Electromed Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation, Financial Statements and Exhibits
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| Item 1.01 | Entry into a Mater Definitive Agreement. |
On December 13, 2023, Electromed, Inc. (the "Company") renewed its $2,500,000 revolving line of credit with Choice Financial Group pursuant to a supplemental rider to the existing Business Loan Agreement (Asset Based) dated December 18, 2019. The rider provides that the line of credit will be extended for an additional two years and is now scheduled to mature on December 18, 2025. Interest on borrowings on the line of credit, if any, will remain at prime rate less 1.00%, with no interest rate floor and payable monthly. The amount eligible for borrowing on the line of credit will remain limited to the lesser of $2,500,000 or 57.00% of eligible accounts receivable. Payment obligations under the line of credit remain secured by a security interest in substantially all the tangible and intangible assets of the Company.
The foregoing description of the line of credit, as renewed, is qualified by reference to the text of the loan agreement and rider, copies of which are attached to this Current Report on Form 8-K as Exhibits 10.1 and 10.2, respectively, and incorporated by reference into this Item 1.01.
| 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 response to Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits:
| Exhibit Number | Description | |
| 10.1 | Business Loan Agreement (Asset Based) with Choice Financial Group, dated December 18, 2019 | |
| 10.2 | Rider to Business Loan Agreement (Asset Based) with Choice Financial Group, dated December 13, 2023 | |
| 104 | Cover Page Interactive Data File (embedded in the cover page and formatted in inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ELECTROMED, INC. |
| Date: December 15, 2023 | By: | /s/ Bradley M. Nagel | |
| Name: | Bradley M. Nagel | ||
| Title | Chief Financial Officer |