Company: ACCS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0000843006-25-000025
Chunk: 20

Company: ACCESS Newswire Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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,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 Third Modification to Credit Agreement contains financial covenants, as follows:  As AmendedFiscal QuarterFixed Charge Coverage RatioEach fiscal quarter ending on or after June 30, 20251:2:1.0    Leverage RatioEach fiscal quarter ending on or after June 30, 20252.25:1.0 Additionally, depending on the Company’s Leverage Ratio, the Company is required to maintain unrestricted liquidity, as follows. Leverage RatioUnrestricted LiquidityIf the Leverage Ratio is less than or equal to 1.5:1.00$1,500,000If the Leverage Ratio is greater than 1.5:1.00 but less than or equal to   1.75:1.00$1,000,000If the Leverage Ratio is greater than 1.75:1.00$500,000

 17Table of Contents

 The Credit Agreement also contains customary affirmative covenants for a transaction of this nature, including among other things, covenants relating to: maintenance of adequate financial and accounting books and records, delivery of financial statements and other information, preservation of existence of the Company and subsidiaries, payment of taxes and claims, compliance with laws, maintenance of insurance, foreign qualification, use of proceeds, cash management system, maintenance of properties, and conduct of business. The Credit Agreement also contains customary negative covenants for a transaction of this nature, including, among other things, covenants relating to debt, liens, investments, negative pledges, dividends and other debt payments, restriction on fundamental changes, sale of assets, transactions with affiliates, restrictive agreements, and changes in fiscal year. The Credit Agreement also contains various Events of Default (subject to certain grace periods, to the extent applicable), including among other things, Events of Default for the nonpayment of principal, interest or fees; breach of certain covenants; inaccuracy of the representations or warranties in any material respect; bankruptcy or insolvency; dissolution or change of