Item 1.01 Entry into a Material Definitive Agreement.
October 6, 2021, Park City Group, Inc. (the "Company") and U.S. Bank N.A. (the
"Bank") executed a Revolving Credit Agreement (the "Revolving Credit Agreement")
and accompanying addendum (the "Addendum"), and Stand-Alone Revolving Note (the
"Note" and collectively with the Revolving Credit Agreement and Addendum, the
"Credit Agreement"), with an effective date of September 30, 2021. The Credit
Agreement replaces the Company's prior $6.0 million Revolving Credit Agreement
and Stand-Alone Revolving Note between the Company and the Bank, as amended and
revised on January 9, 2019.
The Credit Agreement provides the Company with a $10.0 million revolving line of
credit that matures on March 31, 2023. Any amounts drawn down by the Company
under the Credit Agreement will accrue interest at an annual rate equal to 1.75%
plus the one-month LIBOR rate. In addition, the Credit Agreement contains
customary affirmative and negative covenants and conditions to borrowing, as
well as customary events of default. Among other things, the Company must
maintain liquid assets equal to the outstanding balance of the Note, and
maintain a Senior Funded Debt (as defined in the Credit Agreement) to EBITDA
Ratio (as defined in the Credit Agreement) of not more than 3:1.
The foregoing is only a summary of the material terms of the Revolving Credit
Agreement, Addendum, and Note and do not purport to be complete and are
qualified in their entirety by reference to the Revolving Credit Agreement,
Addendum, and Note, copies of which are attached to this Current Report on Form
8-K as Exhibit 10.1, and Exhibit 10.2 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.
See Item 1.01 in regards to the Revolving Credit Agreement, the Addendum, and
the Note.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Description
Number
Revolving Credit Note and Revolving Credit Agreement, dated September
10.1 30, 2021, between Park City Group, Inc., and U.S. Bank National
Association.
10.2 Addendum to Revolving Credit Agreement, dated September 30, 2021,
between Park City Group, Inc., and U.S. Bank National Association.
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