Business Context and Reporting Period
Company: Oragenics, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 20, 2008
Event: Entry into a Material Definitive Agreement (Item 1.01)
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. The primary financial metric disclosed is a new credit facility:
- Revolving Line of Credit: Up to $1,000,000.00
- Lender: Signature Bank of New York
- Collateral: Fully secured by cash collateral of $1,000,000.00 deposited by the Company
- Interest Rate: Prime Rate of Signature Bank
- Maturity Date: October 20, 2009
- Financial Covenants: None (other than submission of periodic financial information)
Material Changes
The Company entered into a new credit agreement to secure working capital availability. There are no reported changes to historical financial performance in this document. The Company explicitly stated it does not currently expect to draw down any funds from this facility.
Outlook, Management Commentary, and Risks
Purpose: The facility is intended to provide working capital for potential future product manufacturing needs.
Management Commentary: The Company sought this agreement to ensure liquidity availability rather than immediate funding.
Risks/Contingencies: The loan is fully secured by cash on deposit, limiting immediate liquidity impact but tying up existing cash reserves as collateral.
Investor Verification Checklist
- Verify the amount of cash currently held by the Company to confirm the $1,000,000 collateral deposit.
- Review the attached Exhibit 10.1 (Credit Agreements) for specific terms regarding the Prime Rate calculation and drawdown procedures.
- Confirm the Company's current cash position to assess the impact of the collateral pledge on available working capital.
- Monitor future filings for any actual drawdowns against this line of credit.