Business Context and Reporting Period
This Form 8-K Current Report was filed by Applied Optoelectronics, Inc. on October 12, 2018, covering events occurring on October 8, 2018. The filing reports the entry into a material definitive agreement regarding a lease extension for company premises located in Duluth, Georgia.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. The document focuses exclusively on the terms of a specific lease amendment.
| Lease Term Extension | Details |
|---|---|
| Duration | 36 months (December 1, 2018 to November 30, 2021) |
| Year 1 Rent (Dec 2018-Nov 2019) | $2,983.00 per month |
| Year 2 Rent (Dec 2019-Nov 2020) | $3,072.49 per month |
| Year 3 Rent (Dec 2020-Nov 2021) | $3,164.67 per month |
Material Changes
The Company amended its original Lease Agreement dated November 1, 2015, with GIG VAOI Breckinridge, LLC. The primary material change is the extension of the lease term by 36 months and the establishment of a stepped monthly rent schedule for the extended period.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management commentary on financial outlook, or discussion of risks beyond the standard legal disclaimer that the summary is qualified by the full text of the attached amendment. No unusual items or contingencies were reported.
Investor Verification Checklist
- Verify the total annualized rent obligation for the 2019, 2020, and 2021 fiscal years based on the stepped monthly rates.
- Review the full text of the First Amendment to Lease (Exhibit 10.1) for clauses regarding early termination, subletting, or additional operating expenses not detailed in the summary.
- Confirm the impact of this lease extension on the Company's future operating cash flow projections.