Business Context and Reporting Period
Company: Xcyte Therapies, Inc. (Note: Metadata listed "Bio Green Med Solution, Inc." but the filing text identifies Xcyte Therapies, Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: December 14, 2004
Event: Creation of a direct financial obligation under an equipment financing arrangement.
Key Financial Metrics
- New Borrowing: $349,000 borrowed on December 14, 2004.
- Interest Rate: 7.91% per annum.
- Repayment Terms: 42 equal monthly installments of principal and interest.
- Total Credit Facility Limit: $3.0 million.
- Remaining Availability: $1.8 million as of the filing date.
- Facility Expiration: July 2005.
- Collateral: Related equipment acquired under the facility.
Revenue, profit, cash flow, and margin data are not provided in this filing.
Material Changes
This filing represents the second borrowing under the Company's existing Credit Facility with General Electric Capital Corporation. The transaction increased the Company's outstanding debt obligations by $349,000.
Outlook, Risks, and Contingencies
- Debt Maturity: The Credit Facility expires in July 2005, requiring repayment or refinancing of the remaining balance by that date.
- Covenants: The borrowing is governed by a Master Security Agreement dated May 1, 2000, as amended.
- Collateral Risk: The promissory note is secured by the specific equipment purchased.
Investor Verification Checklist
- Verify the total outstanding debt balance under the Credit Facility following this $349,000 draw.
- Confirm the Company's cash position to ensure ability to service the 42 monthly installments.
- Review the Master Security Agreement for any financial covenants that may be triggered by this borrowing.
- Assess the Company's plan for the Credit Facility expiring in July 2005.