Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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, $0.001 par value | |
Trading Symbol | AXTI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,300,000 | |
Entity Central Index Key | 0001051627 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 22,384 | $ 26,892 |
Short-term investments | 4,505 | 9,427 |
Accounts receivable, net of allowances of $121 and $34 as of September 30, 2020 and December 31, 2019 | 22,653 | 19,031 |
Inventories | 48,357 | 49,152 |
Prepaid expenses and other current assets | 10,649 | 8,703 |
Total current assets | 108,548 | 113,205 |
Long-term investments | 2,884 | |
Property, plant and equipment, net | 108,295 | 97,403 |
Operating lease right-of-use assets | 2,702 | 2,938 |
Other assets | 10,308 | 9,803 |
Total assets | 232,737 | 223,349 |
Current liabilities: | ||
Accounts payable | 12,271 | 10,098 |
Accrued liabilities | 10,842 | 11,681 |
Bank loan | 3,380 | 5,747 |
Total current liabilities | 26,493 | 27,526 |
Long-term portion of royalty payments | 1,193 | |
Noncurrent operating lease liabilities | 2,415 | 2,695 |
Other long-term liabilities | 744 | 366 |
Total liabilities | 30,845 | 30,587 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock Series A, $0.001 par value; 2,000 shares authorized; 883 shares issued and outstanding as of September 30, 2020 and December 31, 2019 (Liquidation preference of $7,301 and $7,169 as of September 30, 2020 and December 31, 2019) | 3,532 | 3,532 |
Common stock, $0.001 par value; 70,000 shares authorized; 41,135 and 40,632 shares issued and outstanding as of September 30, 2020 and December 31, 2019 | 41 | 41 |
Additional paid-in capital | 240,422 | 236,957 |
Accumulated deficit | (46,609) | (47,783) |
Accumulated other comprehensive loss | (1,992) | (4,862) |
Total AXT, Inc. stockholders' equity | 195,394 | 187,885 |
Noncontrolling interests | 6,498 | 4,877 |
Total stockholders' equity | 201,892 | 192,762 |
Total liabilities and stockholders' equity | $ 232,737 | $ 223,349 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Accounts receivable, allowances for doubtful accounts | $ 121 | $ 34 |
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 | $ 7,301 | $ 7,169 |
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) | 41,135,000 | 40,632,000 |
Common stock, shares outstanding (in shares) | 41,135,000 | 40,632,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 25,469 | $ 19,841 | $ 68,326 | $ 64,846 |
Cost of revenue | 16,646 | 14,082 | 47,213 | 43,886 |
Gross profit | 8,823 | 5,759 | 21,113 | 20,960 |
Operating expenses: | ||||
Selling, general and administrative | 4,623 | 4,755 | 14,119 | 14,247 |
Research and development | 2,023 | 1,482 | 4,973 | 4,227 |
Total operating expenses | 6,646 | 6,237 | 19,092 | 18,474 |
Income (loss) from operations | 2,177 | (478) | 2,021 | 2,486 |
Interest income (expense), net | (70) | 41 | (138) | 215 |
Equity in income (loss) of unconsolidated joint ventures | 45 | (204) | (243) | (1,650) |
Other income (expense), net | (34) | 169 | 2,940 | (55) |
Income (loss) before provision for income taxes | 2,118 | (472) | 4,580 | 996 |
Provision for income taxes | 637 | 23 | 1,923 | 776 |
Net (loss) income | 1,481 | (495) | 2,657 | 220 |
Less: Net income attributable to noncontrolling interests | (490) | (403) | (1,483) | (771) |
Net income (loss) attributable to AXT, Inc. | $ 991 | $ (898) | $ 1,174 | $ (551) |
Net income (loss) attributable to AXT, Inc. per common share: | ||||
Basic | $ 0.02 | $ (0.02) | $ 0.03 | $ (0.02) |
Diluted | $ 0.02 | $ (0.02) | $ 0.03 | $ (0.02) |
Weighted-average number of common shares outstanding: | ||||
Basic | 40,152 | 39,466 | 39,978 | 39,438 |
Diluted | 40,979 | 39,466 | 40,688 | 39,438 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 1,481 | $ (495) | $ 2,657 | $ 220 |
Other comprehensive income (loss), net of tax: | ||||
Change in foreign currency translation gain (loss), net of tax | 4,699 | (4,322) | 3,086 | (4,322) |
Change in unrealized gain on available-for-sale debt investments, net of tax | (10) | (2) | 11 | 78 |
Reclassification adjustment for gains included in net loss upon deconsolidation of a subsidiary | (617) | |||
Total other comprehensive income (loss), net of tax | 4,689 | (4,324) | 3,097 | (4,861) |
Comprehensive income (loss) | 6,170 | (4,819) | 5,754 | (4,641) |
Less: Comprehensive income(loss) attributable to noncontrolling interests | (806) | (189) | (1,710) | (1,178) |
Comprehensive income (loss) attributable to AXT, Inc. | $ 5,364 | $ (5,008) | $ 4,044 | $ (5,819) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 2,657 | $ 220 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,963 | 4,173 |
Amortization of marketable securities premium | 28 | 26 |
Impairment charge on equity investee | 1,068 | |
Stock-based compensation | 1,932 | 1,709 |
Provision for doubtful accounts | 87 | |
Loss on disposal of equipment | 36 | 43 |
Gain from deconsolidation of a subsidiary | (175) | |
Loss from equity method investments, net | 243 | 757 |
Return on equity method investments | 362 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,500) | 1,876 |
Inventories | 1,638 | 8,272 |
Prepaid expenses and other current assets | (1,790) | 3,277 |
Other assets | (424) | (3,108) |
Accounts payable | 1,992 | (4,993) |
Accrued liabilities | (1,226) | (6,216) |
Other long-term liabilities, including royalties | 1,688 | 46 |
Net cash provided by operating activities | 6,324 | 7,337 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (12,121) | (13,969) |
Purchases of available-for-sale debt securities | (2,880) | (8,725) |
Proceeds from sales and maturities of available-for-sale debt securities | 4,901 | 20,988 |
Net cash used in investing activities | (10,100) | (1,706) |
Cash flows from financing activities: | ||
Proceeds from common stock options exercised | 1,137 | 267 |
Proceeds from sale of previously consolidated subsidiary shares | 366 | |
Consideration paid to repurchase subsidiary shares from noncontrolling interests | (262) | |
Payments on short-term loan | (5,801) | |
Proceeds from short-term loan | 3,380 | 5,760 |
Proceeds from sale of subsidiary shares to noncontrolling interest | 396 | |
Dividends paid by joint ventures to their minority shareholders | (89) | |
Net cash provided by (used in) financing activities | (977) | 6,131 |
Effect of exchange rate changes on cash and cash equivalents | 245 | (451) |
Net increase (decrease) in cash and cash equivalents | (4,508) | 11,311 |
Cash and cash equivalents at the beginning of the year | 26,892 | 16,526 |
Cash and cash equivalents at the end of the year | $ 22,384 | 27,837 |
Supplemental disclosure of non-cash flow information: | ||
Consideration payable to repurchase subsidiary shares from noncontrolling interests, included in accrued liabilities | 151 | |
Reduction of noncontrolling interests in excess (deficit) of total consideration paid and payable in connection with the repurchase of subsidiary shares from noncontrolling interests | $ (74) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation | |
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 (“US 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 US 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 and our consolidated subsidiaries 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 US GAAP. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. These estimates and assumptions may change as new events occur and additional information is obtained. Actual results could differ materially from those estimates. The results of operations for the three and nine months ended September 30, 2020 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 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2020 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2020 and June 30, 2020 filed with the SEC on May 8, 2020 and August 7, 2020, respectively. The condensed consolidated financial statements include the accounts of AXT, our wholly-owned subsidiaries, Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), Baoding Tongmei Xtal Technology Co., Ltd. (“Tongmei Baoding”), ChaoYang Tongmei Xtal Technology Co., Ltd. (“Tongmei ChaoYang”), and ChaoYang LiMei Semiconductor Technology Co., Ltd. (“LiMei ChaoYang”), and, except as discussed below and in Note 7, our majority-owned subsidiaries, Nanjing JinMei Gallium Co., Ltd. (“JinMei”), ChaoYang JinMei Gallium Ltd., MaAnShan JinMei Gallium Ltd., and Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. (“BoYu”). Tongmei Baoding is located in the city of Dingxing, China. Each of Tongmei ChaoYang and LiMei ChaoYang is located in the city of Kazuo, China. 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 September 30, 2020 and December 31, 2019, we have five companies accounted for by the equity method. For the majority-owned subsidiaries that we consolidate, we reflect the portion we do not own as noncontrolling interests on our condensed consolidated balance sheets in stockholders' equity and in our condensed consolidated statements of operations. When market conditions are warranted, we intend to construct facilities at the LiMei ChaoYang location to provide us with additional production capacity. For the three and nine months ended September 30, 2020, expenses associated with LiMei ChaoYang had a de minimis impact on our condensed consolidated financial statements. As discussed in Note 7, “Investments in Privately-Held Companies”, effective as of March 11, 2019 we reduced our ownership in Beijing JiYa Semiconductor Material Co., Ltd. (“JiYa”) from 46% to 39% by selling a portion of our JiYa shares to our investor partner, which is also JiYa’s landlord. As a result of this transaction, our investor partner became the largest shareholder of JiYa and assumed the right to appoint the general manager of JiYa and thereby exercised greater control over JiYa’s long-term strategic direction. Further, although our Chief Executive Officer remains on the board, as of March 11, 2019, he was no longer the chairman of JiYa’s board of directors and our Chief Financial Officer was no longer a member of JiYa’s board of financial supervisors. Therefore, we deconsolidated JiYa from our consolidated financial statements as of March 11, 2019 in accordance with Accounting Standards Codification (“ASC”) Topic 810 Consolidation (“ASC 810”). As of March 12, 2019, we accounted for our retained investment in JiYa under the equity method of accounting, as we continue to exercise significant influence. Our condensed consolidated balance sheet as of December 31, 2019, as reported, does not include the assets and liabilities of JiYa since we deconsolidated JiYa as of March 11, 2019. Our unaudited condensed consolidated statement of operations for the nine months ended September 30, 2019 includes JiYa’s results for the period through March 11, 2019. As discussed in Note 7, in May 2019, we purchased the remaining 3% ownership interest of JinMei that we did not own from retiring members of the JinMei management team for approximately $413,000. As a result, our ownership of JinMei increased from 97% to 100%. As of June 1, 2019, we referred to JinMei as a wholly-owned subsidiary instead of a significantly controlled subsidiary and reduced the carrying value of the corresponding noncontrolling interests to zero. Before August 1, 2020, our ownership of Chaoyang Jinmei was 100%. In August 2020, we sold an 8.5% ownership interest to current members of the Chaoyang Jinmei management team for approximately $396,000. As a result, our ownership of Chaoyang JinMei decreased from 100% to 91.5%. As of August 2020, we referred to Chaoyang JinMei as a significantly controlled subsidiary instead of a wholly-owned subsidiary. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Investments and Fair Value Measurements | |
Investments and Fair Value Measurements | Note 2. Investments and Fair Value Measurements Our cash and cash equivalents consist of cash and instruments with original maturities of less than three months. Our investments consist of instruments with original maturities of more than three months. As of September 30, 2020 and December 31, 2019, our cash, cash equivalents and debt investments are classified as follows (in thousands): September 30, 2020 December 31, 2019 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash $ 22,384 $ — $ — $ 22,384 $ 26,892 $ — $ — $ 26,892 Cash equivalents: Certificates of deposit 1 — — — — — — — — Total cash and cash equivalents 22,384 — — 22,384 26,892 — — 26,892 Investments (available-for-sale): Certificates of deposit 2 2,880 4 — 2,884 2,400 2 — 2,402 Corporate bonds 4,501 4 — 4,505 7,030 4 (9) 7,025 Total investments 7,381 8 — 7,389 9,430 6 (9) 9,427 Total cash, cash equivalents and investments $ 29,765 $ 8 $ — $ 29,773 $ 36,322 $ 6 $ (9) $ 36,319 Contractual maturities on investments: Due within 1 year 3 $ 4,501 $ 4,505 $ 9,430 $ 9,427 Due after 1 through 5 years 4 2,880 2,884 — — $ 7,381 $ 7,389 $ 9,430 $ 9,427 1. Certificates of deposit with original maturities of less than three months. 2. Certificates of deposit with original maturities of more than three months. 3. Classified as “Short-term investments” in our condensed consolidated balance sheets. 4. Classified as “Long-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 were no gross unrealized losses on our available-for-sale debt securities as of September 30, 2020, 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. None of our debt investments would generate a loss if we sold them on September 30, 2020. 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, 2019 (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, 2019 Value (Loss) Value (Loss) Value (Loss) Investments: Corporate bonds 4,515 (9) — — 4,515 (9) Total in loss position $ 4,515 $ (9) $ — $ — $ 4,515 $ (9) 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 and included in “Other assets” in the condensed consolidated balance sheets and totaled $5.8 million and $6.0 million as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020, there were five companies accounted for under the equity method. There were no impairment charges in the three and nine months ended September 30, 2020. The nine months ended September 30, 2019 include an impairment charge of $1.1 million for one of our minority investments (see Note 7). There were no impairment charges in the three months ended September 30, 2019. Fair Value Measurements We invest primarily in money market accounts, certificates of deposits, corporate bonds and notes, and government securities. 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 September 30, 2020 and December 31, 2019, the total unrealized loss, net of tax, included in accumulated other comprehensive loss 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 Topic 820, Fair Value Measurements and Disclosures 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 include 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 US GAAP. At quarter end, any foreign currency hedges not settled are netted in “Accrued liabilities” on the condensed consolidated balance sheet and classified as Level 3 assets and liabilities. As of September 30, 2020, the net change in fair value from the placement of the hedge to settlement at each month end during the quarter had a de minimis impact on the condensed consolidated results. There were no changes in valuation techniques or related inputs in the three and nine months ended September 30, 2020. There have been no transfers between fair value measurements levels during the three and nine months ended September 30, 2020. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of September 30, 2020 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs September 30, 2020 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 2,884 $ — $ 2,884 $ — Corporate bonds 4,505 — 4,505 — Total $ 7,389 $ — $ 7,389 $ — 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, 2019 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 2,402 $ — $ 2,402 $ — Corporate bonds 7,025 — 7,025 — Total $ 9,427 $ — $ 9,427 $ — 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 cost method (see Note 7). One such investment is a 25 % ownership interest in a germanium materials company in China. After receiving such company’s preliminary first quarter 2019 financial results in early April 2019 and its projections for significant losses going forward, we determined that this asset was fully impaired and wrote the asset balance down to zero . This resulted in a $1.1 million impairment charge in our first quarter 2019 financial results. Except as mentioned above, we did not record other-than-temporary impairment charges for the remainder of these investments during the three and nine months ended September 30, 2020 and 2019, respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventories | |
Inventories | Note 3. Inventories The components of inventories are summarized below (in thousands): September 30, December 31, 2020 2019 Inventories: Raw materials $ 23,078 $ 20,677 Work in process 23,166 24,946 Finished goods 2,113 3,529 $ 48,357 $ 49,152 As of September 30, 2020 and December 31, 2019, carrying values of inventories were net of inventory reserves of $16.9 million and $16.4 million, respectively, for excess and obsolete inventory and $86,000 and $91,000, respectively, for lower of cost or net realizable value reserves. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, December 31, 2020 2019 Property, plant and equipment: Machinery and equipment, at cost $ 46,207 $ 45,742 Less: accumulated depreciation and amortization (37,876) (37,115) Building, at cost 39,870 38,837 Less: accumulated depreciation and amortization (14,070) (12,736) Leasehold improvements, at cost 5,903 4,877 Less: accumulated depreciation and amortization (4,404) (4,035) Construction in progress 72,665 61,833 $ 108,295 $ 97,403 As of September 30, 2020, the balance of construction in progress was $72.7 million, of which $57.8 million was related to our buildings in our new Dingxing and Kazuo locations, $4.2 million was for manufacturing equipment purchases not yet placed in service and $10.7 million was for our construction in progress for our other consolidated subsidiaries. As of December 31, 2019, the balance of construction in progress was $61.8 million, of which $48.8 million was for our buildings in our new Dingxing and Kazuo locations, $3.4 million was for manufacturing equipment purchases not yet placed in service and $9.6 million was for our construction in progress at our other consolidated subsidiaries. From time to time we review our estimates of the useful lives of our property, plant and equipment. As a result of the review, we determined a portion of our manufacturing equipment was lasting longer than the estimate previously established for the respective useful lives. Where appropriate, we extended the useful life of the manufacturing equipment in our accounting records. In addition, the useful life of our buildings located in China was extended to better align with industry standards. The changes in our estimate of the useful life, effective January 1, 2020, were made in order to remain consistent with US GAAP regarding management estimates. The effect of the change in the useful lives decreased our manufacturing costs for the three and nine months ended September 30, 2020 by approximately $0.3 million and $0.9 million, respectively, and increased our basic and diluted net income per share by approximately $0.01 and $0.03, respectively, as a result of lower depreciation expense. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities | |
Accrued Liabilities | Note 5. Accrued Liabilities The components of accrued liabilities are summarized below (in thousands): September 30, December 31, 2020 2019 Preferred stock dividends payable $ 2,901 $ 2,901 Accrued compensation and related charges 2,213 3,307 Payable in connection with land restoration of Nanjing JinMei factory 720 703 Accrued income taxes 714 171 Accrued professional services 659 630 Accrued product warranty 529 387 Advance from customers 494 396 Current portion of operating lease liabilities 421 319 Other tax payable 357 50 Current portion of royalty payments 300 — Payable in connection with construction 208 1,447 Other personnel-related costs 142 180 Accrual for sales returns 92 26 Payable in connection with repurchase of subsidiaries shares 49 151 Other accrued liabilities 1,043 1,013 $ 10,842 $ 11,681 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions | |
Related Party Transactions | Note 6. Related Party Transactions Effective as of March 11, 2019, we reduced our ownership in JiYa from 46% to 39% by selling a portion of our JiYa shares to our investor partner, which is also JiYa’s landlord. Based on an independent third party valuation analysis, we sold these shares for $366,000 . Previously, we were the largest shareholder of JiYa and as such, we had the right to appoint the general manager of JiYa and the ability to exercise control in substance over JiYa’s long-term strategic direction. Further, our Chief Executive Officer was the chairman of JiYa’s board of directors and our Chief Financial Officer was a member of JiYa’s board of financial supervisors. As a result of this transaction, our investor partner, Shanxi Aluminum Industrial Co., Ltd. became the largest shareholder of JiYa and assumed the right to appoint the general manager of JiYa and thereby exercised greater control over JiYa’s long-term strategic direction. Further, although our Chief Executive Officer remains on the board, as of March 11, 2019, he was no longer chairman of JiYa’s board of directors and our Chief Financial Officer was no longer on JiYa’s board of financial supervisors. Previously, we accounted for JiYa’s financial performance under the consolidation method of accounting. As a result of the changes, we began to account for JiYa’s financial performance under the equity method of accounting. Therefore, we deconsolidated JiYa from our consolidated financial statements as of March 11, 2019 in accordance with ASC 810. As of March 12, 2019, we accounted for our investment in JiYa under the equity method of accounting as we continue to have board representation and substantial ownership. Beginning in 2012, our consolidated joint venture, JinMei, became contractually obligated under an agency sales agreement to sell raw material on behalf of its equity investment entity. JinMei bills the customers and remits the receipts, net of its portions of sales commission, to this equity investment entity. For the three months ended September 30, 2020 and 2019, JinMei has recorded $0 and $0 income from agency sales, respectively. For the nine months ended September 30, 2020 and 2019, JinMei has recorded $0 and $0 income from agency sales, respectively, which were included in “Other income (expense), net” in the condensed consolidated statements of operations. In March 2012, Tongmei, entered into an operating lease for the land it owns with our consolidated joint venture, BoYu. The lease agreement for the land of approximately 22,081 square feet commenced on January 1, 2012 for a term of 10 years with annual lease payments of $24,000, subject to a 5% increase at each third year anniversary. The annual lease payment is due by January 31 st Tongmei ChaoYang purchases raw materials from one of our equity investment entities, Donghai County Dongfang High Purity Electronic Materials Co., Ltd., for production in the ordinary course of business. As of September 30, 2020 and December 31, 2019, amounts payable of $163,000 and $0 , respectively, were included in “Accounts payable” in our condensed consolidated balance sheets. Tongmei ChaoYang also purchases raw materials from one of our equity investment entities, Emei Shan Jiamei Materials Co., Ltd. (“JiaMei”), for production in the ordinary course of business. As of September 30, 2020 and December 31, 2019, amounts payable of $0 and $0 , respectively, were included in “Accounts payable” in our condensed consolidated balance sheets. Tongmei and Tongmei ChaoYang also purchase raw materials from one of our equity investment entities, Xilingol Tongli Germanium Refine Co., Ltd. (“Tongli”), for production in the ordinary course of business. As of September 30, 2020 and December 31, 2019, amounts payable of $0 and $0 , respectively, were included in “Accounts payable” in our condensed consolidated balance sheets. In July 2017, Tongmei, provided an inter-company loan to JinMei in the amount of $768,000 in preparation for the acquisition of the land use rights and the construction of a new building. The inter-company loan carries an interest rate of 4.9% per annum. The principal . In April 2016, our consolidated joint venture, BoYu, provided a personal loan of $177,000 to one of its executive employees. This loan is secured by the officer’s shares in BoYu. The loan bears interest at 2.75% per annum. During the three months ended June 30, 2017, the repayment of the principal and interest totaling $180,000 was received by our consolidated joint venture. and December 31, 2019 both principal and accrued interest, were $618,000 and $449,000 , respectively, and included in “Other assets” in our condensed consolidated balance sheets. On November 2, 2017, our consolidated joint venture, BoYu, raised additional capital in the amount of $2 million in cash from a third-party investor through the issuance of shares equivalent to 10% ownership of BoYu. This third-party investor is an immediate family member of the owner of one of BoYu's customers. For the three months ended September 30, 2020 and 2019, BoYu has recorded $37,000 and $0, respectively, in revenue from this customer. For the nine months ended September 30, 2020 and 2019, BoYu has recorded $0.3 million and $0.1 million, respectively, in revenue from this customer. As of September 30, 2020 and December 31, 2019, amounts receivable of 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. |
Investments in Privately-Held R
Investments in Privately-Held Raw Material Companies | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020, the investments are summarized below (in thousands): Investment Balance as of September 30, December 31, Accounting Ownership Company 2020 2019 Method Percentage Nanjing JinMei Gallium Co., Ltd. $ 592 $ 592 Consolidated **100 % Chaoyang JinMei Gallium Co., Ltd. $ 1,820 $ 1,820 Consolidated ***91.5 % Beijing JiYa Semiconductor Material Co., Ltd. N/A N/A Consolidated *46 % Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. 1,346 1,346 Consolidated 63 % $ 3,758 $ 3,758 Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ 1,509 $ 1,326 Equity 46 % Beijing JiYa Semiconductor Material Co., Ltd. 1,192 1,621 Equity *39 % Xilingol Tongli Germanium Co., Ltd. — — Equity 25 % Xiaoyi XingAn Gallium Co., Ltd. 2,605 2,367 Equity 25 % Emeishan Jia Mei High Purity Metals Co., Ltd. 520 647 Equity 25 % $ 5,826 $ 5,961 * Ownership percentage decreased from 46% to 39% as of March 11, 2019 in connection with our sale of shares of this entity. ** In May 2019, we purchased the remaining 3% ownership interest that we did not own from retiring members of the JinMei management team for approximately $413,000. As a result, our ownership of JinMei increased from 97% to 100%. ***In August 2020, we sold an 8.5% ownership interest to current members of the Chaoyang JinMei management team for approximately $396,000. As a result, our ownership of Chaoyang JinMei decreased from 100% to 91.5%. Effective as of March 11, 2019, we reduced our ownership in JiYa from 46% to 39 % by selling a portion of our JiYa shares to our investor partner, which is also JiYa’s landlord. Based on an independent third party valuation analysis, we sold these shares for $366,000 . Previously, we were the largest shareholder and, as such, we had the right to appoint the general manager of JiYa and the ability to exercise control in substance over JiYa’s long-term strategic direction. Further, our Chief Executive Officer was the chairman of JiYa’s board of directors and our Chief Financial Officer was a member of JiYa’s board of financial supervisors. As a result of this transaction, our investor partner, Shanxi Aluminum Industrial Co., Ltd., became the largest shareholder and assumed the right to appoint the general manager and thereby exercised greater control over JiYa’s long-term strategic direction. Further, although our Chief Executive Officer remains on the board, as of March 11, 2019 he was no longer the chairman of JiYa’s board of directors and our Chief Financial Officer was no longer a member of JiYa’s board of financial supervisors. Previously, we accounted for JiYa’s financial performance under the consolidation method of accounting. As a result of the changes we began to account for JiYa’s financial performance under the equity method of accounting. Therefore, we deconsolidated JiYa from our consolidated financial statements as of March 11, 2019 in accordance with ASC 810. As of March 12, 2019, we accounted for our investment in JiYa under the equity method of accounting as we continue to have board representation and substantial ownership. periods presented. JiYa continues to be a related party to us after deconsolidation, whom we may purchase raw materials from for production in the ordinary course of business from time to time. We recorded a gain on the deconsolidation of JiYa of $175,000 as a component of “Equity in loss of unconsolidated joint ventures” for the three months ended March 31, 2019 in the condensed consolidated statement of operations and comprehensive income (loss). On the date of deconsolidation, the fair value of the Company’s investment in JiYa exceeded the Company’s share of the net assets of JiYa, which generated the gain. As of March 12, 2019, we recorded our investment in JiYa at a fair value of $2,040,000, which was based on an independent third party valuation analysis. The valuation is based on the asset-based approach. The market-based approach is not deemed appropriate due to lack of availability of market data for comparable companies on the open market and the discounted cash flow approach is not deemed reliable because of the difficulty in predicting the future profitability of JiYa due to the volatility of the gallium market, the concentration of customers and the significant accumulated losses of JiYa. The asset-based approach examines the value of a company’s assets net of its liabilities to derive a value for the equity holders. The gain on deconsolidation includes the following: Amount (in thousands) Fair value of the consideration received $ 366 Fair value of the retained investment in Beijing JiYa Semiconductor Material Co., Ltd. 2,040 Carrying value of noncontrolling interests, net of accumulated other comprehensive income attributable to subsidiary 617 Derecognition of Beijing JiYa Semiconductor Material Co., Ltd.'s net asset (2,848) Gain recognized on deconsolidation of Beijing JiYa Semiconductor Material Co., Ltd. $ 175 Amount (in thousands) Fair value of the retained investment in Beijing JiYa Semiconductor Material Co., Ltd. $ 2,040 Carrying value of retained noncontrolling investment (1,559) Gain on retained noncontrolling investment due to remeasurement $ 481 Before June 15, 2018, our ownership of JinMei was 83%. On June 15, 2018, we purchased a 12% ownership interest from one of the minority owners of JinMei for $1.4 million. The $1.4 million was scheduled to be paid in two installments. On June 15, 2018, we paid the first installment of $163,000. In May 2019, we paid the second installment of $1.2 million as the relocation of JinMei’s headquarters and manufacturing operations was nearly complete, which had been previously included in “Accrued liabilities” in our condensed consolidated balance sheets. Our ownership of BoYu is 63%. On November 2, 2017, BoYu raised additional capital in the amount of $2 million in cash from a third-party investor through the issuance of shares equivalent to 10% ownership of BoYu. As a result, our ownership of BoYu was diluted from 70% to 63%. We continue to consolidate BoYu as we have a controlling financial interest and have majority control of the board and, accordingly, no gain was recognized as a result of this equity transaction. Our Chief Executive Officer is chairman of the BoYu board and we have appointed two other representatives to serve on the board. 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. During the three months ended September 30, 2020 and 2019, the consolidated joint ventures, before eliminating inter-company transactions, generated income of $1.8 million and $1.1 million, respectively, of which gains of $0.5 million and $0.4 million, respectively, were allocated to noncontrolling interests, resulting in an increase of $1.3 million to our net income and a reduction to our net loss of $0.7 million, respectively. During the nine months ended September 30, 2020 and 2019, the consolidated joint ventures, before eliminating inter-company transactions, generated income of $4.3 million and $2.6 million, respectively, of which gains of $1.5 million and $0.8 million, respectively, were allocated to noncontrolling interests, resulting in an increase of $2.8 million to our net income and $1.8 million reduction to our net loss, respectively. Our unaudited condensed consolidated statements of operations for the nine months ended September 30, 2019 include JiYa’s results for the period through March 11, 2019. 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 $5.8 million and $6.0 million as of September 30, 2020 and December 31, 2019, respectively. Our respective ownership interests in each of these companies are 46%, 39%, 25%, 25% and 25%. 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. One of the minority investment entities in which we have a 25% ownership interest is a germanium materials company in China. This company provides results to us only on a quarterly basis. We received its preliminary first quarter 2019 financial results in early April 2019 as well as its projections for significant losses going forward. Such projected losses would fully deplete our asset investment balance for this company in 2019. This company is experiencing significant disruptions due to upgrades and repairs required to comply with stronger environmental regulations in China. As a result, we determined that this asset was fully impaired and wrote the asset balance down to zero . This resulted in a $1.1 million impairment charge in our first quarter 2019 financial results. AXT’s minority investment entities are not consolidated and are accounted for under the equity method. Excluding one fully impaired entity, the equity entities had the following summarized income information (in thousands) for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net revenue $ 5,052 $ 3,713 $ 12,610 $ 14,713 Gross profit $ 918 $ 309 $ 2,944 $ 1,423 Operating income (loss) $ 136 $ (436) $ 598 $ (1,857) Net income (loss) $ 7 $ (502) $ (151) $ (2,518) 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 a gain of $45,000 and a loss of $0.2 million, respectively, for the three months ended September 30, 2020 and 2019. Our portion of the income and losses, including impairment charges, from these minority investment entities that are not consolidated and are accounted for under the equity method was a loss of $0.2 million and $1.7 million, respectively, for the nine months ended September 30, 2020 and 2019. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | Note 8. Stockholders’ Equity Condensed Consolidated Statements of Changes in Stockholders’ Equity (in thousands) The changes in stockholders’ equity by component for the three and nine months ended September 30, 2020 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, 2019 $ 3,532 $ 41 $ 236,957 $ (47,783) $ (4,862) $ 187,885 $ 4,877 $ 192,762 Common stock options exercised — — 441 — — 441 — 441 Stock-based compensation — — 643 — — 643 — 643 Net income (loss) — — — (178) — (178) 395 217 Other comprehensive loss — — — — (1,775) (1,775) (98) (1,873) Balance as of March 31, 2020 $ 3,532 $ 41 $ 238,041 $ (47,961) $ (6,637) $ 187,016 $ 5,174 $ 192,190 Common stock options exercised — — 72 — — 72 — 72 Stock-based compensation — — 641 — — 641 — 641 Net income — — — 361 — 361 598 959 Net dividend declared by joint ventures — — — — — — (89) (89) Other comprehensive income — — — — 272 272 9 281 Balance as of June 30, 2020 $ 3,532 $ 41 $ 238,754 $ (47,600) $ (6,365) $ 188,362 $ 5,692 $ 194,054 Common stock options exercised — — 624 — — 624 — 624 Sale of subsidiary shares to noncontrolling interests — — 396 — — 396 — 396 Stock-based compensation — — 648 — — 648 — 648 Net income — — — 991 — 991 490 1,481 Other comprehensive income — — — — 4,373 4,373 316 4,689 Balance as of September 30, 2020 $ 3,532 $ 41 $ 240,422 $ (46,609) $ (1,992) $ 195,394 $ 6,498 $ 201,892 The changes in stockholders’ equity by component for the three and nine months ended September 30, 2019 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, 2018 $ 3,532 $ 40 $ 234,418 $ (45,183) $ (1,972) $ 190,835 $ 3,697 $ 194,532 Reclassification out of accumulated other comprehensive income and noncontrolling interests upon the deconsolidation of a subsidiary — — — — (1,150) (1,150) 533 (617) Stock-based compensation — — 558 — — 558 — 558 Net income (loss) — — — (1,104) — (1,104) 81 (1,023) Other comprehensive income — — — — 2,389 2,389 142 2,531 Balance as of March 31, 2019 $ 3,532 $ 40 $ 234,976 $ (46,287) $ (733) $ 191,528 $ 4,453 $ 195,981 Common stock options exercised — — 232 — — 232 — 232 Purchase of subsidiary shares from noncontrolling interests — — (74) — — (74) (339) (413) Stock-based compensation — — 568 — — 568 — 568 Net income — — — 1,451 — 1,451 287 1,738 Other comprehensive loss — — — — (2,397) (2,397) (54) (2,451) Balance as of June 30, 2019 $ 3,532 $ 40 $ 235,702 $ (44,836) $ (3,130) $ 191,308 $ 4,347 $ 195,655 Common stock options exercised — — 35 — — 35 — 35 Stock-based compensation — — 583 — — 583 — 583 Net income — — — (898) — (898) 403 (495) Other comprehensive loss — — — — (4,110) (4,110) (214) (4,324) Balance as of September 30, 2019 $ 3,532 $ 40 $ 236,320 $ (45,734) $ (7,240) $ 186,918 $ 4,536 $ 191,454 Except as shown above related to the deconsolidation of a subsidiary, there were no reclassification adjustments from accumulated other comprehensive income (loss) for . Stock Repurchase Program On October 27, 2014, our Board of Directors approved a stock repurchase program pursuant to which we may repurchase up to $5.0 million of our outstanding common stock. These repurchases can be made from time to time in the open market and are funded from our existing cash balances and cash generated from operations. No shares were repurchased from 2016 through 2019. During the three and nine months ended September 30, 2020, we did not repurchase any shares under the approved stock repurchase program. As of September 30, 2020, approximately $2.7 million remained available for future repurchases under this program. Currently, we do not plan to repurchase additional shares. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
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 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 28 $ 31 $ 83 $ 92 Selling, general and administrative 496 433 1,480 1,296 Research and development 124 119 369 321 Total stock-based compensation 648 583 1,932 1,709 Tax effect on stock-based compensation — — — — Net effect on net income (loss) $ 648 $ 583 $ 1,932 $ 1,709 As of September 30, 2020, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plan was approximately $1.0 million, net of estimated forfeitures of $80,000 . These costs will be amortized on a straight-line basis over a weighted-average period of will be adjusted for subsequent changes in estimated forfeitures. We any stock-based compensation to inventory as of September 30, 2020 and December 31, 2019 due to the immateriality of the amount. We estimate the fair value of stock options using the Black-Scholes valuation model, consistent with the provisions of ASC 718. There were no options granted in the three and nine months ended September 30, 2020 and 2019. The following table summarizes the stock option transactions during the nine months ended September 30, 2020 (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, 2020 2,953 $ 4.00 5.95 $ 3,040 Granted — — — — Exercised (460) 2.47 — — Canceled and expired (162) 5.83 — — Balance as of September 30, 2020 2,331 $ 4.18 5.89 $ 5,061 Options vested as of September 30, 2020 and unvested options expected to vest, net of forfeitures 2,313 $ 4.18 5.87 $ 5,012 Options exercisable as of September 30, 2020 1,703 $ 4.20 4.88 $ 3,675 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $6.12 on September 30, 2020, 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 nine months ended September 30, 2020 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2020 939 $ 5.02 Granted 55 $ 5.21 Vested (127) $ 6.00 Forfeited (12) $ 5.69 Non-vested as of September 30, 2020 855 $ 4.88 As of September 30, 2020, the unamortized compensation costs related to unvested restricted stock awards was approximately $3.0 million, which is to be amortized on a straight-line basis over a weighted-average period of approximately 1.1 years. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | Note 10. Net Income (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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net income (loss) attributable to AXT, Inc. $ 991 $ (898) $ 1,174 $ (551) Less: Preferred stock dividends (44) (44) (132) (132) Net income (loss) available to common stockholders $ 947 $ (942) $ 1,042 $ (683) Denominator: Denominator for basic net income (loss) per share - weighted-average common shares 40,152 39,466 39,978 39,438 Effect of dilutive securities: Common stock options 575 — 510 — Restricted stock awards 252 — 200 — Denominator for dilutive net income (loss) per common shares 40,979 39,466 40,688 39,438 Net income (loss) attributable to AXT, Inc. per common share: Basic $ 0.02 $ (0.02) $ 0.03 $ (0.02) Diluted $ 0.02 $ (0.02) $ 0.03 $ (0.02) Options excluded from diluted net income (loss) per share as the impact is anti-dilutive 1,036 2,523 1,298 2,523 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive 218 698 347 698 The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of September 30, 2020 and December 31, 2019, valued at $3,532,000, are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the board of directors and a $4 per share liquidation preference over common stock, which must be paid before any distribution is made to common stockholders. These preferred shares were issued to Lyte Optronics, Inc. stockholders in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999. |
Segment Information and Foreign
Segment Information and Foreign Operations | 9 Months Ended |
Sep. 30, 2020 | |
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. Our chief operating decision-maker has been identified as our 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product Type: Substrates $ 20,311 $ 15,959 $ 54,066 $ 53,324 Raw Materials and Other 5,158 3,882 14,260 11,522 Total $ 25,469 $ 19,841 $ 68,326 $ 64,846 Geographical Information The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Geographical region: China $ 10,568 $ 5,117 $ 23,045 $ 21,870 Taiwan 3,333 4,399 12,908 12,062 Japan 2,233 1,339 5,265 4,641 Asia Pacific (excluding China, Taiwan and Japan) 1,446 2,234 4,503 6,156 Europe (primarily Germany) 4,689 4,737 15,017 13,752 North America (primarily the United States) 3,200 2,015 7,588 6,365 Total $ 25,469 $ 19,841 $ 68,326 $ 64,846 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 September 30, December 31, 2020 2019 Long-lived assets by geographic region, net of depreciation: North America $ 857 $ 1,069 China 110,140 99,272 $ 110,997 $ 100,341 Significant Customers No customer represented 10% of our revenue for the three months ended Two customers, represented 11% and 10% , respectively, of our revenue for the nine months ended represented 14% and 10% 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. Two customers accounted for 10% and 10% of our accounts receivable balance as of September 30, 2020 , |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
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” on the condensed consolidated balance sheets, during the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Beginning accrued product warranty $ 352 $ 353 $ 387 $ 236 Accruals for warranties issued 195 146 384 388 Adjustments related to pre-existing warranties including expirations and changes in estimates 171 27 99 175 Cost of warranty repair (189) (183) (341) (456) Ending accrued product warranty $ 529 $ 343 $ 529 $ 343 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 Land Purchase and Investment Agreement We have established a wafer processing 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 tax credits 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 the 3-D sensing VCSELs), 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 September 30, 2020, 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. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | Note 13. Other Income (Expense), Net Other income (expense), net for the three and nine months ended September 30, 2020, includes a grant of $0 In addition, we incurred a foreign currency transaction exchange loss of $135,000 and gain of $165,000 for the three months ended September 30, 2020 and 2019, respectively. We incurred a foreign currency transaction exchange loss of $126,000 and gain of $85,000 for the nine months ended September 30, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | Note 14. Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes We provide for income taxes based upon the geographic composition of worldwide earnings and tax regulations governing each region, particularly China. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws, particularly in foreign countries such as China. We recognize interest and penalties related to uncertain tax positions in income tax expense. Income tax expense for the three and nine months ended September 30, 2020 includes no interest and penalties. As of September 30, 2020, we have no accrued interest and penalties related to uncertain tax positions. We file income tax returns in the U.S. federal, various states and foreign jurisdictions. Currently, there is no tax audit in any of the jurisdictions and we do not expect there will be any significant change to this. Provision for income taxes for the three and nine months ended September 30, 2020 was mostly related to our wholly owned China subsidiaries and our partially owned subsidiaries in China. Besides the state tax liabilities, no income taxes or benefits have been provided for U.S. operations for the three and nine months ended September 30, 2020 due to the loss in the U.S. and the uncertainty of generating future profit in the U.S., which has resulted in our deferred tax assets being fully reserved. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was passed into law. The CARES Act includes several significant business tax provisions including modification to the taxable income limitation for utilization of net operating losses (“NOLs”) incurred in 2018, 2019 and 2020 and the ability to carry back NOLs from those years for a period of up to five years, an increase to the limitation on deductibility of certain business interest expense, bonus depreciation for purchases of qualified improvement property and special deductions on certain corporate charitable contributions. The Company analyzed the provisions of the CARES Act and determined there was no effect on its provision for the current period and will continue to evaluate the impact, if any, the CARES Act may have on the Company’s condensed consolidated financial statements and disclosures. 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 . |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
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 We receive payments from customers based on a billing schedule as established in our contracts. 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 September 30, 2020. The following table reflects the contract liabilities balance as of September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, 2020 2019 Contract liabilities $ (494) $ (396) During the three and nine months ended September 30, 2020, the Company recognized $8,000 and $242,000, respectively, of revenue that was included in the contract balances as of December 31, 2019. 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. |
Bank Loans and Line of Credit
Bank Loans and Line of Credit | 9 Months Ended |
Sep. 30, 2020 | |
Bank Loans and Line of Credit | |
Bank Loans and Line of Credit | Note 16. Bank Loans and Line of Credit On November 6, 2018, the Company entered into a Credit Agreement (the “Credit Agreement”), by and between the Company and Wells Fargo Bank, National Association (“Wells Fargo Bank”), which established a $10 million secured revolving line of credit with a $1.0 million letter of credit sublimit facility. The revolving credit facility is collateralized by substantially all of the assets of the Company located within the United States, subject to certain exceptions. The commitments under the Credit Agreement expire on November 30, 2020 and any loans thereunder will bear interest at a rate based on the daily one-month London Inter-bank Offered Rate (“LIBOR”) for the applicable interest period plus a margin of 2.00%. On February 5, 2020, the Company entered into the First Amendment to Credit Agreement (the “First Amendment”), by and between the Company and Wells Fargo Bank, which reduced the $10 million secured revolving line of credit under the Credit Agreement to $7 million. The commitments under the Credit Agreement, as amended by the First Amendment, expire on November 30, 2020 and any loans thereunder will bear interest at a rate based on the daily one-month LIBOR for the applicable interest period plus a margin of 2.5% . As of September 30, 2020, On August 9, 2019, Tongmei entered into a credit facility with the Bank of China with a $5.8 million line of credit at an annual interest rate of approximately 0.4% over the average interest rate quoted by the National Interbank Funding Center. Accrued interest is calculated monthly and paid quarterly. The annual interest rate was approximately 4.7% as of July 31, 2020. The credit facility is collateralized by Tongmei Baoding’s land use rights and all of its buildings located at its facility in Dingxing. The primary intended use of the credit facility is for general purposes, which may include working capital and other corporate expenses. In September 2020, the August 2019 borrowing was renewed and funded against the credit facility with an interest rate of 3.85%. The interest owed during the term of the loan was deducted prior to funding. The repayment of the loan is due on March 22, 2021, however the credit facility contains an option to renew for an additional six months. As of September 30, 2020, $2.9 million was included in “Bank loan” in our condensed consolidated balance sheets. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
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 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. The remainder relate to our lease agreement for our facility in Fremont, California with approximately 19,467 square feet, which expires 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. There are no variable lease On January 1, 2019, we adopted Accounting Standard Update 2016-02, Leases Leases We adopted ASC 842 using a modified retrospective approach for all leases existing at January 1, 2019. The adoption of ASC 842 had a material impact on our consolidated balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and we recorded an adjustment of $1.1 million to operating practical expedients 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 September 30, 2020, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2020 $ 129 2021 555 2022 571 2023 562 2024 274 Thereafter 1,252 Total minimum lease payments 3,343 Less: Interest (507) Present value of lease obligations 2,836 Less: Current portion, included in accrued liabilities (421) Long-term portion of lease obligations $ 2,415 The weighted average remaining lease term and the weighted-average discount rate for our operating leases as of each date is as follows: September 30, December 31, 2020 2019 Weighted-average remaining lease term (years) 7.34 7.94 Weighted-average discount rate 4.61 % 4.61 % Supplemental cash flow information related to leases where we are the lessee is as follows (in thousands): Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 324 $ 159 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Leased assets obtained in exchange for new operating lease liabilities $ — $ 2,072 The components of lease expense are as follows (in thousands) within our condensed consolidated statements of operations: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Operating lease $ 128 $ 106 $ 383 $ 229 Short-term lease expense 27 14 61 42 Total $ 155 $ 120 $ 444 $ 271 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 18. Recent Accounting Pronouncements Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) was issued in June 2016. Under ASU 2016-13, existing guidance on reporting credit losses for trade and other receivables and available for sale debt securities have been replaced with a new forward-looking “expected loss” model that has resulted in the earlier recognition of allowances for losses. Our adoption of ASU 2016-13 and its subsequent series of amendments during the three and nine months ended September 30, 2020 using the modified retrospective transition approach did not result in a material impact on our condensed consolidated financial statements. As part of our assessment of the adequacy of our allowances for credit losses, we consider a number of factors including, but not limited to, customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of receivables, adequacy of our allowance for doubtful accounts and expected loss rates. |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments and Fair Value Measurements | |
Cash, cash equivalents and investments | September 30, 2020 December 31, 2019 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value Classified as: Cash $ 22,384 $ — $ — $ 22,384 $ 26,892 $ — $ — $ 26,892 Cash equivalents: Certificates of deposit 1 — — — — — — — — Total cash and cash equivalents 22,384 — — 22,384 26,892 — — 26,892 Investments (available-for-sale): Certificates of deposit 2 2,880 4 — 2,884 2,400 2 — 2,402 Corporate bonds 4,501 4 — 4,505 7,030 4 (9) 7,025 Total investments 7,381 8 — 7,389 9,430 6 (9) 9,427 Total cash, cash equivalents and investments $ 29,765 $ 8 $ — $ 29,773 $ 36,322 $ 6 $ (9) $ 36,319 Contractual maturities on investments: Due within 1 year 3 $ 4,501 $ 4,505 $ 9,430 $ 9,427 Due after 1 through 5 years 4 2,880 2,884 — — $ 7,381 $ 7,389 $ 9,430 $ 9,427 1. Certificates of deposit with original maturities of less than three months. 2. Certificates of deposit with original maturities of more than three months. 3. Classified as “Short-term investments” in our condensed consolidated balance sheets. 4. Classified as “Long-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 December 31, 2019 (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, 2019 Value (Loss) Value (Loss) Value (Loss) Investments: Corporate bonds 4,515 (9) — — 4,515 (9) Total in loss position $ 4,515 $ (9) $ — $ — $ 4,515 $ (9) |
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 September 30, 2020 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs September 30, 2020 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 2,884 $ — $ 2,884 $ — Corporate bonds 4,505 — 4,505 — Total $ 7,389 $ — $ 7,389 $ — 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, 2019 (in thousands): Quoted Prices in Significant Active Markets of Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents and investments: Certificates of deposit $ 2,402 $ — $ 2,402 $ — Corporate bonds 7,025 — 7,025 — Total $ 9,427 $ — $ 9,427 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventories | |
Components of inventories | The components of inventories are summarized below (in thousands): September 30, December 31, 2020 2019 Inventories: Raw materials $ 23,078 $ 20,677 Work in process 23,166 24,946 Finished goods 2,113 3,529 $ 48,357 $ 49,152 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, December 31, 2020 2019 Property, plant and equipment: Machinery and equipment, at cost $ 46,207 $ 45,742 Less: accumulated depreciation and amortization (37,876) (37,115) Building, at cost 39,870 38,837 Less: accumulated depreciation and amortization (14,070) (12,736) Leasehold improvements, at cost 5,903 4,877 Less: accumulated depreciation and amortization (4,404) (4,035) Construction in progress 72,665 61,833 $ 108,295 $ 97,403 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities | |
Schedule of components of accrued liabilities | The components of accrued liabilities are summarized below (in thousands): September 30, December 31, 2020 2019 Preferred stock dividends payable $ 2,901 $ 2,901 Accrued compensation and related charges 2,213 3,307 Payable in connection with land restoration of Nanjing JinMei factory 720 703 Accrued income taxes 714 171 Accrued professional services 659 630 Accrued product warranty 529 387 Advance from customers 494 396 Current portion of operating lease liabilities 421 319 Other tax payable 357 50 Current portion of royalty payments 300 — Payable in connection with construction 208 1,447 Other personnel-related costs 142 180 Accrual for sales returns 92 26 Payable in connection with repurchase of subsidiaries shares 49 151 Other accrued liabilities 1,043 1,013 $ 10,842 $ 11,681 |
Investments in Privately-Held_2
Investments in Privately-Held Raw Material Companies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments in Privately-Held Raw Material Companies | |
Summary of investments | As of September 30, 2020, the investments are summarized below (in thousands): Investment Balance as of September 30, December 31, Accounting Ownership Company 2020 2019 Method Percentage Nanjing JinMei Gallium Co., Ltd. $ 592 $ 592 Consolidated **100 % Chaoyang JinMei Gallium Co., Ltd. $ 1,820 $ 1,820 Consolidated ***91.5 % Beijing JiYa Semiconductor Material Co., Ltd. N/A N/A Consolidated *46 % Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd. 1,346 1,346 Consolidated 63 % $ 3,758 $ 3,758 Donghai County Dongfang High Purity Electronic Materials Co., Ltd. $ 1,509 $ 1,326 Equity 46 % Beijing JiYa Semiconductor Material Co., Ltd. 1,192 1,621 Equity *39 % Xilingol Tongli Germanium Co., Ltd. — — Equity 25 % Xiaoyi XingAn Gallium Co., Ltd. 2,605 2,367 Equity 25 % Emeishan Jia Mei High Purity Metals Co., Ltd. 520 647 Equity 25 % $ 5,826 $ 5,961 |
Summary of gain on deconsolidation | Amount (in thousands) Fair value of the consideration received $ 366 Fair value of the retained investment in Beijing JiYa Semiconductor Material Co., Ltd. 2,040 Carrying value of noncontrolling interests, net of accumulated other comprehensive income attributable to subsidiary 617 Derecognition of Beijing JiYa Semiconductor Material Co., Ltd.'s net asset (2,848) Gain recognized on deconsolidation of Beijing JiYa Semiconductor Material Co., Ltd. $ 175 Amount (in thousands) Fair value of the retained investment in Beijing JiYa Semiconductor Material Co., Ltd. $ 2,040 Carrying value of retained noncontrolling investment (1,559) Gain on retained noncontrolling investment due to remeasurement $ 481 |
Summarized equity method income information | AXT’s minority investment entities are not consolidated and are accounted for under the equity method. Excluding one fully impaired entity, the equity entities had the following summarized income information (in thousands) for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net revenue $ 5,052 $ 3,713 $ 12,610 $ 14,713 Gross profit $ 918 $ 309 $ 2,944 $ 1,423 Operating income (loss) $ 136 $ (436) $ 598 $ (1,857) Net income (loss) $ 7 $ (502) $ (151) $ (2,518) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity | |
Consolidated statements of changes in stockholders' equity | Condensed Consolidated Statements of Changes in Stockholders’ Equity (in thousands) The changes in stockholders’ equity by component for the three and nine months ended September 30, 2020 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, 2019 $ 3,532 $ 41 $ 236,957 $ (47,783) $ (4,862) $ 187,885 $ 4,877 $ 192,762 Common stock options exercised — — 441 — — 441 — 441 Stock-based compensation — — 643 — — 643 — 643 Net income (loss) — — — (178) — (178) 395 217 Other comprehensive loss — — — — (1,775) (1,775) (98) (1,873) Balance as of March 31, 2020 $ 3,532 $ 41 $ 238,041 $ (47,961) $ (6,637) $ 187,016 $ 5,174 $ 192,190 Common stock options exercised — — 72 — — 72 — 72 Stock-based compensation — — 641 — — 641 — 641 Net income — — — 361 — 361 598 959 Net dividend declared by joint ventures — — — — — — (89) (89) Other comprehensive income — — — — 272 272 9 281 Balance as of June 30, 2020 $ 3,532 $ 41 $ 238,754 $ (47,600) $ (6,365) $ 188,362 $ 5,692 $ 194,054 Common stock options exercised — — 624 — — 624 — 624 Sale of subsidiary shares to noncontrolling interests — — 396 — — 396 — 396 Stock-based compensation — — 648 — — 648 — 648 Net income — — — 991 — 991 490 1,481 Other comprehensive income — — — — 4,373 4,373 316 4,689 Balance as of September 30, 2020 $ 3,532 $ 41 $ 240,422 $ (46,609) $ (1,992) $ 195,394 $ 6,498 $ 201,892 The changes in stockholders’ equity by component for the three and nine months ended September 30, 2019 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, 2018 $ 3,532 $ 40 $ 234,418 $ (45,183) $ (1,972) $ 190,835 $ 3,697 $ 194,532 Reclassification out of accumulated other comprehensive income and noncontrolling interests upon the deconsolidation of a subsidiary — — — — (1,150) (1,150) 533 (617) Stock-based compensation — — 558 — — 558 — 558 Net income (loss) — — — (1,104) — (1,104) 81 (1,023) Other comprehensive income — — — — 2,389 2,389 142 2,531 Balance as of March 31, 2019 $ 3,532 $ 40 $ 234,976 $ (46,287) $ (733) $ 191,528 $ 4,453 $ 195,981 Common stock options exercised — — 232 — — 232 — 232 Purchase of subsidiary shares from noncontrolling interests — — (74) — — (74) (339) (413) Stock-based compensation — — 568 — — 568 — 568 Net income — — — 1,451 — 1,451 287 1,738 Other comprehensive loss — — — — (2,397) (2,397) (54) (2,451) Balance as of June 30, 2019 $ 3,532 $ 40 $ 235,702 $ (44,836) $ (3,130) $ 191,308 $ 4,347 $ 195,655 Common stock options exercised — — 35 — — 35 — 35 Stock-based compensation — — 583 — — 583 — 583 Net income — — — (898) — (898) 403 (495) Other comprehensive loss — — — — (4,110) (4,110) (214) (4,324) Balance as of September 30, 2019 $ 3,532 $ 40 $ 236,320 $ (45,734) $ (7,240) $ 186,918 $ 4,536 $ 191,454 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 28 $ 31 $ 83 $ 92 Selling, general and administrative 496 433 1,480 1,296 Research and development 124 119 369 321 Total stock-based compensation 648 583 1,932 1,709 Tax effect on stock-based compensation — — — — Net effect on net income (loss) $ 648 $ 583 $ 1,932 $ 1,709 |
Summary of stock option activity | The following table summarizes the stock option transactions during the nine months ended September 30, 2020 (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, 2020 2,953 $ 4.00 5.95 $ 3,040 Granted — — — — Exercised (460) 2.47 — — Canceled and expired (162) 5.83 — — Balance as of September 30, 2020 2,331 $ 4.18 5.89 $ 5,061 Options vested as of September 30, 2020 and unvested options expected to vest, net of forfeitures 2,313 $ 4.18 5.87 $ 5,012 Options exercisable as of September 30, 2020 1,703 $ 4.20 4.88 $ 3,675 |
Summary of restricted stock awards activity | A summary of activity related to restricted stock awards for the nine months ended September 30, 2020 is presented below (in thousands, except per share data): Weighted-Average Grant Date Stock Awards Shares Share Value Non-vested as of January 1, 2020 939 $ 5.02 Granted 55 $ 5.21 Vested (127) $ 6.00 Forfeited (12) $ 5.69 Non-vested as of September 30, 2020 855 $ 4.88 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Income (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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net income (loss) attributable to AXT, Inc. $ 991 $ (898) $ 1,174 $ (551) Less: Preferred stock dividends (44) (44) (132) (132) Net income (loss) available to common stockholders $ 947 $ (942) $ 1,042 $ (683) Denominator: Denominator for basic net income (loss) per share - weighted-average common shares 40,152 39,466 39,978 39,438 Effect of dilutive securities: Common stock options 575 — 510 — Restricted stock awards 252 — 200 — Denominator for dilutive net income (loss) per common shares 40,979 39,466 40,688 39,438 Net income (loss) attributable to AXT, Inc. per common share: Basic $ 0.02 $ (0.02) $ 0.03 $ (0.02) Diluted $ 0.02 $ (0.02) $ 0.03 $ (0.02) Options excluded from diluted net income (loss) per share as the impact is anti-dilutive 1,036 2,523 1,298 2,523 Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive 218 698 347 698 |
Segment Information and Forei_2
Segment Information and Foreign Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Information and Foreign Operations | |
Revenues reported by product type | The following table represents revenue amounts (in thousands) by product type: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product Type: Substrates $ 20,311 $ 15,959 $ 54,066 $ 53,324 Raw Materials and Other 5,158 3,882 14,260 11,522 Total $ 25,469 $ 19,841 $ 68,326 $ 64,846 |
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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Geographical region: China $ 10,568 $ 5,117 $ 23,045 $ 21,870 Taiwan 3,333 4,399 12,908 12,062 Japan 2,233 1,339 5,265 4,641 Asia Pacific (excluding China, Taiwan and Japan) 1,446 2,234 4,503 6,156 Europe (primarily Germany) 4,689 4,737 15,017 13,752 North America (primarily the United States) 3,200 2,015 7,588 6,365 Total $ 25,469 $ 19,841 $ 68,326 $ 64,846 |
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 September 30, December 31, 2020 2019 Long-lived assets by geographic region, net of depreciation: North America $ 857 $ 1,069 China 110,140 99,272 $ 110,997 $ 100,341 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Product warranty accrued liability | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Beginning accrued product warranty $ 352 $ 353 $ 387 $ 236 Accruals for warranties issued 195 146 384 388 Adjustments related to pre-existing warranties including expirations and changes in estimates 171 27 99 175 Cost of warranty repair (189) (183) (341) (456) Ending accrued product warranty $ 529 $ 343 $ 529 $ 343 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue | |
Schedule of amounts recorded in accrued liabilities | September 30, December 31, 2020 2019 Contract liabilities $ (494) $ (396) During the three and nine months ended September 30, 2020, the Company recognized $8,000 and $242,000, respectively, of revenue that was included in the contract balances as of December 31, 2019. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Summary of maturities of our operating lease liabilities | As of September 30, 2020, the maturities of our operating lease liabilities (excluding short-term leases) are as follows (in thousands): Maturity of Lease Liabilities 2020 $ 129 2021 555 2022 571 2023 562 2024 274 Thereafter 1,252 Total minimum lease payments 3,343 Less: Interest (507) Present value of lease obligations 2,836 Less: Current portion, included in accrued liabilities (421) Long-term portion of lease obligations $ 2,415 |
Schedule of weighted-average remaining lease term and the weighted-average discount rate of operating leases | September 30, December 31, 2020 2019 Weighted-average remaining lease term (years) 7.34 7.94 Weighted-average discount rate 4.61 % 4.61 % |
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): Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 324 $ 159 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Leased assets obtained in exchange for new operating lease liabilities $ — $ 2,072 |
Summary of components of lease expense | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Operating lease $ 128 $ 106 $ 383 $ 229 Short-term lease expense 27 14 61 42 Total $ 155 $ 120 $ 444 $ 271 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 15, 2018USD ($) | Aug. 31, 2020USD ($) | May 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)company | Dec. 31, 2019company | Jul. 31, 2020 | Apr. 30, 2019 | Mar. 11, 2019 | Mar. 10, 2019 | Aug. 31, 2018 | Jun. 14, 2018 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Number of equity method investments | company | 5 | 5 | |||||||||||
Additional percentage of ownership, consolidated method | 2 | ||||||||||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 366,000 | $ 366,000 | |||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Additional percentage of ownership, consolidated method | 12 | 3 | |||||||||||
Purchase of subsidiary shares from noncontrolling interest | $ 1,400,000 | $ 413,000 | $ 252,000 | ||||||||||
Chaoyang JinMei Gallium Co., Ltd[member] | |||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Additional percentage of ownership, consolidated method | 8.5 | ||||||||||||
Purchase of subsidiary shares from noncontrolling interest | $ 396,000 | ||||||||||||
Percentage Of Ownership Interest Sold | 8.50% | ||||||||||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 396,000 | ||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd | |||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 39.00% | 46.00% | |||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 100.00% | 97.00% | |||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Nanjing JinMei Gallium Co., Ltd Investment | |||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 100.00% | 95.00% | 83.00% | ||||||||||
Chaoyang JinMei Gallium Co., Ltd[member] | |||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 91.50% | 100.00% | |||||||||||
Chaoyang JinMei Gallium Co., Ltd[member] | Chaoyang JinMei Gallium Co., Ltd[member] | |||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 91.50% | 91.50% | 100.00% | ||||||||||
Percentage Of Ownership Interest Sold | 8.50% | ||||||||||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 396,000 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Cash, cash equivalents and investments [Abstract] | ||
Cash | $ 22,384 | $ 26,892 |
Cash equivalents [Abstract] | ||
Total cash and cash equivalents | 22,384 | 26,892 |
Amortized Cost | 7,381 | 9,430 |
Cash, cash equivalents and investments, amortized costs | 29,765 | 36,322 |
Gross Unrealized Gain | 8 | 6 |
Gross Unrealized (Loss) | (9) | |
Fair Value | 7,389 | 9,427 |
Cash, cash equivalents and investments, amortized costs | 29,773 | 36,319 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Due within 1 year | 4,501 | 9,430 |
Due after 1 through 5 years | 2,880 | |
Investments, amortized cost | 7,381 | 9,430 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Due within 1 year | 4,505 | 9,427 |
Due after 1 through 5 years | 2,884 | |
Investments, fair value | 7,389 | 9,427 |
Total Investments | ||
Cash equivalents [Abstract] | ||
Amortized Cost | 7,381 | 9,430 |
Gross Unrealized Gain | 8 | 6 |
Gross Unrealized (Loss) | (9) | |
Fair Value | 7,389 | 9,427 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Investments, amortized cost | 7,381 | 9,430 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Investments, fair value | 7,389 | 9,427 |
Certificates of Deposit [Member] | ||
Cash equivalents [Abstract] | ||
Amortized Cost | 2,880 | 2,400 |
Gross Unrealized Gain | 4 | 2 |
Fair Value | 2,884 | 2,402 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Investments, amortized cost | 2,880 | 2,400 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Investments, fair value | 2,884 | 2,402 |
Corporate Bonds [Member] | ||
Cash equivalents [Abstract] | ||
Amortized Cost | 4,501 | 7,030 |
Gross Unrealized Gain | 4 | 4 |
Gross Unrealized (Loss) | (9) | |
Fair Value | 4,505 | 7,025 |
Contractual maturities on investments, amortized cost basis [Abstract] | ||
Investments, amortized cost | 4,501 | 7,030 |
Contractual maturities on investments, fair value basis [Abstract] | ||
Investments, fair value | $ 4,505 | $ 7,025 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Investment Category and Length (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)company | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)company | |
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||||
Fair value, in loss position less than twelve months | $ 4,515 | |||||
Gross unrealized loss, in loss position less than twelve months | (9) | |||||
Fair value, total in loss position | 4,515 | |||||
Gross unrealized loss, total in loss position | (9) | |||||
Minority Investments | ||||||
Investments, equity method | $ 5,826 | $ 5,826 | $ 5,961 | |||
Number of equity method investments | company | 5 | 5 | ||||
Impairment charge | 0 | $ 0 | $ 1,100 | $ 0 | $ 1,100 | |
Xilingol Tongli Germanium Co. Ltd Investment | Xilingol Tongli Germanium Co. Ltd Investment | ||||||
Minority Investments | ||||||
Investments, equity method | $ 0 | $ 0 | ||||
Ownership (as a percent) | 25.00% | 25.00% | ||||
Corporate Bonds [Member] | ||||||
Summary of fair value and gross unrealized losses related to available-for-sale securities [Abstract] | ||||||
Fair value, in loss position less than twelve months | $ 4,515 | |||||
Gross unrealized loss, in loss position less than twelve months | (9) | |||||
Fair value, total in loss position | 4,515 | |||||
Gross unrealized loss, total in loss position | (9) | |||||
Other assets | ||||||
Minority Investments | ||||||
Investments, equity method | $ 5,800 | $ 5,800 | $ 6,000 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Assets, Fair Value Disclosure [Abstract] | |||
Investments, amortized cost | $ 7,389 | $ 7,389 | $ 9,427 |
Fair Value, Transfers Between Level 1 and Level 2, Description and Policy [Abstract] | |||
Transfer from Level 1 to Level 2 , assets | 0 | 0 | |
Transfer from Level 2 to Level 1 , assets | 0 | 0 | |
Transfers into Level 3, assets | 0 | 0 | |
Transfer out of Level 3, assets | 0 | ||
Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total | 7,389 | 7,389 | 9,427 |
Recurring | Certificates of Deposit [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash and cash equivalents, fair value disclosure | 2,884 | 2,884 | 2,402 |
Recurring | Corporate Bonds [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Investments, amortized cost | 4,505 | 4,505 | 7,025 |
Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total | 7,389 | 7,389 | 9,427 |
Recurring | Significant Other Observable Inputs (Level 2) | Certificates of Deposit [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash and cash equivalents, fair value disclosure | 2,884 | 2,884 | 2,402 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate Bonds [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Investments, amortized cost | $ 4,505 | $ 4,505 | $ 7,025 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Raw materials | $ 23,078 | $ 20,677 |
Work in process | 23,166 | 24,946 |
Finished goods | 2,113 | 3,529 |
Inventories, Total | 48,357 | 49,152 |
Inventory reserve | 16,900 | 16,400 |
Excess and obsolete inventory | $ 86,000 | $ 91,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, net | $ 108,295 | $ 108,295 | $ 97,403 |
Service Life | |||
Property, plant and equipment [Abstract] | |||
Decrease in manufacturing costs as a result of lower depreciation | $ 300 | $ 900 | |
Decrease in net loss per share, basic and diluted, as a result of lower depreciation | $ 0.01 | $ 0.03 | |
Machinery and equipment | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 46,207 | $ 46,207 | 45,742 |
Less: accumulated depreciation and amortization | (37,876) | (37,876) | (37,115) |
Building | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 39,870 | 39,870 | 38,837 |
Less: accumulated depreciation and amortization | (14,070) | (14,070) | (12,736) |
Leasehold improvements | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 5,903 | 5,903 | 4,877 |
Less: accumulated depreciation and amortization | (4,404) | (4,404) | (4,035) |
Construction in progress | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 72,665 | 72,665 | 61,833 |
Construction in progress Dingxin and Kazuo locations | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 57,800 | 57,800 | 48,800 |
Construction in progress manufacturing equipment purchases | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 4,200 | 4,200 | 3,400 |
Construction in progress other consolidated subsidiaries | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 10,700 | $ 10,700 | $ 9,600 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Components of accrued liabilities | ||
Preferred stock dividends payable | $ 2,901 | $ 2,901 |
Accrued compensation and related charges | 2,213 | 3,307 |
Payable in connection with land restoration of Nanjing JinMei factory | 720 | 703 |
Accrued income taxes | 714 | 171 |
Accrued professional services | 659 | 630 |
Accrued product warranty | 529 | 387 |
Advance from customers | 494 | 396 |
Current portion of operating lease liabilities | 421 | 319 |
Other tax payable | 357 | 50 |
Current portion of royalty payments | 300 | |
Payable in connection with construction | 208 | 1,447 |
Other personnel-related costs | 142 | 180 |
Accrual for sales returns | 92 | 26 |
Payable in connection with repurchase of subsidiaries shares | 49 | 151 |
Other accrued liabilities | 1,043 | 1,013 |
Accrued liabilities, Total | $ 10,842 | $ 11,681 |
Related Party Transactions (Det
Related Party Transactions (Details) | Nov. 02, 2017USD ($) | Mar. 31, 2020USD ($) | May 31, 2019USD ($) | Nov. 30, 2017USD ($) | Jul. 31, 2017USD ($)installment | Apr. 30, 2016USD ($) | Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Mar. 11, 2019 | Mar. 10, 2019 |
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from sale of previously consolidated subsidiary shares | $ 366,000 | $ 366,000 | |||||||||||||
Area of leased property (in square feet) | ft² | 19,467 | 19,467 | |||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 39.00% | 46.00% | |||||||||||||
Equity investment entity | Raw materials sales to related party | Accounts receivable | Beijing JiYa Semiconductor Material Co., Ltd | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amounts receivable from related party | $ 0 | $ 0 | $ 12,000 | ||||||||||||
Equity investment entity | Raw material agency sales agreement | Other income (expense), net [Member] | Nanjing JinMei Gallium Co., Ltd | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Other income from related party | 0 | $ 0 | 0 | $ 0 | |||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd | Raw materials purchases from related party | Accounts payable | Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount payable to related party | 163,000 | 163,000 | 0 | ||||||||||||
Emei Shan Jiamei Materials Co., Ltd | Raw materials purchases from related party | Accounts payable | Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount payable to related party | 0 | 0 | 0 | ||||||||||||
Xilingol Tongli Germanium Co. Ltd | Raw materials purchases from related party | Accounts payable | Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount payable to related party | $ 0 | $ 0 | 0 | ||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co | Lease of land | Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Area of leased property (in square feet) | ft² | 22,081 | 22,081 | |||||||||||||
Lease term | 10 years | 10 years | |||||||||||||
Annual lease payment | $ 24,000 | ||||||||||||||
Increase in annual lease payment at each third year anniversary (in hundredths) | 5.00% | 5.00% | |||||||||||||
Rental increase period | 3 years | ||||||||||||||
Nanjing JinMei Gallium Co., Ltd | Related party loan | Beijing Tongmei Xtal Technology | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount of transaction | $ 768,000 | ||||||||||||||
Number of installments | installment | 3 | ||||||||||||||
Amount payable to related party | $ 302,000 | $ 302,000 | 285,000 | ||||||||||||
Interest rate (as a percent) | 4.90% | ||||||||||||||
Repayment of related party notes receivable | 501,000 | ||||||||||||||
Executive officer | Related party loan | Beijing BoYu Semiconductor Vessel Craftwork Technology Co | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amount of transaction | $ 141,000 | $ 146,000 | $ 291,000 | $ 177,000 | |||||||||||
Interest rate (as a percent) | 2.75% | 2.75% | 2.75% | 2.75% | |||||||||||
Repayment of related party notes receivable | $ 180,000 | ||||||||||||||
Executive officer | Related party loan | Other assets | Beijing BoYu Semiconductor Vessel Craftwork Technology Co | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party notes receivable - current | 618,000 | 618,000 | $ 449,000 | ||||||||||||
3rd party investor | Beijing BoYu Semiconductor Vessel Craftwork Technology Co | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenue from related parties | $ 37,000 | $ 0 | $ 300,000 | $ 100,000 | |||||||||||
Raised additional capital | $ 2,000,000 | ||||||||||||||
Percentage ownership from issuance of shares | 10.00% |
Investments in Privately-Held_3
Investments in Privately-Held Raw Material Companies (Details) | Jun. 15, 2018USD ($)installment | Nov. 02, 2017USD ($) | Aug. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | May 31, 2019USD ($) | Sep. 30, 2018USD ($)employeeentity | Sep. 30, 2020USD ($)employee | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)entityemployee | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 01, 2019USD ($) | Apr. 30, 2019 | Mar. 11, 2019 | Mar. 10, 2019 | Aug. 31, 2018 | Jun. 14, 2018 | Nov. 01, 2017 |
Summary of investments | ||||||||||||||||||||
Investments, equity method | $ 5,826,000 | $ 5,826,000 | $ 5,961,000 | |||||||||||||||||
Proceeds from sale of previously consolidated subsidiary shares | $ 366,000 | 366,000 | ||||||||||||||||||
Gain on deconsolidation | 175,000 | $ 175,000 | ||||||||||||||||||
Additional percentage of ownership, consolidated method | 2 | |||||||||||||||||||
Payment of first installment | 262,000 | |||||||||||||||||||
Noncontrolling interests | 6,498,000 | 6,498,000 | 4,877,000 | |||||||||||||||||
Remainder portion of payment | 49,000 | 49,000 | 151,000 | |||||||||||||||||
Number of persons on board | employee | 1 | |||||||||||||||||||
Net income attributable to noncontrolling interests | 490,000 | $ 403,000 | 1,483,000 | 771,000 | ||||||||||||||||
Impairment charge | 0 | 0 | $ 1,100,000 | $ 0 | 1,100,000 | |||||||||||||||
Impaired entities | entity | 1 | |||||||||||||||||||
Joint Ventures | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Number of consolidated joint ventures | entity | 3 | |||||||||||||||||||
Income from consolidated joint ventures | 1,800,000 | 1,100,000 | $ 4,300,000 | 2,600,000 | ||||||||||||||||
Net income attributable to noncontrolling interests | 500,000 | 400,000 | 1,500,000 | 800,000 | ||||||||||||||||
Net income (loss) from joint ventures attributable to parent | 1,300,000 | $ 700,000 | 2,800,000 | $ 1,800,000 | ||||||||||||||||
Other assets | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, equity method | 5,800,000 | $ 5,800,000 | 6,000,000 | |||||||||||||||||
Xilingol Tongli Germanium Co. Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Direct minority investments not consolidated | entity | 1 | |||||||||||||||||||
Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment | Donghai County Dongfang High Purity Electronic Materials Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, equity method | $ 1,509,000 | $ 1,509,000 | 1,326,000 | |||||||||||||||||
Percentage of ownership, equity method (in hundredths) | 46.00% | 46.00% | ||||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, equity method | $ 1,192,000 | $ 1,192,000 | 1,621,000 | |||||||||||||||||
Percentage of ownership, equity method (in hundredths) | 39.00% | 39.00% | ||||||||||||||||||
Xilingol Tongli Germanium Co. Ltd Investment | Xilingol Tongli Germanium Co. Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, equity method | $ 0 | $ 0 | ||||||||||||||||||
Percentage of ownership, equity method (in hundredths) | 25.00% | 25.00% | ||||||||||||||||||
Xiaoyi XingAn Gallium Co., Ltd. | Xiaoyi XingAn Gallium Co., Ltd. | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, consolidated method | $ 2,605,000 | $ 2,605,000 | 2,367,000 | |||||||||||||||||
Percentage of ownership, equity method (in hundredths) | 25.00% | 25.00% | ||||||||||||||||||
Emeishan Jia Mei High Purity Metals Co., Ltd Investment | Emeishan Jia Mei High Purity Metals Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, equity method | $ 520,000 | $ 520,000 | 647,000 | |||||||||||||||||
Percentage of ownership, equity method (in hundredths) | 25.00% | 25.00% | ||||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 39.00% | 46.00% | ||||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 39.00% | 46.00% | ||||||||||||||||||
Chaoyang JinMei Gallium Co., Ltd[member] | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 91.50% | 100.00% | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 100.00% | 97.00% | ||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Number of new board representatives | employee | 2 | |||||||||||||||||||
Beijing Boyu Semiconductor Vessel Craftwork Technology Co Ltd | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Number of persons on board | employee | 2 | 2 | ||||||||||||||||||
Majority-Owned Subsidiaries | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, consolidated method | $ 3,758,000 | $ 3,758,000 | 3,758,000 | |||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, consolidated method | $ 592,000 | $ 592,000 | 592,000 | |||||||||||||||||
Additional percentage of ownership, consolidated method | 12 | 3 | ||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | $ 1,400,000 | $ 413,000 | $ 252,000 | |||||||||||||||||
Number of installments | installment | 2 | |||||||||||||||||||
Payment of first installment | $ 163,000 | $ 29,000 | $ 73,000 | 262,000 | ||||||||||||||||
Payment of second installment | 1,200,000 | |||||||||||||||||||
Noncontrolling interests | $ 0 | |||||||||||||||||||
Remainder portion of payment | $ 49,000 | |||||||||||||||||||
Nanjing JinMei Gallium Co., Ltd Investment | Nanjing JinMei Gallium Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 100.00% | 100.00% | 95.00% | 83.00% | ||||||||||||||||
Chaoyang JinMei Gallium Co., Ltd[member] | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, consolidated method | $ 1,820,000 | $ 1,820,000 | 1,820,000 | |||||||||||||||||
Percentage Of Ownership Interest Sold | 8.50% | |||||||||||||||||||
Proceeds from sale of previously consolidated subsidiary shares | $ 396,000 | |||||||||||||||||||
Additional percentage of ownership, consolidated method | 8.5 | |||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | $ 396,000 | |||||||||||||||||||
Chaoyang JinMei Gallium Co., Ltd[member] | Chaoyang JinMei Gallium Co., Ltd[member] | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 91.50% | 100.00% | 91.50% | 91.50% | ||||||||||||||||
Percentage Of Ownership Interest Sold | 8.50% | |||||||||||||||||||
Proceeds from sale of previously consolidated subsidiary shares | $ 396,000 | |||||||||||||||||||
Beijing JiYa Semiconductor Material Co., Ltd Investment | Beijing JiYa Semiconductor Material Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage of ownership, consolidated method (in hundredths) | 46.00% | 46.00% | ||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Investments, consolidated method | $ 1,346,000 | $ 1,346,000 | $ 1,346,000 | |||||||||||||||||
Gain (loss) from equity transaction | $ 0 | |||||||||||||||||||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | 3rd party investor | ||||||||||||||||||||
Summary of investments | ||||||||||||||||||||
Percentage ownership from issuance of shares | 10.00% | |||||||||||||||||||
Raised additional capital | $ 2,000,000 | |||||||||||||||||||
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 (in hundredths) | 63.00% | 63.00% | 70.00% |
Investments in Privately-Held_4
Investments in Privately-Held Raw Material Companies - Gain on Deconsolidation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 12, 2019 | |
Investments in Privately-Held Raw Material Companies | ||||
Fair value of the consideration received | $ 366,000 | $ 366,000 | ||
Fair value of the retained investment in Beijing JiYa Semiconductor Material Co., Ltd. | 2,040,000 | $ 2,040,000 | ||
Carrying value of non-controlling interest, net of accumulated other comprehensive income attributable to subsidiary | 617,000 | |||
Derecognition of Beijing JiYa Semiconductor Material Co., Ltd.'s net asset | (2,848,000) | |||
Gain recognized on deconsolidation of Beijing JiYa Semiconductor Material Co., Ltd. | 175,000 | $ 175,000 | ||
Carrying value of retained noncontrolling investment | (1,559,000) | |||
Gain on retained noncontrolling investment due to remeasurement | $ 481,000 |
Investments in Privately-Held_5
Investments in Privately-Held Raw Material Companies - Minority Investment Entities (Details) - Five Minority Investments - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Summarized income information of all the minority investment entities that are not consolidated and accounted for under the equity method [Abstract] | ||||
Net revenue | $ 5,052,000 | $ 3,713,000 | $ 12,610,000 | $ 14,713,000 |
Gross profit (loss) | 918,000 | 309,000 | 2,944,000 | 1,423,000 |
Operating (loss) | 136,000 | (436,000) | 598,000 | (1,857,000) |
Net income (loss) | 7,000 | (502,000) | (151,000) | (2,518,000) |
Minority investment entities | ||||
Entity portion of loss from unconsolidated equity method investments, including impairment charges | $ 45,000 | $ 200,000 | $ 200,000 | $ 1,700,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 48 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2015 | Dec. 31, 2019 | Oct. 27, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | $ 194,054 | $ 192,190 | $ 192,762 | $ 195,655 | $ 195,981 | $ 194,532 | $ 192,762 | $ 194,532 | |||
Common stock options exercised | 624 | 72 | 441 | 35 | 232 | ||||||
Purchase of subsidiary shares from noncontrolling interest | (413) | ||||||||||
Sale of subsidiary shares to noncontrolling interests | 396 | ||||||||||
Reclassification out of accumulated other comprehensive income and non-controlling interest upon the deconsolidation of a subsidiary | (617) | (617) | |||||||||
Stock-based compensation | 648 | 641 | 643 | 583 | 568 | 558 | |||||
Net income (loss) | 1,481 | 959 | 217 | (495) | 1,738 | (1,023) | 2,657 | 220 | |||
Net dividend declared by joint ventures | (89) | ||||||||||
Other comprehensive income (loss) | 4,689 | 281 | (1,873) | (4,324) | (2,451) | 2,531 | |||||
Balance, end of period | 201,892 | 194,054 | 192,190 | 191,454 | 195,655 | 195,981 | 201,892 | 191,454 | $ 192,762 | ||
Reclassification adjustment from AOCI | 0 | 0 | 0 | 0 | |||||||
Stock repurchase program, authorized amount | $ 5,000 | ||||||||||
Shares repurchased (in shares) | 908,000 | 0 | |||||||||
Average price of shares repurchased (in dollars per share) | $ 2.52 | ||||||||||
Total purchase price | $ 2,300 | ||||||||||
Stock repurchase program remaining authorized repurchase amount | 2,700 | 2,700 | |||||||||
Preferred Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | |||
Balance, end of period | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | 3,532 | $ 3,532 | ||
Common Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 41 | 41 | 41 | 40 | 40 | 40 | 41 | 40 | |||
Balance, end of period | 41 | 41 | 41 | 40 | 40 | 40 | 41 | 40 | 41 | ||
Additional Paid-In Capital | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 238,754 | 238,041 | 236,957 | 235,702 | 234,976 | 234,418 | 236,957 | 234,418 | |||
Common stock options exercised | 624 | 72 | 441 | 35 | 232 | ||||||
Purchase of subsidiary shares from noncontrolling interest | (74) | ||||||||||
Sale of subsidiary shares to noncontrolling interests | 396 | ||||||||||
Stock-based compensation | 648 | 641 | 643 | 583 | 568 | 558 | |||||
Balance, end of period | 240,422 | 238,754 | 238,041 | 236,320 | 235,702 | 234,976 | 240,422 | 236,320 | 236,957 | ||
Accumulated Deficit | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | (47,600) | (47,961) | (47,783) | (44,836) | (46,287) | (45,183) | (47,783) | (45,183) | |||
Net income (loss) | 991 | 361 | (178) | (898) | 1,451 | (1,104) | |||||
Balance, end of period | (46,609) | (47,600) | (47,961) | (45,734) | (44,836) | (46,287) | (46,609) | (45,734) | (47,783) | ||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | (6,365) | (6,637) | (4,862) | (3,130) | (733) | (1,972) | (4,862) | (1,972) | |||
Reclassification out of accumulated other comprehensive income and non-controlling interest upon the deconsolidation of a subsidiary | (1,150) | ||||||||||
Other comprehensive income (loss) | 4,373 | 272 | (1,775) | (4,110) | (2,397) | 2,389 | |||||
Balance, end of period | (1,992) | (6,365) | (6,637) | (7,240) | (3,130) | (733) | (1,992) | (7,240) | (4,862) | ||
AXT, Inc. Stockholders' Equity | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 188,362 | 187,016 | 187,885 | 191,308 | 191,528 | 190,835 | 187,885 | 190,835 | |||
Common stock options exercised | 624 | 72 | 441 | 35 | 232 | ||||||
Purchase of subsidiary shares from noncontrolling interest | (74) | ||||||||||
Sale of subsidiary shares to noncontrolling interests | 396 | ||||||||||
Reclassification out of accumulated other comprehensive income and non-controlling interest upon the deconsolidation of a subsidiary | (1,150) | ||||||||||
Stock-based compensation | 648 | 641 | 643 | 583 | 568 | 558 | |||||
Net income (loss) | 991 | 361 | (178) | (898) | 1,451 | (1,104) | |||||
Other comprehensive income (loss) | 4,373 | 272 | (1,775) | (4,110) | (2,397) | 2,389 | |||||
Balance, end of period | 195,394 | 188,362 | 187,016 | 186,918 | 191,308 | 191,528 | 195,394 | 186,918 | 187,885 | ||
Noncontrolling Interests | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, beginning of period | 5,692 | 5,174 | 4,877 | 4,347 | 4,453 | 3,697 | 4,877 | 3,697 | |||
Purchase of subsidiary shares from noncontrolling interest | (339) | ||||||||||
Reclassification out of accumulated other comprehensive income and non-controlling interest upon the deconsolidation of a subsidiary | 533 | ||||||||||
Net income (loss) | 490 | 598 | 395 | 403 | 287 | 81 | |||||
Net dividend declared by joint ventures | (89) | ||||||||||
Other comprehensive income (loss) | 316 | 9 | (98) | (214) | (54) | 142 | |||||
Balance, end of period | $ 6,498 | $ 5,692 | $ 5,174 | $ 4,536 | $ 4,347 | $ 4,453 | $ 6,498 | $ 4,536 | $ 4,877 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 648 | $ 583 | $ 1,932 | $ 1,709 |
Net effect on net income | 648 | 583 | 1,932 | 1,709 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 28 | 31 | 83 | 92 |
Selling, General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 496 | 433 | 1,480 | 1,296 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 124 | $ 119 | $ 369 | $ 321 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Aggregate Intrinsic Value [Abstract] | |||||
Closing price (in dollars per share) | $ 6.12 | $ 6.12 | |||
Options | |||||
Number of Options Outstanding [Roll Forward] | |||||
Options outstanding, beginning of period (in shares) | 2,953,000 | ||||
Granted (in shares) | 0 | 0 | 0 | 0 | |
Exercised (in shares) | (460,000) | ||||
Canceled and expired (in shares) | (162,000) | ||||
Options outstanding, end of period (in shares) | 2,331,000 | 2,331,000 | 2,953,000 | ||
Options vested and unvested options expected to vest, net of forfeitures, end of period (in shares) | 2,313,000 | 2,313,000 | |||
Options exercisable, end of period (in shares) | 1,703,000 | 1,703,000 | |||
Weighted-average Exercise Price [Roll Forward] | |||||
Options outstanding, beginning of period (in dollars per share) | $ 4 | ||||
Exercised (in dollars per share) | 2.47 | ||||
Canceled and expired (in dollars per share) | 5.83 | ||||
Options outstanding, end of period (in dollars per share) | $ 4.18 | 4.18 | $ 4 | ||
Options vested and unvested options expected to vest, net of forfeitures (in dollars per share) | 4.18 | 4.18 | |||
Options exercisable, end of period (in dollars per share) | $ 4.20 | $ 4.20 | |||
Weighted average Remaining Contractual Life [Abstract] | |||||
Options outstanding | 5 years 10 months 20 days | 5 years 11 months 12 days | |||
Options vested and unvested options expected to vest, net of forfeitures, end of period | 5 years 10 months 13 days | ||||
Option exercisable, end of period | 4 years 10 months 17 days | ||||
Aggregate Intrinsic Value [Abstract] | |||||
Options outstanding, beginning of period | $ 3,040 | ||||
Options outstanding, end of period | $ 5,061 | 5,061 | $ 3,040 | ||
Options vested and expected to vest, end of period | 5,012 | 5,012 | |||
Options exercisable, end of period | $ 3,675 | $ 3,675 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU (Details) $ / shares in Units, shares in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Unrecognized compensation expense related to restricted stock awards | $ | $ 3,000,000 |
Weighted average remaining contractual terms | 1 year 1 month 6 days |
Restricted Stock Awards | |
Shares [Roll Forward] | |
Non-vested, beginning of period (in shares) | shares | 939 |
Granted (in shares) | shares | 55 |
Vested (in shares) | shares | (127) |
Forfeited (in shares) | shares | (12) |
Non-vested, end of period (in shares) | shares | 855 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Non-vested, beginning of period (in dollars per share) | $ / shares | $ 5.02 |
Granted (in dollars per share) | $ / shares | 5.21 |
Vested (in dollars per share) | $ / shares | 6 |
Forfeited (in dollars per share) | $ / shares | 5.69 |
Non-vested, end of period (in dollars per share) | $ / shares | $ 4.88 |
Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation costs related to unvested stock options not yet recognized | $ | $ 1,000,000 |
Value of estimated forfeitures | $ | $ 80,000 |
Weighted-average period of amortization | 2 years 6 months |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Numerator: | |||||
Net income (loss) attributable to AXT, Inc. | $ 991 | $ (898) | $ 1,174 | $ (551) | |
Less: Preferred stock dividends | (44) | (44) | (132) | (132) | |
Net income (loss) available to common stockholders | $ 947 | $ (942) | $ 1,042 | $ (683) | |
Weighted-average number of common shares outstanding: | |||||
Denominator for basic net income (loss) per share - weighted-average common shares | 40,152,000 | 39,466,000 | 39,978,000 | 39,438,000 | |
Effect of dilutive securities: | |||||
Denominator for dilutive net income (loss) per common shares | 40,979,000 | 39,466,000 | 40,688,000 | 39,438,000 | |
Net income (loss) attributable to AXT, Inc. per common share: | |||||
Basic | $ 0.02 | $ (0.02) | $ 0.03 | $ (0.02) | |
Diluted | $ 0.02 | $ (0.02) | $ 0.03 | $ (0.02) | |
Preferred stock, shares issued (in shares) | 883,000 | 883,000 | 883,000 | ||
Preferred stock, shares outstanding (in shares) | 883,000 | 883,000 | 883,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, value | $ 3,532 | $ 3,532 | $ 3,532 | ||
Cumulative annual dividend rate (as a percent) | 5.00% | 5.00% | |||
Liquidation preference over common stock (in dollars per share) | $ 4 | $ 4 | $ 4 | ||
Options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 1,036,000 | 2,523,000 | 1,298,000 | 2,523,000 | |
Restricted Stock Awards | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from diluted net income (loss) per share as the impact is anti-dilutive (in shares) | 218,000 | 698,000 | 347,000 | 698,000 | |
Options | |||||
Effect of dilutive securities: | |||||
Effect of dilutive securities (in shares) | 575,000 | 510,000 | |||
Restricted Stock Awards | |||||
Effect of dilutive securities: | |||||
Effect of dilutive securities (in shares) | 252,000 | 200,000 |
Segment Information and Forei_3
Segment Information and Foreign Operations - Product Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue by product type | ||||
Revenue | $ 25,469 | $ 19,841 | $ 68,326 | $ 64,846 |
Substrates | ||||
Revenue by product type | ||||
Revenue | 20,311 | 15,959 | 54,066 | 53,324 |
Raw materials and others | ||||
Revenue by product type | ||||
Revenue | $ 5,158 | $ 3,882 | $ 14,260 | $ 11,522 |
Segment Information and Forei_4
Segment Information and Foreign Operations - Segment and Geographical Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | $ 25,469 | $ 19,841 | $ 68,326 | $ 64,846 | |
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 110,997 | 110,997 | $ 100,341 | ||
Reportable Geographical Components | China | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 10,568 | 5,117 | 23,045 | 21,870 | |
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | 110,140 | 110,140 | 99,272 | ||
Reportable Geographical Components | Taiwan | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 3,333 | 4,399 | 12,908 | 12,062 | |
Reportable Geographical Components | Japan | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 2,233 | 1,339 | 5,265 | 4,641 | |
Reportable Geographical Components | Asia Pacific (excluding China, Taiwan, and Japan) | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 1,446 | 2,234 | 4,503 | 6,156 | |
Reportable Geographical Components | Europe (primarily Germany) | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 4,689 | 4,737 | 15,017 | 13,752 | |
Reportable Geographical Components | North America (primarily the United States) | |||||
Net revenues reported for products shipped to customers in corresponding geographic region [Abstract] | |||||
Revenue | 3,200 | $ 2,015 | 7,588 | $ 6,365 | |
Long-lived assets by geographic region, net of depreciation: | |||||
Long-lived assets | $ 857 | $ 857 | $ 1,069 |
Segment Information and Forei_5
Segment Information and Foreign Operations - Concentration of Credit Risk (Details) - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers representing significant share | 0 | 1 | 2 | 2 | |
Percentage share generated by major customers | 10.00% | ||||
Accounts Receivable | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers representing significant share | 2 | 3 | |||
Landmark | Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers | 16.00% | 11.00% | 10.00% | ||
Haisi Optoelectronics | Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers | 14.00% | ||||
Osram Opto [Member] | Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers | 10.00% | ||||
Major Customer One | Accounts Receivable | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers | 10.00% | 14.00% | |||
Major Customer Two | Accounts Receivable | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers | 10.00% | 13.00% | |||
Major Customer Three | Accounts Receivable | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage share generated by major customers | 12.00% | ||||
Top Five Major Customers | Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers representing significant share | 5 | 5 | 5 | 5 | |
Percentage share generated by major customers | 29.00% | 40.00% | 33.00% | 41.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | |
Product Warranty [Abstract] | ||||
Period of warranty | 12 months | |||
Change in warranty accrual [Roll Forward] | ||||
Beginning accrued product warranty | $ 352 | $ 353 | $ 387 | $ 236 |
Accruals for warranties issued | 195 | 146 | 384 | 388 |
Adjustments related to pre-existing warranties including expirations and changes in estimates | 171 | 27 | 99 | 175 |
Cost of warranty repair | (189) | (183) | (341) | (456) |
Ending accrued product warranty | $ 529 | $ 343 | $ 529 | $ 343 |
Leases | ||||
Area of property under long-term operating lease (in square feet) | ft² | 19,467 | 19,467 | ||
Cross License Agreement | ||||
Preferred label sub abstract as Contractual Obligations | ||||
Term of Agreement | 10 years | |||
Dingxing | ||||
Leases | ||||
Total investment agreement value | $ 90,000 | $ 90,000 | ||
Kazuo | ||||
Leases | ||||
Total investment agreement value | 15,000 | 15,000 | ||
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | Kazuo | ||||
Leases | ||||
Total investment agreement value | $ 8,000 | $ 8,000 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income (Expense), Net | ||||
Income from government grants | $ 0 | $ 3,000 | ||
Foreign exchange gain (loss) | $ (135,000) | $ 165,000 | $ (126,000) | $ 85,000 |
Income Taxes - (Details)
Income Taxes - (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Income Taxes | ||
Deferred tax assets | $ 0 | $ 0 |
Unrecognized tax benefit interest and penalties expense | 0 | |
Unrecognized tax benefits accrued interest and penalties | 0 | 0 |
Federal income tax benefit or expense | $ 0 | $ 0 |
Revenue - Revenue Recognition (
Revenue - Revenue Recognition (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Sales commissions benefit period | 1 year |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue | ||
Contract liabilities | $ (494) | $ (396) |
Revenue recognized, included in contract assets | $ 8,000 | $ 242,000 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Revenue | |
Number of operating segments | 1 |
Bank Loans and Line of Credit (
Bank Loans and Line of Credit (Details) - USD ($) $ in Thousands | Aug. 09, 2020 | Sep. 12, 2019 | Aug. 09, 2019 | Nov. 06, 2018 | Oct. 31, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jul. 31, 2020 | Feb. 05, 2020 | Feb. 04, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||||||||||
Proceeds from lines of credit | $ 3,380 | $ 5,760 | |||||||||||
Bank loan | $ 3,380 | $ 5,747 | |||||||||||
Interest rate | 3.85% | ||||||||||||
Renewal period | 6 months | ||||||||||||
Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 4.70% | ||||||||||||
Combined loan totals | $ 5,600 | ||||||||||||
Renewal period | 6 months | ||||||||||||
Additional loan borrowed | $ 2,700 | ||||||||||||
Repayments of loan | $ 5,600 | ||||||||||||
Lines OF Credit, Current | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Letters of credit outstanding | $ 2,900 | ||||||||||||
Bank Of China | Secured Debt | Beijing Tongmei Xtal Technology | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 5,800 | ||||||||||||
Annual interest rate at end | 4.70% | ||||||||||||
Proceeds from credit facility | $ 2,800 | $ 2,800 | |||||||||||
Repayments of loan | $ 5,900 | ||||||||||||
Bank Of China | Secured Debt | Beijing Tongmei Xtal Technology | Prime Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread (as a percent) | 0.40% | ||||||||||||
ICBC | Secured Debt | Lines OF Credit, Current | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Letters of credit outstanding | $ 400 | ||||||||||||
ICBC | Secured Debt | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 1,400 | ||||||||||||
Annual interest rate at end | 4.30% | ||||||||||||
Proceeds from lines of credit | $ 400 | ||||||||||||
ICBC | Secured Debt | Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd Investment | Prime Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread (as a percent) | 0.15% | ||||||||||||
Wells Fargo Bank | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 10,000 | $ 7,000 | $ 10,000 | ||||||||||
Letters of credit outstanding | $ 0 | ||||||||||||
Wells Fargo Bank | Secured Debt | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread (as a percent) | 2.00% | 2.50% | |||||||||||
Wells Fargo Bank | Letter of credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 1,000 |
Leases (Details)
Leases (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
May 31, 2020 | Sep. 30, 2020USD ($)ft² | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | |
Leases | ||||
Area of leased property (in square feet) | ft² | 19,467 | |||
Operating lease, option to extend | true | |||
Operating lease, extension term | 3 years | |||
Variable lease payments | $ 0 | |||
Residual value guarantee | 0 | |||
Operating lease right-of-use assets | 2,702 | $ 2,938 | ||
Operating lease liability | $ 2,836 | |||
Lease, Practical Expedients, Package [true false] | true | |||
ASU 2016-02 | ||||
Leases | ||||
Operating lease right-of-use assets | $ 1,100 | |||
Operating lease liability | $ 1,100 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Future minimum lease payments | ||
2020 | $ 129 | |
2021 | 555 | |
2022 | 571 | |
2023 | 562 | |
2024 | 274 | |
Thereafter | 1,252 | |
Total minimum lease payments | 3,343 | |
Less: Interest | (507) | |
Present value of lease obligations | $ 2,836 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiablitiesCurrent | |
Less: Current portion, included in accrued liabilities | $ (421) | $ (319) |
Long-term portion of lease obligations | $ 2,415 | $ 2,695 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases | |||
Weighted-average remaining lease term (years) | 7 years 4 months 2 days | 7 years 11 months 8 days | |
Weighted-average discount rate | 4.61% | 4.61% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 324 | $ 159 | |
Leased assets obtained in exchange for new operating lease liabilities | $ 2,072 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lease expense | ||||
Operating lease | $ 128 | $ 106 | $ 383 | $ 229 |
Short-term lease expense | 27 | 14 | 61 | 42 |
Total | $ 155 | $ 120 | $ 444 | $ 271 |