APPLIED OPTOELECTRONICS, INC. Debt Disclosure
NOTE K—NOTES PAYABLE AND LONG-TERM DEBT
Notes payable and long-term debt consisted of the following for the periods indicated (in thousands):
| December 31, 2025 | December 31, 2024 | |||||||
| Revolving line of credit with a China bank up to $ million with interest from % to %, terminated on June 18, 2025 | $ | - | $ | 13,466 | ||||
| Revolving line of credit with a China bank up to $ million with interest of %, maturing | 20,203 | — | ||||||
| Credit facility with a China bank up to $ million with interest of % to %, terminated on July 23, 2025 | — | 13,216 | ||||||
| Revolving line of credit with a China bank up to $ million with interest at % to %, maturing | 13,772 | — | ||||||
| Sub-total | 33,975 | 26,682 | ||||||
| Less debt issuance costs, net | — | — | ||||||
| Grand total | 33,975 | 26,682 | ||||||
| Less current portion | (33,975 | ) | (22,369 | ) | ||||
| Non-current portion | $ | - | $ | 4,313 | ||||
| Bank Acceptance Notes Payable | ||||||||
| Bank acceptance notes issued to vendors with a zero percent interest rate | $ | 33,363 | $ | 19,260 | ||||
The current portion of long-term debt is the amount payable within one year of the balance sheet date of December 31, 2025.
SPD Credit Line
On May 24, 2024, Global entered into a -year revolving credit line with Shanghai Pudong Development Bank Co., Ltd. ("SPD"), totaling 170,000,000 RMB (the "SPD Credit Line") or approximately $23.9 million at that time. On June 18, 2025, Global used the CCB Credit Facility, as described hereinbelow, to repay certain amounts outstanding under the SPD Credit Line. Upon repayment, Global terminated the SPD Credit Line effective June 18, 2025.
On July 18, 2025, Global entered into a -year credit facility with SPD, totaling 82,000,000 RMB (the "¥82M Credit Facility"), or approximately $11.4 million at that time. Borrowing under the Credit Facility was used to repay the Company’s outstanding loans with China Zheshang Bank Co., Ltd., and for general corporate and capital investment purposes.
On July 29, 2025, Global entered into a -year revolving credit line agreement with SPD in Ningbo City, China, totaling 250,000,000 RMB (the SPD Credit Line"), or approximately $34.9 million at that time, and a mortgage contract. Borrowing under the SPD Credit Line will be used for general corporate and capital investment purposes. Any credit previously extended by SPD will be applied against the available amount under the SPD Credit Line, inclusive of the Credit Facility. Global's obligation under the SPD Credit Line is secured by certain real property owned by Global. As of December 31, 2025, $20.2 million was outstanding under the SPD Credit Line, and the outstanding balance of bank acceptance notes issued to vendors was million. The unused credit was $1.5 million as of December 31, 2025.
CZB Loan
On June 7, 2022, Global entered into a security agreement with China Zheshang Bank in Ningbo City, China ("CZB") for a -year credit line agreement, totaling 200,000,000 RMB (the Credit Facility"), or approximately $29.9 million at that time. On July 23, 2025, Global used the Credit Facility, as described hereinabove, to repay certain amounts outstanding under the Credit Facility. Upon repayment, Global terminated the Credit Facility effective July 23, 2025. As of December 31, 2025, the outstanding balance of bank acceptance notes issued to vendors was $2.8 million. The unused credit was $0.7 million as of December 31, 2025.
CCB Loan
On June 12, 2025, Global entered into a -year credit facility with China Construction Bank Co., Ltd., in Ningbo, City, China ("CCB"), totaling 96,800,000 RMB (the "CCB Credit Facility"), or approximately $13.5 million at that time.
On June 26, 2025, Global entered into a -year revolving credit line agreement with CCB, totaling 162,260,000 RMB (the "CCB Credit Line"), or approximately $22.7 million at that time. The amount available under the CCB Credit Line is inclusive of the CCB Credit Facility previously granted by CCB on June 12, 2025.On December 19, 2025, the CCB Credit Line was increased to 250,000,000 RMB. Global's obligation under the CCB Credit Line is secured by certain real property owned by Global. As of December 31, 2025, $13.8 million outstanding under the CCB Credit Line, and the outstanding balance of bank acceptances notes issued to vendors was $10.8 million. The unused credit was $13.2 million as of December 31, 2025.
Taishin Loan
On November 27, 2025, Prime World entered into a credit facility with Taishin International Bank in Taiwan, consisting of a line of credit (the "NT$100M Credit Line") and a line of credit (the "US$2M Credit Line"), collectively, with the NT$100M Credit Line, the "Taishin Credit Facility").
Prime World may utilize the Taishin Credit Facility from November 27, 2025 through October 31, 2026. Borrowings under the NT$100M Credit Line may be drawn as short-term loans, while the US$2M Credit Line is a derivatives-based facility and may be used by Prime World to entered into foreign exchange hedging transactions. As of December 31, 2025, $0 was outstanding under the Taishin Credit Facility.
BOKF Loan
On July 31, 2025, the Company entered into a Loan and Security Agreement (the "BOKF Credit Facility") with BOKF, NA dba BOK Financial, as agent for secured parties. The BOKF Credit Facility provides the Company with a -year, $35 million revolving line of credit, with the ability to request additional lender commitments in an aggregate amount not to exceed $40 million (for a total aggregate amount of $75 million) pursuant to certain conditions. As of December 31, 2025, $0 was outstanding under the BOKF Credit Facility.
As of December 31, 2025 and December 31, 2024, the Company had $60.7 million and $24.8 million of unused borrowing capacity, respectively.
As of December 31, 2025 and December 31, 2024, there was $8.7 million and $8.5 million of restricted cash, investments or security deposits associated with the loan facilities, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 9, 2017 | |
| 2015 | Mar 14, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.