Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 122

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 122
---
 and international tax provisions which are generally not effective until 2026.  For example, as a U.S. domiciled company, the income from the Company's foreign subsidiaries is subject to the U.S. tax provisions under Internal Revenue Code Section 951A, which, as amended by the OBBBA, generally will require that net Controlled Foreign Corporation (“CFC”) tested income (formerly referred to as global intangible low-taxed income, or GILTI) be included in the taxable income of U.S. entities for tax years after  December 31, 2025. We are currently evaluating the impact of the new legislation but does not expect it to have a material impact on our financial statements since we currently have a full valuation allowance applied against our deferred tax assets.

   Note 17. Segment and Geographic Information
   ​
   The Company operates in one reportable segment. The Company’s Chief Executive Officer, who is considered to be the chief operating decision maker ("CODM"), manages the Company’s operations as a whole and reviews financial information presented on a consolidated basis, accompanied by information about product revenue, for purposes of evaluating financial performance and allocating resources. Our CEO is the functional head of all operations and manufacturing. Our Board, in conjunction with our CODM, considers our consolidated performance and does not have individual financial or operating goals for each location, nor for any other subset of the Company's operations. As such, the Company has determined it operates as one reportable segment. 
    
   Our CODM uses net income or loss to allocate resources and assess performance. The CODM regularly reviews the consolidated net income or loss to make strategic decisions, such as capital expenditure plan, production plan and manpower allocation. 

       Three months ended June 30,    Six months ended June 30,  
 ​   2025    2024    2025    2024  
 Revenues  $102,952  $43,270  $202,811  $83,943 
 Cost of goods sold   (71,790)  (33,708)  (141,105)  (66,790)
 Adjusted research and development   (20,425)  (12,517)  (37,960)  (23,945)
 Adjusted sales and marketing   (7,303)  (3,526)