Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 14

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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0.3%  1,865   1.3%
 Total Revenue  $321,441   100.0% $149,094   100.0%

       10

   Unearned Revenue
   ​
   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  September 30, 2025 and  December 31, 2024 were both zero. For the three months ended  September 30, 2025 and 2024, revenue recognized from the unearned revenue balance was $0 and $0.1 million, respectively. For the nine months ended  September 30, 2025 and 2024, revenue recognized from the unearned revenue balance was $0 and $0.4 million, respectively. The unearned revenue was as follows for the periods indicated (in thousands):

   Three months ended September 30,    Nine months ended September 30,  
   2025    2024    2025    2024  
 Unearned revenue, beginning of period  $—  $1,570  $—  $1,803 
 Additional unearned revenue   —   —   —   — 
 Revenue recognized   —   131   —   364 
 Unearned revenue, end of period  $—  $1,439  $—  $1,439 

   Customer Warrant
    
   On  March 13, 2025, the Company issued a warrant (the "Customer Warrant") to a wholly-owned subsidiary of Amazon.com, Inc. 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