AXTI AXT Inc

CUSIP NO.

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1 NAME OF REPORTING PERSON
 SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON

 Marathon Capital Management, LLC
 203954582
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2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
 (b) |_|
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3 SEC USE ONLY

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4 CITIZENSHIP OR PLACE OF ORGANIZATION

 Maryland
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 5 SOLE VOTING POWER

 0
 NUMBER OF --------------------------------------------------------------
 SHARES 6 SHARED VOTING POWER
BENFICIALLY
 OWNED BY na
 EACH --------------------------------------------------------------
 REPORTING 7 SOLE DISPOSITIVE POWER
 PERSON
 WITH 1,414,880
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 8 SHARED DISPOSITIVE POWER

 na
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9 AGGREGATE AMOUNT BENFICIALLY OWNED BY EACH REPORTING PERSON

 1,414,880
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES |_|

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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
 4.7%
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12 TYPE OF REPORTING PERSON

 IA
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Item 1.

 a) Name of Issuer: AXT Inc.
 b) Address: 4281 TECHNOLOGY DR.
 FREMONT CA 94538

Item 2.
 a) Name of Filer: Marathon Capital Management, LLC


 b) Address of Filer: 4 North Park Drive, Suite 106
 Hunt Valley, MD 21030

 c) Citizenship: Maryland

 d) Title of Class of Securities: Common Stock

 e) CUSIP Number: 693315103

Item 3. Item 3. If this statement is filed pursuant to Rule 13d-1(b), or
13d-2(b), check whether the person filing is a:

 (a) |_| Broker or Dealer registered under Section 15 of the Act
 (b) |_| Bank as defined in section 3 (a) (6) of the Act
 (c) |_| Insurance Company as defined in section 3 (a) (6) of the Act
 (d) |_| Investment Company registered under section 8 of the
 Investment Company Act
 (e) |X| Investment Adviser registered under section 203 of the
 Investment Advisers act of 1940
 (f) |_| Employee Benefit Plan, Pension Fund which is subject to the
 provisions of the Employee Retirement Income Security Act of
 1974 or Endowment Fund; see 240.13d-1 (b) (1) (ii) (F)
 (g) |_| Parent Holding Company, in accordance with 240.13d-1 (b) (ii)
 (G) (Note: See Item 7)
 (h) |_| Group, in accordance with 240.13d-1(b) (1) (ii) (H)

Item 4. Ownership

 a) Amount beneficially owned: 1,414,880
 b) Percent of Class: 4.7%
 c) Number of shares:

 (i) Sole voting power -- 0
 (ii) Shared voting power -- na
 (iii) Sole disposal power -- 1,414,880
 (iv) Shared disposal power - na


Item 5. Less than 5% beneficial ownership
 If this statement is being filed to report the fact that as
 of the date hereof the reporting person has ceased to be the
 beneficial owner of more than five percent of the class of
 securities, check the following [X].

Item 6. More than 5% on behalf of another na

Item 7. Subsidiary na

Item 8. If group na

Item 9. Notice of Dissolution na

Item 10. Certification

 By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the ordinary course of
business and were not acquired for the purpose of and do not have the effect of
changing or influencing the control of the issuer of such securities and were
not acquired in connection with or as a participant in any transaction having
such purposes or effect.

 SIGNATURE

 After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


 Date January 19, 2010



By: /s/, James G. Kennedy, President
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 Name, Title