Applied Optoelectronics Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation, Financial Statements and Exhibits
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| Item 1.01 | Entry into a Material Definitive Agreement. |
On April 3, 2025, Applied Optoelectronics, Inc. (the “Company”) entered into a Lease Agreement (the “Lease”) with Albany Road-Breck Exchange LLC, a Delaware limited liability company (the “Landlord”), pursuant to which the Company will lease approximately 38,897 rentable square feet of space located at 2885 Breckinridge Boulevard, Suite 150, Duluth, Georgia 30096 (the “Premises”).
The term of the Lease is eighty-four (84) months and will commence on the earlier of (i) the day immediately following the date of Substantial Completion (as defined in the Work Letter attached to the Lease as Exhibit C), or (ii) the date on which the Company commences operations at the Premises (the “Commencement Date”). The Lease also grants the Company a one-time option to extend the lease term for an additional five (5) years, subject to timely notice and other conditions set forth in the Lease.
The Lease provides for an initial monthly base rent of $31,770.83, which increases annually to $59,026.20 during the final 12 months of the term. For months 1 through 24, base rent is abated and calculated based on reduced rentable square footage of 25,000 RSF and 32,000 RSF, respectively. The monthly base rent schedule is as follows:
| Period | Monthly Base Rent |
| Month 1 – 12 | $31,770.83 |
| Month 13 – 24 | $41,893.33 |
| Month 25 – 36 | $52,446.12 |
| Month 37 – 48 | $54,002.00 |
| Month 49 – 60 | $55,622.71 |
| Month 61 – 72 | $57,308.25 |
| Month 73 – 84 | $59,026.20 |
In addition to base rent, the Company is responsible for its proportionate share of real estate taxes, insurance premiums, and common area maintenance expenses. Upon execution of the Lease, the Company provided the Landlord with a security deposit in the amount of $59,026.20.
Additionally, the Lease outlines the scope of improvements to be completed by the Landlord (“Landlord’s Work”) in order to deliver the Premises in a condition of “Substantial Completion”. The Lease provides that the Landlord will contribute up to $875,182.50 toward the total cost of design, permitting, construction, and related improvements, including a 4% construction management fee. The Company has agreed to contribute $300,000 toward the cost of Landlord’s Work, payable in two equal installments of $150,000 on or before September 30, 2025, and November 30, 2025, respectively. Any costs in excess of the combined contributions, or costs arising from Company-requested changes to the scope of work, are the responsibility of the Company.
In connection with the Lease, the Company also entered into a separate agreement to purchase certain existing office furniture located at the Premises from the Landlord for a total purchase price of $200,000.
The foregoing description of the Lease does not purport to be a complete statement of the parties’ rights and obligations under the Lease and is qualified in its entirety by reference to the full text of the Lease, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.
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| Item 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information contained in Item 1.01 of this Current Report on Form 8-K with respect to the Amendment is incorporated by reference herein and made a part hereof.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. | Description | |
| 10.1 | Lease, dated April 3, 2025, between Applied Optoelectronics, Inc. and Albany Road-Breck Exchange, LLC. | |
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) |
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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: April 9, 2025 | APPLIED OPTOELECTRONICS, INC. | ||
| By: | /s/ David C. Kuo | ||
| Name | David C. Kuo, | ||
| Title: | Senior Vice President and Chief Legal Officer | ||
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