AXT Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>AXT Inc. has submitted its annual 10-K filing for the fiscal year ended December 31, 2023.</b>

AI Summary

AXT INC (AXTI) filed a Annual Report (10-K) with the SEC on March 15, 2024. AXT Inc. filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. AXTI is incorporated in Delaware. The company's SIC code is 3674 for Semiconductors & Related Devices. AXT Inc. is headquartered at 4281 Technology Dr., Fremont, CA.

Why It Matters

For investors and stakeholders tracking AXT INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of AXT Inc.'s financial performance, business operations, and risk factors for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's financial health, strategic direction, and potential future performance.

Risk Assessment

Risk Level: medium — AXT INC shows moderate risk based on this filing. The company's financial statements and disclosures in this 10-K are crucial for understanding its current financial health and operational risks, which could impact investment decisions.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to assess AXT Inc.'s performance and outlook for the upcoming fiscal year.

Financial Highlights

revenue

44239000

revenue Growth

1.58%

Key Numbers

• 44239000 — Revenue (2023 FY)
• 43554000 — Revenue (2022 FY)

Key Players & Entities

• AXT INC (company) — FILER
• AXTI (company) — tk
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240315 (date) — FILED AS OF DATE
• 0001051627 (company) — CENTRAL INDEX KEY
• 3674 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (jurisdiction) — STATE OF INCORPORATION
• 510.438.4734 (phone) — BUSINESS PHONE

FAQ

Industry Context

AXT Inc. operates in the Semiconductors & Related Devices industry.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the revenue figures for 2023 ($44.239M) and 2022 ($43.554M) to understand year-over-year growth.
2. Examine any disclosed executive compensation details to understand management incentives.
3. Review the risk factors section for potential challenges and uncertainties facing AXT Inc.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

The filing indicates a slight revenue increase from $43,554,000 in 2022 to $44,239,000 in 2023.

Key Financial Figures

• $0.001 — ge on which registered: Common Stock, $0.001 par value AXTI The NASDAQ Stock Mar
• $3.44 — t, based upon the closing sale price of $3.44 for the common stock on June 30, 2023 a
• $48.1 million — for a total investment of approximately $48.1 million. The currency used in the investment tr
• $1.5 million — e remaining investment of approximately $1.5 million of new capital was funded in January 20
• $49 million — e government approved the approximately $49 million investment in its entirety on January 2
• $49 m — ange for an investment of approximately $49 million, the Investors received a 7.28% r

Filing Documents

• axti-20231231x10k.htm (10-K) — 4504KB
• axti-20231231xex4d1.htm (EX-4.1) — 32KB
• axti-20231231xex10d11.htm (EX-10.11) — 119KB
• axti-20231231xex10d11a.htm (EX-10.11(A)) — 19KB
• axti-20231231xex10d12.htm (EX-10.12) — 82KB
• axti-20231231xex10d12a.htm (EX-10.12(A)) — 27KB
• axti-20231231xex10d13.htm (EX-10.13) — 39KB
• axti-20231231xex10d13a.htm (EX-10.13(A)) — 27KB
• axti-20231231xex10d14.htm (EX-10.14) — 25KB
• axti-20231231xex10d15.htm (EX-10.15) — 22KB
• axti-20231231xex10d16.htm (EX-10.16) — 145KB
• axti-20231231xex10d17.htm (EX-10.17) — 20KB
• axti-20231231xex10d18.htm (EX-10.18) — 21KB
• axti-20231231xex10d19.htm (EX-10.19) — 14KB
• axti-20231231xex10d20.htm (EX-10.20) — 26KB
• axti-20231231xex10d21.htm (EX-10.21) — 22KB
• axti-20231231xex10d22.htm (EX-10.22) — 21KB
• axti-20231231xex10d23.htm (EX-10.23) — 16KB
• axti-20231231xex10d24.htm (EX-10.24) — 52KB
• axti-20231231xex10d25.htm (EX-10.25) — 112KB
• axti-20231231xex12d1.htm (EX-12.1) — 80KB
• axti-20231231xex21d1.htm (EX-21.1) — 8KB
• axti-20231231xex23d1.htm (EX-23.1) — 4KB
• axti-20231231xex31d1.htm (EX-31.1) — 14KB
• axti-20231231xex31d2.htm (EX-31.2) — 15KB
• axti-20231231xex32d1.htm (EX-32.1) — 8KB
• axti-20231231xex32d2.htm (EX-32.2) — 9KB
• axti-20231231xex97d1.htm (EX-97.1) — 46KB
• axti-20231231x10k001.jpg (GRAPHIC) — 34KB
• axti-20231231x10k003.jpg (GRAPHIC) — 70KB
• 0001558370-24-003410.txt (&nbsp;) — 20209KB
• axti-20231231.xsd (EX-101.SCH) — 100KB
• axti-20231231_cal.xml (EX-101.CAL) — 93KB
• axti-20231231_def.xml (EX-101.DEF) — 458KB
• axti-20231231_lab.xml (EX-101.LAB) — 918KB
• axti-20231231_pre.xml (EX-101.PRE) — 736KB
• axti-20231231x10k_htm.xml (XML) — 4016KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 44 Item 1C. Cybersecurity 44 Item 2.

Properties

Properties 46 Item 3.

Legal Proceedings

Legal Proceedings 46 Item 4. Mine Safety Disclosures 46 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47 Item 6. Reserved 49 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 49 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 65 Item 8. Consolidated Financial Statements and Supplementary Data 67 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 67 Item 9A.

Controls and Procedures

Controls and Procedures 67 Item 9B. Other Information 68 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 68 PART III Item 10. Directors, Executive Officers and Corporate Governance 71 Item 11.

Executive Compensation

Executive Compensation 71 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71 Item 13. Certain Relationships and Related Transactions and Director Independence 71 Item 14. Principal Accountant Fees and Services 71 PART IV Item 15. Exhibits and Financial Statement Schedules 72 Item 16. Form 10-K Summary 116 1 Table of Contents PART I This Annual Report on Form 10-K of AXT, Inc. ("AXT", "the Company", "we," "us," and "our" refer to AXT, Inc. and its consolidated subsidiaries) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements relating to our expectations regarding results of operations, market and customer demand for our products, customer qualifications of our products, our ability to expand our markets or increase sales, emerging applications using chips or devices fabricated on our substrates, including the use of InP wafer substrates in artificial intelligence ("AI") applications, the development and adoption of new products, applications, enhancements or technologies, the life cycles of our products and applications, product yields and gross margins, expense levels, the impact of the adoption of certain accounting pronouncements, our investments in capital projects, ramping production at our new sites, potential severance costs with respect to any reduction in our work force, our ability to have new customers qualify substrates from our manufacturing locations in China, our ability to utilize or increase our manufacturing capacity, and our belief that we have adequate cash and investments to meet our needs over the next 12 months are forward-looking statements. Additionally, statements regarding completing steps in connection with the proposed listing of shares of our wafer manufacturing company, Beijing Tongmei Xtal Technology Co., Ltd. ("Tongmei"), on the Shanghai Stock Exc

Business

Item 1. Business AXT is a worldwide materials science company that develops and produces high-performance compound and single element semiconductor substrates, also known as wafers. Two of our consolidated subsidiaries produce and sell certain raw materials some of which are used in our substrate manufacturing process and some of which are sold to other companies. Our substrate wafers are used when a typical silicon substrate wafer cannot meet the performance requirements of a semiconductor or optoelectronic device. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. However, certain chips may become too hot or perform their function too slowly if silicon is used as the base material. In addition, optoelectronic applications, such as LED lighting and chip-based lasers, do not use silicon substrates because they require a wave form frequency that cannot be achieved using silicon. Alternative or specialty materials are used to replace silicon as the preferred base in these situations. Our wafers provide such alternative or specialty materials. We do not design or manufacture the chips. We add value by researching, developing and producing the specialty material wafers. We have two product lines: specialty material substrates and raw materials integral to these substrates. Our compound substrates combine indium with phosphorous (indium phosphide: InP) or gallium with arsenic (gallium arsenide: GaAs). Our single element substrates are made from germanium (Ge). InP is a high-performance semiconductor wafer substrate used in broadband and fiber optic applications, 5G infrastructure and data center connectivity. Data centers use InP devices for high-speed optical data transmission. We believe the growth of AI applications will increase the need for high-speed data transfer which may lead to an increase in InP substrate demand from such data centers. Currently, InP substrates are being used in certain consum

View Full Filing

View this 10-K filing on SEC EDGAR