Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 101

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 Revenue
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   We record unearned revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Unearned revenues solely relate to statement of work with Microsoft regarding contract prices allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as of the balance sheet dates. Unearned revenue balance as of  June 30, 2025 and  December 31, 2024 were both zero. For the three months ended  June 30, 2025 and 2024, revenue recognized from the unearned revenue balance was $0 and $0.1 million, respectively. For the six months ended  June 30, 2025 and 2024, revenue recognized from the unearned revenue balance was $0 and $0.2 million, respectively. 

   Three months ended June 30,    Six months ended June 30,  
   2025    2024    2025    2024  
 Unearned revenue, beginning of period  $—  $1,689  $—  $1,803 
 Additional unearned revenue   —   —   —   — 
 Revenue recognized   —   119   —   233 
 Unearned revenue, end of period  $—  $1,570  $—  $1,570 

   Customer Warrant
    
   On  March 13, 2025, the Company issued a warrant (the "Customer Warrant") to a wholly-owned subsidiary of Amazon.com, Inc. ("Warrant holder") to purchase up to an aggregate of 7,945,399 shares of the Company's common stock ("Warrant Shares") at an exercise price of $23.6956 per share. The Customer Warrant has a contractual term of 10 years. At the time of the issuance, the Customer Warrant is exercisable to purchase 1,324,233 Warrant Shares. The remaining 6,621,166 Warrant Shares  may vest over the next 10 years, dependent on aggregate purchases by or on behalf of Amazon and its affiliates of $4 billion of the Company's products over this time period. The Company accounts for the Customer Warrant as an equity classified share-based consideration to a customer and will recognize the grant-date fair value of the Customer Warrant