TELKONET, INC. (OTCMKTS:TKOI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
Effective as of February 12, 2019, Telkonet, Inc. (the “Company” and “Borrower”) entered into a Tenth Amendment to the Loan and Security Agreement (the “Amendment”) with Heritage Bank of Commerce, a California state chartered bank (the “Bank”). The Company and the Bank are parties to a certain Loan and Security Agreement (the “Loan Agreement”) dated as of September 30, 2014 referenced in a Current Report on Form 8-K filed with the Securities and Exchange Commission on October 2, 2014.
The Amendment extends the revolving maturity date to September 30, 2020 and redefines compliance if the Company deviates from its projected EBITDA for the quarter ended December 31, 2018 and subsequent quarters through 2019. The Borrower shall be deemed compliant if, as of such measurement date, Borrower’s unrestricted cash maintained in its accounts at Bank is in excess of $2,000,000. The Amendment also increases the minimum asset coverage ratio covenant from 1.25 to 1.00 to 1.50 to 1.00. In addition, the Amendment decreases the credit card sublimit under the Loan Agreement from $100,000 to $50,000. All other terms of the Loan Agreement remain in full force and effect.
The foregoing description of the Amendment is not complete and is in all respects subject to the actual provisions of the Amendment, a copy of which has been filed as Exhibit 10.1 to this Current Report on Form 8-K and which is incorporated by reference herein.
| Item 9.01 | Financial Statements and Exhibit. |
TELKONET INC Exhibit
EX-10.1 2 telkonet_ex1001.htm TENTH AMENDMENT TO LOAN AGR Exhibit 10.1 TENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT This Tenth Amendment to Loan and Security Agreement is entered into as of February 12,…
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About TELKONET, INC. (OTCMKTS:TKOI)
Telkonet, Inc. (Telkonet) provides EcoSmart Platform of intelligent automation solutions to support the Internet of Things. The Company’s business is based on two synergistic divisions: EcoSmart Energy Management Technology (EcoSmart division) and EthoStream High Speed Internet Access (HSIA) Network (EthoStream division). The EcoSmart division offers intelligent automation solutions. The EthoStream division provides the underlying networking technology. Telkonet serves the hospitality, education, military, public housing and healthcare markets. Its EcoSmart Platform consists of over four main pillars, which include EcoSmart Suite, EcoCentral Virtual Engineer, EcoCare and EcoMobile. EthoStream is an HSIA that provides services to approximately eight million users monthly across a network of over 2,300 locations. EthoStream offers solutions for various public access locations with a range of product and service offerings and management platform available for HSIA networks.
