Company: AAOI
Filing Date: 2025-12-03
Form Type: 8-K
Source: 0001683168-25-008857
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Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-12-03
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On November 27, 2025, Prime World International
Holdings, Ltd. (“ Prime World”), a wholly owned subsidiary of Applied Optoelectronics, Inc., entered
into a credit facility with Taishin International Bank in Taiwan (the “ Bank”), consisting of a NT$100,000,000 line of credit
(the “ NT$100M Credit Line”) and a US$2,000,000 line of credit (the “ US$2M Credit Line”, collectively, with the
NT$100M Credit Line, the “ Credit Facility”).

Prime World may utilize the Credit Facility from
November 27, 2025 through October 31, 2026. Borrowings under the NT$100M Credit Line may be drawn as short-term loans, each with a three-month
draw term. The current interest rate is approximately 2.5%, but the rate for each draw remains subject to separate negotiation, and the
facility may be used on a revolving basis. Interest on outstanding borrowings will be payable monthly, and all principal amounts will
be due at the end of the applicable draw term.

In contrast, the US$2M Credit Line is a derivatives-based
facility rather than a loan facility and may be used by Prime World to enter into foreign exchange hedging transactions, including the
Bank’s foreign-exchange-linked products. Pricing for each hedging transaction will be determined based on the Bank’s prevailing
foreign exchange rates or quoted terms at the time the transaction is executed.

Prime World’s obligations under the Credit
Facility will be secured by a promissory note executed between Prime World and the Bank. The agreements for the Credit Facility contain
representations and warranties, and events of default applicable to Prime World that are customary for agreements of this type.

The foregoing description of the Credit Facility
does not purport to be a complete statement of the parties’ rights and obligations under the Credit Facility and is qualified in
its entirety by reference to the translation of the full text of the Approval Notice of Credit Line, General Agreement for Financial Transaction,
Loan Agreement, and Promissory Note which are attached as Exhibit 10.1 through 10.4 to this Current Report on Form 8-K and are incorporated
by reference herein.