Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 18

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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ized basis over a similar term an amount equal to the lease payments in a similar economic environment. Based on the applicable lease terms and current economic environment, the Company applies a location approach for determining the incremental borrowing rate.
    
   Lease expense is included under general and administrative expenses and were $1.1 million and $0.4 million for the three months ended  September 30, 2025 and 2024, respectively. For the nine months ended  September 30, 2025 and 2024, lease expenses were $2.4 million and $1.1 million, respectively. The components of lease expense were as follows for the periods indicated (in thousands):

       Three months ended September 30,    Nine months ended September 30,  
   2025    2024    2025    2024  
 Operating lease expense  $840  $318  $1,771  $1,028 
 Short Term lease expense   257   41   614   62 
 Total lease expense  $1,097  $359  $2,385  $1,090 

   Maturities of lease liabilities are as follows for the future one-year periods ending  September 30, 2025 (in thousands):
   ​
   
     Fiscal years:   Operating  
 2025 (remaining 3 months)  $632 
 2026   3,246 
 2027   3,206 
 2028   3,214 
 2029   3,211 
 2030 and thereafter   35,781 
 Total lease payments   49,290 
 Less imputed interest   (6,271)
 Present value  $43,019 

   ​
   The weighted average remaining lease term and discount rate for the leases were as follows for the periods indicated:
   ​
   
       Nine months ended September 30,  
   2025    2024  
 Weighted Average Remaining Lease Term (Years) - operating leases   13.91   4.38 
 Weighted Average Discount Rate - operating leases   3.11%  3.12%

   Supplemental cash flow information related to the leases was as follows for the periods indicated (in thousands):

       Nine months ended September 30,  
   2025