MYO

Business Context and Reporting Period

Company: MYOMO, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: November 13, 2017
Reporting Period: Event date November 13, 2017
Context: The Company entered into Amendment No. 3 to its Amended and Restated Unsecured Term Promissory Notes with Sandcastle Limited Partnership and subsequently repaid the outstanding debt using a combination of cash and common stock.

Key Financial Metrics

Debt Repayment: Approximately $1,081,928 (principal and accrued interest).
Cash Utilized: The filing states the repayment constituted approximately $1,081,928 in cash, but the execution involved issuing stock. The text does not explicitly separate the cash portion from the stock portion in the total figure, though it details the stock issuance mechanics.
Stock Issuance:

• 107,505 shares issued at $5.03 per share (80% of closing price).
• 86,004 shares issued at $6.29 per share (100% of closing price).

Liquidity and Margins: The filing text does not provide clear values for revenue, profit, operating cash flow, or margins.

Material Changes

Debt Restructuring: The Company amended its promissory notes to allow repayment via common stock issuance under specific conditions (trading on NYSE American or OTC).
Debt Elimination: On November 13, 2017, the Company fully repaid the outstanding principal and accrued interest under the Notes, terminating the material definitive agreement with the Lender.
Equity Dilution: The repayment resulted in the issuance of 193,509 shares of common stock (107,505 + 86,004) to the Lender.

Guidance, Outlook, and Risks

Management Commentary: The filing focuses on the mechanics of the debt amendment and repayment. No forward-looking guidance or outlook is provided in this specific 8-K.
Risks and Contingencies:

• Shareholder Approval: The Company is prohibited from issuing stock for repayment if such issuance would require shareholder approval under NYSE American rules.
• Timing Constraint: Any election to repay via stock must be made within 90 days following the closing of an equity offering with gross proceeds of at least $2.0 million.

Unusual Items: The repayment utilized a hybrid method of stock issuance at two different valuation rates (80% and 100% of the closing price) to satisfy the debt obligation.

Investor Verification Checklist

• Verify the exact cash outflow versus the value of stock issued to ensure the total $1,081,928 liability was fully satisfied.
• Confirm the impact of the 193,509 new shares on total outstanding share count and earnings per share.
• Review the full text of Exhibit 10.1 (Amendment No. 3) for any remaining covenants or future obligations.
• Check subsequent filings to confirm if the Company has met the $2.0 million equity offering threshold mentioned in the amendment terms.