SOCKET MOBILE, INC. (NASDAQ:SCKT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry Into a Material Definitive Agreement
On January 8, 2020, Socket Mobile (“we” or the “Company”) entered into a Seventh Business Financing Modification Agreement (the “Financing Agreement”) with Western Alliance Bank, an Arizona corporation (“Lender”), which, among other things, extends the maturity date of the Company’s revolving line of credit to January 31, 2022. The original Financing Agreement was dated February 27, 2014 with subsequent modifications dated February 26, 2016, March 20, 2017, January 31, 2018, June 4, 2018, July 30, 2018 and June 14, 2019.
The Financing Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our ability to, among other things, grant liens, make investments, incur indebtedness, merge or consolidate, dispose of assets, make acquisitions, pay dividends or make distributions, repurchase stock, enter into transactions with affiliates and enter into restrictive agreements, in each case subject to customary exceptions for a credit facility of this size and type. We are also required to maintain compliance with an asset coverage ratio of 1.25 to 1, measured monthly.
The Financing Agreement also contains customary events of default including, among others, payment defaults, breaches of covenants, bankruptcy and insolvency events, cross defaults with certain material indebtedness, judgment defaults, and breaches of representations and warranties. Upon an event of default, Lender may declare all or a portion of our outstanding obligations payable to be immediately due and payable and exercise other rights and remedies provided for under the Financing Agreement.
The foregoing description of the Financing Agreement is qualified in its entirety by reference to the full text of the Seventh Business Financing Modification Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 hereof is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits
|10.1||Seventh Business Financing Modification Agreement dated as of January 8, 2020|
SOCKET MOBILE, INC. Exhibit
EX-10 2 ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 SEVENTH BUSINESS FINANCING MODIFICATION AGREEMENT This Seventh Business Financing Modification Agreement (this “BFMA”) is entered into as of January 8,…
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About SOCKET MOBILE, INC. (NASDAQ:SCKT)
Socket Mobile, Inc. is a producer of data capture products. The Company’s products are integrated into mobile applications used in mobile point of sale (mPOS), hospitality, asset management, commercial services, healthcare and other mobile business markets. The Company operates through mobile systems solutions for businesses segment. Its cordless barcode scanners connect over Bluetooth and work with applications running on smartphones, mobile computers and tablets using various operating systems. It offers a software developer kit (SDK) to mobile application developers to enable the use of its products with their applications. The Company offers barcode scanning products for both one-dimensional (1D), including imager and laser, and two-dimensional (2D) barcode scanning in standard and durable cases. Its 7 Series barcode scanners are designed for handling as a stand-alone cordless barcode scanner. Its D700 series barcode scanners are used in linear imaging, laser and 2D models.