Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 31

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 met all the criteria for equity classification. Accordingly, the conversion option is not required to be bifurcated from the host instrument as a derivative.
    
   Pursuant to ASC 815-15, the Company further determined that the contingent redemption features in the 2030 Notes are not required to be bifurcated from the host contract and accounted for separately. Additionally, the Company then evaluated whether the conversion feature needed to be separately accounted for as an equity component under ASC 470-20, Debt with Conversion and Other Options, and determined that the additional premium was not substantial. Accordingly, that amount was recognized as a premium on the 2030 Notes.   

       16

   The following table sets forth interest expense information related to the 2026 Notes and 2030 Notes (in thousands):
   ​
   
       Three months ended September 30,    Nine months ended September 30,  
   2025    2024    2025    2024  
 Contractual interest expense  $364  $1,053  $1,157  $3,161 
 Amortization of debt issuance costs    220    363   650   1,072 
 Total interest cost  $584  $1,416  $1,807  $4,233 
 Effective interest rate   1.0%  5.3%  1.0%  5.3%

   ​

   Note 13.  Accrued Liabilities​
   ​
   Accrued liabilities consisted of the following for the periods indicated (in thousands):
   ​

        September 30, 2025 

        December 31, 2024 

        Accrued payroll 
        
       $
       21,390

       $
       13,136

        Accrued employee benefits 

       5,609

       4,014

        Accrued state and local taxes 

       1,451

       824

        Accrued interest 

       740

       114

        Accrued shipping and tariff expenses 

       826

       803

        Advanced payments 

       255

       188

        Accrued commission expenses 

       1,085

       768

        Accru