Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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| | Year Ended December 31, | | ||||||||
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| 2023 | | 2022 | | 2021 | | 2020 | | 2019 | |
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| (in thousands) | | ||||||||
Earnings: |
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Income (loss) before income taxes | $ | (19,033) | $ | 20,927 | $ | 17,602 | $ | 7,072 | $ | (1,026) | |
Less: Equity in loss (earnings) of investees | | (1,884) | | (5,957) | | (4,409) | | (111) | | 1,876 | |
Less: Pre-tax net income attributable to noncontrolling interest and redeemable noncontrolling interests | | 1,312 | | (2,931) | | (1,934) | | (1,803) | | (1,012) | |
Add: Distributions paid by equity investees | | - | | - | | - | | - | | - | |
Fixed charges and preferred stock dividends, as calculated below | | 2,153 | | 1,476 | | 721 | | 533 | | 358 | |
Total earnings | $ | (17,452) | $ | 13,515 | $ | 11,980 | $ | 5,691 | $ | 196 | |
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Computation of fixed charges and preferred stock dividends: | | | | | | | | | | | |
Interest expense | $ | 1,876 | $ | 1,201 | $ | 422 | $ | 222 | $ | 94 | |
Preferred stock dividends(1) | | 177 | | 177 | | 177 | | 177 | | 177 | |
Interest component of rent expense(2) | | 100 | | 98 | | 122 | | 134 | | 87 | |
Total combined fixed charges and preferred stock dividends | $ | 2,153 | $ | 1,476 | $ | 721 | $ | 533 | $ | 358 | |
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Ratio of earnings to combined fixed charges and preferred stock dividends(3) | | (8.11) | | 9.16 | | 16.62 | | 10.68 | | 0.55 | |
Deficiency of earnings to combined fixed charges and preferred stock dividends | | N/A | | N/A | | N/A | | N/A | | N/A | |
(1) | Dividends accrue on our outstanding Series A preferred stock at the rate of $0.20 per annum per share of Series A preferred stock. We have not paid any dividends on preferred stock. 883,000 shares of our preferred stock were issued and outstanding for all of the periods presented. |
(2) | Effective January 1, 2019 and onwards, interest is calculated consistent with guidance under ASC 842, where an estimate for the Company's incremental borrowing rate of 5.14%. The borrowing rate is calculated using a weighted average for the interest rate on the Company's Fremont office lease of 5.5% and the interest rate on Tongmei’s nitrogen system of 4.7%. |
(3) | For periods in which there is a deficiency of earnings available to cover combined fixed charges and preferred stock dividends, the ratio information is not applicable. |