EX-12.1 10 axti-20201231xex12d1.htm EX-12.1

Exhibit 12.1

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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

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| ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
​ | ​ | Year Ended December 31, |
​ |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 | ​
​ | ​ | (in thousands) | ​
Earnings: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income (loss) before income taxes | ​ | $ | 7,072 | ​ | $ | (1,026) | ​ | $ | 11,947 | ​ | $ | 10,853 | ​ | $ | 5,699 | ​
Less: Equity in loss (earnings) of investees | ​ | ​ | (111) | ​ | ​ | 1,876 | ​ | ​ | 1,080 | ​ | ​ | 1,694 | ​ | ​ | 1,995 | ​
Less: Pre-tax net (income) loss attributable to noncontrolling interest | ​ | ​ | (1,803) | ​ | ​ | (1,012) | ​ | ​ | (1,355) | ​ | ​ | 87 | ​ | ​ | 670 | ​
Add: Distributions paid by equity investees | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​
Fixed charges and preferred stock dividends, as calculated below | ​ | ​ | 533 | ​ | ​ | 358 | ​ | ​ | 283 | ​ | ​ | 278 | ​ | ​ | 287 | ​
Total earnings | ​ | $ | 5,691 | ​ | $ | 196 | ​ | $ | 11,955 | ​ | $ | 12,912 | ​ | $ | 8,651 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Computation of fixed charges and preferred stock dividends: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest expense | ​ | $ | 222 | ​ | $ | 94 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​
Preferred stock dividends(1) | ​ | ​ | 177 | ​ | ​ | 177 | ​ | ​ | 177 | ​ | ​ | 177 | ​ | ​ | 177 | ​
Interest component of rent expense(2) | ​ | ​ | 134 | ​ | ​ | 87 | ​ | ​ | 106 | ​ | ​ | 101 | ​ | ​ | 110 | ​
Total combined fixed charges and preferred stock dividends | ​ | $ | 533 | ​ | $ | 358 | ​ | $ | 283 | ​ | $ | 278 | ​ | $ | 287 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ratio of earnings to combined fixed charges and preferred stock dividends(3) | ​ | ​ | 10.68 | ​ | ​ | 0.55 | ​ | ​ | 42.24 | ​ | ​ | 46.45 | ​ | ​ | 30.14 | ​
Deficiency of earnings to combined fixed charges and preferred stock dividends | ​ | ​ | N/A | ​ | ​ | N/A | ​ | ​ | N/A | ​ | ​ | N/A | ​ | ​ | N/A | ​

| (1) | Dividends accrue on our outstanding Series A preferred stock at the rate of $0.20 per annum per share of Series A preferred stock. We have not paid any dividends on preferred stock. 883,000 shares of our preferred stock were issued and outstanding for all of the periods presented.

| (2) | Effective January 1, 2019 and onwards, interest is calculated consistent with guidance under ASC 842, where an estimate for the Company's incremental borrowing rate of 4.6% is used to calculate the interest component of rent expense. The borrowing rate is calculated using a weighted average for the interest rate on the Company's revolving line of credit of 4.4% and credit facility with the Bank of China of 4.7%. For the years prior to 2019, represents one-third of total rent expense which we believe is a reasonable estimate of the interest component of rent expense.

| (3) | For periods in which there is a deficiency of earnings available to cover combined fixed charges and preferred stock dividends, the ratio information is not applicable.