WidePoint Corp Files 8-K on Financial Obligation

Ticker: WYY · Form: 8-K · Filed: Mar 4, 2024 · CIK: 1034760

Widepoint Corp 8-K Filing Summary
FieldDetail
CompanyWidepoint Corp (WYY)
Form Type8-K
Filed DateMar 4, 2024
Risk Levelmedium
Pages2
Reading Time3 min
Key Dollar Amounts$0.001, $4,000,000, $2.0 million, $1.0 million
Sentimentneutral

Sentiment: neutral

Topics: material-definitive-agreement, financial-obligation

TL;DR

WidePoint Corp just signed a new financial deal, could be big.

AI Summary

On February 29, 2024, WidePoint Corporation entered into a material definitive agreement related to a financial obligation. The company, incorporated in Delaware, filed this 8-K report detailing the creation of a direct financial obligation or an off-balance sheet arrangement.

Why It Matters

This filing indicates WidePoint Corporation has entered into a new financial commitment, which could impact its balance sheet and future financial flexibility.

Risk Assessment

Risk Level: medium — Entering into new financial obligations can introduce financial risk, especially if the terms are unfavorable or the company's ability to meet them is uncertain.

Key Players & Entities

  • WIDEPOINT CORPORATION (company) — Registrant
  • February 29, 2024 (date) — Date of earliest event reported
  • Delaware (jurisdiction) — State of Incorporation
  • 11250 Waples Mill Road (address) — Business Address

FAQ

What specific type of material definitive agreement did WidePoint Corporation enter into?

The filing indicates the creation of a 'Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant' but does not specify the exact nature of the agreement in the provided text.

When was the earliest event reported in this 8-K filing?

The earliest event reported was on February 29, 2024.

In which state is WidePoint Corporation incorporated?

WidePoint Corporation is incorporated in Delaware.

What is WidePoint Corporation's business address?

WidePoint Corporation's business address is 11250 Waples Mill Road, South Tower 210, Fairfax, Virginia 22030.

What is the SEC file number for WidePoint Corporation?

The SEC file number for WidePoint Corporation is 001-33035.

Filing Stats: 658 words · 3 min read · ~2 pages · Grade level 11.5 · Accepted 2024-03-04 09:07:32

Key Financial Figures

  • $0.001 — nge on Which Registered Common Stock, $0.001 par value per share WYY NYSE Americ
  • $4,000,000 — Bank. The Agreements provide for a new $4,000,000 revolving line of credit facility (the
  • $2.0 million — 24: (i) a minimum tangible net worth of $2.0 million; (ii) a minimum annual EBITDA of $1.0 m
  • $1.0 million — illion; (ii) a minimum annual EBITDA of $1.0 million and (iii) a ratio of current assets to

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. The information set forth under Item 2.03, "Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant," is incorporated herein by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On February 29, 2024, WidePoint Corporation and its subsidiaries (the "Company"), as borrower, entered into a Loan and Security Agreement (the "Loan") and Promissory Note (the "Note," and, together with the Loan, the "Agreements") with Old Dominion National Bank. The Agreements provide for a new $4,000,000 revolving line of credit facility (the "Credit Facility"). Advances under the Credit Facility are subject to a borrowing base equal to the lesser of (i) $4,000,000 or (ii) 80% of eligible accounts receivable. Interest accrues on the outstanding principal balance of the Credit Facility at an annual rate equal to the Prime Rate published in The Wall Street Journal, subject to a floor rate of 7.25%. Outstanding interest on the amount borrowed is payable monthly and all outstanding interest and principal is due on the maturity date of February 28, 2025. The Credit Facility includes customary covenants and events of default, including the following items that are measured annually commencing December 31, 2024: (i) a minimum tangible net worth of $2.0 million; (ii) a minimum annual EBITDA of $1.0 million and (iii) a ratio of current assets to current liabilities of not less than 1.0 to 1.0. The description of the Agreements set forth above are qualified by reference to the Loan filed herewith as Exhibit 10.1 and Note filed herewith as Exhibit 10.2, which exhibits are incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits 10.1 Loan and Security Agreement with Old Dominion National Bank 10.2 Promissory Note in favor of Old Dominion National Bank 104 Page Interactive Data File (embedded within the Inline XBRL document) 2

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. WIDEPOINT CORPORATION Date: March 1, 2024 /s/ Jin Kang Jin Kang Chief Executive Officer 3

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