Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 130

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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”) 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 do 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. The following table is in thousands.

       Three months ended September 30,    Nine months ended September 30,  
   2025    2024    2025    2024  
 Revenues  $118,630  $65,151  $321,441  $149,094 
 Cost of goods sold   (85,367)  (49,234)  (226,472)  (116,023)
 Adjusted research and development   (20,951)  (13,072)  (58,653)  (37,018)
 Adjusted sales and marketing   (9,586)  (4,441)  (22,181)  (11,480)
 Adjusted general and administrative   (16,518)  (10,428)  (43,742)  (30,249)
 Other segment items   (4,144)  (5,733)  (6,599)