Loans and Line of Credit

9 Months Ended

Sep. 30, 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 September 30, 2024 and December 31, 2023 (in thousands, except interest rate data):

			Loan	Interest					December 31,		September 30,
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		-
			876	3.5	%	November-23	November-24		876		884
			1,003	3.5	%	November-23	November-24		1,003		1,012
	Bank of China (2)		2,911	3.5	%	January-23	January-24		2,825		-
			2,770	3.0	%	January-24	January-25		-		2,851
	Bank of China (5)		1,426	2.4	%	September-24	September-25		-		1,426
	Bank of Communications (1)		1,455	3.3	%	January-23	January-24		1,414		-
			1,380	3.8	%	May-23	May-24		1,414		-
			1,373	3.8	%	July-23	May-24		1,414		-
			1,376	3.0	%	May-24	May-25		-		1,426
			2,480	3.0	%	June-24	May-25		-		2,566
	China Merchants Bank (1)		4,367	3.7	%	January-23	January-24		4,235		-
			1,386	3.5	%	January-24	January-25		-		1,426
			692	3.5	%	February-24	February-25		-		713
			692	3.5	%	April-24	April-25		-		713
	Bank of Beijing (3)		2,290	4.2	%	January-23	January-24		2,220		-
			3,541	3.2	%	June-23	May-24		3,626		-
			1,380	3.2	%	June-23	February-24		1,414		-
			1,414	3.0	%	December-23	December-24		1,414		1,426
			3,600	3.0	%	March-24	February-25		-		3,706
			1,386	3.0	%	March-24	December-24		-		1,426
			3,580	3.0	%	June-24	June-25		-		3,706
	Industrial Bank (1)		2,757	4.3	%	June-23	June-24		2,825		-
			2,744	4.3	%	July-23	July-24		2,825		-
			2,744	4.3	%	September-23	September-24		2,825		-
			2,851	3.9	%	September-24	September-25		-		2,851
	NingBo Bank (1)		2,744	4.2	%	August-23	September-24		2,820		-
			1,271	4.3	%	November-23	November-24		1,271		1,284
			2,825	4.3	%	December-23	December-24		2,825		2,851
			1,647	4.3	%	January-24	January-25		-		1,700
			1,258	4.3	%	May-24	March-25		-		1,303
	Industrial and Commercial Bank of China (1)		2,744	3.3	%	September-23	September-24		2,825		-
			2,851	3.3	%	September-24	September-25		-		2,851
	NanJing Bank (1)		2,752	3.8	%	October-23	October-24		2,752		2,779
	China Citic Bank (1)		2,752	3.0	%	June-24	June-25		-		2,851
			2,851	2.9	%	July-24	July-25		-		2,851
			1,426	2.9	%	September-24	September-25		-		1,426
BoYu	Industrial and Commercial Bank of China (4)		1,414	2.7	%	December-23	December-24		1,414		-
	Industrial and Commercial Bank of China (1)		1,426	2.8	%	September-24	September-25		-		1,426
	Bank of China (1)		1,204	2.4	%	January-23	January-24		849		-
			1,145	2.3	%	September-24	September-25		-		1,145
	NingBo Bank (1)		1,414	3.3	%	November-23	May-24		1,414		-
			1,376	3.0	%	May-24	November-24		-		1,426
			1,145	3.2	%	July-24	October-24		-		1,140
	Industrial Bank (1)		688	3.6	%	September-23	September-24		708		-
	Bank of Communications (1)		1,414	3.0	%	November-23	May-24		1,414		-
			275	3.0	%	May-24	May-25		-		285
	NanJing Bank (1)		1,386	3.5	%	January-24	January-25		-		1,426
	Loan Balance							$	52,921	$	52,876

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.

(5) Baoding Tongmei’s land use rights and its building located at its facility in Dingxing, China. In addition, the loan attracts a guarantee fee amounting to 1.0% 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 September 30, 2024, $5.4 million is included in “Other long-term liabilities” and $428,000 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 September 30, 2024, $965,000 associated with this financing arrangement is included in “Other long-term liabilities” and $748,000 is included in “Short-term loans” in our consolidated balance sheets.
​

As of September 30, 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	$	321
2026		1,354
2027		998
2028		1,283
2029		2,442

In summary, short-term loans of $54.1 million included under “Short-term loans” in our condensed consolidated balance sheet at September 30, 2024, consisted of $52.9 million of short-term bank loans and $1.2 million of the current portion of long-term debt. Long-term loans of $6.4 million included under “Other long-term liabilities” in our condensed consolidated balance sheet at September 30, 2024 consisted of $5.4 million in a five-year bank loan and $1.0 million in a loan secured by ChaoYang XinMei.