Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 36

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 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)  (21,366)
 Total  $(17,936) $(17,757) $(36,206) $(67,042)

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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. 

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   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 September 30,    Nine months ended September 30,