Aterian Enters Material Definitive Agreement

TL;DR

**Aterian just signed a big deal, watch for details!**

AI Summary

Aterian, Inc. filed an 8-K on February 26, 2024, reporting an event that occurred on February 23, 2024. The filing indicates an 'Entry into a Material Definitive Agreement' and 'Other Events,' suggesting a significant corporate action. The company, incorporated in Delaware with IRS number 831739858, operates in electric housewares and fans.

Why It Matters

This filing signals a potentially significant strategic or financial move by Aterian, Inc., which could impact its future operations, financial health, and stock performance.

Risk Assessment

Risk Level: medium — The filing indicates a 'Material Definitive Agreement' without disclosing details, creating uncertainty about its potential positive or negative impact.

Key Players & Entities

• Aterian, Inc. (company) — Registrant
• February 23, 2024 (date) — Date of earliest event reported
• February 26, 2024 (date) — Filing date
• Delaware (company) — State of Incorporation
• 831739858 (dollar_amount) — IRS Employer Identification No.

FAQ

Key Financial Figures

• $0.0001 — ge on which registered Common Stock , $0.0001 par value ATER The Nasdaq Stock Mark
• $2,500,000.00 — 26. d) Reduced the Minimum Balance to $2,500,000.00. e) Reduced the Revolving Loan Commit
• $17,000,000 — the Revolving Loan Commitment Amount to $17,000,000.00, and if the Additional Tranche is fu
• $30,000,000.00 — activated such amount shall increase to $30,000,000.00. f) Made certain changes to the defin
• $100,000 — d by Restricted Foreign Subsidiaries to $100,000 in the aggregate at any time. i) Redu
• $6,800,000 — d the Minimum Credit Party Liquidity to $6,800,000. j) Reduced the Minimum Availability
• $5,000,000 — ed the Minimum Availability Covenant to $5,000,000. Capitalized terms used herein not oth

Filing Documents

• ater20240223_8k.htm (8-K) — 34KB
• ex_630217.htm (EX-10.1) — 92KB
• ex_630635.htm (EX-99.1) — 13KB
• logo02.jpg (GRAPHIC) — 5KB
• logo.jpg (GRAPHIC) — 6KB
• 0001437749-24-005455.txt ( ) — 311KB
• ater-20240223.xsd (EX-101.SCH) — 3KB
• ater-20240223_def.xml (EX-101.DEF) — 12KB
• ater-20240223_lab.xml (EX-101.LAB) — 15KB
• ater-20240223_pre.xml (EX-101.PRE) — 12KB
• ater20240223_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On February 23, 2024, the Company entered into Amendment No.2 (the " Amendment ") to that Credit and Security Agreement dated as of December 22, 2021 (the " Credit Agreement ") between the Company, together with certain of its subsidiaries party thereto as borrowers, the entities party thereto as lenders (the " Lenders "), and Midcap Funding IV Trust, as administrative agent. Material changes contained in the Amendment are as follows: a) The amount of Borrowing Base attributable to Slow-Moving Inventory was reduced to fifteen percent (15%) of the aggregate portion of the Borrowing Base attributable to Eligible Inventory, Eligible In-Transit Inventory, and Eligible Slow-Moving Inventory. b) Reduced the portion of the Borrowing Base attributed to Eligible In-Transit Inventory. c) Extended the Commitment Expiry Date to December 22, 2026. d) Reduced the Minimum Balance to $2,500,000.00. e) Reduced the Revolving Loan Commitment Amount to $17,000,000.00, and if the Additional Tranche is fully activated such amount shall increase to $30,000,000.00. f) Made certain changes to the definition of Permitted Investments. g) Made certain changes to the Deferred Revolving Loan Origination Fee. h) Reduced the amount in cash equivalents that may be held by Restricted Foreign Subsidiaries to $100,000 in the aggregate at any time. i) Reduced the Minimum Credit Party Liquidity to $6,800,000. j) Reduced the Minimum Availability Covenant to $5,000,000. Capitalized terms used herein not otherwise defined shall have the meaning in the Credit Agreement.

01. Other Events

Item 8.01. Other Events. On February 26, 2024, the Company issued a press release regarding its entry into the Credit Agreement. A copy of the press release is filed herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

01. Exhibits

Item 9.01. Exhibits. (d) Exhibits. Exhibit Number Description 10.1+ Amendment No. 2 to that certain Credit and Security Agreement, dated as February 23, 2024, by and Aterian, Inc. and its subsidiaries party thereto as "Credit Parties," the lenders party thereto from time to time and Midcap Funding IV Trust, as administrative agent. 99.1 Press Release dated February 26, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) + Non-material schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish supplemental copies of any of the omitted schedules and exhibits upon request by the SEC.

SIGNATURES

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. ATERIAN, INC. Date: February 26, 2024 By: /s/ Joseph A. Risico Name: Joseph A. Risico Title: Co-Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR