Business Context and Reporting Period
This Form 8-K Current Report was filed by Xcyte Therapies, Inc. on April 27, 2005. The filing discloses the creation of a direct financial obligation under an existing equipment financing arrangement.
Key Financial Metrics
- New Debt Obligation: $562,000 borrowed on April 27, 2005.
- Interest Rate: 8.95% per annum.
- Repayment Terms: 42 equal monthly installments of principal and interest.
- Total Credit Facility Limit: $3.0 million.
- Remaining Availability: $1.6 million as of the filing date.
- Facility Expiration: December 2005.
- Collateral: The promissory note is secured by the equipment acquired.
Material Changes
This transaction represents the third drawdown under the Master Security Agreement dated July 1, 2003, with Oxford Financial Corporation. The filing does not provide comparative financial data (revenue, profit, or cash flow) for prior periods as this is a current report regarding a specific financing event rather than a periodic financial statement.
Outlook, Risks, and Management Commentary
The filing indicates the company is utilizing its existing credit line to acquire equipment. The primary risk disclosed is the obligation to repay the $562,000 principal plus interest over the 42-month term. The credit facility expires in December 2005, limiting future borrowing under this specific agreement after that date. The filing text does not provide additional management commentary, forward-looking guidance, or details on other contingencies.
Investor Verification Checklist
- Verify the total outstanding debt balance under the Oxford Financial Corporation facility following this drawdown.
- Confirm the specific equipment purchased with the $562,000 and its expected impact on operations.
- Review the company's cash flow projections to ensure ability to service the new monthly debt payments.
- Check for any subsequent filings regarding the renewal or extension of the credit facility expiring in December 2005.