v3.26.1
Note 8 - Bank Loans and Line of Credit
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 8. Bank Loans and Line of Credit

 

Our bank loans and credit facilities, which are entered into by our subsidiaries, typically have a term of 12 months or less and are included in “Short-term loan” in our consolidated balance sheets. The following table represents short-term bank loans as of December 31, 2025 and 2024 (in thousands, except interest rate data):

  

Interest

    

December 31,

  

December 31,

 

Bank

 

Rate

 

Start Date

Due Date

 

2025

  

2024

 

Bank of China (1)

  2.3%

September-24

September-25

 $—  $1,096 
   2.4%

December-24

December-25

  —   274 
   2.7%

January-25

January-26

  722   — 
   2.7%

March-25

March-26

  605   — 
   2.6%

July-25

July-26

  114   — 
   2.6%

September-25

September-26

  722   — 
   2.4%

September-25

September-26

  1,433   — 
   2.2%

September-25

September-26

  858   — 

Bank of China (3)

  2.4%

September-24

September-25

  —   1,370 
   2.4%

November-24

November-25

  —   1,370 
   2.7%

November-24

November-25

  —   685 
   2.5%

February-25

February-26

  2,582   — 

Bank of Communications (1)

  3.0%

May-24

May-25

  —   1,644 
   3.0%

June-24

May-25

  —   2,466 
   2.6%

June-25

June-26

  2,861   — 
   2.4%

December-25

June-26

  1,433   — 

China Merchants Bank (1)

  3.5%

January-24

January-25

  —   1,370 
   3.5%

February-24

February-25

  —   685 
   3.5%

April-24

April-25

  —   685 
   2.9%

January-25

January-26

  3,275   — 
   2.9%

March-25

March-26

  1,022   — 
   2.4%

June-25

June-26

  432   — 
   2.3%

September-25

September-26

  1,003   — 

Bank of Beijing (2)

  3.0%

March-24

February-25

  —   3,565 
   3.0%

June-24

June-25

  —   3,565 
   2.7%

March-25

March-26

  2,295   — 
   2.6%

June-25

March-26

  1,430   — 
   2.6%

June-25

June-26

  3,716   — 

Industrial Bank (1)

  3.9%

September-24

September-25

  —   2,740 
   3.9%

October-24

October-25

  —   2,679 
   3.2%

November-24

November-25

  —   1,440 
   2.7%

November-24

November-25

  —   1,370 
   3.1%

September-25

September-26

  145   — 
   2.7%

October-25

October-26

  5,474   — 
   2.7%

November-25

November-26

  1,672   — 
   2.2%

November-25

November-26

  1,433   — 

Industrial Bank (5)

  3.1%

October-25

October-26

  149   — 
   3.1%

November-25

November-26

  158   — 
   3.1%

December-25

December-26

  190   — 

Industrial Bank (4)

  3.8%

March-25

March-26

  1,433   — 

NingBo Bank (1)

  4.3%

January-24

January-25

  —   1,630 
   4.3%

May-24

March-25

  —   1,255 
   3.9%

November-24

November-25

  —   1,822 
   3.9%

December-24

December-25

  —   550 
   3.9%

January-25

January-26

  1,655   — 
   3.9%

March-25

March-26

  722   — 
   3.9%

Apr-25

March-26

  645   — 
   3.8%

June-25

June-26

  593   — 
   3.8%

July-25

July-26

  645   — 
   3.8%

August-25

July-26

  436   — 
   3.2%

December-25

December-26

  1,315   — 

Industrial and Commercial Bank of China (1)

  3.3%

September-24

September-25

  —   2,740 
   2.8%

September-24

September-25

  —   1,370 
   2.4%

August-25

August-26

  1,433   — 
   2.4%

September-25

August-26

  1,433   — 
   2.2%

September-25

September-26

  1,433   — 
   2.3%

September-25

September-26

  286   — 
   2.3%

October-25

September-26

  2,575   — 

China Citic Bank (1)

  2.9%

June-24

June-25

  —   2,740 
   2.9%

July-24

July-25

  —   2,740 
   2.9%

September-24

September-25

  —   1,370 
   2.3%

September-25

September-26

  5,005   — 

Agricultural Bank of China (1)

  2.6%

November-24

November-25

  —   1,235 
   2.6%

December-24

December-25

  —   137 
   2.3%

December-25

December-26

  929   — 

Bank of Hangzhou (1)

  2.5%

September-25

September-26

  4,288   — 

NanJing Bank (1)

  2.8%

December-24

December-25

  —   1,370 

Loan Balance

      $58,550  $45,963 

 

Collateral for the above bank loans and line of credit

 

(1)

Not collateralized.

 

(2)

AXT time deposit.

 

(3)

Baoding Tongmei’s land use rights and its building located at its facility in Dingxing, China.
 

(4)

Chaoyang JinMei’s land use rights and its building located at its facility in Kazuo, China.

 (5)ChaoYang XinMei's manufacturing facility in Kazuo, China. 

 

Long-term Loans

 ​

On January 30, 2024, the Company secured a new line of credit amounting to $9.7 million, structured as a five-year bank loan. The credit facility bears interest at a rate of 6.5% per annum on the amount drawn from the line of credit. The credit facility is collateralized by the real estate properties owned by ChaoYang Tongmei. In January 2024, the Company borrowed $5.8 million against the credit facility. The intended use of the credit facility is for construction of fixed assets. As of December 31, 2025, $4.7 million is included in “Other long-term liabilities” and $0.7 million is included in “Short-term loans” in our consolidated balance sheets.

 ​

In December 2023, one of our consolidated subsidiaries, ChaoYang XinMei secured a loan of approximately $2.1 million from an unrelated financing company. According to the agreement, ChaoYang XinMei temporarily transferred ownership of its production line and related equipment to the financing company, while retaining the right to use the property for production. At the end of the 30-month contractual period, ChaoYang XinMei holds the option to repurchase the production line and related equipment for $14.00. As of December 31, 2025, $0.6 million is included in “Short-term loans” in our consolidated balance sheets.

 

In February 2025, the Company secured a fourteen-month unsecured bank loan totaling $2.7 million at an interest rate of 3.2%. As of December 31, 2025, $2.7 million is included in “Short-term loans” in our condensed consolidated balance sheets.

 

In September and November 2025, the Company entered into a four-year bank loan totaling $0.7 million at an interest rate of 3.1%. The loan is secured by the real estate properties owned by JinMei. As of December 31, 2025, $0.5 million is included in “Other long-term liabilities” and $0.2 million is included in “Short-term loans” in our condensed consolidated balance sheets.

 ​

As of December 31, 2025, the maturities of our long-term loan liabilities in five years (including current portion) are as follows (in thousands):

 ​

Maturity of long-term loans

   

2026

 $4,323 

2027

  1,179 

2028

  1,464 

2029

  2,597 

2030

  — 

 

In summary, short-term loans of $62.8 million included under “Short-term loans” in our consolidated balance sheet at December 31, 2025, consisted of $58.5 million of short-term bank loans and $4.3 million of the current portion of long-term debt. Long-term loans of $5.2 million included under “Other long-term liabilities” in our consolidated balance sheet at December 31, 2025.