v3.26.1
Note 8 - Stockholders' Equity
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Equity [Text Block]

Note 8. Stockholders’ Equity

 

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

 

The changes in stockholders’ equity by component for the three and six months ended June 30, 2026 are as follows:

 

                  

Accumulated

             
          

Additional

      

Other

  

AXT, Inc.

      

Total

 
  

Preferred

  

Common

  

Paid-In

  

Accumulated

  

Comprehensive

  

Stockholders’

  

Noncontrolling

  

Stockholders’

 
  

Stock

  

Stock

  

Capital

  

Deficit

  

Income (Loss)

  

Equity

  

Interests

  

Equity

 

Balance as of December 31, 2025

 $3,532  $55  $339,922  $(64,924) $(5,295) $273,290  $23,285  $296,575 

Common stock options exercised

  —   1   1,477   —   —   1,478   —   1,478 

Stock-based compensation

  —   —   1,035   —   —   1,035   —   1,035 

Net loss

  —   —   —   (1,620)  —   (1,620)  148   (1,472)

Other comprehensive loss

  —   —   —   —   691   691   143   834 

Balance as of March 31, 2026

  3,532   56   342,434   (66,544)  (4,604)  274,874   23,576   298,450 

Common stock options exercised

  —   —   489   —   —   489   —   489 

Stock-based compensation

  —   —   762   —   —   762   —   762 

Issuance of common stock, net of issuance costs of $32,417

  —   10   600,073   —   —   600,083   —   600,083 

Net income

  —   —   —   11,128   —   11,128   1,093   12,221 

Other comprehensive loss

  —   —   —   —   (62)  (62)  170   108 

Balance as of June 30, 2026

  3,532   66   943,758   (55,416)  (4,666)  887,274   24,839   912,113 

 

Net income and other comprehensive income attributable to redeemable noncontrolling interests were $808,000 and $172,000, respectively, for the three months ended June 30, 2026, and $795,000 and $316,000, respectively, for the six months ended  June 30, 2026 and are not shown in the table above.

 

The changes in stockholders’ equity by component for the three and six months ended June 30, 2025 are as follows:

 

                  

Accumulated

             
          

Additional

      

Other

  

AXT, Inc.

      

Total

 
  

Preferred

  

Common

  

Paid-In

  

Accumulated

  

Comprehensive

  

Stockholders’

  

Noncontrolling

  

Stockholders’

 
  

Stock

  

Stock

  

Capital

  

Deficit

  

Income (Loss)

  

Equity

  

Interests

  

Equity

 

Balance as of December 31, 2024

 $3,532  $45  $241,514  $(43,664) $(8,657) $192,770  $23,561  $216,331 

Stock-based compensation

  —   —   563   —   —   563   —   563 

Tongmei stock-based compensation

  —   1   70   —   —   71   6   77 

Net loss

  —   —   —   (8,798)  —   (8,798)  (610)  (9,408)

Other comprehensive income

  —   —   —   —   431   431   53   484 

Balance as of March 31, 2025

  3,532   46   242,147   (52,462)  (8,226)  185,037   23,010   208,047 

Stock-based compensation

  —   —   607   —   —   607   —   607 

Tongmei stock-based compensation

  —   —   22   —   —   22   2   24 

Net loss

  —   —   —   (7,008)  —   (7,008)  (233)  (7,241)

Other comprehensive income

  —   —   —   —   1,056   1,056   128   1,184 

Balance as of June 30, 2025

  3,532   46   242,776   (59,470)  (7,170)  179,714   22,907   202,621 

 

Net loss and other comprehensive loss attributable to redeemable noncontrolling interests were $433,000 and $128,000, respectively, for the three months ended June 30, 2025, and $1.0 million and $181,000, respectively, for the six months ended June 30, 2025 and are not shown in the table above.

 

There were no reclassification adjustments from accumulated other comprehensive income (loss) for the three and six months ended June 30, 2026 and 2025.

 

Authorized Common Stock

 

Pursuant to approval by a majority of our stockholders, on June 4, 2026, we filed a certificate of amendment (the “Amendment”) to our Restated Certificate of Incorporation, as amended (the “Restated Certificate of Incorporation”) with the Secretary of State of the State of Delaware to increase the number of authorized shares of common stock of the Company from 70,000,000 to 120,000,000, effective upon filing. The Amendment did not have any effect on the par value of our common stock. 

 

2026 Secondary Public Offering

 

On April 21, 2026, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Northland Securities, Inc., as representative of the underwriters named therein (the “Underwriters”) related to the offer and sale of 8,560,311 shares of common stock at a price to the public of $64.25 per share. Pursuant to the Underwriting Agreement, the Company also granted the Underwriters a 30-day option to purchase up to 1,284,046 additional shares of common stock which was exercised in full by the Underwriters on April 22, 2026.  In connection with the public offering, the Company issued a total of 9,844,357 shares of common stock for total gross proceeds of approximately $632.5 million, before deducting the underwriting discounts and commissions and other offering expenses.

 

Stock Repurchase Program

 

On October 27, 2014, our Board of Directors approved a stock repurchase program pursuant to which we may repurchase up to $5.0 million of our outstanding common stock. These repurchases can be made from time to time in the open market and are funded from our existing cash balances and cash generated from operations. During 2015, we repurchased approximately 908,000 shares at an average price of $2.52 per share for a total purchase price of approximately $2.3 million under the stock repurchase program. No shares were repurchased during 2025, 2024 and 2023 under this program. During the three and six months ended June 30, 2026, we did not repurchase any shares under the approved stock repurchase program. As of June 30, 2026, approximately $2.7 million remained available for future repurchases under this program. Currently, we do not plan to repurchase additional shares.

 

Series A Preferred Stock

 

By the terms of the Series A preferred stock, so long as any shares of Series A preferred stock are outstanding, neither the Company nor any subsidiary of the Company shall redeem, repurchase or otherwise acquire any shares of common stock, unless all accrued dividends on the Series A preferred stock have been paid. During 2013 and 2015, we repurchased shares of our outstanding common stock. As of December 31, 2015, the Series A preferred stock had cumulative dividends of $2.9 million and we included this amount in “Accrued liabilities” in our consolidated balance sheets. In the quarter ended June 30, 2026 and 2025, we did not repurchase any of our outstanding common stock. If we are required to pay the cumulative dividends on the Series A preferred stock, our cash and cash equivalents would be reduced. We account for the cumulative year-to-date dividends on the Series A preferred stock when calculating our earnings per share.