Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 73

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 73
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 A, $2.0 million were from Customer B, and $5.7 million were from other customers.

19

ALPHA AND OMEGA SEMICONDUCTOR LIMITEDNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

7. Bank Borrowings 

Short-term borrowingsIn March 2024, Bank of Communications Limited in China provided a line of credit facility to one of the Company’s subsidiaries in China.  The purpose of the credit facility is to provide working capital borrowings.  The Company could borrow up to approximately RMB 140 million or $19.3 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2025.  This line of credit expired on March 15, 2025.  As of March 31, 2025, there was no outstanding balance for this loan.In September 2023, China Construction Bank provided a line of credit facility to one of the Company’s subsidiaries inChina. The purpose of the credit facility is to provide working capital borrowings.  The Company could borrow up to approximately RMB 50 million or $6.9 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2025 with a maturity date of September 8, 2025.  As of March 31, 2025, there was no outstanding balance for this loan.Accounts Receivable Factoring AgreementOn August 9, 2019, one of the Company’s wholly-owned subsidiaries (the “Borrower”) entered into a factoring agreement with 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.  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