Applied Optoelectronics Enters Material Agreement
Ticker: AAOI · Form: 8-K · Filed: Dec 31, 2024 · CIK: 1158114
Sentiment: neutral
Topics: material-agreement, financial-obligation
Related Tickers: AAOI
TL;DR
AOI just signed a big deal creating a new financial obligation. Details TBD.
AI Summary
Applied Optoelectronics, Inc. (AOI) entered into a Material Definitive Agreement on December 26, 2024, which also created a direct financial obligation for the company. The filing does not specify the other party to the agreement or the financial details of the obligation.
Why It Matters
This filing indicates a significant new financial commitment or partnership for Applied Optoelectronics, Inc., which could impact its future financial performance and strategic direction.
Risk Assessment
Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, but lacks specific details, creating uncertainty about the associated risks.
Key Players & Entities
- Applied Optoelectronics, Inc. (company) — Registrant
- December 26, 2024 (date) — Date of earliest event reported
FAQ
What is the nature of the Material Definitive Agreement entered into by Applied Optoelectronics, Inc.?
The filing states that Applied Optoelectronics, Inc. entered into a Material Definitive Agreement on December 26, 2024, but does not provide specific details about its nature.
What is the direct financial obligation created by this agreement?
The filing confirms the creation of a direct financial obligation for Applied Optoelectronics, Inc. as a result of the agreement, but does not specify the amount or terms of this obligation.
Who is the other party to this Material Definitive Agreement?
The filing does not disclose the identity of the other party involved in the Material Definitive Agreement.
What is the significance of the 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant' item?
This item signifies that the agreement entered into by Applied Optoelectronics, Inc. results in a new financial commitment that will appear on the company's balance sheet.
When was the earliest event reported in this 8-K filing?
The earliest event reported in this 8-K filing occurred on December 26, 2024.
Filing Stats: 713 words · 3 min read · ~2 pages · Grade level 9.8 · Accepted 2024-12-31 16:05:14
Key Financial Figures
- $0.001 — ch registered Common Stock, Par value $0.001 AAOI NASDAQ Global Market Indicate
Filing Documents
- appliedopto_8k.htm (8-K) — 30KB
- appopto-ex1001.htm (EX-10.1) — 50KB
- image_001.jpg (GRAPHIC) — 2KB
- 0001683168-24-009068.txt ( ) — 264KB
- aaoi-20241226.xsd (EX-101.SCH) — 3KB
- aaoi-20241226_lab.xml (EX-101.LAB) — 33KB
- aaoi-20241226_pre.xml (EX-101.PRE) — 22KB
- appliedopto_8k_htm.xml (XML) — 3KB
01
Item 1.01 Entry into a Material Definitive Agreement. On December 26, 2024, Prime World International Holdings Ltd. ("Prime World"), a wholly owned subsidiary of Applied Optoelectronics, Inc., entered into a Construction Contract (the "Contract") with Chyi Ding Technologies Co., Ltd. (the "General Contractor"). Under the terms of the Contract, the General Contractor has agreed to perform cleanroom construction, as well as mechanical, electrical, and renovation work, within the building leased by Prime World, located at No. 12, Gong 8th Road, Linkou District, New Taipei City (the "Project"). The Project will be used to expand Prime World's current manufacturing capabilities. Prime World agrees to pay the General Contractors a fixed price of 277,000,000 NTD to be disbursed over the course of the construction upon achievement of certain construction milestones. The construction of the Project is anticipated to begin in December 2024 and has a targeted completion date of April 20, 2025. The Contract includes penalties, to be paid by the General Contractor, in the event of a delay in completion. A delay penalty will be charged to the General Contractor for each calendar day of delay after the target completion date. The penalty shall be 0.3% of the total contract price per day, up to a maximum of 10% of the total contract price. The foregoing description of the Construction Contract do not purport to be a complete statement of the parties' rights and obligations under the Construction Contract and is qualified in its entirety by reference to the full text of the Construction Contract, English translations of which are attached as Exhibit 10.1 to this Current Report on Form 8-K and are incorporated by reference herein.
03
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information as set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into Item 2.03.
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits 10.1 Translation of the Construction Contract, dated December 26, 2024, between Prime World International Holdings Ltd., Taiwan Branch and Chyi Ding Technologies Co., Ltd. 104 Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document) 2
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: December 31, 2024 APPLIED OPTOELECTRONICS, INC. By: /s/ David C. Kuo Name David C. Kuo Title: Chief Legal Officer 3