Current Report Filing (8-k)
June 19 2017 - 4:32PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported): June 15, 2017
_________________
WIDEPOINT
CORPORATION
(Exact
Name of Registrant as Specified in Charter)
Delaware
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001-33035
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52-2040275
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(State or Other Jurisdiction of
Incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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7926 Jones Branch Drive, Suite 520, McLean,
Virginia
(Address of Principal Executive Office)
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22102
(Zip Code)
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Registrant’s telephone number, including
area code:
(703) 349-2577
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Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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☐
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Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company
☐
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 1.01 Entry into a Material Definitive Agreement.
The information set forth under Item 2.03, “Creation of
a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant,” is incorporated herein
by reference.
Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On June 15, 2017, WidePoint Corporation and its subsidiaries
(collectively, the “Company”) entered into a Loan and Security Agreement with Access National Bank (the “Loan
Agreement”). The Loan Agreement provides for a $5.0 million working capital revolving line of credit through April 30, 2018
and replaces the Company’s prior credit facility with Cardinal Bank.
The available amount under the working capital line of credit
is subject to a borrowing base, which is equal to the lesser of (i) $5.0 million or (ii) 70% of the net unpaid balance of the Company’s
eligible accounts receivable. The interest rate for the working capital line of credit is the Wall Street Journal prime rate plus
1.0%. The facility is secured by a first lien security interest on all of the Company’s personal property, including its
accounts receivable, general intangibles, inventory and equipment.
The Loan Agreement requires that the Company (i) maintain a
minimum adjusted tangible net worth of at least $4.0 million for the quarter ending December 31, 2017, increasing to $4.5 million
for each quarter thereafter and (ii) maintain a current ratio of 1.10:1 tested quarterly.
The description of the Loan Agreement set forth above is qualified
by reference to Exhibit 10.1, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
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10.1
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Loan and Security Agreement with Access National Bank
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SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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WIDEPOINT CORPORATION
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/s/ James T. McCubbin
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Date: June 19, 2017
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James T. McCubbin
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Executive Vice President and Chief Financial Officer
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