Data I/O Corporation entered into a Loan and Security Agreement with Western Alliance Bank on October 26, 2026. The agreement involves the Company and its subsidiaries, V-Tek, Inc. and A&J Programming, Inc., collectively referred to as the Borrowers. The facility provides for a revolving loan of up to $7.5 million, with the actual amount determined by a borrowing base based on eligible accounts and inventory.
The loan agreement became effective on October 26, 2026. Advances may be repaid and reborrowed until October 26, 2028, when all outstanding advances become due. The funds are designated for working capital and general business requirements. Interest on the advances is calculated at 1.00% above the Prime Rate, defined as the greater of 5.75% and the U.S. prime rate quoted in The Wall Street Journal. Interest is payable monthly, and the loan may be prepaid without penalty or premium.
The Borrowers are jointly and severally liable and have granted Western Alliance a continuing security interest in various collateral, including accounts, inventory, equipment, deposit accounts, investment property, intellectual property, and related proceeds. The agreement requires a minimum of $3.0 million in unrestricted cash to be deposited with Western Alliance and mandates a fixed charge coverage ratio of at least 1.25 to 1.00. The facility includes affirmative and negative covenants regarding dispositions, changes of control, indebtedness, and other corporate actions.
Western Alliance is authorized to accelerate obligations, cease making advances, exercise setoff, and take possession of collateral in the event of a default. The Borrowers remain liable for any deficiency after collateral is disposed of. Additionally, the Borrowers have waived rights to seek contribution or indemnification from one another for payments made under the agreement.
