Attached files
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): June 26, 2015
SCIENTIFIC INDUSTRIES, INC.
_________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 000-6658 04-2217279
___________ ____________ __________________
(State or other (Commission (IRS Employer No.)
jurisdiction of File Number)
incorporation)
80 Orville Drive, Suite 102
Bohemia, New York 11716
__________________________________________________
(Address of principal executive offices)
(631) 567-4700
__________________________________________________
Registrant's telephone number, including area code
Not Applicable
__________________________________________________
(Former name or former address,
if changed since last report)
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On June 26, 2015, Registrant entered into (1) a one-year
credit agreement with First National Bank of Pennsylvania
("Lender") for an Export-Related Revolving Line of Credit
which is guaranteed by the Export-Import Bank of the
United States, in an aggregate principal amount not to exceed
$998,500 at any one time outstanding, for the purpose of
providing Registrant with working capital to support its
export business at an annual interest rate of prime plus 2%
and an annual fee of 1.75%; and (2) a one-year Demand Line of
Credit in the aggregate principal amount not to exceed $300,000
for regular working capital needs, at an annual interest rate
equal to the prime rate, currently 3.25%.
Advances under both lines are to be secured by a pledge of
Collateral consisting of the inventory, accounts, chattel paper,
equipment and general intangibles of the Company. In addition,
the Demand Line of Credit is collaterized with a cash
collateral account of $300,000 which will be released upon
certain financial criteria being met or the line being paid and
terminated, whichever comes first.
Maturity of principal and interest under both lines accelerates
upon the occurrence of an event of default. The events specified
include failure to pay outstanding obligations, a material
adverse change in the Company's financial condition or prospects
and acts of insolvency. During any period of default the interest
rate increase by 3% per annum.
In connection with this financing, the Registrant terminated
its previous line of credit agreement with Bank of America, N.A.
with no further obligations due to the bank.
The Registrant also entered into $100,000 one-year note
purchase agreements, bearing interest at 5%, with each of
Ms. Grace March, a current director of the Company and Mr.
James Maloy, a current shareholder and the principal
stockholder of Fulcrum, Inc. which sold to the Company its
TORBAL scales and balance business in February 2014. The
notes are subordinate and junior in the right of payment
to the Lender.
ITEM 9.01 Financial Statements and Exhibits
(a) and (b) not applicable
(c) Exhibits
Exhibit No. Exibit
___________ _____________________________
10.1 Credit Agreement
10.2 Export-Related Credit Note
10.3 Demand Line of Credit Note
10.4 SEcurity Agreement
10.5 Note Purchase Agreement with Ms. March
10.6 Note Purchase Agreement with Mr. Maloy
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.
SCIENTIFIC INDUSTRIES, INC.
(Registrant)
Date: June 30, 2015
By: /s/ Helena R. Santos
________________________
Helena R. Santos,
President and Chief Executive
Officer
