DOMO, INC. Reports Material Agreement, New Debt, and Equity Sales

TL;DR

**Domo just took on new debt and sold equity, signaling a major financial shift.**

AI Summary

DOMO, INC. filed an 8-K on February 23, 2024, reporting events from February 17, 2024, concerning an entry into a material definitive agreement, the creation of a direct financial obligation, and unregistered sales of equity securities. The filing indicates a significant financial and equity restructuring for the company, headquartered in American Fork, UT.

Why It Matters

This filing signals significant financial and equity changes for DOMO, INC., which could impact its capital structure, future growth prospects, and investor confidence.

Risk Assessment

Risk Level: medium — The creation of a direct financial obligation and unregistered sales of equity securities can introduce both opportunities and risks, depending on the terms and use of proceeds.

Key Players & Entities

• DOMO, INC. (company) — Registrant
• February 17, 2024 (date) — Date of earliest event reported
• February 23, 2024 (date) — Filing date
• American Fork, UT (company) — Business address city and state

FAQ

Key Financial Figures

• $0.001 — stered Class B Common Stock, par value $0.001 per share DOMO The Nasdaq Global Market
• $0.01 — rrant Shares"), at an exercise price of $0.01 per share, subject to adjustment. The

Filing Documents

• domo8k-20240217.htm (8-K) — 27KB
• 0001505952-24-000004.txt ( ) — 150KB
• domo8k-20240217.xsd (EX-101.SCH) — 2KB
• domo8k-20240217_lab.xml (EX-101.LAB) — 23KB
• domo8k-20240217_pre.xml (EX-101.PRE) — 12KB
• domo8k-20240217_htm.xml (XML) — 3KB

01. Entry into a Material Agreement

Item 1.01. Entry into a Material Agreement. On February 17, 2024, Domo, Inc., a Delaware corporation ("Domo") entered into a First Amendment to Amended and Restated Loan and Security Agreement (the "Amendment"), which amends that certain Loan and Security Agreement, dated as of August 8, 2023, among Domo, Domo, Inc., a Utah corporation, the lenders party thereto from time to time (collectively, the "Lenders"), Obsidian Agency Services Inc., as collateral agent for the Lenders, and Wilmington Trust, National Association, as administrative agent for the Lenders (as amended, the "Loan Agreement"). Among other things, the Amendment amends the Loan Agreement to (i) extend the maturity date of the outstanding loans to April 1, 2026, (ii) replace the maximum debt ratio financial covenant with a minimum annualized recurring revenue covenant, (iii) increase the threshold of the minimum liquidity covenant, and (iv) add a covenant regarding minimum consolidated earnings before interest, taxes, depreciation and amortization (EBITDA). In connection with the Amendment, Domo issued to the Lenders warrants to purchase an aggregate of 189,036 shares of Domo's Class B common stock (the "New Warrant Shares"), at an exercise price of $0.01 per share, subject to adjustment. The foregoing descriptions of the Amendment and the Warrants are qualified in their entirety by reference to the full text of the Amendment and the form of Warrant, each of which will be filed as exhibits to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ending April 30, 2024. Item 2.03. Creation of a Direct Financial Obligation or an obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03.

02. Unregistered Sales of Equity Securities

Item 3.02. Unregistered Sales of Equity Securities. The information set forth under Item 1.01 above is incorporated by reference into this Item 3.02. The issuance of the Warrants was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. SIGNATURE 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. DOMO, INC. Date: February 23, 2024 By: /s/ David Jolley David Jolley Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR