Company: AOSL
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001387467-25-000017
Chunk: 76

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 8
Chunk 76
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 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 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 which had the net book value of $12.8 million as of December 31, 2024.  As of December 31, 2024, the outstanding balance of this debt financing was $7.9 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 

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

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.  Jireh is required to make consecutive quarterly payments of principal and interest.  The loan accrues interest based on adjusted SOFR plus the applicable margin based on the outstanding balance of the loan.  This agreement contains customary restrictive covenants and includes certain financial covenants that the Company is required to maintain.  Jireh drew down $45.0 million on February