Business Context and Reporting Period
This Form 8-K Current Report was filed by Applied Optoelectronics, Inc. on May 6, 2019, covering events occurring on April 30, 2019. The report details a material definitive agreement entered into by Global Technology, Inc., a wholly owned subsidiary of the registrant.
Key Financial Metrics
The filing discloses the creation of a new direct financial obligation but does not provide consolidated revenue, profit, cash flow, or margin data for the period.
- New Debt Facility: 9,900,000 RMB (Renminbi).
- Lender: Shanghai Pudong Development Bank Co., Ltd.
- Interest Rate: 12-month prime loan rate (4.32% at execution) plus 0.2475%.
- Maturity Date: April 30, 2020.
- Collateral Status: Unsecured.
- Use of Proceeds: Short-term working capital.
Material Changes
The primary material change is the establishment of a one-year credit facility by the subsidiary, Global Technology, Inc. The filing does not provide comparative financial data against prior periods to quantify changes in overall debt levels or liquidity ratios.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard obligations and events of default customary for credit agreements. The agreement requires monthly interest payments with principal repayment due at maturity.
Investor Verification Checklist
- Verify the current exchange rate for RMB to USD to assess the dollar value of the 9.9 million RMB obligation.
- Review the full text of the Working Capital Loan Contract (Exhibit 10.1) for specific covenants and events of default.
- Confirm the subsidiary's current liquidity position to ensure it can meet monthly interest obligations.
- Monitor the Bank's published 12-month prime loan rate for potential interest rate fluctuations affecting the cost of borrowing.