Data I/O Corporation, along with its subsidiaries V-Tek, Inc. and A&J Programming, Inc., entered into a Loan and Security Agreement with Western Alliance Bank. This agreement provides a revolving loan facility for working capital and general business requirements.
Key Details
- Facility: Revolving loan facility of up to the lesser of $7.5 million or a borrowing base calculated from eligible accounts and inventory.
- Term & Maturity: The agreement was effective October 26, 2026, and matures on October 26, 2028, at which point all outstanding advances become due.
- Interest Rate & Fees: Advances bear interest at 1.00% above the Prime Rate (defined as the greater of 5.75% or the U.S. prime rate). The company is also subject to an annual non-refundable facility fee of $18,750.
- Covenants & Security: The loan is secured by company assets including accounts, inventory, and intellectual property. The agreement requires maintaining at least $3.0 million of unrestricted cash with the bank and a fixed charge coverage ratio of at least 1.25 to 1.00.