SEC Filing Summary: Segmentz, Inc. (Form 8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Segmentz, Inc. on November 8, 2005. The filing covers events occurring on November 4, 2005, and November 9, 2005. Note: The request metadata referenced "XPO, Inc.," but the filing text explicitly identifies the registrant as Segmentz, Inc.
Key Financial Metrics and Obligations
- New Debt Facility: Entered into an asset-based revolving line of credit with Chemical Bank.
- Maximum Availability: The lesser of $6,000,000 or 80% of eligible accounts receivable plus $800,000.
- Interest Rate: Chemical Bank's prime rate plus an applicable margin ranging from -0.50% to +0.25%. The initial margin is -0.25%.
- Maturity Date: September 30, 2007.
- Collateral: Secured by a blanket security interest in the personal property of the subsidiary (Express-1, Inc.) and the parent company (Segmentz, Inc.).
- Operating Results: The filing references a press release announcing third-quarter 2005 earnings but does not contain specific revenue, profit, or cash flow figures within the text provided.
Material Changes
The primary material change is the creation of a direct financial obligation through the new revolving loan agreement. This replaces or supplements prior financing arrangements, introducing a debt facility tied to the company's accounts receivable and debt-to-tangible net worth ratio.
Outlook, Risks, and Contingencies
- Financial Covenants: The interest margin is variable and adjusts based on Segmentz's debt-to-tangible net worth ratio.
- Security Risk: All obligations are secured by a blanket lien on the personal property of both the subsidiary and the parent company, limiting the ability to pledge these assets elsewhere.
- Earnings Announcement: Management announced Q3 2005 earnings on November 9, 2005, though specific guidance or commentary is not detailed in this filing text.
Investor Verification Checklist
- Verify the specific Q3 2005 revenue and net income figures in the attached Exhibit 99.2 (Earnings Press Release).
- Confirm the current eligible accounts receivable balance to determine the actual borrowing capacity under the new line of credit.
- Review the full Loan Documents (Exhibits 10.1–10.3) for detailed covenants and default provisions.
- Assess the impact of the blanket security interest on future financing options.