Related Party Transactions

12 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

During the year ended December 31, 2020, the Company entered into the following related party transactions:

•Recorded $241 thousand in cost of goods sold for services, recorded research and development expense of $919 thousand, of which $408 thousand was reimbursable and recorded $84 thousand in other expense for commitment for services from the AFSW joint venture;

•Sold $165 thousand of products to non-controlling stockholders of the Company and incurred $200 thousand of license maintenance fee from a non-controlling stockholder of the Company; and

•Recorded $5.2 million in license fee income, recorded $701 thousand in EPI Gen 4 wafer growth sales, recorded $150 thousand of reimbursements in license maintenance fee, recorded $610 thousand in interest expense, recorded $408 thousand reimbursement for research and development, and sold $915 thousand of products to a stockholder and noteholder of the Company. See Note 3 - Nexperia Arrangement.

As of December 31, 2020, total due from related parties was $13.9 million, consisting of $13.5 million due from the AFSW joint venture, $17 thousand accounts receivable from non-controlling stockholders of the Company, and $435 thousand accounts receivable from a stockholder and noteholder of the Company. As of December 31, 2020, total accounts payable to related parties was $512 thousand to the AFSW joint venture and $24 thousand to Nexperia, and accrued royalty was $100 thousand to Furukawa.

During the year ended December 31, 2019, the Company entered into the following related party transactions:

•Recorded $211 thousand in cost of goods sold for services, recorded research and development expense of $695 thousand, of which $195 thousand was reimbursable, recorded $444 thousand in other expense for commitment for services, and incurred $14 thousand for employees and their benefits seconded from the AFSW joint venture;

•Sold $241 thousand of products to non-controlling stockholders of the Company, incurred $200 thousand of license maintenance fee to a non-controlling stockholder, and incurred $21 thousand for employees and their related benefits seconded from a non-controlling stockholder of the Company; and

•Recorded $9.2 million in license fee revenue, recorded $195 thousand reimbursement for research and development, recorded $608 thousand in interest expense and sold $504 thousand of products to a stockholder and noteholder of the Company. See Note 3 - Nexperia Arrangement.

As of December 31, 2019, total due from related parties was $5.8 million, consisting of $5.3 million due from the AFSW joint venture, $38 thousand accounts receivable from non-controlling stockholders of the Company and $426 thousand accounts receivable from a stockholder and noteholder of the Company. As of December 31, 2019, total accounts payable due to related parties was $272 thousand to non-controlling stockholders of the Company.