NASDAQ — Technology: Manufacturing, Communication Equipment: Semiconductors & Related Devices
www.ao-inc.comApplied Optoelectronics, Inc. has entered into a 15-year lease agreement for a facility in Taoyuan City, commencing on September 1, 2025. The lease involves a land parcel and a building totaling approximately 12,225.902 square meters, with a three-month rent-free renovation period preceding the lease term. Monthly rent will increase by 3% every three years throughout the lease. Prime World International Holdings Ltd., a wholly owned subsidiary of Applied Optoelectronics, will have the right to modify the facility as needed and holds additional rights concerning the potential purchase or renewal of the lease. This strategic move is intended to support production capabilities, although financial details regarding the rent amount have not been disclosed.
Lease CommencementApplied Optoelectronics, Inc. is set to make the first installment of $150,000 towards the cost of improvements known as 'Landlord's Work' as stipulated in a Lease Agreement with Albany Road-Breck Exchange LLC. This payment is due on September 30, 2025, as part of a larger agreement that includes other contributions towards renovations totaling $300,000. The Lease, which spans 84 months, includes provisions for rental costs and additional responsibilities cost-sharing for maintenance and taxes. The financial contributions will allow for significant renovations at the leased premises in Duluth, Georgia, indicating a strategic move to expand operational capacity in a new location.
Payment DueApplied Optoelectronics, Inc. has a second payment installment of $150,000 due on November 30, 2025, as part of their lease agreement for a new operation site in Duluth, Georgia. This lease includes a total contribution of $300,000 by the company toward landlord improvements, with the landlord covering up to $875,182.50 for the costs associated with design and construction. Following a phased rent structure beginning at $31,770.83 per month for the first two years, this lease agreement plays a critical role in the company’s operational expansion. The financial commitments, alongside additional furniture purchases totaling $200,000, reflect the company's strategic investments as it prepares to commence operations at the new location.
Payment Due