Company: AAOI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015518
Chunk: 107

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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881   24,703 
 China   27,828   13,260 
 Total  $99,859  $40,673 

     ​   March 31,    December 31,   
 ​   2025    2024  
 Long-lived assets:   ​    ​  
 United States  $71,217  $71,867 
 Taiwan   66,885   57,907 
 China   121,016   107,624 
 Total  $259,118  $237,398 

       17

   Note 18.  Contingencies
   ​
   Litigation
   ​
   From time to time, the Company  may be subject to legal proceedings and litigation arising in the ordinary course of business, including, but not limited to, inquiries, investigations, audits and other regulatory proceedings, such as described below. The Company records a loss provision when it believes it is both probable that a liability has been incurred and the amount can be reasonably estimated.
    
              Unless otherwise disclosed, the Company is unable to estimate the possible loss or range of loss for the legal proceeding described below.
    
   Arbitration filed by Yuhan Optoelectronic Technology (Shanghai) Co., Ltd.
    
   On  September 12, 2023, the Company delivered notice of termination with respect to that certain Agreement for the Sale and Purchase of a New Company to be Established in Hong Kong Special Administrative Region of the People’s Republic of China (the “Purchase Agreement”), dated  September 15, 2022, with Prime World International Holdings Ltd. (the “Seller”) and Yuhan Optoelectronic Technology (Shanghai) Co., Ltd. (the “Purchaser”), pursuant to which the Seller would divest its manufacturing facilities located in the People's Republic of China and certain assets related to its transceiver business and multichannel optical sub-assembly products for the internet data center, FTTH and telecom markets. The termination, in accordance with the terms of the Purchase Agreement, was a result of the Purchaser's failure to satisfy certain of its material obligations under the Purchase Agreement. In terminating the Purchase Agreement, we also asserted the right to recover a break-up fee from the Purchaser. On  December 22, 2023, the Purchaser filed for arbitration in Hong Kong with the Hong Kong International Arbitration Centre (“HK