XML 34 R22.htm IDEA: XBRL DOCUMENT v3.25.3
Note 16 - Loans and Line of Credit
 9 Months Ended
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.