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DEBT
 12 Months Ended
Oct. 31, 2024
DEBT [Abstract]  
DEBT
NOTE 8 - DEBT


As of October 31, 2024, the Current portion of long-term debt and the Long-term debt balances were comprised of finance leases as described below:


As of October 31, 2024
  
Finance
Leases
  
Principal due:
      
Next 12 months
  
$
17,972
  
Months 13 – 24
  
$
12
  
Months 25 – 36
    
12
  
Months 37 – 48
    
1
  
Months 49 – 60
    
-
  
Long-term debt
    
25
  
Total debt
  
$
17,997
  
 
        
Interest rate at balance sheet date
    
N/A
  
Basis spread on interest rates
    
N/A
  
Interest rate reset
    
N/A
  
Maturity date
    
N/A
  
Periodic payment amount
      Varies as Lease matures
  
Periodic payment frequency
      Monthly
  
Loan collateral (carrying amount)
  
$
32,293
 (1)

 
(1)
Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests.


The table below provides information on the Company’s long-term debt as of October 31, 2023.

As of October 31, 2023
  
Finance
Leases
  
Principal due:
      
Next 12 months
  
$
6,621
  
Months 13 – 24
  
$
17,972
  
Months 25 – 36
    
12
  
Months 37 – 48
    
13
  
Months 49 – 60
     1  
Long-term debt
    
17,998
  
Total debt
   $ 24,619  
         
Interest rate at balance sheet date
     N/A  
Basis spread on interest rates
    
N/A
  
Interest rate reset
    
N/A
  
Maturity date
     N/A  
Periodic payment amount
     Varies as Lease matures  
Periodic payment frequency
     Monthly  
Loan collateral (carrying amount)
   $ 35,165 (1)

 
(1)
Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests.

Finance Leases


In February 2021, the Company entered into a five-year $7.2 million finance lease for a high-end inspection tool. Monthly payments on the lease, which commenced in February 2021, are $0.1 million per month. Upon the payment of the fiftieth monthly payment and prior to payment of the fifty-first monthly payment, the Company may exercise an early buyout option to purchase the tool for $2.4 million. After the original term or any renewal periods, the Company may return the tool, elect to extend the lease, or purchase the tool at its fair market value. Management has determined that the Company will exercise its early buyout option during the first half of 2025.


In December 2020, the Company entered into a five-year $35.5 million finance lease for a high-end lithography tool. Monthly payments on the lease, which commenced in January 2021, increased from $0.04 million during the first three months to $0.6 million for the following nine months, followed by forty-eight monthly payments of $0.5 million. As of the due date of the forty-eighth monthly payment, the Company may exercise an early buyout option to purchase the tool for $14.1 million.  At the Company’s option, after the original term, the Company may return the tool, elect to extend the lease term for a period and a lease payment to be agreed with lessor at the time, or purchase the tool for its then-fair market value, as determined by the lessor. The lease agreement incorporates the covenants included in the Company’s Credit Agreement, as defined below (expired in September 2023), which are detailed below, and includes a cross-default provision for any agreement or instrument with an outstanding, committed balance greater than $5.0 million in which the Company is the indebted party. Management has determined that the Company will exercise its early buyout option during the first half of 2025.



Xiamen Project Loans

In November 2018, PDMCX obtained approval to borrow RMB 345.0 million from the Industrial and Commercial Bank of China. From November 2018 through July 2020, PDMCX entered into separate loan agreements (the “Project Loans”) for the entire approved amount. In February 2023, PDMCX repaid the entire outstanding balance of RMB 26.4 million ($3.9 million).  As of October 31, 2024, PDMCX had no amount outstanding and the amounts may not be re-borrowed. The Project Loans were used to finance certain capital expenditures at the PDMCX facility and were collateralized by liens granted on the land use right, building, and certain equipment located at the facility. The interest rates on the Project Loans were variable (based on the RMB Loan Prime Rate of the National Interbank Funding Center), and interest incurred on the loans was eligible for reimbursement through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provided for such reimbursements up to a prescribed limit and duration. The Project Loans were subject to covenants and provisions, certain of which related to the assets pledged as security for the loans, all of which the Company were in compliance with at the time of repayment.


Xiamen Working Capital Loans


In November 2018, PDMCX obtained approval for revolving, unsecured credit of RMB 200 million ($25 million), pursuant to which PDMCX may enter into separate loan agreements with varying terms to maturity. In December 2022, the Company repaid the Company’s entire outstanding balance of RMB 25.6 million ($3.6 million). The interest rates are variable, based on the RMB Loan Prime Rate of the National Interbank Funding Center. Interest incurred on the loans related to the amount borrowed was eligible for reimbursement through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provided for such reimbursements up to a prescribed limit and duration. This facility is subject to annual reviews and extensions. In August 2024, the Company was issued an extension to the revolving, unsecured credit agreement for RMB 200 million (approximately $28.1 million) with an expiration date of July 31, 2025. As of October 31, 2024, PDMCX had no outstanding borrowings against the approval.


Corporate Credit Agreement



In September 2018, the Company entered into a five-year amended and restated credit agreement (the “Credit Agreement”), which had a $50 million borrowing limit, with an expansion capacity to $100 million. The Credit Agreement was secured by substantially all of the Company’s assets located in the United States and common stock the Company owns in certain subsidiaries. The Credit Agreement was subject to covenants around minimum interest coverage ratio, total leverage ratio, and minimum unrestricted cash balance (all of which the Company were in compliance with at the termination of the agreement in September 2023), and limited the amount of cash dividends, distributions, and redemptions the Company could pay on the Company’s common stock to an aggregate annual amount of $50 million. The Credit Agreement expired and was not renewed as of October 31, 2023. There were no outstanding borrowings against the Credit Agreement at its expiration.


Interest Paid for Debt



Interest payments were $0.3 million in 2024, $0.5 million in 2023, and $2.8 million in 2022.   The weighted-average interest rate on the Company’s current portion of long-term debt for the periods ended October 31, 2024 and October 31, 2023 was 1.5% and 1.5%, respectively.