NorTech Systems Files 8-K: Material Agreement & Financial Update

TL;DR

NorTech Systems signed a big deal and updated financials on May 15th.

AI Summary

On May 15, 2024, NorTech Systems Incorporated entered into a Material Definitive Agreement. The company also reported its results of operations and financial condition, along with costs associated with exit or disposal activities. Specific financial details and the nature of the definitive agreement were not fully disclosed in this initial filing.

Why It Matters

This filing indicates a significant business event or transaction for NorTech Systems, potentially impacting its financial performance and strategic direction.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and financial updates, which could involve significant risks or opportunities not yet fully detailed.

Key Players & Entities

• NorTech Systems Incorporated (company) — Registrant
• May 15, 2024 (date) — Earliest event reported
• Minnesota (location) — State of incorporation

FAQ

Key Financial Figures

• $1.0 million — plant closure expenses of approximately $1.0 million to $1.1 million, including asset write-
• $1.1 m — penses of approximately $1.0 million to $1.1 million, including asset write-offs of ab
• $0.4 million — on, including asset write-offs of about $0.4 million. The plant closure expenses are expecte

Filing Documents

• nsys20240515_8k.htm (8-K) — 26KB
• ex_675359.htm (EX-10.1) — 70KB
• ex_675360.htm (EX-99.1) — 272KB
• 0001437749-24-017204.txt ( ) — 529KB
• nsys-20240515.xsd (EX-101.SCH) — 3KB
• nsys-20240515_def.xml (EX-101.DEF) — 11KB
• nsys-20240515_lab.xml (EX-101.LAB) — 15KB
• nsys-20240515_pre.xml (EX-101.PRE) — 11KB
• nsys20240515_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement Amended Maple Grove, Minnesota Lease On May 15, 2024, Nortech Systems Incorporated (the "Company") completed an amendment to its Maple Grove, Minnesota facility to extend the lease through August 31, 2033 and reduce its leased space by approximately 30%.

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition The Registrant issued a news release on May 16, 2024, entitled "Nortech Systems Reports First Quarter Results and Actions to Reduce Facilities Costs" regarding its consolidated results and financial condition for first quarter ended March 31, 2024 and recent facility consolidation and optimization activities. A copy of this news release is attached hereto as Exhibit 99.1.

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities On May 16, 2024, the Registrant issued a press release, attached hereto as Exhibit 99.1, announcing that the Registrant will close its manufacturing plant located in Blue Earth, Minnesota and relocate the production of products made in that facility to its facility in Bemidji, Minnesota. The registrant further announced that it expects this closure to result in out-of-pocket expenses for employee severance and other plant closure expenses of approximately $1.0 million to $1.1 million, including asset write-offs of about $0.4 million. The plant closure expenses are expected to be incurred by December 31, 2024.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits 10.1 Second Amendment to Lease dated15 th day of May, 2024 by and between Sri Management and Consulting LLC, a Minnesota limited liability company, as management agent for the property owners and Nortech Systems, Inc., a Minnesota corporation. 99.1 News Release dated M ay 16 , 2024 (furnished) 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: May16, 2024 Nortech Systems Incorporated (Registrant) /s/ Andrew D. C. LaFrence Andrew D. C. LaFrence Chief Financial Officer and SVP Finance

View Full Filing

View this 8-K filing on SEC EDGAR