Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 111

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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2025, Global used the CCB Credit Facility, as described hereinbelow, to repay certain amounts outstanding under the Renewed SPD Credit Line. Upon repayment, Global terminated the Renewed SPD Credit Line effective  June 18, 2025. As of  June 30, 2025, $0 was outstanding under the Renewed SPD Credit and the outstanding balance of bank acceptance notes issued to vendors was $5.3 million. 
    
   On  June 7, 2022, Global entered into a security agreement with China Zheshang Bank in Ningbo City, China ("CZB") for a five-year credit line agreement, totaling 200,000,000 RMB (the "¥200M Credit Facility"), or approximately $29.9 million at that time. Global  may draw upon the ¥200M Credit Facility between  June 7, 2022 and  June 6, 2027 (the "¥200M Credit Period"). During the ¥200M Credit Period, Global  may request to draw upon the ¥200M Credit Facility on an as-needed basis; however, draws under the ¥200M Credit Facility  may become due and repayable to CZB at CZB’s discretion due to changes in Chinese government regulations and/or changes in Global’s financial and operational condition. Each draw will be facilitated by a separate credit agreement specifying the terms of each draw and will bear interest equal to CZB's commercial banking interest rate effective on the day of the applicable draw. Global’s obligations under the ¥200M Credit Facility will be secured by real property owned by Global and mortgaged to CZB under the terms of the Real Estate Security Agreement. On  December 21, 2023, Global entered into an asset pool business cooperation agreement ("Asset Pool Agreement") and an asset pool pledge contract (the "Pledge Contract") (referred to collectively as the Pledge Asset Line"), with CZB, which supplements the existing ¥200M Credit Facility. The Pledge Asset Line does not constitute a new credit line or an increase to the existing credit limits. Global  may draw upon the Pledge Asset Line between  December 21, 2023 and  December 21, 2025 (the "Asset Pool Period"). During the Asset Pool Period, Global  may request to draw upon the Pledge Asset Line on an as-needed bases; however, amount of available credit under the Pledge Asset Line and approval of each draw  may be reduced