Applied Optoelectronics (NASDAQ: AAOI) adds $150M at-the-market program

Rhea-AI Filing Summary

Applied Optoelectronics, Inc. entered into an Equity Distribution Agreement with Raymond James & Associates, Inc. and Needham & Company, LLC that allows it to issue and sell shares of common stock having an aggregate offering price of up to $150 million from time to time through at-the-market transactions. Sales will be made through the Sales Agents on the Nasdaq Global Market or other permitted markets based on placement notices specifying the number of shares, time period, minimum price, and daily limits, and the company is not obligated to sell any shares and may suspend offers and sales at any time.

The Sales Agents will receive compensation equal to 2% of the gross sales price of shares sold, and the company agreed to reimburse specified regulatory and blue sky expenses up to $10,000, with potential additional reimbursement of up to $30,000 for certain terminations. The shares are registered under an automatic shelf registration statement on Form S-3ASR, using a base prospectus and a prospectus supplement filed on August 27, 2025, and the distribution agreement continues until all covered shares are sold or it is terminated by either party.

Insights

Capital markets and securities analyst

Company sets up a $150M at-the-market equity program with 2% sales commissions.

Applied Optoelectronics, Inc. has established an at-the-market equity distribution facility permitting sales of common stock with an aggregate offering price of up to $150 million through Raymond James & Associates, Inc. and Needham & Company, LLC. Sales will occur pursuant to placement notices that define share amounts, sale periods, minimum prices, and daily limits, with transactions executed on the Nasdaq Global Market or other permitted venues.

The compensation structure is straightforward: the Sales Agents earn a commission of 2% of the gross sales price of shares sold and may receive reimbursement of specified regulatory and blue sky expenses up to $10,000, plus up to $30,000 of additional out-of-pocket costs if the agreement is terminated under certain conditions without a minimum sales amount being reached. The actual use of this at-the-market program will depend on future placement notices, and the agreement remains in effect until all covered shares are sold or it is terminated by the company or the Sales Agents.

8-K Event Classification

2 items: 1.01, 9.01

2 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 27, 2025

Applied Optoelectronics, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-36083	76-0533927
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

13139 Jess Pirtle Blvd.
Sugar Land, Texas	77478
(Address of principal executive offices)	(Zip Code)

(281) 295-1800

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Trading Name of each exchange on which registered
Common Stock, Par value $0.001	AAOI	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 1.01. Entry into a Material Definitive Agreement.

On August 27, 2025, Applied Optoelectronics, Inc. (the “Company”) entered into an Equity Distribution Agreement (the “Agreement”) with Raymond James & Associates, Inc. and Needham & Company, LLC (collectively, the “Sales Agents”) pursuant to which the Company may issue and sell shares of the Company’s common stock, par value $0.001 per share (the “Shares”) having an aggregate offering price of up to $150 million from time to time through the Sales Agents.

Upon delivery of a placement notice and subject to the terms and conditions of the Agreement, sales, if any, of the Shares will be made through the Sales Agents in transactions that are deemed to be “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), including sales made through the facilities of the Nasdaq Global Market, the principal trading market for the Company’s common stock, on any other existing trading market for the Company’s common stock, to or through a market maker or as otherwise agreed by the Company and the Sales Agents. In the placement notice, the Company will designate the maximum number of Shares to be sold through the Sales Agents, the time period during which sales are requested to be made, the minimum price for the Shares to be sold, and any limitation on the number of Shares that may be sold in any one day. Subject to the terms and conditions of the Agreement, the Sales Agents will use their commercially reasonable efforts to sell Shares on the Company’s behalf up to the designated amount specified in the placement notice. The Company has no obligation to sell any Shares under the Agreement and may at any time suspend offers and sales of the Shares under the Agreement.

The Agreement provides that the Sales Agents will be entitled to compensation of 2% of the gross sales price of the Shares sold through the Sales Agents from time to time. The Company has also agreed to reimburse the Sales Agents for certain specified expenses in connection with the registration of Shares under state blue sky laws and any filing with, and clearance of the offering by, the Financial Industry Regulatory Authority Inc., not to exceed $10,000 in the aggregate, and any associated application fees incurred. Additionally, if the Agreement is terminated under certain circumstances, and the Company fails to sell a minimum amount of the Shares as set forth in the Agreement, then the Company has agreed to reimburse the Sales Agents for reasonable out-of-pocket expenses, including the reasonable fees and disbursements of counsel incurred by the Sales Agents, up to a maximum of $30,000 in the aggregate. The Company agreed to indemnify the Sales Agents against certain liabilities, including liabilities under the Securities Act, or to contribute to payments that the Sales Agents may be required to make because of any of those liabilities.

The offering pursuant to the Agreement will terminate upon the sale of all Shares subject to the Agreement. The Agreement may also be terminated by the Company or by the Sales Agents at any time.

The Shares to be issued and sold have been registered under the Securities Act, pursuant to the Company’s automatic shelf registration statement on Form S-3ASR (Registration No. 333-283905), including the prospectus contained therein, as supplemented by the prospectus supplement filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) under the Securities Act on August 27, 2025.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Agreement, which is filed as Exhibit 1.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
1.1		Equity Distribution Agreement, dated August 27, 2025, among Applied Optoelectronics, Inc., Raymond James & Associates, Inc., and Needham & Company, LLC.
4.1		Common Stock Specimen (incorporated by reference to Exhibit 4.1 of Applied Optoelectronics, Inc’s Form 8-K (File No. 001-36083) filed with the SEC on November 14, 2016).
5.1		Opinion of Haynes and Boone, LLP.
23.1		Consent of Haynes and Boone, LLP (included in Exhibit 5.1).
104		Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	APPLIED OPTOELECTRONICS, INC.
Date: August 27, 2025	By:	/s/ David C. Kuo
	Name:	David C. Kuo
	Title:	Senior Vice President and Chief Legal Officer

FAQ

What equity program did Applied Optoelectronics (AAOI) establish in this 8-K?

Applied Optoelectronics, Inc. entered into an Equity Distribution Agreement that allows it to issue and sell shares of its common stock with an aggregate offering price of up to $150 million through at-the-market offerings conducted by Raymond James & Associates, Inc. and Needham & Company, LLC.

How will Applied Optoelectronics shares be sold under the new equity distribution agreement?

Shares may be sold in transactions deemed to be at-the-market offerings under Rule 415, including sales through the Nasdaq Global Market, other existing trading markets, to or through a market maker, or as otherwise agreed between the company and the Sales Agents, based on placement notices issued by the company.

What fees will Applied Optoelectronics pay to the Sales Agents under this agreement?

The Sales Agents are entitled to 2% of the gross sales price of the shares sold through them and reimbursement of specified blue sky and FINRA-related expenses up to $10,000, with the possibility of up to $30,000 in additional reimbursed out-of-pocket expenses if certain termination conditions are met.

Is Applied Optoelectronics required to sell shares under the $150 million at-the-market program?

No. The company has no obligation to sell any shares under the Equity Distribution Agreement and may suspend offers and sales at any time, even after the program is in place.

How long will Applied Optoelectronics’ equity distribution agreement remain in effect?

The offering under the Equity Distribution Agreement will terminate when all covered shares are sold, and the agreement may be terminated at any time by either the company or the Sales Agents as provided in the agreement.

Under what registration statement are the Applied Optoelectronics shares being offered?

The shares to be issued and sold under the equity distribution program have been registered under the Securities Act pursuant to the company’s automatic shelf registration statement on Form S-3ASR (No. 333-283905), using the base prospectus and a prospectus supplement filed with the SEC on August 27, 2025.