UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
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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 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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.
| KORU Medical Systems, Inc. (Registrant) | ||
| Date: July 6, 2022 | By: | /s/ Thomas Adams |
| Thomas Adams Interim Chief Financial Officer | ||
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