Held Raw Material Companies  
Summary of investments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment Balance as of

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

Accounting

​

Ownership

*

Company

    

2024

    

2023

    

Method

    

Percentage

​

Nanjing JinMei Gallium Co., Ltd.

​

$

592

​

$

592

 

Consolidated

 

** 85.5

%

ChaoYang JinMei Gallium Co., Ltd.

​

​

1,820

​

​

1,820

​

Consolidated

​

** 85.5

%

Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd.

​

 

1,346

​

 

1,346

 

Consolidated

 

** 85.5

%

ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd.

​

​

3,122

​

​

3,122

​

Consolidated

​

**** 75.0

%

ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd.

​

​

7,331

​

​

7,331

​

Consolidated

 

*** 58.5

%

​

​

$

14,211

​

$

14,211

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beijing JiYa Semiconductor Material Co., Ltd.

​

$

4,105

​

​

3,806

​

Equity

​

39

%

Xiaoyi XingAn Gallium Co., Ltd.

​

​

5,995

​

​

5,516

​

Equity

​

** 25

%

ChaoYang KaiMei Quartz Co., Ltd.

​

​

3,098

​

​

3,154

​

Equity

​

***** 40

%

​

​

$

13,198

​

$

12,476

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Emeishan Jia Mei High Purity Metals Co., Ltd.

​

 

551

​

 

551

 

Fair value

 

****** 10

%

​

​

$

551

​

$

551

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

* These percentages reflect the ownership currently in effect upon the completion of the reorganization in China and the ownership in effect upon the completion of the new capital funding by private equity investors in January 2021.

​

** 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 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. In 2020, the Investors transferred approximately $48.1 million of new capital to 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 approximately $49 million investment in its entirety on January 25, 2021 at which time the Investors owned a redeemable noncontrolling interest in Tongmei of 7.28%. As of March 31, 2024, Tongmei’s noncontrolling interests and redeemable noncontrolling interests totaled approximately 14.5%. AXT remains the controlling stakeholder of Tongmei and holds a majority of the Board of Director positions of Tongmei.

​

*** In February 2021, Tongmei signed a joint venture agreement with certain investors to fund ChaoYang XinMei.

​

**** In April 2022, ChaoYang JinMei signed a joint venture agreement with certain investor to fund a new company, ChaoYang ShuoMei.

​

***** In April 2022, Tongmei signed a joint venture agreement with certain investors to fund a new company, ChaoYang KaiMei.

​

****** In May 2023, we sold 15% of our equity investments in Jia Mei to a third party. We now own 10% of Jia Mei and account for it under the fair value method.
Schedule of gain (loss) on sale and re measurement of equity method investments

​

​

​

​

​

​

​

Amount

​

    

(in thousands)

Fair value of the consideration received

​

$

779

Foreign income tax withholding

​

​

48

Carrying value of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd.

​

​

(252)

Gain recognized on sale of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd.

​

$

575

​

​

​

​

​

​

​

​

​

​

Amount

​

​

(in thousands)

Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd.

​

$

551

Carrying value of retained noncontrolling investment (10%)

​

​

(168)

Gain on retained noncontrolling investment due to remeasurement (10%)

​

$

383

​

​

​

​

​

​

​

Amount

​

    

(in thousands)

Fair value of the consideration received

​

$

585

Carrying value of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd.

​

​

(1,710)

Loss recognized on sale of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd.

​

$

(1,125)
Summarized income information

AXT’s minority investment entities are not consolidated and are accounted for under the equity method. The equity investment entities had the following summarized statements of operations information (in thousands) for the three months ended March 31, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

March 31, 

​

​

​

    

2024

    

2023

    

 

Net revenue

​

$

8,104

​

$

7,974

​

​

Gross profit

​

$

3,929

​

$

2,906

​

​

Operating income

​

$

3,371

​

$

2,009

​

​

Net income

​

$

3,138

​

$

3,945

​

​
v3.24.1.1.u2
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2024
Stockholders' Equity  
Consolidated statements of stockholders' equity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

 

 

 

 

 

 

 

 

Accumulated

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

AXT, Inc.

 

 

 

Total

​

​

 

Preferred

 

Common

 

Additional

 

Accumulated

 

Comprehensive

​

Stockholders’

 

Noncontrolling

 

Stockholders’

​

​

  

Stock

  

Stock

  

Paid-In Capital

  

Deficit

  

Income (Loss)

  

Equity

  

Interests

  

Equity

 

Balance as of December 31, 2023

 

$

3,532

 

$

44

 

$

238,452

 

$

(32,040)

 

$

(5,999)

​

$

203,989

 

$

23,494

 

$

227,483

​

Common stock options exercised

​

​

—

​

​

—

​

​

20

​

​

—

​

​

—

​

​

20

​

​

—

​

​

20

​

Investment in subsidiary with noncontrolling interest

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

Investment in subsidiary with redeemable noncontrolling interest

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

Noncontrolling interest portion of Tongmei stock-based compensation

​

​

—

​

​

—

​

​

(24)

​

​

—

​

​

—

​

​

(24)

​

​

13

​

​

(11)

​

Stock-based compensation

​

​

—

​

​

—

​

​

614

​

​

—

​

​

—

​

​

614

​

​

—

​

​

614

​

Tongmei stock-based compensation

​

​

—

​

​

—

​

​

195

​

​

—

​

​

—

​

​

195

​

​

—

​

​

195

​

Net loss

​

​

—

​

​

—

​

​

—

​

​

(2,083)

​

​

—

​

​

(2,083)

​

​

106

​

​

(1,977)

​

Other comprehensive income

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(1,627)

​

​

(1,627)

​

​

(187)

​

​

(1,814)

​

Balance as of March 31, 2024

​

$

3,532

​

$

44

​

$

239,257

​

$

(34,123)

​

$

(7,626)

​

$

201,084

​

$

23,426

​

$

224,510

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

 

 

 

 

 

 

 

 

Accumulated

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

AXT, Inc.

 

 

 

Total

​

 

Preferred

 

Common

 

Additional

 

Accumulated

 

Comprehensive

​

Stockholders’

 

Noncontrolling

 

Stockholders’

​

  

Stock

  

Stock

  

Paid-In Capital

  

Deficit

  

Income (Loss)

  

Equity

  

Interests

  

Equity

Balance as of December 31, 2022

 

$

3,532

 

$

44

 

$

235,308

 

$

(14,159)

 

$

(3,118)

​

$

221,607

 

$

23,293

 

$

244,900

Common stock options exercised

​

​

—

​

​

—

​

​

8

​

​

—

​

​

—

​

​

8

​

​

—

​

​

8

Investment in subsidiary with noncontrolling interest

​

​

—

​

​

—

​

​

(36)

​

​

—

​

​

—

​

​

(36)

​

​

239

​

​

203

Investment in subsidiary with redeemable noncontrolling interest

​

​

—

​

​

—

​

​

(36)

​

​

—

​

​

—

​

​

(36)

​

​

—

​

​

(36)

Noncontrolling interest portion of Tongmei stock-based compensation

​

​

—

​

​

—

​

​

33

​

​

—

​

​

—

​

​

33

​

​

(16)

​

​

17

Stock-based compensation

​

​

—

​

​

—

​

​

717

​

​

—

​

​

—

​

​

717

​

​

—

​

​

717

Tongmei stock-based compensation

​

​

—

​

​

—

​

​

198

​

​

—

​

​

—

​

​

198

​

​

—

​

​

198

Net loss

​

​

—

​

​

—

​

​

—

​

​

(3,348)

​

​

—

​

​

(3,348)

​

​

(169)

​

​

(3,517)

Other comprehensive income

​

​

—

​

​

—

​

​

—

​

​

—

​

​

858

​

​

858

​

​

70

​

​

928

Balance as of March 31, 2023

​

$

3,532

​

$

44

​

$

236,192

​

$

(17,507)

​

$

(2,260)

​

$

220,001

​

$

23,417

​

$

243,418
v3.24.1.1.u2
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2024
Employee Benefit Plans and Stock-based Compensation  
Summary of compensation costs related to stock-based awards

The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

 

Cost of revenue

​

$

105

​

$

105

​

Selling, general and administrative

​

 

553

​

 

632

​

Research and development

​

 

151

​

 

178

​

Net effect on net income (loss)

​

$

809

​

$

915

​
Summary of stock option activity

The following table summarizes the stock option transactions during the three months ended March 31, 2024 (in thousands, except per share data):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

​

    

​

    

​

​

    

average

    

​

​

 

​

​

​

​

Weighted-

​

Remaining

​

​

​

 

​

​

Number of

​

average

​

Contractual

​

Aggregate

 

​

​

Options

​

Exercise

​

Life

​

Intrinsic

 

Stock Options

    

Outstanding

    

Price

    

(in years)

    

Value

 

Balance as of January 1, 2024

​

1,198

​

$

5.10

 

4.09

​

$

14

​

Granted

 

—

​

 

—

​

​

​

​

​

​

Exercised

 

(9)

​

​

2.20

​

​

​

​

​

​

Canceled and expired

 

—

​

​

—

​

​

​

​

​

​

Balance as of March 31, 2024

 

1,189

​

$

5.12

 

3.88

​

$

684

​

Options vested as of March 31, 2024 and unvested options expected to vest, net of forfeitures

 

1,189

​

$

5.12

 

3.88

​

$

684

​

Options exercisable as of March 31, 2024

 

1,189

​

$

5.12

 

3.88

​

$

684

​
Summary of restricted stock awards activity

A summary of activity related to restricted stock awards for the three months ended March 31, 2024 is presented below (in thousands, except per share data):

​

​

​

​

​

​

​

​

    

​

    

Weighted-Average

 

​

​

​

​

Grant Date

 

Stock Awards

    

Shares

    

Share Value

 

Non-vested as of January 1, 2024

​

1,220

​

$

3.75

​

Granted

 

—

​

$

—

​

Vested

 

(7)

​

$

12.37

​

Forfeited

​

—

​

$

—

​

Non-vested as of March 31, 2024

 

1,213

​

$

3.69

​
Summary of unvested at-risk performance shares

A summary of the status of our unvested at-risk, performance shares as of March 31, 2024 is presented below (in thousands, except per share data):

​

​

​

​

​

​

​

    

​

    

Weighted-Average

​

​

​

​

Grant Date

Stock Awards

    

Shares

    

Share Value

Non-vested as of January 1, 2024

​

38

​

$

15.37

Granted (1)

 

151

​

$

2.28

Vested

 

—

​

$

—

Forfeited

​

—

​

$

—

Non-vested as of March 31, 2024

 

189

​

$

4.91
v3.24.1.1.u2
Net Loss Per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Net Loss Per Share  
Reconciliation of numerators and denominators of basic and diluted net income per share

A reconciliation of the numerators and denominators of the basic and diluted net income loss per share calculations is as follows (in thousands, except per share data):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

 

Numerator:

​

​

​

​

​

​

​

Net loss attributable to AXT, Inc.

​

$

(2,083)

​

$

(3,348)

​

Less: Preferred stock dividends

​

 

(44)

​

 

(44)

​

Net loss available to common stockholders

​

$

(2,127)

​

$

(3,392)

​

Denominator:

​

​

​

​

​

​

​

Denominator for basic net income (loss) per share - weighted-average common shares

​

 

42,987

​

 

42,498

​

Effect of dilutive securities:

​

​

​

​

​

​

​

Common stock options

​

 

—

​

 

—

​

Restricted stock awards

​

 

—

​

 

—

​

Denominator for dilutive net income (loss) per common shares

​

 

42,987

​

 

42,498

​

Net income (loss) attributable to AXT, Inc. per common share:

​

​

​

​

​

​

​

Basic

​

$

(0.05)

​

$

(0.08)

​

Diluted

​

$

(0.05)

​

$

(0.08)

​

​

​

​

​

​

​

​

​

Options excluded from diluted net income (loss) per share as the impact is anti-dilutive

​

 

1,189

​

 

1,203

​

Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive

​

 

1,401

​

 

1,081

​
v3.24.1.1.u2
Segment Information and Foreign Operations (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Information and Foreign Operations  
Revenues reported by product type

The following table represents revenue amounts (in thousands) by product type:

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

March 31, 

​

​

​

    

2024

    

2023

 

 

Product Type:

​

​

​

​

​

​

​

​

Substrates

​

$

16,903

​

$

13,489

​

​

Raw Materials and Other

​

 

5,785

​

 

5,916

​

​

Total

​

$

22,688

​

$

19,405

​

​
Revenue reported for products shipped to customers in the corresponding geographic region

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

March 31, 

​

​

​

    

2024

    

2023

 

 

Geographical region:

​

​

​

​

​

​

​

​

China

​

$

11,517

​

$

8,102

​

​

Taiwan

​

​

4,582

​

​

2,471

​

​

Japan

​

 

990

​

 

1,535

​

​

Asia Pacific (excluding China, Taiwan and Japan)

​

​

798

​

​

1,091

​

​

Europe (primarily Germany)

​

​

3,725

​

​

3,570

​

​

North America (primarily the United States)

​

 

1,076

​

 

2,636

​

​

Total

​

$

22,688

​

$

19,405

​

​
Long-lived assets by geographic region

Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

As of

​

​

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

 

Long-lived assets by geographic region, net of depreciation:

​

​

​

​

​

​

​

North America

​

$

1,562

​

$

1,631

​

China

​

 

164,217

​

 

167,516

​

​

​

$

165,779

​

$

169,147

​
v3.24.1.1.u2
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies  
Product warranty accrued liability

The following table reflects the change in our warranty accrual which is included in “Accrued liabilities” in the condensed consolidated balance sheets, during the three months ended March 31, 2024 and 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

    

Beginning accrued product warranty

​

$

703

​

$

669

​

Accruals for warranties issued

​

 

57

​

 

544

​

Adjustments related to pre-existing warranties including expirations and changes in estimates

​

 

(210)

​

 

25

​

Cost of warranty repair

​

 

(55)

​

 

(323)

​

Ending accrued product warranty

​

$

495

​

$

915

​
v3.24.1.1.u2
Revenue (Tables)
 3 Months Ended
Mar. 31, 2024
Revenue  
Schedule of amounts recorded in accrued liabilities The following table reflects the contract liabilities balance, which is included in “Accrued liabilities” on the condensed consolidated balance sheets, as of March 31, 2024 and December 31, 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31,

​

​

​

2024

​

2023

​

Contract liabilities

​

$

535

​

$

305

​

During the three months ended March 31, 2024, the Company recognized $127,000 of revenue that was included in the contract balances as of December 31, 2023. During the three months ended March 31, 2023, the Company recognized $286,000 of revenue that was included in the contract balances as of December 31, 2022.

​

​

​

​

​

​

​
v3.24.1.1.u2
Loans and Line of Credit (Tables)
 3 Months Ended
Mar. 31, 2024
Loans and Line of Credit  
Schedule of bank loans and line of credit The following table represents short-term bank loans as of March 31, 2024 and December 31, 2023 (in thousands, except interest rate data):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loan

Interest

​

​

​

​

​

December 31, 

​

March 31, 

Subsidiary

Bank

​

Detail

Rate

​

Start Date

​

Due Date

​

2023

​

2024

Tongmei

Bank of China (1)

$

1,848

3.5

%  

January-23

​

January-24

$

1,795

$

-

​

​

​

2,184

2.8

%  

March-23

​

March-24

​

2,118

​

-

​

​

​

376

2.7

%  

September-23

​

September-24

​

386

​

378

​

​

​

876

3.5

%  

November-23

​

November-24

​

876

​

858

​

​

​

1,003

3.5

%  

November-23

​

November-24

​

1,003

​

985

​

Bank of China (2)

​

2,911

3.5

%  

January-23

​

January-24

​

2,825

​

-

​

​

​

2,770

3.0

%  

January-24

​

January-25

​

-

​

2,770

​

Bank of Communications (1)

​

1,455

3.3

%  

January-23

​

January-24

​

1,414

​

-

​

​

​

1,380

3.8

%  

May-23

​

May-24

​

1,414

​

1,386

​

​

​

1,373

3.8

%  

July-23

​

May-24

​

1,414

​

1,386

​

China Merchants Bank (1)

​

4,367

3.7

%  

January-23

​

January-24

​

4,235

​

-

​

​

​

1,386

3.5

%  

January-24

​

January-25

​

-

​

1,386

​

​

​

692

3.5

%  

February-24

​

February-25

​

-

​

692

​

Bank of Beijing (3)

​

2,290

4.2

%  

January-23

​

January-24

​

2,220

​

-

​

​

​

3,541

3.2

%  

June-23

​

May-24

​

3,626

​

3,560

​

​

​

1,380

3.2

%  

June-23

​

February-24

​

1,414

​

-

​

​

​

1,414

3.0

%  

December-23

​

December-24

​

1,414

​

1,386

​

​

​

3,600

3.0

%  

March-24

​

February-25

​

-

​

3,600

​

​

​

1,386

3.0

%  

March-24

​

December-24

​

-

​

1,386

​

Industrial Bank (1)

​

2,757

4.3

%  

June-23

​

June-24

​

2,825

​

2,770

​

​

​

2,744

4.3

%  

July-23

​

July-24

​

2,825

​

2,770

​

​

​

2,744

4.3

%  

September-23

​

September-24

​

2,825

​

2,770

​

NingBo Bank (1)

​

2,744

4.2

%  

August-23

​

September-24

​

2,820

​

2,765

​

​

​

1,271

4.3

%  

November-23

​

November-24

​

1,271

​

1,246

​

​

​

2,825

4.3

%  

December-23

​

December-24

​

2,825

​

2,770

​

​

​

1,647

4.3

%  

January-24

​

January-25

​

-

​

1,647

​

Industrial and Commercial Bank of China (1)

​

2,744

3.3

%  

September-23

​

September-24

​

2,825

​

2,770

​

NanJing Bank (1)

​

2,752

3.8

%  

October-23

​

October-24

​

2,752

​

2,700

BoYu

Industrial and Commercial Bank of China (4)

​

1,414

2.7

%  

December-23

​

December-24

​

1,414

​

1,386

​

Bank of China (1)

​

1,204

2.4

%  

January-23

​

January-24

​

849

​

-

​

NingBo Bank (1)

​

1,414

3.3

%  

November-23

​

May-24

​

1,414

​

1,386

​

Industrial Bank (1)

​

688

3.6

%  

September-23

​

September-24

​

708

​

692

​

Bank of Communications (1)

​

1,414

3.0

%  

November-23

​

May-24

​

1,414

​

1,386

​

NanJing Bank (1)

​

1,386

3.5

%  

January-24

​

January-25

​

-

​

1,386

​

Loan Balance

​

​

​

​

​

​

​

$

52,921

$

48,217

​

Collateral for the above bank loans and line of credit

(1)Not collateralized.
(2)ChaoYang LiMei time deposit.
(3)AXT time deposit.
(4)BoYu’s land use rights and its building located at its facility in Tianjin, China. In addition, the December 2023 loan attracts a guarantee fee amounting to 0.7% of the loan amount.
Schedule of maturities of long-term loan

As of March 31, 2024, the maturities of our long-term loan liabilities in five years (excluding short-term loans) are as follows (in thousands):

​

​

​

​

Maturity of long term loans

    

​

2025

$

1,038

2026

​

1,315

2027

​

969

2028

​

1,246

2029

​

2,371
v3.24.1.1.u2
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases  
Summary of maturities of our operating lease liabilities

As of March 31, 2024, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands):

​

​

​

​

Maturity of Lease Liabilities

    

​

2024

$

440

2025

​

599

2026

​

613

2027

​

627

2028

​

610

Thereafter

​

150

Total minimum lease payments

​

3,039

Less: Interest

​

(365)

Present value of lease obligations

​

2,674

Less: Current portion, included in accrued liabilities

​

(463)

Long-term portion of lease obligations

$

2,211
Schedule of weighted-average remaining lease term and the weighted-average discount rate of operating leases

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

​

2024

​

2023

​

Weighted-average remaining lease term (years)

​

4.97

​

5.22

​

Weighted-average discount rate

​

5.14

%

5.14

%
Schedule of supplemental cash flow information related to leases

Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

​

2023

​

Cash paid for amounts included in the measurement of lease liabilities:

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

146

​

$

147

​
Summary of components of lease expense

The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations:

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

​

2024

​

2023

Operating lease

​

$

153

​

$

129

Short-term lease expense

​

​

41

​

​

34

Total

​

$

194

​

$

163

​
v3.24.1.1.u2
Redeemable Noncontrolling Interests (Tables)
 3 Months Ended
Mar. 31, 2024
Redeemable Noncontrolling Interests  
Components of the change in redeemable noncontrolling interests

The components of the change in redeemable noncontrolling interests for the three months ended March 31, 2024 are presented in the following table (in thousands):

​

​

​

Balance as of January 1, 2024

$

41,663

Equity issuance costs incurred

​

18

Stock-based compensation attributable to redeemable noncontrolling interests

​

15

Net loss attributable to redeemable noncontrolling interests

​

(71)

Effect of foreign currency translation on redeemable noncontrolling interests

​

(855)

Effect of foreign currency translation attributable to redeemable noncontrolling interests

​

(189)

Balance as of March 31, 2024

$

40,581

​
v3.24.1.1.u2
Basis of Presentation (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 25, 2021
USD ($)
Aug. 31, 2023
USD ($)
May 31, 2023
USD ($)
Jan. 31, 2023
USD ($)
Aug. 31, 2022
USD ($)
Jul. 31, 2022
USD ($)
May 31, 2022
USD ($)
Apr. 30, 2022
USD ($)
Jan. 31, 2022
USD ($)
Jun. 30, 2021
USD ($)
May 31, 2021
USD ($)
Feb. 28, 2021
USD ($)
Jan. 31, 2021
USD ($)
Mar. 31, 2024
USD ($)
company
Dec. 31, 2023
USD ($)
company
Dec. 31, 2020
USD ($)
Sep. 30, 2023
USD ($)
Jul. 31, 2023
USD ($)
Dec. 31, 2021
USD ($)
Oct. 31, 2021
USD ($)
Sep. 30, 2021
USD ($)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Number of equity method investments | company                           3 3            
Investments, equity method                           $ 13,198,000 $ 12,476,000            
AXT-Tongmei, Inc | Disposal Group, Disposed of by Sale, Not Discontinued Operations                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Cash consideration                   $ 1                      
Minority investors                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Loan amount   $ 200,000 $ 300,000 $ 200,000                                  
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Loan from related party                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Sale of subsidiary shares to noncontrolling interests               $ 4,500,000                          
Increase in redeemable noncontrolling interests             $ 100,000                            
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Loan from related party | ChaoYang Xinshuo                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Loan amount                                       $ 1,000,000.0 $ 900,000
Sale of subsidiary shares to noncontrolling interests               1,900,000                          
Amount paid to subsidiary             600,000 700,000                          
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Loan from related party | Beijing Tongmei Xtal Technology                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Sale of subsidiary shares to noncontrolling interests               2,600,000                          
Amount paid to subsidiary             800,000 1,100,000                          
Increase in noncontrolling interest             1,400,000   $ 2,200,000                        
Increase in redeemable noncontrolling interests                 200,000                        
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Investment value, agreement amount                     $ 1,800,000 $ 3,000,000.0                  
Investments, equity method                       $ 1,800,000                  
Ownership (as a percent)           58.50%         58.50% 58.50%                  
Initial funding                     $ 1,500,000 $ 1,500,000                  
Increase in noncontrolling interest           $ 610,000                              
Further investment           600,000                              
Redeemable noncontrolling interest increased           57,000                              
ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd.                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Investment value, agreement amount               4,400,000                          
Investments, equity method               $ 3,300,000                          
Ownership (as a percent)     75.00%         75.00%                          
Initial funding         $ 334,000                                
Increase in noncontrolling interest         406,000                                
Redeemable noncontrolling interest increased         73,000                                
ChaoYang KaiMei Quartz Co., Ltd                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Investment value, agreement amount               $ 7,600,000                          
Investments, equity method   600,000   900,000       $ 3,000,000.0           $ 3,098,000 $ 3,154,000   $ 2,300,000 $ 600,000      
Ownership (as a percent)               40.00%           40.00% 40.00%            
Initial funding           2,200,000                              
Investment amount           900,000                              
Additional investment                                 $ 5,600,000        
Payment for investment                             $ 600,000            
Emeishan Jia Mei High Purity Metals Co., Ltd Investment                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Ownership (as a percent)     25.00%                     10.00%              
Proceeds from sale of equity method investments     $ 827,000                                    
Percentage of equity interest sold     15.00%                     15.00%              
Percentage of ownership, cost method     10.00%                     10.00%              
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                               33.00%          
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Private equity ownership percentage                               7.59%          
Beijing Tongmei Xtal Technology                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Percentage of ownership                   85.50%                      
Percentage of outstanding shares 7.28%                         14.50%              
Private equity ownership percentage 7.28%                         14.50%              
Percentage of key managers and contributors purchased                               0.40%          
Investment in new facility $ 49,000,000                             $ 48,100,000          
Raised additional capital                         $ 1,500,000                
Transaction results in increase to noncontrolling interests                   $ 1,200,000                      
Transaction results in increase to redeemable noncontrolling interests                   $ 1,200,000                      
Increase in redeemable noncontrolling interests                         $ 1,500,000     $ 48,100,000          
Beijing Tongmei Xtal Technology | Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Private equity ownership percentage                               7.59%          
Beijing Tongmei Xtal Technology | Nanjing JinMei Gallium Co., Ltd                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Private equity ownership percentage                               0.38%          
Beijing Tongmei Xtal Technology | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Loan amount                 $ 1,400,000                   $ 1,400,000    
Beijing Tongmei Xtal Technology | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Loan from related party                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Increase in noncontrolling interest             $ 1,400,000                            
Beijing Tongmei Xtal Technology | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Investment amount                     $ 900,000 $ 900,000                  
Further investment           800,000                              
Nanjing JinMei Gallium Co., Ltd Investment                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Percentage of outstanding shares                               8.50%          
Nanjing JinMei Gallium Co., Ltd Investment | Nanjing JinMei Gallium Co., Ltd                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Private equity ownership percentage                               0.38%          
Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd.                                          
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]                                          
Initial funding         $ 1,000,000.0 $ 1,000,000.0                              
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 $ 1,000,000.0                                    
v3.24.1.1.u2
Investments and Fair Value Measurements (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Cash, cash equivalents and investments [Abstract]        
Cash and restricted cash $ 39,600 $ 50,114    
Cash equivalents [Abstract]        
Total cash, restricted cash and cash equivalents 39,600 50,114 $ 44,893 $ 41,348
Amortized Cost 1,680 2,160    
Cash, restricted cash, cash equivalents and investments, amortized costs 41,280 52,274    
Gross Unrealized (Loss) (13) (20)    
Fair Value 1,667 2,140    
Cash, restricted cash, cash equivalents and investments, fair value. 41,267 52,254    
Contractual maturities on investments, amortized cost basis [Abstract]        
Due within 1 year 1,680 2,160    
Investments, amortized cost 1,680 2,160    
Contractual maturities on investments, fair value basis [Abstract]        
Due within 1 year 1,667 2,140    
Investments, fair value 1,667 2,140    
Certificates of deposit.        
Cash equivalents [Abstract]        
Amortized Cost 1,680 2,160    
Gross Unrealized (Loss) (13) (20)    
Fair Value 1,667 2,140    
Contractual maturities on investments, amortized cost basis [Abstract]        
Investments, amortized cost 1,680 2,160    
Contractual maturities on investments, fair value basis [Abstract]        
Investments, fair value $ 1,667 $ 2,140    
v3.24.1.1.u2
Investments and Fair Value Measurements - Investment Category and Length (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
May 31, 2023
USD ($)
Mar. 31, 2024
USD ($)
company
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
company
Jan. 30, 2024
USD ($)
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract]            
Fair value, in loss position greater than twelve months   $ 1,667,000     $ 2,140,000  
Gross unrealized (loss), in loss position greater than twelve months   (13,000)     (20,000)  
Fair value, total in loss position   1,667,000     2,140,000  
Gross unrealized (loss), total in loss position   (13,000)     (20,000)  
Restricted Cash            
Maximum borrowing capacity           $ 9,700,000
Proceeds from short-term bank loans   12,858,000   $ 18,372,000    
Restricted cash   13,807,000     12,362,000  
Minority Investments            
Investments, equity method   $ 13,198,000     $ 12,476,000  
Number of equity method investments | company   3     3  
Investments, cost method   $ 551,000     $ 551,000  
Emeishan Jia Mei High Purity Metals Co., Ltd Investment            
Minority Investments            
Ownership (as a percent) 25.00% 10.00%        
Proceeds from sale of equity method investments $ 827,000          
Investments, cost method   $ 551,000     551,000  
Equity ownership percentage 10.00% 10.00%        
Loss on sale of equity investment $ 575,000 $ 575,000        
Realized gain on adjustment of fair value of investment   383,000        
Beijing JiYa Semiconductor Material Co., Ltd Investment            
Minority Investments            
Investments, equity method   4,105,000     3,806,000  
Impairment charge on equity investee     $ 754,000      
Equity investment carrying value of asset after write down   $ 0        
Ownership (as a percent)   39.00%        
Investments Excluding Beijing JiYa Semiconductor Material Co., Ltd.            
Minority Investments            
Impairment charge on equity investee   $ 0   $ 0    
Certificates of deposit.            
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract]            
Fair value, in loss position greater than twelve months   1,667,000     2,140,000  
Gross unrealized (loss), in loss position greater than twelve months   (13,000)     (20,000)  
Fair value, total in loss position   1,667,000     2,140,000  
Gross unrealized (loss), total in loss position   (13,000)     (20,000)  
Other assets            
Minority Investments            
Investments, equity method   13,200,000     $ 12,500,000  
Other noncurrent assets | Emeishan Jia Mei High Purity Metals Co., Ltd Investment            
Minority Investments            
Investments, cost method   $ 551,000        
v3.24.1.1.u2
Investments and Fair Value Measurements - Recurring Basis (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Assets, Fair Value Disclosure [Abstract]    
Investments, amortized cost $ 1,667 $ 2,140
Fair Value, Transfer Between Level 1 and Level 2, Description and Policy [Abstract]    
Transfer from Level 1 to Level 2 , assets 0  
Transfer from Level 2 to Level 1 , assets 0  
Transfers into Level 3, assets 0  
Transfer out of Level 3, assets 0  
Recurring    
Assets, Fair Value Disclosure [Abstract]    
Total 1,667 2,140
Recurring | Certificates of deposit.    
Assets, Fair Value Disclosure [Abstract]    
Cash and cash equivalents, fair value disclosure 1,667 2,140
Recurring | Significant Other Observable Inputs (Level 2)    
Assets, Fair Value Disclosure [Abstract]    
Total 1,667 2,140
Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit.    
Assets, Fair Value Disclosure [Abstract]    
Cash and cash equivalents, fair value disclosure $ 1,667 $ 2,140
v3.24.1.1.u2
Inventories (Details) - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Inventories    
Raw materials $ 28,501,000 $ 32,910,000
Work in process 54,281,000 50,008,000
Finished goods 3,161,000 3,585,000
Inventories, Total 85,943,000 86,503,000
Inventory reserve 22,200,000 21,900,000
Excess and obsolete inventory $ 213,000 $ 78,000
v3.24.1.1.u2
Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Property, plant and equipment    
Property, plant and equipment, net $ 163,122 $ 166,348
Machinery and equipment    
Property, plant and equipment    
Property, plant and equipment, gross 66,472 65,918
Less: accumulated depreciation and amortization (42,065) (42,112)
Building    
Property, plant and equipment    
Property, plant and equipment, gross 124,200 125,786
Less: accumulated depreciation and amortization (23,791) (23,339)
Leasehold improvements    
Property, plant and equipment    
Property, plant and equipment, gross 7,470 7,596
Less: accumulated depreciation and amortization (6,014) (5,984)
Construction in progress    
Property, plant and equipment    
Property, plant and equipment, gross 36,850 38,483
Construction in progress Dingxin and Kazuo locations    
Property, plant and equipment    
Property, plant and equipment, gross 29,400 31,200
Construction in progress manufacturing equipment purchases    
Property, plant and equipment    
Property, plant and equipment, gross 2,900 3,100
Construction in progress other consolidated subsidiaries    
Property, plant and equipment    
Property, plant and equipment, gross $ 4,600 $ 4,200
v3.24.1.1.u2
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Components of accrued liabilities        
Accrued compensation and related charges $ 2,941 $ 3,707    
Preferred stock dividends payable 2,901 2,901    
Payable in connection with construction in progress 1,613 7,249    
Other tax payable 652 493    
Advances from customers 535 305    
Accrued product warranty 495 703 $ 915 $ 669
Accrued professional services 471 868    
Current portion of operating lease liabilities 463 458    
Other personnel-related costs 276 286    
Accrued income taxes 272      
Accrual for sales returns 34 39    
Other accrued liabilities 2,044 2,010    
Accrued liabilities, Total $ 12,697 $ 19,019    
v3.24.1.1.u2
Related Party Transactions (Details) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 31, 2023
Sep. 30, 2022
Jul. 31, 2022
May 31, 2022
Apr. 30, 2022
Jan. 31, 2022
Dec. 31, 2021
Oct. 31, 2021
Sep. 30, 2021
Jan. 31, 2021
Mar. 31, 2024
Dec. 31, 2020
May 31, 2021
Feb. 28, 2021
Beijing Tongmei Xtal Technology                            
Related Party Transactions                            
Increase in redeemable noncontrolling interests                   $ 1,500,000   $ 48,100,000    
Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.                            
Related Party Transactions                            
Increase in redeemable noncontrolling interests       $ 100,000                    
Sale of subsidiary shares to noncontrolling interests         $ 4,500,000                  
Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd. | Beijing Tongmei Xtal Technology                            
Related Party Transactions                            
Increase in noncontrolling interest       1,400,000                    
ChaoYang XinMei                            
Related Party Transactions                            
Sale of subsidiary shares to noncontrolling interests         4,500,000                  
ChaoYang Xinshuo | Loan from related party | Chao Yang XinMei High Purity Semiconductor Materials Co. Ltd.                            
Related Party Transactions                            
Amount of transaction               $ 1,000,000.0 $ 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                            
Amount of transaction                     $ 0      
v3.24.1.1.u2
Investments in Privately-Held Raw Material Companies (Details) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 25, 2021
Nov. 30, 2023
Aug. 31, 2023
May 31, 2023
Apr. 30, 2023
Jan. 31, 2023
Aug. 31, 2022
Jul. 31, 2022
Jun. 30, 2022
Jan. 31, 2021
Mar. 31, 2024
Dec. 31, 2023
Dec. 31, 2020
Sep. 30, 2023
Jul. 31, 2023
Apr. 30, 2022
Jun. 30, 2021
Summary of investments                                  
Investments, equity method                     $ 13,198,000 $ 12,476,000          
Investments, cost method                     551,000 551,000          
Other Assets                                  
Summary of investments                                  
Investments, equity method                     13,200,000 12,500,000          
Emeishan Jia Mei High Purity Metals Co., Ltd Investment                                  
Summary of investments                                  
Investments, cost method                     $ 551,000 551,000          
Percentage of ownership, equity method       25.00%             10.00%            
Percentage of ownership, cost method       10.00%             10.00%            
Percentage of equity interest sold       15.00%             15.00%            
Proceeds from sale of equity method investments       $ 827,000                          
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment                                  
Summary of investments                                  
Dividends received                 $ 1,300,000                
Beijing JiYa Semiconductor Material Co., Ltd Investment                                  
Summary of investments                                  
Investments, equity method                     $ 4,105,000 3,806,000          
Percentage of ownership, equity method                     39.00%            
Dividends received   $ 500,000     $ 2,000,000.0   $ 125,000                    
Xiaoyi XingAn Gallium Co., Ltd.                                  
Summary of investments                                  
Investments, equity method                     $ 5,995,000 5,516,000          
Percentage of ownership, equity method                     25.00%            
Dividends received   $ 1,800,000     $ 1,800,000     $ 1,500,000                  
ChaoYang KaiMei Quartz Co., Ltd                                  
Summary of investments                                  
Investments, equity method     $ 600,000     $ 900,000         $ 3,098,000 $ 3,154,000   $ 2,300,000 $ 600,000 $ 3,000,000.0  
Percentage of ownership, equity method                     40.00% 40.00%       40.00%  
Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment                                  
Summary of investments                                  
Percentage of ownership, equity method   46.00%                              
Percentage of ownership, cost method   0.00%                              
Percentage of equity interest sold   46.00%                   46.00%          
Nanjing JinMei Gallium Co., Ltd Investment                                  
Summary of investments                                  
Percentage of outstanding shares                         8.50%        
Nanjing JinMei Gallium Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment                                  
Summary of investments                                  
Percentage of ownership, equity method                     39.00%            
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment                                  
Summary of investments                                  
Percentage of outstanding shares                         33.00%        
Beijing Tongmei Xtal Technology                                  
Summary of investments                                  
Percentage of ownership, consolidated method                                 85.50%
Percentage of outstanding shares 7.28%                   14.50%            
Private equity ownership percentage 7.28%                   14.50%            
Percentage of key managers and contributors purchased                         0.40%        
Increase in redeemable noncontrolling interests                   $ 1,500,000     $ 48,100,000        
Investments, government approved $ 49,000,000                                
Nanjing JinMei Gallium Co., Ltd | Nanjing JinMei Gallium Co., Ltd Investment                                  
Summary of investments                                  
Private equity ownership percentage                         0.38%        
Nanjing JinMei Gallium Co., Ltd | Beijing Tongmei Xtal Technology                                  
Summary of investments                                  
Private equity ownership percentage                         0.38%        
Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment                                  
Summary of investments                                  
Private equity ownership percentage                         7.59%        
Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd | Beijing Tongmei Xtal Technology                                  
Summary of investments                                  
Private equity ownership percentage                         7.59%        
Majority-Owned Subsidiaries [Member]                                  
Summary of investments                                  
Investments, consolidated method                     $ 14,211,000 $ 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                     75.00%            
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%            
v3.24.1.1.u2
Investments in Privately-Held Raw Material Companies - Gain (Loss) on Sale and Remeasurement of Equity Method Investments (Details) - USD ($)
 1 Months Ended 3 Months Ended
Nov. 30, 2023
May 31, 2023
Mar. 31, 2024
Dec. 31, 2023
Investments in Privately-Held Raw Material Companies        
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd.     $ 551,000 $ 551,000
Emeishan Jia Mei High Purity Metals Co., Ltd Investment        
Investments in Privately-Held Raw Material Companies        
Fair value of the consideration received     779,000  
Foreign income tax withholding     48,000  
Carrying value     (252,000)  
Gain (loss) recognized on sale   $ 575,000 575,000  
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd.     551,000 551,000
Carrying value of retained noncontrolling investment (10%)     (168,000)  
Gain on retained noncontrolling investment due to remeasurement (10%)     $ 383,000  
Percentage of equity interest sold   15.00% 15.00%  
Percentage of ownership, cost method   10.00% 10.00%  
Percentage of ownership, equity method   25.00% 10.00%  
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 46.00%     46.00%
Percentage of ownership, cost method 0.00%      
Percentage of ownership, equity method 46.00%      
v3.24.1.1.u2
Investments in Privately-held Raw Material Companies - Minority Investment Entities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract]    
Net revenue $ 22,688 $ 19,405
Gross profit 6,094 5,110
Net income (2,048) (3,666)
Five Minority Investments    
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract]    
Net revenue 8,104 7,974
Gross profit 3,929 2,906
Operating income 3,371 2,009
Net income 3,138 3,945
Minority investment entities    
Entity income (loss) excluding impairment $ 900 $ 1,000
v3.24.1.1.u2
Stockholders' Equity (Details) - USD ($)
 3 Months Ended 12 Months Ended 96 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2015
Dec. 31, 2023
Oct. 27, 2014
Stockholders' Equity          
Balance, beginning of period $ 227,483,000 $ 244,900,000      
Common stock options exercised 20,000 (8,000)      
Investment in subsidiary with noncontrolling interest   203,000      
Investment in subsidiary with redeemable noncontrolling interest   (36,000)      
Noncontrolling interest portion of Tongmei stock-based compensation (11,000) 17,000      
Stock-based compensation 614,000 717,000      
Tongmei stock-based compensation 195,000 198,000      
Net loss (1,977,000) (3,517,000)      
Other comprehensive income (loss) (1,814,000) 928,000      
Balance, end of period 224,510,000 243,418,000   $ 227,483,000  
Reclassification adjustment from AOCI 0 0      
Net income (loss) attributable to redeemable noncontrolling interests (71,000) (149,000)      
Other comprehensive loss attributable to redeemable noncontrolling interests $ (189,000) 70,000      
Stock repurchase program, authorized amount         $ 5,000,000.0
Shares repurchased (in shares) 0   908,000 0  
Average price of shares repurchased (in dollars per share)     $ 2.52    
Total purchase price     $ 2,300,000    
Stock repurchase program remaining authorized repurchase amount $ 2,700,000        
Preferred Stock          
Stockholders' Equity          
Balance, beginning of period 3,532,000 3,532,000      
Balance, end of period 3,532,000 3,532,000   $ 3,532,000  
Common Stock          
Stockholders' Equity          
Balance, beginning of period 44,000 44,000      
Balance, end of period 44,000 44,000   44,000  
Additional Paid-In Capital          
Stockholders' Equity          
Balance, beginning of period 238,452,000 235,308,000      
Common stock options exercised 20,000 (8,000)      
Investment in subsidiary with noncontrolling interest   (36,000)      
Investment in subsidiary with redeemable noncontrolling interest   (36,000)      
Noncontrolling interest portion of Tongmei stock-based compensation (24,000) 33,000      
Stock-based compensation 614,000 717,000      
Tongmei stock-based compensation 195,000 198,000      
Balance, end of period 239,257,000 236,192,000   238,452,000  
Accumulated Deficit          
Stockholders' Equity          
Balance, beginning of period (32,040,000) (14,159,000)      
Net loss (2,083,000) (3,348,000)      
Balance, end of period (34,123,000) (17,507,000)   (32,040,000)  
Accumulated Other Comprehensive Income (Loss)          
Stockholders' Equity          
Balance, beginning of period (5,999,000) (3,118,000)      
Other comprehensive income (loss) (1,627,000) 858,000      
Balance, end of period (7,626,000) (2,260,000)   (5,999,000)  
AXT, Inc. Stockholders' Equity          
Stockholders' Equity          
Balance, beginning of period 203,989,000 221,607,000      
Common stock options exercised 20,000 (8,000)      
Investment in subsidiary with noncontrolling interest   (36,000)      
Investment in subsidiary with redeemable noncontrolling interest   (36,000)      
Noncontrolling interest portion of Tongmei stock-based compensation (24,000) 33,000      
Stock-based compensation 614,000 717,000      
Tongmei stock-based compensation 195,000 198,000      
Net loss (2,083,000) (3,348,000)      
Other comprehensive income (loss) (1,627,000) 858,000      
Balance, end of period 201,084,000 220,001,000   203,989,000  
Noncontrolling Interests          
Stockholders' Equity          
Balance, beginning of period 23,494,000 23,293,000      
Investment in subsidiary with noncontrolling interest   239,000      
Noncontrolling interest portion of Tongmei stock-based compensation 13,000 (16,000)      
Net loss 106,000 (169,000)      
Other comprehensive income (loss) (187,000) 70,000      
Balance, end of period $ 23,426,000 $ 23,417,000   $ 23,494,000  
v3.24.1.1.u2
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs    
Net effect on net income (loss) $ 809 $ 915
Cost of revenue    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs    
Net effect on net income (loss) 105 105
Selling, general and administrative    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs    
Net effect on net income (loss) 553 632
Research and development    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs    
Net effect on net income (loss) $ 151 $ 178
v3.24.1.1.u2
Stock-Based Compensation - Options (Details) - Employee Stock Option [Member] - USD ($)
$ / shares in Units, shares in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Mar. 28, 2024
Share-based Compensation Arrangement by Share-based Payment Award        
Unamortized compensation costs $ 0      
Stock options grants in period 0 0    
Number of Options Outstanding        
Options outstanding, beginning of period (in shares) 1,198      
Exercised (in shares) (9)      
Options outstanding, end of period (in shares) 1,189   1,198  
Options vested and unvested options expected to vest, net of forfeitures, end of period (in shares) 1,189      
Options exercisable, end of period (in shares) 1,189      
Weighted-average Exercise Price        
Options outstanding, beginning of period (in dollars per share) $ 5.10      
Exercised (in dollars per share) 2.20      
Options outstanding, end of period (in dollars per share) 5.12   $ 5.10  
Options vested and unvested options expected to vest, net of forfeitures (in dollars per share) 5.12      
Options exercisable, end of period (in dollars per share) $ 5.12      
Weighted average Remaining Contractual Life        
Options outstanding 3 years 10 months 17 days   4 years 1 month 2 days  
Options vested and unvested options expected to vest, net of forfeitures, end of period 3 years 10 months 17 days      
Option exercisable, end of period 3 years 10 months 17 days      
Aggregate Intrinsic Value        
Options outstanding, beginning of period $ 14,000      
Options outstanding, end of period 684,000   $ 14,000  
Options vested and expected to vest, end of period 684,000      
Options exercisable, end of period $ 684,000      
Closing price (in dollars per share)       $ 4.59
v3.24.1.1.u2
Stock-Based Compensation - RSU (Details) - Restricted stock awards
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award  
Unamortized compensation cost related to restricted stock awards | $ $ 3.5
Weighted-average remaining contractual terms 1 year 3 months 18 days
Shares  
Non-vested, beginning of period (in shares) | shares 1,220
Vested (in shares) | shares (7)
Non-vested, end of period (in shares) | shares 1,213
Weighted Average Grant Date Fair Value  
Non-vested, beginning of period (in dollars per share) | $ / shares $ 3.75
Vested (in dollars per share) | $ / shares 12.37
Non-vested, end of period (in dollars per share) | $ / shares $ 3.69
v3.24.1.1.u2
Stock-Based Compensation - Performance Shares (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended
Feb. 20, 2024
Mar. 15, 2023
Feb. 14, 2023
Feb. 15, 2022
Feb. 29, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Performance Shares                
Shares                
Non-vested, beginning of period (in shares)             38,000  
Granted (in shares)             151,000  
Non-vested, end of period (in shares)             189,000  
Weighted Average Grant Date Fair Value                
Non-vested, beginning of period (in dollars per share)             $ 15.37  
Granted (in dollars per share)             2.28  
Non-vested, end of period (in dollars per share)             $ 4.91  
Weighted-average grant date fair value of stock options granted (in dollars per share)         $ 2.28 $ 3.71    
Percentage of performance target cap of award 100.00% 100.00%            
Percentage of year-over-year annual revenue growth rate     2.70%          
Shares eligible to vest 0   0          
Unrecognized compensation expense related to restricted stock awards             $ 0.4  
Weighted-average remaining contractual terms             1 year 9 months 21 days  
Performance Shares | First Anniversary                
Shares                
Vested (in shares)             0  
Weighted Average Grant Date Fair Value                
Vesting period             4 years  
Performance Shares | Chief Executive Officer                
Weighted Average Grant Date Fair Value                
Stock options grants in period 223,590 223,590   114,320        
Performance Shares | Chief Executive Officer | Scenario Performance Minimum Financial Metric                
Weighted Average Grant Date Fair Value                
Share options vested in period 223,590 223,590            
Performance Shares | Chief Financial Officer                
Weighted Average Grant Date Fair Value                
Stock options grants in period 77,600 77,600   32,100        
Performance Shares | Chief Financial Officer | Scenario Performance Minimum Financial Metric                
Weighted Average Grant Date Fair Value                
Share options vested in period 77,600 77,600            
Employee Stock Option [Member]                
Weighted Average Grant Date Fair Value                
Stock options grants in period             0 0
v3.24.1.1.u2
Net Loss Per Share - Reconciliation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Numerator:    
Net loss attributable to AXT, Inc. $ (2,083) $ (3,348)
Less: Preferred stock dividends (44) (44)
Net loss available to common stockholders $ (2,127) $ (3,392)
Denominator:    
Denominator for basic net income (loss) per share - weighted-average common shares 42,987 42,498
Effect of dilutive securities:    
Denominator for dilutive net income (loss) per common shares 42,987 42,498
Net loss attributable to AXT, Inc. per common share:    
Basic $ (0.05) $ (0.08)
Diluted $ (0.05) $ (0.08)
Common stock options    
Net loss attributable to AXT, Inc. per common share:    
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) 1,189 1,203
Restricted stock awards    
Net loss attributable to AXT, Inc. per common share:    
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) 1,401 1,081
v3.24.1.1.u2
Net Loss Per Share (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Net Loss Per Share    
Preferred stock, shares issued (in shares) 883,000 883,000
Preferred stock, shares outstanding (in shares) 883,000 883,000
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, value $ 3,532,000 $ 3,532,000
Cumulative annual dividend rate (as a percent) 5.00% 5.00%
Liquidation preference over common stock (in dollars per share) $ 4 $ 4
v3.24.1.1.u2
Segment Information and Foreign Operations - Product Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue by product type    
Revenue $ 22,688 $ 19,405
Substrates    
Revenue by product type    
Revenue 16,903 13,489
Raw materials and others    
Revenue by product type    
Revenue $ 5,785 $ 5,916
v3.24.1.1.u2
Segment Information and Foreign Operations - Segment and Geographical Information (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
segment
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
Segment Information and Foreign Operations      
Number of operating segments | segment 1    
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue $ 22,688 $ 19,405  
Long-lived assets by geographic region, net of depreciation:      
Long-lived assets 165,779   $ 169,147
China      
Long-lived assets by geographic region, net of depreciation:      
Long-lived assets 164,217   167,516
North America (primarily the United States)      
Long-lived assets by geographic region, net of depreciation:      
Long-lived assets 1,562   $ 1,631
Reportable Geographical Components      
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue 22,688 19,405  
Reportable Geographical Components | China      
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue 11,517 8,102  
Reportable Geographical Components | Taiwan      
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue 4,582 2,471  
Reportable Geographical Components | Japan      
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue 990 1,535  
Reportable Geographical Components | Asia Pacific (excluding China, Taiwan and Japan)      
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue 798 1,091  
Reportable Geographical Components | Europe (primarily Germany)      
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue 3,725 3,570  
Reportable Geographical Components | North America (primarily the United States)      
Net revenues reported for products shipped to customers in corresponding geographic region      
Revenue $ 1,076 $ 2,636  
v3.24.1.1.u2
Segment Information and Foreign Operations - Significant Customers (Details) - customer
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Revenue      
Significant Customers      
Number of customers representing significant share   0  
Accounts receivable      
Significant Customers      
Number of customers representing significant share 0   0
One customer | Revenue      
Significant Customers      
Number of customers representing significant share 1    
One customer | Revenue | Customer concentration      
Significant Customers      
Percentage share generated by major customers 12.00% 10.00%  
One customer | Accounts receivable | Customer concentration      
Significant Customers      
Percentage share generated by major customers 10.00%   10.00%
Top five customers | Revenue      
Significant Customers      
Number of customers representing significant share 5 5  
Top five customers | Revenue | Customer concentration      
Significant Customers      
Percentage share generated by major customers 33.00% 28.00%  
v3.24.1.1.u2
Commitments and Contingencies (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Product Warranty    
Period of warranty 12 months  
Change in warranty accrual    
Beginning accrued product warranty $ 703 $ 669
Accruals for warranties issued 57 544
Adjustments related to pre-existing warranties including expirations and changes in estimates (210) 25
Cost of warranty repair (55) (323)
Ending accrued product warranty 495 $ 915
Bank Loans [Abstract]    
Long-term loans $ 7,000  
Cross License Agreement    
Preferred label sub abstract as Contractual Obligations    
Term of agreement 10 years  
Dingxing    
Preferred label sub abstract as Contractual Obligations    
Total investment agreement value $ 90,000  
Kazuo    
Preferred label sub abstract as Contractual Obligations    
Total investment agreement value 15,000  
Kazuo | Beijing BoYu Semiconductor Vessel Craftwork Technology Co    
Preferred label sub abstract as Contractual Obligations    
Total investment agreement value $ 8,000  
v3.24.1.1.u2
Other Income (expense), Net (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Other Income (expense), Net    
Income from government grants $ 1,000,000.0 $ 500,000
Foreign exchange gain (loss) $ 58,000 $ (213,000)
v3.24.1.1.u2
Income Taxes (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Income Taxes  
Unrecognized tax benefit interest and penalties expense $ 0
Unrecognized tax benefits accrued interest and penalties $ 0
v3.24.1.1.u2
Revenue - Contract Balances (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Revenue      
Contract liabilities $ 535,000   $ 305,000
Revenue recognized, included in contract balances $ 127,000 $ 286,000  
v3.24.1.1.u2
Revenue - Disaggregated Revenue and Revenue Recognition (Details)
 3 Months Ended
Mar. 31, 2024
segment
Revenue:  
Number of operating segments 1
Maximum  
Revenue:  
Sales commissions benefit period 1 year
v3.24.1.1.u2
Loans and Line of Credit - Schedule of Bank Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Mar. 31, 2024
Dec. 31, 2023
Bank Loans and Line of Credit      
Loan Balance   $ 48,217 $ 52,921
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 3.5 Percent, January 2024 Due Date One      
Bank Loans and Line of Credit      
Loan Detail     $ 1,848
Interest Rate     3.50%
Loan Balance     $ 1,795
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 2.8 Percent, March 2024 Due Date One      
Bank Loans and Line of Credit      
Loan Detail     $ 2,184
Interest Rate     2.80%
Loan Balance     $ 2,118
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 2.7 Percent, September 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   376  
Interest Rate     2.70%
Loan Balance   378 $ 386
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 3.5 Percent, November 2024 Due Date One      
Bank Loans and Line of Credit      
Loan Detail   $ 876  
Interest Rate   3.50%  
Loan Balance   $ 858 876
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 3.5 Percent, January 2024 Due Date Two      
Bank Loans and Line of Credit      
Loan Detail   $ 2,911  
Interest Rate   3.50%  
Loan Balance     2,825
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 3.0 Percent, January 2025 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 2,770  
Interest Rate   3.00%  
Loan Balance   $ 2,770  
Beijing Tongmei Xtal Technology | Bank of China | Bank Loan with 3.5 Percent, November 2024 Due Date Two      
Bank Loans and Line of Credit      
Loan Detail   $ 1,003  
Interest Rate   3.50%  
Loan Balance   $ 985 1,003
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.3 Percent, January 2024 Due Date Two      
Bank Loans and Line of Credit      
Loan Detail   1,455 $ 1,455
Interest Rate     3.30%
Loan Balance     $ 1,414
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.8 Percent, May 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,380  
Interest Rate   3.80%  
Loan Balance   $ 1,386 1,414
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.8 Percent, May 2024 Due Date One      
Bank Loans and Line of Credit      
Loan Detail   $ 1,373  
Interest Rate   3.80%  
Loan Balance   $ 1,386 1,414
Beijing Tongmei Xtal Technology | Bank of Communications | Bank Loan with 3.0 Percent, May 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,414  
Interest Rate   3.00%  
Loan Balance   $ 1,386 1,414
Beijing Tongmei Xtal Technology | China Merchants Bank | Bank Loan with 3.5 Percent, January 2025 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,386  
Interest Rate   3.50%  
Loan Balance   $ 1,386  
Beijing Tongmei Xtal Technology | China Merchants Bank | Bank Loan with 3.5 Percent, February 2025 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 692  
Interest Rate   3.50%  
Loan Balance   $ 692  
Beijing Tongmei Xtal Technology | China Merchants Bank | Bank Loan with 3.7 Percent, January 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 4,367  
Interest Rate   3.70%  
Loan Balance     4,235
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 4.2 Percent One, January 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail     $ 2,290
Interest Rate     4.20%
Loan Balance     $ 2,220
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.2 Percent, May 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 3,541  
Interest Rate   3.20%  
Loan Balance   $ 3,560 3,626
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.2 Percent, February 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,380  
Interest Rate   3.20%  
Loan Balance     1,414
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.0 Percent, December 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,414  
Interest Rate   3.00%  
Loan Balance   $ 1,386 1,414
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.0 Percent, December 2024 Due Date Two      
Bank Loans and Line of Credit      
Loan Detail   $ 1,386  
Interest Rate   3.00%  
Loan Balance   $ 1,386  
Beijing Tongmei Xtal Technology | Bank of Beijing | Bank Loan with 3.0 Percent, February 2025 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 3,600  
Interest Rate   3.00%  
Loan Balance   $ 3,600  
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.3 Percent, June 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail     $ 2,757
Interest Rate     4.30%
Loan Balance   2,770 $ 2,825
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.3 Percent, July 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 2,744 $ 2,744
Interest Rate   4.30% 4.30%
Loan Balance   $ 2,770 $ 2,825
Beijing Tongmei Xtal Technology | Industrial Bank | Bank Loan with 4.3 Percent, September 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 2,744  
Interest Rate   4.30%  
Loan Balance   $ 2,770 2,825
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.2 Percent, September 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 2,744  
Interest Rate   4.20%  
Loan Balance   $ 2,765 2,820
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.3 Percent, November 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,271  
Interest Rate   4.30%  
Loan Balance   $ 1,246 1,271
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.3 Percent, December 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 2,825 $ 2,825
Interest Rate   4.30% 4.30%
Loan Balance   $ 2,770 $ 2,825
Beijing Tongmei Xtal Technology | NingBo Bank | Bank Loan with 4.3 Percent, January 2025 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,647  
Interest Rate   4.30%  
Loan Balance   $ 1,647  
Beijing Tongmei Xtal Technology | Industrial and Commercial Bank of China | Bank Loan with 3.3 Percent, September 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 2,744 $ 2,744
Interest Rate   3.30% 3.30%
Loan Balance   $ 2,770 $ 2,825
Beijing Tongmei Xtal Technology | NanJing Bank | Bank Loan with 3.5 Percent, January 2025 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,386  
Interest Rate   3.50%  
Loan Balance   $ 1,386  
Beijing Tongmei Xtal Technology | NanJing Bank | Bank Loan with 3.8 Percent, October 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 2,752  
Interest Rate   3.80%  
Loan Balance   $ 2,700 2,752
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Bank of China | Bank Loan with 2.4 Percent, January 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,204  
Interest Rate   2.40%  
Loan Balance     849
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Industrial Bank      
Bank Loans and Line of Credit      
Guarantee fee (as a percent) 0.70%    
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Industrial Bank | Bank Loan With 3.6 Percent September 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 688  
Interest Rate   3.60%  
Loan Balance   $ 692 708
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | NingBo Bank | Bank Loan with 3.3 Percent, May 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail     1,414
Interest Rate   3.30%  
Loan Balance   $ 1,386 1,414
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Industrial and Commercial Bank of China | Bank Loan with 2.7 Percent, December 2024 Due Date      
Bank Loans and Line of Credit      
Loan Detail   $ 1,414 $ 1,414
Interest Rate   2.70% 2.70%
Loan Balance   $ 1,386 $ 1,414
v3.24.1.1.u2
Loans and Line of Credit - Long-Term Loans (Details) - USD ($)
 1 Months Ended
Jan. 31, 2024
Mar. 31, 2024
Jan. 30, 2024
Dec. 31, 2023
Long-term Loans        
Maximum borrowing capacity     $ 9,700,000  
Term of loan     5 years  
Interest rate     6.50%  
Line of credit, Non Current   $ 7,000,000.0    
Line of credit, Current   49,000,000.0    
Loan Balance   48,217,000   $ 52,921,000
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd        
Long-term Loans        
Loan amount       2,100,000
Value of option to repurchase production line       $ 14.00
Long term loan   1,400,000    
Loan Balance   554,000    
Chao Yang Tongmei High Purity Semiconductor Materials Co. Ltd [Member]        
Long-term Loans        
Proceeds from bank loan $ 5,800,000      
Line of credit, Non Current   5,600,000    
Line of credit, Current   277,000    
Long term loan   $ 5,600,000    
v3.24.1.1.u2
Loans and Line of Credit - Maturities of Long-Term Liabilities (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Maturities of long-term liabilities  
2025 $ 1,038
2026 1,315
2027 969
2028 1,246
2029 $ 2,371
v3.24.1.1.u2
Loans and Line of Credit - Balances (Details) - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Long-term Loans    
Line of credit, Current $ 49,000,000.0  
Loan Balance 48,217,000 $ 52,921,000
Current portion of long term dent 800,000  
Line of credit, Non Current 7,000,000.0  
Chaoyang Xinmei High Purity Semiconductor MaterialsCo. Ltd    
Long-term Loans    
Loan Balance 554,000  
Long term loan $ 1,400,000  
v3.24.1.1.u2
Leases (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
ft²
May 31, 2020
Leases    
Variable lease payments | $ $ 0  
Area of leased property (in square feet) | ft² 19,467  
Operating lease, extension term 5 years 3 years
v3.24.1.1.u2
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Future minimum lease payments    
2024 $ 440  
2025 599  
2026 613  
2027 627  
2028 610  
Thereafter 150  
Total minimum lease payments 3,039  
Less: Interest (365)  
Present value of lease obligations 2,674  
Less: Current portion, included in accrued liabilities $ (463) $ (458)
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued Liabilities, Current  
Long-term portion of lease obligations $ 2,211 $ 2,351
v3.24.1.1.u2
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Leases      
Weighted-average remaining lease term (years) 4 years 11 months 19 days   5 years 2 months 19 days
Weighted-average discount rate 5.14%   5.14%
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 146 $ 147  
v3.24.1.1.u2
Leases - Components of Lease Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Lease expense    
Operating lease $ 153 $ 129
Short-term lease expense 41 34
Total $ 194 $ 163
v3.24.1.1.u2
Redeemable Noncontrolling Interests (Details) - Beijing Tongmei Xtal Technology - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 25, 2021
Jan. 31, 2021
Mar. 31, 2024
Dec. 31, 2020
Noncontrolling Interest        
Increase in redeemable noncontrolling interests due to issuance of Tongmei's common stock   $ 1.5   $ 48.1
Redeemable noncontrolling interests ownership percentage       7.06%
Investments, government approved $ 49.0      
Percentage of equity issued on conversion of noncontrolling interests 7.28%   14.50%  
Redemption value     $ 49.0  
v3.24.1.1.u2
Redeemable Noncontrolling Interests - Components of the Change in Redeemable Noncontrolling Interests (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Redeemable Noncontrolling Interests    
Redeemable noncontrolling interests beginning balance $ 41,663,000  
Equity issuance costs incurred 18,000  
Stock-based compensation attributable to redeemable noncontrolling interests 15,000  
Net loss attributable to redeemable noncontrolling interests (71,000) $ (149,000)
Effect of foreign currency translation on redeemable noncontrolling interests (855,000)  
Effect of foreign currency translation attributable to redeemable noncontrolling interests (189,000)  
Redeemable noncontrolling interests ending balance $ 40,581,000  
v3.24.1.1.u2
Subsequent Event (Details) - Subsequent Events - Beijing Tongmei Xtal Technology
Apr. 30, 2024
USD ($)
Subsequent Event  
Loan amount $ 691,000
Interest Rate 3.50%
v3.24.1.1.u2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) $ (2,083) $ (3,348)
v3.24.1.1.u2
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false