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Teknova(TKNO) - 2024 Q4 - Annual Results
TKNOTeknova(TKNO)2025-03-04 21:08

Loan Agreement Details - The existing revolving credit facility available to the Borrower is up to 5,000,000[11]−TheagreementwasamendedtoaddressthecontinuedworkingcapitalneedsoftheBorrower[11]−Thenewrevolvingloancommitmentsincludeanadditionaltrancheof5,000,000[11] - The agreement was amended to address the continued working capital needs of the Borrower[11] - The new revolving loan commitments include an additional tranche of 10,000,000, with minimum amounts of 1,000,000each[19]−TheagreementisdatedasofMarch3,2025,andinvolvesALPHATEKNOVA,INC.andMIDCAPFUNDINGIVTRUST[9]−TheBorrowersincludeanyadditionalborrowerthatmaybecomeapartytotheagreement[3]−Theagreementoutlinesvariousfinancialcovenants,includingminimumnetrevenueandminimumcashrequirements[7]−Theagreementincludesprovisionsforeventsofdefaultandtheaccelerationofobligations[10]−TheBorrowerisrequiredtomaintaincompliancewithlawsandmaterialcontractsaspartoftheaffirmativecovenants[6]−TheagreementallowsfortheappointmentofaBorrowerrepresentativeformanagingloan−relatedmatters[8]−Theagreementemphasizestheimportanceoffulldisclosureandcompliancewithenvironmentalrequirements[6]FinancialPerformance−Thecompanyreportedatotalrevenueof1,000,000 each[19] - The agreement is dated as of March 3, 2025, and involves ALPHA TEKNOVA, INC. and MIDCAP FUNDING IV TRUST[9] - The Borrowers include any additional borrower that may become a party to the agreement[3] - The agreement outlines various financial covenants, including minimum net revenue and minimum cash requirements[7] - The agreement includes provisions for events of default and the acceleration of obligations[10] - The Borrower is required to maintain compliance with laws and material contracts as part of the affirmative covenants[6] - The agreement allows for the appointment of a Borrower representative for managing loan-related matters[8] - The agreement emphasizes the importance of full disclosure and compliance with environmental requirements[6] Financial Performance - The company reported a total revenue of 1.5 billion for the last quarter, representing a 15% increase year-over-year[1] - User data showed an increase in active users to 10 million, up from 8 million in the previous quarter, marking a 25% growth[2] - The company provided guidance for the next quarter, expecting revenue to be between 1.6billionand1.6 billion and 1.7 billion, indicating a growth rate of 7% to 13%[3] - New product launches are anticipated to contribute an additional 200millioninrevenueoverthenextfiscalyear[4]−Thecompanyisinvesting200 million in revenue over the next fiscal year[4] - The company is investing 50 million in research and development for new technologies aimed at enhancing user experience[5] - Market expansion efforts are projected to increase market share by 5% in the next year, particularly in the Asia-Pacific region[6] - The company is exploring potential acquisitions to enhance its product offerings, with a budget of 100millionallocatedforthispurpose[7]−Anewmarketingstrategyisexpectedtoincreasebrandawarenessby30100 million allocated for this purpose[7] - A new marketing strategy is expected to increase brand awareness by 30% over the next six months[8] - The company reported a net profit margin of 20%, which is consistent with industry averages[9] - Cash equivalents as of the last reporting date totaled 300 million, providing a strong liquidity position[10] - The company reported a Tier 1 capital of not less than 100million,ensuringcompliancewithbankingregulations[51]−Thecompanyhasnetassetsofnotlessthan100 million, ensuring compliance with banking regulations[51] - The company has net assets of not less than 500 million, indicating strong financial stability[51] Compliance and Regulatory Framework - The company is subject to the Comprehensive Environmental Response, Compensation and Liability Act, reflecting its commitment to environmental regulations[52] - The company has defined its compliance requirements and obligations under the Internal Revenue Code, ensuring tax compliance[55] - The company must ensure compliance with Environmental Laws, which include various federal and state regulations related to pollution and hazardous materials[81] - The company must adhere to ERISA regulations regarding employee benefit plans and any associated liabilities[84] - The company must avoid any actions that could lead to an "Event of Default" as defined in the relevant sections of the agreement[86] Financial Management and Obligations - The company has established a framework for identifying and managing changes in control, ensuring governance stability[53] - The company maintains a Credit Card Cash Collateral Account with a maximum aggregate amount of 250,000,enhancingliquiditymanagement[63]−Thecompany’sdebtobligationsincludevariousformsofborrowedmoney,bonds,andcapitalleases,indicatingadiversifiedcapitalstructure[65]−Thecompanyhasestablishedaframeworkformanagingcontingentobligations,whichmayimpactitsfinancialposition[61]−Thecompanyisactivelymonitoringitsfinancialperformancethroughdefinedperiodsforcalculatingnetrevenue,enhancingfinancialanalysis[67]−Thecompanyhasoutlineditsdistributionpoliciesregardingequityinterests,ensuringclarityinfinancialdistributions[71]DefinitionsandFinancialMetrics−"Liquidity"asofthedeterminationdateisdefinedasthesumofRevolvingLoanAvailabilityplusBorrowerUnrestrictedCash[120]−The"LiquidityThreshold"issetat100250,000, enhancing liquidity management[63] - The company’s debt obligations include various forms of borrowed money, bonds, and capital leases, indicating a diversified capital structure[65] - The company has established a framework for managing contingent obligations, which may impact its financial position[61] - The company is actively monitoring its financial performance through defined periods for calculating net revenue, enhancing financial analysis[67] - The company has outlined its distribution policies regarding equity interests, ensuring clarity in financial distributions[71] Definitions and Financial Metrics - "Liquidity" as of the determination date is defined as the sum of Revolving Loan Availability plus Borrower Unrestricted Cash[120] - The "Liquidity Threshold" is set at 100% of the aggregate outstanding principal amount of the Term Loans as of the determination date[120] - "Net Revenue" for any defined period is the consolidated revenue generated through the commercial sale of products and services by Borrowers or their Subsidiaries[136] - The "Minimum Balance Percentage" is established at 25%[133] - The "Monthly Cash Burn Amount" is calculated based on the change in cash and Cash Equivalents over a six-month period, divided by six[134] - "Material Adverse Effect" refers to a significant negative change in the financial condition or operations of the Credit Parties[126] Acquisition and Investment Guidelines - "Permitted Acquisition" conditions include no Event of Default occurring and compliance with financial covenants post-acquisition[149] - The "Maturity Date" for the loans is set for March 1, 2030[129] - "Material Contracts" are agreements whose termination could reasonably be expected to result in a Material Adverse Effect[127] - The total Acquisition Consideration for permitted acquisitions shall not exceed 10 million if liquidity is less than 200% of the Liquidity Threshold, 20millionifbetween20020 million if between 200% and 300%, and 50 million if 300% or more[150] - Borrowers must maintain Unrestricted Cash of at least 20millionoranamountequalto12timestheMonthlyCashBurnAmountafteranyacquisition[150]−ThemaximumamountofcashandCashEquivalentspaidforallpermittedacquisitionsiscappedat20 million or an amount equal to 12 times the Monthly Cash Burn Amount after any acquisition[150] - The maximum amount of cash and Cash Equivalents paid for all permitted acquisitions is capped at 50 million during the term of the agreement if liquidity is above 300% of the Liquidity Threshold[150] - Borrowers are required to provide updated financial projections for the four quarters following the proposed acquisition[151] - Eligible Accounts or Eligible Inventory acquired in a permitted acquisition will not be included until a field examination is completed[152] Asset Management and Dispositions - Permitted Asset Dispositions include inventory sales in the ordinary course of business and dispositions of furniture and equipment deemed no longer useful[153] - The aggregate amount of Asset Dispositions in any twelve-month period is limited to 500,000[154]−ContingentObligationsrelatedtosuretyandperformancebondsarecappedat500,000[154] - Contingent Obligations related to surety and performance bonds are capped at 250,000 at any time outstanding[157] - Unsecured Debt assumed in connection with a Permitted Acquisition is limited to 500,000[159]−Thecompanycanmakedistributionstoitsdirectparentandrepurchasestockfromemployeesupto500,000[159] - The company can make distributions to its direct parent and repurchase stock from employees up to 250,000 per fiscal year[159] - The company has a limit of 250,000foremployeeloansandadvancesrelatedtoequitysecuritiespurchases[162]−Thecompanycanmakecashinvestmentsinundevelopedlandnotexceeding250,000 for employee loans and advances related to equity securities purchases[162] - The company can make cash investments in undeveloped land not exceeding 750,000, provided certain conditions are met[163] - The company is allowed to invest up to 500,000injointventuresandstrategicalliancesinanyfiscalyear[163]−Thecompanycanmakeadditionalcashinvestmentsbasedonliquiditythresholds,withamountsrangingfrom500,000 in joint ventures and strategic alliances in any fiscal year[163] - The company can make additional cash investments based on liquidity thresholds, with amounts ranging from 250,000 to 5,000,000dependingonliquiditylevels[163]LoanandCreditTerms−TheaggregateRevolvingLoanCommitmentAmountofallLendersontheClosingDateis5,000,000 depending on liquidity levels[163] Loan and Credit Terms - The aggregate Revolving Loan Commitment Amount of all Lenders on the Closing Date is 5,000,000, which can increase to 15,000,000iftheAdditionalTrancheisfullyactivatedbyBorrowers[177]−TheRevolvingLoanLimitisdefinedasthelesseroftheRevolvingLoanCommitmentandtheBorrowingBase[180]−TheRevolvingLoanOutstandingsrepresenttheexistingaggregateoutstandingprincipalamountofRevolvingLoansatanytimeofcalculation[180]−Theterm"RevolvingLoanAvailability"iscalculatedastheRevolvingLoanLimitminustheRevolvingLoanOutstandings[176]−TheSubordinatedDebtiscappedat15,000,000 if the Additional Tranche is fully activated by Borrowers[177] - The Revolving Loan Limit is defined as the lesser of the Revolving Loan Commitment and the Borrowing Base[180] - The Revolving Loan Outstandings represent the existing aggregate outstanding principal amount of Revolving Loans at any time of calculation[180] - The term "Revolving Loan Availability" is calculated as the Revolving Loan Limit minus the Revolving Loan Outstandings[176] - The Subordinated Debt is capped at 100,000,000 at any time outstanding, with no Subordinated Debt as of the Closing Date[191] - The term "Revolving Loan Exposure" refers to the percentage of a Lender's Revolving Loan Outstandings divided by the aggregate Revolving Loan Outstandings of all Lenders[179] - The "Stated Rate" is defined in Section 2.7 of the agreement[191] - The term "SOFR" refers to the secured overnight financing rate applicable for any SOFR Business Day[185] - The "Termination Date" is defined as the earliest occurrence of the Maturity Date, acceleration of Loans, or a notice of termination provided by Borrowers or Agent[199] - The "Resolution Authority" refers to an EEA Resolution Authority or a UK Resolution Authority for UK Financial Institutions[174]