8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) March 22, 2022

ADDVANTAGE TECHNOLOGIES GROUP, INC.

(Exact name of Registrant as specified in its Charter)

Oklahoma

(State or other Jurisdiction of Incorporation)

1-10799	73-1351610
(Commission file Number)	(IRS Employer Identification No.)
1430 Bradley Lane, Suite 196, Carrollton, Texas	75007
(Address of Principal Executive Offices)	(Zip Code)

(918) 251-9121

(Registrant's Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written Communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

	Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, par value $0.01	AEY	NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry into a Material Definitive Agreement.

Loan Agreement with Vast Bank, N.A.

On March 17, 2022, the Company replaced its $3,000,000 credit facility for its Nave and Triton subsidiaries with Vast Bank, N.A. (“Vast”) with new accounts receivable purchase facilities with borrowing capacities of $9,000,000 for Nave and $1,500,000 for Triton. Under both facilities, Vast advances the Company 90% of sold receivables and establishes a reserve of 10% of the sold receivables until the Company collects the sold receivables. Vast charges a fee of 1.3% of sold receivables, and both facilities mature on March 17, 2023.

On March 17, 2022, the Company also restructured its accounts receivable purchase facilities secured by the Company’s Fulton subsidiary’s receivables. Under the restructure, the credit capacity excluding a major customer was reduced from $4,500,000 to $2,000,000, with a fee of 1.6% of sold receivables. The credit capacity secured by receivables of a major customer was reduced from $8,500,000 to $6,500,000, with a fee of 1.5% of sold receivables. Vast advances the Company 90% of sold receivables and establishes a reserve of 10% of the sold receivables until the Company collects the sold receivables. The facilities mature on December 17, 2022.

With the new and restructured facilities, the Company has increased its overall borrowing capacity from $16,000,000 to $19,000,000. The proceeds will be used for working capital needs.

Item 2.03 Creation of a Direct Financial Obligation or An Obligation Under an Off-Balance Sheet Arrangement.

The information included or incorporated by reference 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

The following exhibit is furnished herewith:

Exhibit 99.1 Press release dated March 22, 2022

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.

ADDvantage Technologies Group, Inc.

Date: March 22, 2022

/s/ Michael A. Rutledge

Michael A. Rutledge

Chief Financial Officer

EX-99.1

ADDvantage Technologies Further Expands Line of Credit in Anticipation of Accelerating Wireless Growth

Telco Line Converted to Factoring Line, Expanding Total Borrowing Capacity to $19.0 Million

Carrollton, Texas, March 22, 2022 – ADDvantage Technologies Group, Inc. (NASDAQ: AEY) (“ADDvantage Technologies” or the “Company”) today announced that it has renegotiated its lines of credit for its Telco and Wireless business segments, increasing total borrowing capacity and better positioning the Company for anticipated and accelerating growth for both 5G and Telco.

ADDvantage converted its collateralized line of credit for its Telco segment to a factoring line, similar to the Wireless factoring line, all with Vast Bank, N.A. As a result:

•The Company will be able to borrow up to $9 million against Nave receivables and $1.5 million against Triton receivables, replacing the existing line of credit which will be paid off.

•The existing Fulton factoring line is restructured, modestly reducing borrowing capacity but on more favorable terms related to customer diversity.

•The net impact will be that overall borrowing capacity is increased from $16.0 million to $19.0 million.

“Our lenders at Vast Bank, N.A. continue to express confidence in our business, working with us to establish credit facilities that provide us maximum flexibility as we encounter more rapid growth,” commented Joe Hart, Chief Executive Officer.

Additional details on the new credit agreements are included in a Form 8-K filed on March 22, 2022 with the Securities and Exchange Commission.

About ADDvantage Technologies Group, Inc.

ADDvantage Technologies Group, Inc. (Nasdaq: AEY) is a communications infrastructure services and equipment provider operating a diversified group of companies through its Wireless Infrastructure Services and Telecommunications segments. Through its Wireless segment, Fulton Technologies provides turn-key wireless infrastructure services including the installation, modification and upgrading of equipment on communication towers and small cell sites for wireless carriers, national integrators, tower owners and major equipment manufacturers. Through its Telecommunications segment, Nave Communications and Triton Datacom sell equipment and hardware used to acquire, distribute, and protect the communications signals carried on fiber optic, coaxial cable and wireless distribution systems. The Telecommunications segment also offers repair services focused on telecommunication equipment and recycling surplus and related obsolete telecommunications equipment.

ADDvantage operates through its subsidiaries, Fulton Technologies, Nave Communications, and Triton Datacom. For more information, please visit the corporate web site at www.addvantagetechnologies.com.

Cautions Regarding Forward-Looking Statements

The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements. A

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complete discussion of these risks and uncertainties is contained in the Company’s reports and documents filed from time to time with the Securities and Exchange Commission.

For further information:

Hayden IR

Brett Maas

(646) 536-7331

aey@haydenir.com

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XML

Cover	Mar. 22, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Mar. 22, 2022
Entity Registrant Name	ADDVANTAGE TECHNOLOGIES GROUP, INC.
Entity Incorporation, State or Country Code	OK
Entity File Number	1-10799
Entity Tax Identification Number	73-1351610
Entity Address, Address Line One	1430 Bradley Lane
Entity Address, Address Line Two	Suite 196
Entity Address, City or Town	Carrollton
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75007
City Area Code	918
Local Phone Number	251-9121
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Central Index Key	0000874292
Amendment Flag	false
Title of 12(b) Security	Common stock, par value $0.01
Trading Symbol	AEY
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false