Company: ACCS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001683168-25-008214
Chunk: 19

Company: ACCESS Newswire Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 19
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 Effective June 25, 2024, Pinnacle’s commitment to fund under the Revolving
LOC was amended to terminate on June 30, 2025, unless terminated earlier pursuant to the terms of the Credit Agreement. The Company terminated
its existing $3,000,000 unsecured line of credit with Fifth Third Bank immediately prior to the Closing Date. As of September 30, 2025,
there was no outstanding balance under the Revolving LOC and the interest rate was 6.36%.

On
February 28, 2025 and in connection with the Purchased Assets transaction described above, the Company and each of its wholly-owned subsidiaries
entered into a Third Modification to Credit Agreement and Partial Release (the “Third Modification to Credit Agreement”) with
Pinnacle with respect to the Credit Agreement.

Pursuant
to the terms of the Third Modification to Credit Agreement and a subsequent amendment, the Company and Pinnacle agreed to the following:
(i) to pay down the current principal balance of the Term Loan (as defined in the Credit Agreement) by $12,000,000 as of the closing of
the Purchased Assets transaction such that the current principal balance was reduced from $15,333,333 to $3,333,333; (ii) beginning on
March 1, 2025, to reduce the monthly principal payments due by the Company to Pinnacle under the Term Loan from $333,333 to $72,464; (iii)
to amend the financial covenants set forth in the Credit Agreement, as amended; and (iv) to release the Liens (as defined in the Credit
Agreement) relating to the Purchased Assets.

The Credit Agreement, as
amended, contains the following financial covenants:

    As Amended
  
    Fiscal Quarter 
    Fixed Charge Coverage Ratio
  
    Each fiscal quarter ending on or after June 30, 2025 
    1:2:1.0

Additionally, the Company
is required to maintain unrestricted liquidity, as follows.

    Leverage Ratio 
    Unrestricted Liquidity 
  
    If the Leverage Ratio is less than or equal to 1.5:1.00 
    $1,500,000 
  
    If the Leverage Ratio is greater than 1.5:1.00 but less than or equal to
    1.75:1.00 
    $1,000,000 
  
    If the Leverage Ratio is greater than