Company: AAOI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015518
Chunk: 106

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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   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 March 31,  
 ​   2025    2024  
 Revenues  $99,859  $40,673 
 Cost of goods sold   69,232   33,082 
 Adjusted research and development   17,535   11,429 
 Adjusted sales and marketing   5,034   3,512 
 Adjusted general and administrative   12,888   9,884 
 Other segment items   4,342   5,936 
 Total  $(9,172) $(23,170)

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   We exclude share-based compensation and related expense, certain legal expenses associated with litigation and other one-time expenses from adjusted research and development, adjusted sales and marketing and adjusted general and administrative expenses.
    
   Other segment items include share-based compensation expense, interest expense, interest income, certain legal expenses associated with litigation and other one-time items. 
    
   The following tables set forth the Company’s revenue and asset information by geographic region. Revenue is classified based on the location of where the product is manufactured. Long-lived assets in the tables below comprise property, plant, equipment, land use rights, right of use assets and intangible assets (in thousands):
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       Three months ended March 31,  
 ​   2025    2024  
 Revenues:   ​    ​  
 United States  $1,150  $2,710 
 Taiwan   70,