Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 75

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 75
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 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 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 16, 2022 with the first payment of principal beginning in October 2022.  As of March 31, 2025, Jireh was in compliance with these covenants and the outstanding balance of this loan was $22.5 million.

20

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

Maturities of short-term debt and long-term debt were as follows (in thousands):Year ending June 30,2025 (Remaining)$2,935 202611,871 202714,344 2028536 Total principal29,686 Less: debt issuance costs(33)Total principal, less debt issuance costs$29,653 Short-term DebtLong-term DebtTotalPrincipal amount$11,818 $17,868 $29,686 Less: debt issuance costs(21)(12)(33)Total debt, less debt issuance costs$11,797 $17,856 $29,653 

8. Leases  

The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date.  The finance lease is related to the $5.1 million of a machinery lease financing with a vendor.  The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less. The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):Three Months Ended March 31,Nine Months Ended March 31,2025202420252024Operating