Company: AOSL
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001387467-25-000017
Chunk: 75

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 8
Chunk 75
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 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 December 31, 2024 with a maturity date of September 8, 2025.  As of December 31, 2024, 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 signed an agreement with HSBC to reduce the borrowing maximum amount to $8.0 million with certain financial covenants required.  Other terms remain the same.  As of December 31, 2024, the Borrower was in compliance with these covenants.  As of December 31, 2024, there was no outstanding balance and the Company had unused credit of approximately $8.0 million. Debt financingIn September 2021, Jireh Semiconductor Incorporated (“Jireh”), one of the wholly-owned subsidiaries, entered into a financing arrangement agreement with a company (“Lender”) for the lease and purchase of a machinery equipment manufactured by a supplier.  This agreement has a 5 years term, after which Jireh has the option to purchase the equipment for $1.  The implied interest rate was 4.75% per annum which was adjustable based on every five basis point increase in 60-month U.S. Treasury Notes, until the final installation and acceptance of