Business Context and Reporting Period
Company: INTELLIGENT PROTECTION MANAGEMENT CORP. (IPM)
Filing Type: Form 8-K (Current Report)
Date of Report: April 10, 2025
Reporting Period: Event date of April 10, 2025
The Company, along with its wholly owned subsidiary Intelligent Protection LLC, entered into a material definitive agreement with Newtek Bank, National Association to establish a new secured revolving line of credit.
Key Financial Metrics
This filing reports on a new credit facility rather than historical financial performance. Specific metrics regarding revenue, profit, cash flow, or existing debt balances are not provided in this document.
- New Credit Facility: $1,000,000 secured revolving line of credit.
- Outstanding Balance: $0 as of the date of the report.
- Maturity Date: April 10, 2026.
- Interest Rate: Variable rate based on a Newtek Bank index plus a 2.00% margin, with a floor of 6.07% and a ceiling at the maximum rate allowed by law.
- Collateral: Substantially all assets of the Borrowers.
Material Changes
The primary material change is the creation of a new direct financial obligation. The Company has secured access to up to $1,000,000 in liquidity, though no funds have been drawn as of the filing date. This agreement supersedes or supplements prior financing arrangements, though no specific prior debt figures are cited for comparison in this text.
Guidance, Risks, and Related Party Transactions
Related Party Transaction: Barry Sloane, a director of the Company, serves as the Founder, President, Chairman, and CEO of Newtek and Newtek Bank, the lender.
Risks and Covenants: The Loan Agreements include customary events of default, including nonpayment, bankruptcy, cross-defaults, and adverse changes in the Company's financial position. A specific covenant restricts any change in ownership of 25% or more of the Company's common stock. Upon an event of default, the lender may require immediate repayment of all outstanding amounts.
Outlook: The filing does not provide specific financial guidance or management commentary on future earnings or operational outlook beyond the availability of the new credit facility.
Investor Verification Checklist
- Verify the full text of the Business Loan Agreement (Exhibit 10.1) for detailed covenants and fee structures not summarized in the 8-K.
- Confirm the current utilization rate of the $1,000,000 facility in subsequent filings.
- Review the Company's latest 10-K or 10-Q to assess the impact of the new debt on leverage ratios and liquidity.
- Monitor for any changes in the Newtek Bank index rate that would affect the effective interest cost.
- Assess the implications of the 25% ownership change restriction on potential M&A activity or strategic investments.