Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 45

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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     )%
      
     $
     9,501

     (364.6
     )%

       24

Interest income increased by $0.3 million, or 189.1%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Interest income increased by $0.5 million, or 88.8%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was due to higher saving balances in the third quarter of 2025. 

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Interest expense decreased by $0.8 million, or 47.0%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Interest expense decreased by $2.4 million, or 47.7%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was due to the lower effective interest rate for our 2030 Notes. 

Other income (expenses) increased by $0.4 million, or 108.9%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Other income (expenses) increased by $6.6 million, or 338.8%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was mainly due to the increased government subsidy income and positive foreign exchange impact.

Benefit (provision) for income taxes 

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The Company’s effective tax rate for the three months  ended September 30, 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, tax credits, and incentives for investment in the United States.  On August