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v3.25.3

Note 16 - Loans and Line of Credit | 9 Months Ended
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Sep. 30, 2025
Notes to Financial Statements |
Debt Disclosure [Text Block] | 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 September 30, 2025 and December 31, 2024 (in thousands, except interest rate data):
|  |  | Loan |  |  | Interest |  |  | Start | Due |  | September 30, |  |  | December 31, |
Subsidiary | Bank |  | Detail |  |  | Rate |  |  | Date | Date |  | 2025 |  |  | 2024 |
Tongmei | Bank of China (1) |  | $ | 689 |  |  |  | 2.7 | % |  | January-25 | January-26 |  | $ | 705 |  |  | $ | — |
|  |  |  | 579 |  |  |  | 2.7 | % |  | March-25 | March-26 |  |  | 586 |  |  |  | — |
|  |  |  | 112 |  |  |  | 2.6 | % |  | July-25 | July-26 |  |  | 112 |  |  |  | — |
|  |  |  | 705 |  |  |  | 2.6 | % |  | September-25 | September-26 |  |  | 705 |  |  |  | — |
| Bank of China (3) |  |  | 1,410 |  |  |  | 2.4 | % |  | September-24 | September-25 |  |  | — |  |  |  | 1,370 |
|  |  |  | 1,370 |  |  |  | 2.4 | % |  | November-24 | November-25 |  |  | 1,410 |  |  |  | 1,370 |
|  |  |  | 685 |  |  |  | 2.7 | % |  | November-24 | November-25 |  |  | 705 |  |  |  | 685 |
|  |  |  | 2,480 |  |  |  | 2.5 | % |  | February-25 | February-26 |  |  | 2,530 |  |  |  | — |
|  |  |  | 1,410 |  |  |  | 2.4 | % |  | September-25 | September-26 |  |  | 1,410 |  |  |  | — |
| Bank of Communications (1) |  |  | 1,376 |  |  |  | 3.0 | % |  | May-24 | May-25 |  |  | — |  |  |  | 1,370 |
|  |  |  | 2,480 |  |  |  | 3.0 | % |  | June-24 | May-25 |  |  | — |  |  |  | 2,466 |
|  |  |  | 1,420 |  |  |  | 2.5 | % |  | June-25 | December-25 |  |  | 1,410 |  |  |  | — |
|  |  |  | 2,023 |  |  |  | 2.6 | % |  | June-25 | June-26 |  |  | 2,040 |  |  |  | — |
| China Merchants Bank (1) |  |  | 1,386 |  |  |  | 3.5 | % |  | January-24 | January-25 |  |  | — |  |  |  | 1,370 |
|  |  |  | 692 |  |  |  | 3.5 | % |  | February-24 | February-25 |  |  | — |  |  |  | 685 |
|  |  |  | 692 |  |  |  | 3.5 | % |  | April-24 | April-25 |  |  | — |  |  |  | 685 |
|  |  |  | 3,155 |  |  |  | 2.9 | % |  | January-25 | January-26 |  |  | 3,220 |  |  |  | — |
|  |  |  | 978 |  |  |  | 2.9 | % |  | March-25 | March-26 |  |  | 985 |  |  |  | — |
| Bank of Beijing (2) |  |  | 3,600 |  |  |  | 3.0 | % |  | March-24 | February-25 |  |  | — |  |  |  | 3,565 |
|  |  |  | 3,580 |  |  |  | 3.0 | % |  | June-24 | June-25 |  |  | — |  |  |  | 3,565 |
|  |  |  | 2,204 |  |  |  | 2.7 | % |  | March-25 | March-26 |  |  | 2,210 |  |  |  | — |
|  |  |  | 1,405 |  |  |  | 2.6 | % |  | June-25 | March-26 |  |  | 1,410 |  |  |  | — |
|  |  |  | 3,627 |  |  |  | 2.6 | % |  | June-25 | June-26 |  |  | 3,627 |  |  |  | — |
| Industrial Bank (1) |  |  | 2,820 |  |  |  | 3.9 | % |  | September-24 | September-25 |  |  | — |  |  |  | 2,740 |
|  |  |  | 2,679 |  |  |  | 3.9 | % |  | October-24 | October-25 |  |  | 2,740 |  |  |  | 2,679 |
|  |  |  | 1,440 |  |  |  | 3.2 | % |  | November-24 | November-25 |  |  | 1,480 |  |  |  | 1,440 |
|  |  |  | 142 |  |  |  | 3.1 | % |  | September-25 | September-26 |  |  | 142 |  |  |  | — |
| Industrial Bank (4) |  |  | 1,380 |  |  |  | 3.8 | % |  | March-25 | March-26 |  |  | 1,390 |  |  |  | — |
| NingBo Bank (1) |  |  | 1,647 |  |  |  | 4.3 | % |  | January-24 | January-25 |  |  | — |  |  |  | 1,630 |
|  |  |  | 1,258 |  |  |  | 4.3 | % |  | May-24 | March-25 |  |  | — |  |  |  | 1,255 |
|  |  |  | 1,822 |  |  |  | 3.9 | % |  | November-24 | November-25 |  |  | 1,875 |  |  |  | 1,822 |
|  |  |  | 550 |  |  |  | 3.9 | % |  | December-24 | December-25 |  |  | 565 |  |  |  | 550 |
|  |  |  | 1,584 |  |  |  | 3.9 | % |  | January-25 | January-26 |  |  | 1,620 |  |  |  | — |
|  |  |  | 689 |  |  |  | 3.9 | % |  | March-25 | March-26 |  |  | 705 |  |  |  | — |
|  |  |  | 628 |  |  |  | 3.9 | % |  | Apr-25 | March-26 |  |  | 628 |  |  |  | — |
|  |  |  | 579 |  |  |  | 3.8 | % |  | June-25 | June-26 |  |  | 579 |  |  |  | — |
|  |  |  | 632 |  |  |  | 3.8 | % |  | July-25 | July-26 |  |  | 632 |  |  |  | — |
|  |  |  | 428 |  |  |  | 3.8 | % |  | August-25 | July-26 |  |  | 428 |  |  |  | — |
| Industrial and Commercial Bank of China (1) |  |  | 2,820 |  |  |  | 3.3 | % |  | September-24 | September-25 |  |  | — |  |  |  | 2,740 |
|  |  |  | 281 |  |  |  | 2.3 | % |  | September-25 | September-26 |  |  | 281 |  |  |  | — |
|  |  |  | 1,410 |  |  |  | 2.4 | % |  | August-25 | August-26 |  |  | 1,410 |  |  |  | — |
|  |  |  | 421 |  |  |  | 2.4 | % |  | September-25 | August-26 |  |  | 421 |  |  |  | — |
| China Citic Bank (1) |  |  | 2,752 |  |  |  | 2.9 | % |  | June-24 | June-25 |  |  | — |  |  |  | 2,740 |
|  |  |  | 2,820 |  |  |  | 2.9 | % |  | July-24 | July-25 |  |  | — |  |  |  | 2,740 |
|  |  |  | 1,420 |  |  |  | 2.9 | % |  | September-24 | September-25 |  |  | — |  |  |  | 1,370 |
|  |  |  | 4,915 |  |  |  | 2.3 | % |  | September-25 | September-26 |  |  | 4,915 |  |  |  | — |
| Agricultural Bank of China (1) |  |  | 1,235 |  |  |  | 2.6 | % |  | November-24 | November-25 |  |  | 1,270 |  |  |  | 1,235 |
|  |  |  | 137 |  |  |  | 2.6 | % |  | December-24 | December-25 |  |  | 140 |  |  |  | 137 |
| Bank of Hangzhou (1) |  |  | 4,213 |  |  |  | 2.5 | % |  | September-25 | September-26 |  |  | 4,213 |  |  |  | — |
BoYu | Industrial and Commercial Bank of China (1) |  |  | 1,420 |  |  |  | 2.8 | % |  | September-24 | September-25 |  |  | — |  |  |  | 1,370 |
|  |  |  | 983 |  |  |  | 2.4 | % |  | September-25 | August-26 |  |  | 983 |  |  |  | — |
|  |  |  | 1,410 |  |  |  | 2.2 | % |  | September-25 | September-26 |  |  | 1,410 |  |  |  | — |
| Bank of China (1) |  |  | 1,145 |  |  |  | 2.3 | % |  | September-24 | September-25 |  |  | — |  |  |  | 1,096 |
|  |  |  | 274 |  |  |  | 2.4 | % |  | December-24 | December-25 |  |  | 279 |  |  |  | 274 |
|  |  |  | 843 |  |  |  | 2.2 | % |  | September-25 | September-26 |  |  | 843 |  |  |  | — |
| Industrial Bank (1) |  |  | 1,370 |  |  |  | 2.7 | % |  | November-24 | November-25 |  |  | 1,410 |  |  |  | 1,370 |
| Bank of Communications (1) |  |  | 274 |  |  |  | 3.0 | % |  | May-24 | May-25 |  |  | — |  |  |  | 274 |
|  |  |  | 767 |  |  |  | 2.6 | % |  | June-25 | June-26 |  |  | 767 |  |  |  | — |
| China Merchants Bank (1) |  |  | 419 |  |  |  | 2.4 | % |  | June-25 | June-26 |  |  | 419 |  |  |  | — |
|  |  |  | 983 |  |  |  | 2.3 | % |  | September-25 | September-26 |  |  | 983 |  |  |  | — |
| NanJing Bank (1) |  |  | 1,370 |  |  |  | 2.8 | % |  | December-24 | December-25 |  |  | 1,410 |  |  |  | 1,370 |
| Loan Balance |  |  |  |  |  |  |  |  |  |  |  |  | $ | 57,003 |  |  | $ | 45,963 |
|  | Collateral for the above bank loans and line of credit
| (1) | Not collateralized.
| (2) | AXT time deposit.
| (3) | Baoding Tongmei’s land use rights and its building located at its facility in Dingxing, China.
| (4) | Chaoyang JinMei’s land use rights and its building located at its facility in Kazuo, China.
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 September 30, 2025, $4.7 million is included in “Other long-term liabilities” and $0.7 million is included in “Short-term loans” in our condensed 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 September 30, 2025, the full remaining amount is included in “Short-term loans” in our condensed consolidated balance sheets. In February 2025, the Company secured a fourteen-month unsecured bank loan totaling $2.7 million at an interest rate of 3.2%. As of September 30, 2025, the full remaining amount is included in “Short-term loans” in our condensed consolidated balance sheets. In September 2025, the Company entered into a four-year bank loan totaling $0.4 million at an interest rate of 3.1%. The loan is secured by the real estate properties owned by JinMei. As of September 30, 2025, $0.3 million is included in “Other long-term liabilities” and $0.1 million is included in “Short-term loans” in our condensed consolidated balance sheets. As of September 30, 2025, the maturities of our long-term loan liabilities in five years (including current portion) are as follows (in thousands):
Maturity of long-term loans |  |  |  |
2025 (remaining 3 months) |  | $ | 342 |
2026 |  |  | 4,178 |
2027 |  |  | 1,088 |
2028 |  |  | 1,369 |
2029 |  |  | 2,485 |
In summary, short-term loans of $61.5 million included under “Short-term loans” in our condensed consolidated balance sheet at September 30, 2025, consisted of $57.0 million of short-term bank loans and $4.5 million of the current portion of long-term debt. Long-term loan of $5.0 million included under “Other long-term liabilities” in our condensed consolidated balance sheet at September 30, 2025.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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