Company: AOSL
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001387467-25-000066
Chunk: 15

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 15
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 manufactured by a supplier.  This agreement includes a payment term of five (5) years, pursuant to which Jireh commenced payments of interests and principal to the Lender in September 2022 when the final installation and acceptance of the equipment were completed.  After the end of such payment term, Jireh has the option to purchase the equipment for $1.  The implied interest rate was 4.75% per annum which was adjustable based on every five basis point increase in 60-month U.S. Treasury Notes.  The total purchase price of this equipment was euro 12.0 million.  In April 2021, Jireh made a down payment of euro 6.0 million, representing 50% of the total purchase price of the equipment, to the supplier.  In June 2022, the equipment was delivered to Jireh after Lender paid 40% of the total purchase price, for euro 4.8 million, to the supplier on behalf of Jireh.  In September 2022, Lender paid the remaining 10% payment for the total purchase price and reimbursed Jireh for the 50% down payment, after the installation and configuration of the equipment.  The title of the equipment was transferred to Lender following such payment.  The agreement was amended with fixed implied interest rate of 7.51% and monthly payment of principal and interest effective in October 2022.  Other terms remain the same.  In addition, Jireh purchased hardware for the machine under this financing arrangement.  The purchase price of this hardware was $0.2 million.  The financing arrangement is secured by this equipment and other equipment at Jireh, which had the net book value of $11.7 million as of September 30, 2025.  As of September 30, 2025, the outstanding balance of this debt financing was $5.8 million. Long-term bank borrowingsOn August 18, 2021, Jireh entered into a term loan agreement with a financial institution (the “Bank”) in an amount up to $45.0 million for the purpose of expanding and upgrading the Company’s fabrication facility located in Oregon.  The obligation under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company.  The agreement has a 5.5 year term and matures on February 16, 2027.  J