Monitor the company's compliance with the $3.0 million minimum cash covenant and the 1.25x fixed charge coverage ratio in upcoming quarterly filings. The combined debt service from this facility and the prior private placement will test the cash flow of the enlarged entity.
Price Chart
Executive Summary
Data I/O Corporation entered into a Loan and Security Agreement with Western Alliance Bank for a $7.5 million revolving credit facility, secured by substantially all assets of the company and its newly acquired subsidiaries, V-Tek and A&J Programming. The facility provides post-acquisition working capital and includes financial covenants requiring at least $3.0 million of unrestricted cash and a minimum fixed charge coverage ratio of 1.25 to 1.00. This follows the company's October 20, 2026 acquisition of V-Tek and A&J for $23 million in cash and $3 million in stock, funded by a $13.25 million private placement.
Key Financial Metrics
Key Facts
- Data I/O, V-Tek, and A&J entered into a Loan and Security Agreement with Western Alliance Bank on October 26, 2026.
- The revolving loan facility has a maximum commitment of $7.5 million, subject to a borrowing base based on eligible accounts and inventory.
- Advances bear interest at Prime Rate plus 1.00% (Prime Rate floor of 5.75%), payable monthly.
- The facility matures on October 26, 2028.
- The loan is secured by a first-priority security interest in substantially all assets of the borrowers, including accounts, inventory, equipment, intellectual property, and pledged equity of subsidiaries.
- Financial covenants require at least $3.0 million of unrestricted cash on deposit with the bank and a fixed charge coverage ratio of at least 1.25 to 1.00.
- The loan agreement was entered into six days after Data I/O completed its acquisition of V-Tek and A&J on October 20, 2026.
- A condition precedent to the loan was that Data I/O had received at least $13.25 million in net cash proceeds from an equity or subordinated debt issuance after September 1, 2026.
- The borrowers are jointly and severally liable under the agreement.
Financial Impact
Revolving credit facility of up to $7.5 million, secured by all assets. The company had already raised $13.25 million in equity/debt to fund the acquisition.
Risk Factors
- The company has added secured debt and restrictive covenants following a leveraged acquisition, increasing financial risk.
- Failure to maintain the $3.0 million minimum cash balance or the 1.25x fixed charge coverage ratio could trigger an event of default and accelerate repayment.
- The loan is secured by a first-priority lien on all assets, including intellectual property, limiting future financing flexibility.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-438009 |
| Document: d135725d8k.htm | 0001193125-26-438009 |
| Document: 0001193125-26-438009-index-headers.html | 0001193125-26-438009 |
| Document: 0001193125-26-438009-index.html | 0001193125-26-438009 |
| Document: 0001193125-26-438009.txt | 0001193125-26-438009 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 2d ago | 8-K | $2.46 | awaiting T+20 | awaiting T+20 | $2.36 (−4.07%) |
Oct 27, 2026 4d ago | 3 | $2.52 | awaiting T+20 | awaiting T+20 | $2.36 (−6.35%) |
Oct 27, 2026 4d ago | SC 13G | $2.52 | awaiting T+20 | awaiting T+20 | $2.36 (−6.35%) |
Oct 22, 2026 10d ago | 8-K | $2.49 | awaiting T+20 | awaiting T+20 | $2.36 (−5.22%) |
Oct 19, 2026 13d ago | 8-K | $2.52 | awaiting T+20 | awaiting T+20 | $2.36 (−6.35%) |
Oct 19, 2026 13d ago | Press Release | $2.52 | awaiting T+20 | awaiting T+20 | $2.36 (−6.35%) |
Oct 19, 2026 13d ago | Press Release | $2.52 | awaiting T+20 | awaiting T+20 | $2.36 (+6.35%) |
Aug 13, 2026 11w ago | EFFECT | $3.22 $2.77 | ▲ +13.98% | ▲ +12.23% | $2.36 (+26.71%) |
Aug 12, 2026 11w ago | Press Release | $3.22 $2.77 | ▲ +13.98% | ▲ +12.23% | $2.36 (+26.71%) |
Aug 11, 2026 11w ago | S-1/A | $2.92 $2.78 | ▲ +4.79% | ▲ +3.74% | $2.36 (+19.18%) |
US Market Status
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