Company: AAOI
Filing Date: 2025-03-13
Form Type: 8-K
Source: 0001683168-25-001580
Chunk: 1

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-03-13
Form: 8-K
Item: Item 3.02
Chunk 1
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Item 3.02      Unregistered Sales of Equity Securities.  

On March 13, 2025, the Company
entered into a Transaction Agreement with Parent (the “ Transaction Agreement”), under which, among other things, the Company
issued to Warrantholder a warrant (the “ Warrant”) to purchase up to an aggregate of 7,945,399 shares (the “ Warrant Shares”)
of common stock, par value $0.001 per share of the Company (the “ Common Stock”).

1,324,233 Warrant Shares vested
on the date of issuance, with the balance vesting over time based on discretionary purchases by or on behalf of Amazon and its affiliates,
up to a total of $4 billion. Subject to vesting and certain conditions set forth therein, the Warrant may be exercised, in whole or in
part, at any time before 5:00 p. m., Seattle time, on March 13, 2035 at an exercise price of $23.6954 per share. The exercise price and
the number of Warrant Shares are subject to customary anti-dilution adjustments, and under the Transaction Agreement, the Company has
granted customary registration rights with respect to the Warrant Shares.

The Warrant and the Warrant
Shares have not been registered under the Securities Act of 1933 (as amended, the “ Securities Act”) or under any state securities
law and were offered and issued, as applicable, in reliance upon the exemption from registration requirements of the Securities Act set
forth in Section 4(a)(2) of the Securities Act. The Company did not engage in a general solicitation or advertising regarding the issuance
of the Warrant.

This Item 3.02 contains only
a brief description of the material terms of the Transaction Agreement and the Warrant and does not purport to be a complete description
of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the full
text of the Transaction Agreement and Warrant, which are attached hereto as Exhibit 10.1 and Exhibit 4.1, respectively.