Mastech Digital Reports Material Definitive Agreement on Jan 12

TL;DR

**Mastech Digital just signed a big new contract, watch for details on its impact.**

AI Summary

Mastech Digital, Inc. filed an 8-K on January 19, 2024, to report a material definitive agreement entered into on January 12, 2024. This filing indicates a significant contractual change for the company, which could impact its future operations and financial performance. Investors should pay attention to the details of this agreement, as it may signal new strategic directions or financial commitments for Mastech Digital, potentially affecting its stock (MHH) value.

Why It Matters

This filing signals a new, important contract for Mastech Digital, Inc., which could significantly alter its business operations or financial outlook. Understanding the nature of this agreement is crucial for investors to assess potential impacts on revenue, expenses, or strategic direction.

Risk Assessment

Risk Level: medium — The filing indicates a 'material definitive agreement' without disclosing its specifics, creating uncertainty about its potential positive or negative impact on the company.

Analyst Insight

Investors should monitor Mastech Digital's future filings and press releases for specific details regarding the 'material definitive agreement' to understand its financial implications before making investment decisions.

Key Players & Entities

• Mastech Digital, Inc. (company) — the registrant filing the 8-K
• January 12, 2024 (date) — date of the earliest event reported (entry into material definitive agreement)
• January 19, 2024 (date) — date the 8-K was filed
• MHH (company) — trading symbol for Mastech Digital, Inc. Common Stock
• NYSE American (company) — exchange where Mastech Digital, Inc. Common Stock is registered

Forward-Looking Statements

• Mastech Digital will provide more details about the material definitive agreement in its next quarterly or annual report. (Mastech Digital, Inc.) — high confidence, target: Q1 2024 Earnings Report

FAQ

Key Financial Figures

• $100,000 — ng fees (the "Consulting Fees"): (i) $100,000 per month for the first 9 months of the
• $30,000 — t 9 months of the Initial Term; (ii) $30,000 per month for months 10 through 12 of t
• $25,000 — hrough 12 of the Initial Term; (iii) $25,000 per month for months 13 through 18 of t
• $20,000 — through 18 of the Initial Term; (iv) $20,000 per month for months 19 through 24 of t
• $120,000 — l Term; and (v) a lump sum amount of $120,000 that is payable on the date that is the
• $1.00 — f the Company's common stock, par value $1.00 per share (the "Common Stock") (i.e., 3
• $8.34 — NYSE MKT on January 12, 2024, which was $8.34 per share. The Stock Options were grant

Filing Documents

• d642155d8k.htm (8-K) — 56KB
• d642155dex101.htm (EX-10.1) — 173KB
• g642155snap1.jpg (GRAPHIC) — 3KB
• g642155snap2.jpg (GRAPHIC) — 3KB
• 0001193125-24-011240.txt ( ) — 391KB
• mhh-20240112.xsd (EX-101.SCH) — 3KB
• mhh-20240112_lab.xml (EX-101.LAB) — 18KB
• mhh-20240112_pre.xml (EX-101.PRE) — 11KB
• d642155d8k_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement. On January 12, 2024 (the "Effective Date"), Mastech Digital, Inc. (the "Company") entered into a Consulting Services Agreement (the "Consulting Agreement") with Primentor Inc., a California corporation (the "Consultant"), Phaneesh Murthy, the owner of all outstanding equity of the Consultant ("Murthy"), Srinjay Sengupta, a contractor of the Consultant ("Sengupta"), and Sunil Wadhwani and Ashok Trivedi, each a co-founder and director of the Company (together, the "Founders"). Under the terms of the Consulting Agreement, the Consultant will provide the Company with strategic advisory and management consulting services, as well as any other business and organizational strategy services as the board of directors of the Company may reasonably request from time to time (collectively, the "Services"). The initial term of the Consulting Agreement commenced on the Effective Date and continues thereafter for a period of three years or, if sooner, until the consummation of a Sale Event (as defined below) (the "Initial Term"), unless the Consulting Agreement is sooner terminated in accordance with its terms. The Company may request to renew the term of the Consulting Agreement for additional successive one year terms (each, a "Renewal Term"), in which case, if the Consultant agrees, the Company and the Consultant will negotiate and use reasonable good faith efforts to agree upon the scope of the additional services and the amount of the additional consulting fees for such Renewal Term (the Initial Term, together with any Renewal Terms, the "Term"). Compensation and Reimbursement for Services . As consideration payable to the Consultant for providing the Services to the Company, the Company will pay to the Consultant the following consulting fees (the "Consulting Fees"): (i) $100,000 per month for the first 9 months of the Initial Term; (ii) $30,000 per month for months 10 through 12 of the Initial Term; (iii

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Consulting Services Agreement, made and entered into effective as of January 12, 2024, by and among Primentor Inc., Phaneesh Murthy, Srinjay Sengupta, Mastech Digital, Inc., Sunil Wadhwani, and Ashok Trivedi 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). -6-

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. MASTECH DIGITAL, INC. By: /s/ John J. Cronin, Jr. Name: John J. Cronin, Jr. Title: Chief Financial Officer January 19, 2024

View Full Filing

View this 8-K filing on SEC EDGAR