Current Report Filing (8-k)
February 04 2021 - 12:59PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
The
Securities Exchange Act of 1934
January
29, 2021
Date
of Report
(Date
of earliest event reported)
SOCKET
MOBILE, INC.
(Exact
name of registrant as specified in its charter)
Delaware
|
|
001-13810
|
|
94-3155066
|
(State
or other jurisdiction of incorporation)
|
|
(Commission
File Number)
|
|
(IRS
Employer
Identification No.)
|
39700
Eureka Drive
Newark,
CA 94560
(Address
of principal executive offices, including zip code)
(510)
933-3000
(Registrant’s
telephone number, including area code)
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 (see General Instruction A.2. below):
[
] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
|
Trading
Symbol(s)
|
Name
of each exchange on which registered
|
Common
stock, $0.001 Par Value per Share
|
SCKT
|
NASDAQ
|
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR
§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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
On
January 29, 2020, Socket Mobile (“we” or the “Company”) entered into an Amended and Restated Business
Financing Agreement (the “Financing Agreement”) with Western Alliance Bank, an Arizona corporation (“Lender”).
Among other things, the Financing Agreement increases the Domestic Line of Credit to $3.0 million that includes $2.0 million revolving
facility and $1.0 million nonformula loan (the “Nonformula Loan”). The $1.0 million Nonformula loan was enrolled in
the CalCAP Collateral Support Program and advanced at closing. The Company will make a principal reduction payment of $125,000,
plus all accrued but unpaid interest on the 30th day of each April, July, October, and January. The Financing Agreement also extends
the maturity date of both Domestic and EXIM Line of Credit to January 31, 2023. The original Financing Agreement was dated February
27, 2014 with subsequent modifications dated February 26, 2016, March 20, 2017, January 31, 2018, June 4, 2018, July 30, 2018,
June 14, 2019, January 8, 2020, and August 28, 2020.
The
Financing Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our ability
to, among other things, grant liens, make investments, incur indebtedness, merge or consolidate, dispose of assets, make acquisitions,
pay dividends or make distributions, repurchase stock, enter into transactions with affiliates and enter into restrictive agreements,
in each case subject to customary exceptions for a credit facility of this size and type. We are also required to maintain revenue
and adjusted EBITDA at a minimum of 75% of the projections as approved by the Company’s Board of Directors, measured quarterly.
The
Financing Agreement also contains customary events of default including, among others, payment defaults, breaches of covenants,
bankruptcy and insolvency events, cross defaults with certain material indebtedness, judgment defaults, and breaches of representations
and warranties. Upon an event of default, Lender may declare all or a portion of our outstanding obligations payable to be immediately
due and payable and exercise other rights and remedies provided for under the Financing Agreement.
The
foregoing description of the Financing Agreement is qualified in its entirety by reference to the full text of the Amended and
Restated Business Financing Agreement, a copy of which is attached hereto as Exhibit 10.1 and 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.
The
information set forth in Item 1.01 hereof is incorporated by reference into this Item 2.03.
Item
9.01 Financial Statements and Exhibits
(d)
Exhibits.
Exhibit
No.
|
|
Description
|
|
|
|
10.1
|
|
Amended
and Restated Business Financing Agreement dated as of January 29, 2021
|
|
|
|
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.
|
|
SOCKET
MOBILE, INC.
|
|
|
|
|
By:
|
/s/
Lynn Zhao
|
|
|
|
Name:
Lynn Zhao
Vice
President, Finance and Administration
and
Chief Financial Officer
|
Date:
February 4, 2021
Socket Mobile (NASDAQ:SCKT)
Historical Stock Chart
From Feb 2024 to Mar 2024
Socket Mobile (NASDAQ:SCKT)
Historical Stock Chart
From Mar 2023 to Mar 2024