Solitron Devices Files 8-K on Material Agreement

TL;DR

SOLITRON DEVICES (SODI) just filed an 8-K for a material definitive agreement and new financial obligations.

AI Summary

Solitron Devices, Inc. entered into a material definitive agreement on May 21, 2024. This filing also indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. The company is reporting on these events and filing financial statements and exhibits.

Why It Matters

This 8-K filing signals a significant new agreement for Solitron Devices, potentially impacting its financial obligations and future operations.

Risk Assessment

Risk Level: medium — Material definitive agreements and new financial obligations can introduce significant financial and operational risks.

Key Players & Entities

• Solitron Devices, Inc. (company) — Registrant
• May 21, 2024 (date) — Date of earliest event reported
• 001-04978 (company) — Commission File Number
• 22-1684144 (company) — IRS Employer Identification No.
• 901 Sansburys Way, West Palm Beach, Florida 33411 (location) — Principal Executive Offices
• 561-848-4311 (phone_number) — Registrant's Telephone Number

FAQ

Key Financial Figures

• $1,750,000 — cro Property"), for a purchase price of $1,750,000. Micro Engineering, Inc. previously occ
• $1,400,000 — favor of BOA in the principal amount of $1,400,000 and (2) secured by the Micro Property a
• $10,444.14 — principal and interest in the amount of $10,444.14 on the first day of each month, commenc
• $250,000 — mpany or Micro Engineering in excess of $250,000. Upon the occurrence and during the con

Filing Documents

• sodi_8k.htm (8-K) — 29KB
• sodi_ex101.htm (EX-10.1) — 160KB
• sodi_ex102.htm (EX-10.2) — 14KB
• sodi_ex103.htm (EX-10.3) — 107KB
• sodi_ex104.htm (EX-10.4) — 65KB
• 0001654954-24-006907.txt ( ) — 567KB
• sodi-20240521.xsd (EX-101.SCH) — 6KB
• sodi-20240521_lab.xml (EX-101.LAB) — 12KB
• sodi-20240521_cal.xml (EX-101.CAL) — 1KB
• sodi-20240521_pre.xml (EX-101.PRE) — 8KB
• sodi-20240521_def.xml (EX-101.DEF) — 2KB
• sodi_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On May 21, 2024, Micro Engineering, Inc., a wholly owned subsidiary of Solitron Devices, Inc. (the "Company") purchased the property and facilities occupied by the Company, located at 401 Roger Williams Road, Apopka, Florida (the "Micro Property"), for a purchase price of $1,750,000. Micro Engineering, Inc. previously occupied the Micro Property under a commercial lease agreement dated September 1, 2023, which provided the Company with an option to purchase the Micro Property for $1,750,000 at any time before the six month anniversary of the lease agreement. In addition, on May 21, 2024, the Company entered into a Loan Agreement with Bank of America, N.A. ("BOA") with respect to the Company's acquisition of the Micro Property. The Loan Agreement is (1) evidenced by a Promissory Note issued by the Company in favor of BOA in the principal amount of $1,400,000 and (2) secured by the Micro Property and certain related assets and rights pursuant to a Mortgage, Assignment of Rents, Security Agreement and Fixture Filing between BOA and Micro Engineering. The Micro Property is subject to the Mortgage, Assignment of Rents, Security Agreement and Fixture Filing. Furthermore, Micro Engineering guaranteed the Company's obligations under the Promissory Note pursuant to a Continuing and Unconditional Guaranty. Pursuant to the loan documentation, BOA has advanced $1,400,000 to the Company for the purchase of the Micro Property. The Company agreed to pay installments of principal and interest in the amount of $10,444.14 on the first day of each month, commencing on July 1, 2024, and continuing on the same day of each calendar month thereafter, through May 1, 2034. The Company agreed to pay all remaining outstanding principal, together with all then accrued and unpaid interest, on May 31, 2034. The outstanding principal amount of the loan may be prepaid at any time with accrued interest and the interest payment that would have

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Exhibit 10.1 Loan Agreement dated May 21, 2024 between Bank of America, N.A. and Solitron Devices, Inc. 10.2 Promissory Note dated May 21, 2024 issued by Solitron Devices, Inc. in favor of Bank of America, N.A. 10.3 Mortgage, Assignment of Rents, Security Agreement and Fixture Filing dated May 21, 2024 by Micro Engineering, Inc. to Bank of America, N.A.* 10.4 Continuing and Unconditional Guaranty by Micro Engineering, Inc. dated May 21, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * Certain schedules and other attachments have been omitted. The Company undertakes to furnish the omitted schedules and attachments to the Securities and Exchange Commission upon request. 3 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. SOLITRON DEVICES, INC. May 24, 2024 By: /s/ Tim Eriksen Tim Eriksen Chief Executive Officer and Chief Financial Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR