Company: AAOI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015518
Chunk: 56

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 56
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     )

     (13.8
     )%

      Interest expense 

     (934
     )

     (0.9
     )%

     (1,676
     )

     (4.1
     )%

     742

     (44.3
     )%

      Other income (expense), net 

     475

     0.5
     %

     (108
     )

     (0.3
     )%

     583

     (539.8
     )%

      Total other income (expense), net 
      
     $
     (235
     )

     (0.2
     )%
      
     $
     (1,524
     )

     (3.8
     )%
      
     $
     1,289

     (84.6
     )%

       22

Interest income decreased by $36 thousand, or 13.8% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was due to lower saving balances in the first quarter of 2025. 

​

Interest expense decreased by $0.7 million, or 44.3% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was due to the lower effective interest rate for our 2030 Notes. 

Other income (expenses) increased by $0.6 million, or 535.8% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was mainly due to the increased government subsidy income and positive foreign exchange impact.

Benefit (provision) for income taxes 

​

The Company’s effective tax rate for the three months  ended March 31, 2025 and 2024 was 0%. The effective tax rate varied from the federal statutory rate of 21% primarily due to the change of the valuation allowance on federal, state, Taiwan, and China deferred tax assets ("DTA"). 

On August 9, 2022, the Creating Helpful Incentives to Produce Semiconductors Act ("CHIPS Act") was enacted.  Among its provisions, the bill provides various federal grants