Kaspien Holdings Inc. Reports Q1 Borrowings of $9.3 Million under Credit Facility

Kaspien Holdings Inc. Reports Q1 Borrowings of $9.3 Million under Credit Facility

Kaspien Holdings Inc. (KSPN) recently released its quarterly report for the thirteen weeks ended April 29, 2023. In this report, the company disclosed borrowings of $9.3 million under its Credit Facility during this period, compared to $10.5 million as of April 30, 2022. The company has completed its evaluation of recent accounting pronouncements and determined that these updates will not have any material impact on its financial condition, results of operations, or cash flows.

Regarding credit facilities

Kaspien Holdings Inc. has participated in several agreements. On February 20, 2020, Kaspien Inc. entered into a Loan and Security Agreement with Eclipse Business Capital LLC. Under this agreement, the lenders committed to provide up to $25 million in loans under a four-year, secured revolving credit facility. The Credit Facility is secured by a first priority security interest in substantially all of Kaspien’s assets, including inventory, accounts receivable, cash and cash equivalents, and certain other collateral of the borrowers and guarantors under the Credit Facility.

In addition to the Credit Facility

The company also has a Subordinated Loan Agreement. On March 30, 2020, the Loan Parties entered into a Subordinated Loan and Security Agreement with the lenders party thereto, granting them a $5.2 million secured term loan.

Subordinated Loan Agreement Amendments

Furthermore, the Subordinated Loan Agreement was amended through Amendment No. 2 on March 2, 2022, allowing Alimco Re Ltd. to provide an additional $5 million secured term loan with a scheduled maturity date of March 31, 2024, which coincides with the existing loans under the Subordinated Loan Agreement. Interest on this additional loan accrues at a rate of fifteen percent (15.0%) per annum, compounded on the last day of each calendar quarter.

Regarding stock-based compensation

Kaspien Holdings Inc. currently has four outstanding employee stock award plans. As of April 29, 2023, approximately 143,142 awards were granted and are outstanding under these Stock Award Plans; 30,821 of these were vested and exercisable, and shares available for future grants of options and other share-based awards under the New Plan as of January 28, 2023 were 443,000.

In conclusion

Kaspien Holdings Inc.’s Q1 2023 report reflects $9.3 million in borrowings under the Credit Facility. The company has been involved in various loan agreements, which have undergone amendments to extend their maturity dates and allow for additional loans, as well as grant stock-based compensation to employees and directors through its Stock Award Plans. Through its ongoing evaluation of accounting pronouncements, Kaspien Holdings Inc. ensures that its financial condition, operations, and cash flows remain strong and in accordance with any updates to accounting policies and practices.

Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/795212/000114036123029614/brhc20054082_10q.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!