Item 1.01 Entry into a Material Definitive Agreement.
Accounts Receivable Agreements with Vast Bank, N.A.
On December 20, 2022, the Company signed Modification Addendums (the “Modification”) to its accounts receivable purchase facilities for its Nave, Triton and Fulton subsidiaries with Vast Bank, N.A. (“Vast”).
The Nave and Triton facilities, after Modification, provide credit capacities of $13.0 million for Nave and $3.0 million for Triton. Effective March 17, 2023, Vast will charge a fee of 1.75% of sold receivables. Additionally, the maturity date of both facilities will be extended to December 17, 2023.
The Fulton facilities, after Modification, provide a credit capacity excluding a major customer of $1.5 million, with a fee of 2.0% of sold receivables, and credit capacity secured by receivables of a major customer of $1.5 million, with a fee of 1.6% of sold receivables, effective December 17, 2022. The maturity date of the facilities was extended to December 17, 2023.
For all four facilities, the lender advances 90% of sold receivables and establishes a reserve of 10% of the sold receivables at initial sale, which increases to 100% over time after 120 days, until the Company collects the sold receivables. All four facilities mature on December 17, 2023.