iCAD, INC. (NASDAQ:ICAD) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into Material Definitive Agreement
On June 22, 2020, iCAD, Inc., a Delaware corporation (the Company), along with its wholly-owned subsidiaries Xoft, Inc. and Xoft Solutions LLC (together with the Company, collectively, the Borrowers), entered into a First Amendment dated as of June 16, 2020 (the First Amendment), to the Loan and Security Agreement, dated as of March 30, 2020 (the Loan Agreement), with Western Alliance Bank (the Lender). The First Amendment (i) amended the financial covenant tied to minimum consolidated revenue contained in the Loan Agreement to provide that, for the testing periods following December 31, 2020, the Borrowers and the Lender will work together in good faith to set future minimum consolidated revenue amounts or the Borrowers will comply with an unrestricted cash to indebtedness covenant, (ii) deleted the maximum net loss financial covenant contained in the Loan Agreement, (iii) added an unrestricted cash to total indebtedness financial covenant to the Loan Agreement and (iv) stipulated that the Borrowers must be in compliance with at least one of the foregoing financial covenants at all times. The Borrowers paid the Lender a fee of $10,000 for the First Amendment.
The foregoing description of the First Amendment is not a complete description of all terms and is qualified in its entirety by reference to the full text of the First Amendment, a copy of which will be filed with the Companys Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020.