Stereotaxis, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Stereotaxis, Inc. on April 30, 2018, covering events occurring on April 26, 2018. The filing details a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics and Debt
- Debt Facility: Revolving line of credit with Silicon Valley Bank.
- Maximum Availability: $5.0 million (unchanged).
- Maturity Date: Extended from March 31, 2018, to April 25, 2019.
- Interest Rate (Streamline Period): Prime rate with a 4.5% floor.
- Interest Rate (Non-Streamline Period): Prime rate plus 1.5% with a 4.5% floor.
- Liquidity Requirement: Must maintain at least $1.5 million of unrestricted cash and cash equivalents at the Bank.
Note: The filing does not provide specific values for revenue, profit, cash flow, or margins.
Material Changes
- Covenant Modification: The tangible net worth covenant has been eliminated.
- Liquidity Covenant: The liquidity ratio requirement now explicitly mandates maintaining a minimum of $1.5 million in unrestricted cash at the Bank.
- Streamline Period Definition: A "streamline period" (lower interest rate) is triggered when the Borrower maintains a liquidity ratio greater than 1.75:1.00 for each consecutive day in the preceding monthly period.
Outlook, Risks, and Management Commentary
The filing includes standard forward-looking statements regarding future performance, noting that actual results may differ materially due to risks and uncertainties. Management does not intend to update these statements except as required by law. The primary focus of the filing is the successful extension of the credit facility maturity, which improves short-term liquidity planning.
Investor Verification Checklist
- Verify the current unrestricted cash balance to ensure compliance with the new $1.5 million minimum requirement.
- Confirm the current liquidity ratio to determine if the company qualifies for the "streamline period" interest rate.
- Review the full text of the First Amendment (Exhibit 10.1) for any additional terms not summarized in the 8-K.
- Monitor future filings for any breach of the liquidity ratio covenant or failure to maintain the required cash balance.