ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
Reference is made to the disclosure under Item 2.03 below which is hereby
incorporated in this Item 1.01 by reference.
ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
On June 29, 2022, KORU Medical Systems, Inc. (the "Company") entered into a Loan
Modification Extension Agreement (the "Modification Agreement") with Keybank
National Association ("Lender") to modify its existing revolving line of credit
with Lender in the amount of $3,500,000 (the "Loan"). Among other things, the
Modification Agreement: (i) extends the maturity date of the Loan to June 1,
2023; (ii) changes the interest rate applicable to the Loan from Prime - 1.50%
to Prime + 0%; (iii) releases the Company from its obligations under a certain
security agreement dated June 24, 2021 pursuant to which the Company had
previously granted the Lender a first priority security interest in all
equipment, inventory, accounts, instruments, chattel paper and general
intangibles of the Company (the "Security Agreement"); and (iv) replaces the
Security Agreement with a new pledge security agreement dated June 29, 2022 by
and between the Company and Lender (the "Pledge Agreement"), which Pledge
Agreement grants Lender a first priority security interest in certain of the
Company's bank accounts as collateral security for the Loan.
The descriptions of the Modification Agreement and Pledge Agreement in this Item
2.03 are qualified in their entirety by reference to the full text of the
Modification Agreement and Pledge Agreement, copies of which are attached hereto
as Exhibits 10.1 and 10.2, respectively, and incorporated by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
Exhibit No. Description
10.1 Loan Modification Extension Agreement dated June 29, 2022 between
KORU Medical Systems, Inc. and KeyBank National Association
10.2 Pledge Security Agreement dated June 29, 2022 between KORU Medical
Systems, Inc. and KeyBank National Association
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