UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Securities Exchange Act of 1934
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| Item 1.01 | Entry into a Material Definitive Agreement. |
On February 15, 2022, Lantronix, Inc., Lantronix Holding Company, Lantronix Canada, ULC and Lantronix Technologies Canada (Taiwan) Ltd. and Transition Networks, Inc. (each, a “Borrower” and collectively, the “Borrowers”) entered into that certain Second Amendment to the Third Amended and Restated Loan and Security Agreement (the “Amendment”) with Silicon Valley Bank (“Bank”), which amends that certain Third Amended and Restated Loan and Security Agreement, dated as of August 2, 2021, as amended by the First Amendment to Third Amended and Restated Loan and Security Agreement, dated as of October 21, 2021, by and among the Borrowers and Bank (collectively with the Amendment, the “Loan Agreement”).
The Amendment, among other things, (i) increases the amount available under the revolving credit facility from $2,500,000 to $7,500,000, (ii) removes and replaces LIBOR benchmark provisions with Term SOFR benchmark provisions and (iii) provides that advances under the Loan Agreement will bear interest at Term SOFR or the Prime Rate, at the option of the Borrowers, plus a margin that ranges from 3.10% to 4.10% in the case of Term SOFR and 1.50% to 2.50% in the case of the Prime Rate, depending on our total leverage with a Term SOFR floor of 0.00% and a Prime Rate floor of 3.25%. As a condition to entering in to the Amendment, the Borrowers were obligated to pay a nonrefundable facility increase fee in the amount of $25,000.
The foregoing summary of the Amendment is subject to and qualified in its entirety by the full text of the Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is 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. |
The information disclosed in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit Number | Description | |
| 10.1 | ||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: February 16, 2022 | LANTRONIX, INC. | ||
| By: | /s/ Jeremy Whitaker | ||
|
Jeremy Whitaker Chief Financial Officer | |||
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