Loans and Line of Credit

3 Months Ended

Mar. 31, 2024

Loans and Line of Credit

Loans and Line of Credit

Note 16. Loans and Line of Credit

Our bank loans and credit facilities typically have a term of 12 months or less and are included in “Short-term loans” in our condensed consolidated balance sheets. The following table represents short-term bank loans as of March 31, 2024 and December 31, 2023 (in thousands, except interest rate data):

			Loan	Interest					December 31,		March 31,
Subsidiary	Bank		Detail	Rate		Start Date	Due Date		2023		2024
Tongmei	Bank of China (1)	$	1,848	3.5	%	January-23	January-24	$	1,795	$	-
			2,184	2.8	%	March-23	March-24		2,118		-
			376	2.7	%	September-23	September-24		386		378
			876	3.5	%	November-23	November-24		876		858
			1,003	3.5	%	November-23	November-24		1,003		985
	Bank of China (2)		2,911	3.5	%	January-23	January-24		2,825		-
			2,770	3.0	%	January-24	January-25		-		2,770
	Bank of Communications (1)		1,455	3.3	%	January-23	January-24		1,414		-
			1,380	3.8	%	May-23	May-24		1,414		1,386
			1,373	3.8	%	July-23	May-24		1,414		1,386
	China Merchants Bank (1)		4,367	3.7	%	January-23	January-24		4,235		-
			1,386	3.5	%	January-24	January-25		-		1,386
			692	3.5	%	February-24	February-25		-		692
	Bank of Beijing (3)		2,290	4.2	%	January-23	January-24		2,220		-
			3,541	3.2	%	June-23	May-24		3,626		3,560
			1,380	3.2	%	June-23	February-24		1,414		-
			1,414	3.0	%	December-23	December-24		1,414		1,386
			3,600	3.0	%	March-24	February-25		-		3,600
			1,386	3.0	%	March-24	December-24		-		1,386
	Industrial Bank (1)		2,757	4.3	%	June-23	June-24		2,825		2,770
			2,744	4.3	%	July-23	July-24		2,825		2,770
			2,744	4.3	%	September-23	September-24		2,825		2,770
	NingBo Bank (1)		2,744	4.2	%	August-23	September-24		2,820		2,765
			1,271	4.3	%	November-23	November-24		1,271		1,246
			2,825	4.3	%	December-23	December-24		2,825		2,770
			1,647	4.3	%	January-24	January-25		-		1,647
	Industrial and Commercial Bank of China (1)		2,744	3.3	%	September-23	September-24		2,825		2,770
	NanJing Bank (1)		2,752	3.8	%	October-23	October-24		2,752		2,700
BoYu	Industrial and Commercial Bank of China (4)		1,414	2.7	%	December-23	December-24		1,414		1,386
	Bank of China (1)		1,204	2.4	%	January-23	January-24		849		-
	NingBo Bank (1)		1,414	3.3	%	November-23	May-24		1,414		1,386
	Industrial Bank (1)		688	3.6	%	September-23	September-24		708		692
	Bank of Communications (1)		1,414	3.0	%	November-23	May-24		1,414		1,386
	NanJing Bank (1)		1,386	3.5	%	January-24	January-25		-		1,386
	Loan Balance							$	52,921	$	48,217

Collateral for the above bank loans and line of credit

(1) Not collateralized.

(2) ChaoYang LiMei time deposit.

(3) AXT time deposit.

(4) BoYu’s land use rights and its building located at its facility in Tianjin, China. In addition, the December 2023 loan attracts a guarantee fee amounting to 0.7% of the loan amount.

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 projects. As of March 31, 2024, $5.6 million is included in “Other long-term liabilities” and $277,000 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 March 31, 2024, $1.4 million associated with this financing arrangement is included in “Other long-term liabilities” and $554,000 is included in “Short-term loans” in our consolidated balance sheets.
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As of March 31, 2024, the maturities of our long-term loan liabilities in five years (excluding short-term loans) are as follows (in thousands):

Maturity of long term loans
2025	$	1,038
2026		1,315
2027		969
2028		1,246
2029		2,371

In summary, short-term loans of $49.0 million included under “Short-term loans” in our condensed consolidated balance sheet at March 31, 2024, consisted of $48.2 million of short-term bank loans and $0.8 million of the current portion of long-term debt. Long-term loans of $7.0 million included under “Other long-term liabilities” in our condensed consolidated balance sheet at March 31, 2024 consisted of $5.6 million in a five-year bank loan and $1.4 million in a loan secured by ChaoYang XinMei.