Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 34

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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roller"), for fiscal years between 2016 and 2019, informing the Company that the Comptroller believes the Company did not qualify for certain sales and use tax exemptions on various Research and Development purchases and accordingly the Company is liable for Sale and Use Tax in the amount of approximately $1.0 million including interest charges. The Company paid $0.4 million for the tax notice in  May 2021, but challenged the remaining tax assessments and vigorously defended its position. The Comptroller’s office exhausted its redetermination period and therefore moved the Company’s case to the hearing process. No hearing date has yet been scheduled, and as a result the Company is not able to determine the outcome of this sales tax dispute or the likelihood or amount of the Company’s loss, if any, arising from this matter.

   Note 19.  Subsequent Events
   ​
   On  July 4, 2025, the President signed into law the One Big Beautiful Bill Act, which includes several significant corporate tax changes. See Note 16, "Income Taxes" for additional information. 

    On  July 18, 2025, Global entered into a one-year credit facility with Shanghai Pudong Development Bank Co., Ltd., in Ningbo City, China, totaling 82,000,000 RMB (the "¥82M SPD Credit Facility"), or approximately $11.4 million at that time. Borrowing under the ¥82M SPD Credit Facility will be used to repay the amounts outstanding under the ¥200M Credit Facility and for general corporate and capital investment purposes.
     
    On  July 23, 2025, Global used the ¥82M SPD Credit Facility, together with other available funds, to repay the amounts outstanding under the ¥200M Credit Facility. Upon repayment, Global terminated the ¥200M Credit Facility effective  July 23, 2025. See Note 11, "Bank Acceptance Notes Payable" for additional information.

     On
     July 29, 2025, Global entered into a
    five-year revolving credit line agreement with Shanghai Pudong Development Bank Co., Ltd., in Ningbo City, China, totaling
    250,000,000 RMB (the
    "¥250M SPD Credit Line"), or approximately
    $34.9 million at that time, and a mortgage contract. Borrowing under the
    ¥250M SPD Credit Line will be used