Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 29

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 15
Chunk 29
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.0 million were from other customers.  As of June 30, 2024, $12.0 million were from Customer A, $2.0 million were from Customer B and $5.7 million were from other customers.

7. Bank Borrowing

Accounts receivable factoring agreementOn August 9, 2019, one of the Company's wholly-owned subsidiaries (the "Borrower") entered into a factoring agreement with the Hongkong and Shanghai Banking Corporation Limited (“HSBC”), whereby the Borrower assigns certain of its accounts receivable with recourse.  This factoring agreement allows the Borrower to borrow up to 70% of the net amount of its eligible accounts receivable of the Borrower with a maximum amount of $30.0 million.  The interest rate is based on the Secured Overnight Financing Rate ("SOFR)", plus 2.01% per annum.  The Company is the guarantor for this agreement.  The Company is accounting for this transaction as a secured borrowing under the Transfers and Servicing of Financial Assets guidance.  In addition, any cash held in the restricted bank account controlled by HSBC has a legal right of offset against the borrowing.  This agreement, with certain financial covenants required, has no expiration date.  On August 11, 2021, the Borrower signed an agreement with HSBC to decrease the borrowing maximum amount to $8.0 million with certain financial covenants required.  Other terms remain the same.  As of June 30, 2025, there was no outstanding balance for this loan.Debt financing

86

In September 2021, Jireh Semiconductor Incorporated (“Jireh”), one of the Company's wholly-owned subsidiaries, entered into a financing arrangement agreement with a company (“Lender”) for the lease and purchase of a machinery equipment manufactured by a supplier.  This agreement has a 5 years term, after which 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, until the final installation and acceptance of the equipment.  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