Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 37

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 2025    2024    2025    2024  
 Revenues:             
 United States  $1,684  $1,659  $3,638  $6,336 
 Taiwan   43,799   34,663   111,132   88,225 
 China   73,147   28,829   206,671   54,533 
 Total  $118,630  $65,151  $321,441  $149,094 

       September 30,    December 31,  
   2025    2024  
 Long-lived assets:       
 United States  $96,040  $78,415 
 Taiwan   126,667   46,912 
 China   144,199   98,453 
 Total  $366,906  $223,780 

   Note 18.  Commitments and contingencies 
   ​
   Litigation
   ​
   From time to time, the Company  may be subject to legal proceedings and litigation arising in the ordinary course of business, including, but not limited to, inquiries, investigations, audits and other regulatory proceedings, such as described below. The Company records a loss provision when it believes it is both probable that a liability has been incurred and the amount can be reasonably estimated.
    
   The Company believes that there are no claims or actions pending or threatened against it, the ultimate disposition of which would have a material adverse effect on it.
            
   Other Contingencies
    
   On  August 9, 2021, the Company received a Taxes Notification of Audit Result ("Notice") from the Texas Comptroller’s Office (the "Comptroller"), for fiscal years between 2016 and 2019, informing the Company that the Comptroller believes the Company did not qualify for certain sales and use tax exemptions on various Research and Development purchases and accordingly the Company is liable for Sale and Use Tax in the amount of approximately $1.0 million including interest charges. The Company paid $0.4 million for the tax notice in  May 2021, but challenged the remaining tax assessments and vigorously defended its position. The Comptroller’s office exhausted its redetermination period and therefore moved the Company’s