KORU Medical Systems, Inc. 8-K

What Happened

• KORU Medical Systems, Inc. filed an 8-K (Items 1.01 and 2.03) disclosing an Amendment dated March 30, 2026 to its Loan and Security Agreement with HSBC Ventures USA Inc. The agreement covers a $5,000,000 revolving credit facility and a $5,000,000 term loan (the Credit Facility). The Company has not drawn on the Credit Facility and is not obligated to do so.

Key Details

• Revolver: maturity extended from December 31, 2026 to March 30, 2028.
• Term Loan: interest-only period extended from September 30, 2026 to June 30, 2027 (with a possible further extension to December 31, 2027 if certain EBITDA milestones are met); final maturity extended from December 1, 2028 to December 1, 2029.
• Interest: interest-rate floor lowered to 5.50% from 6.50% for both the Revolver and the Term Loan.
• Covenants: the adjusted quick ratio covenant was removed for both facilities. For the Revolver, it was replaced by a “remaining months liquidity” covenant requiring at least 12 months of liquidity (tested monthly once the Revolver is drawn); alternatively, the Company will be in compliance if trailing three-month average Adjusted EBITDA is positive.
• Exhibit: Amendment No. 3 is filed as Exhibit 10.1 (schedules/exhibits omitted from public filing but available to the SEC on request).

Why It Matters

• The amendment gives KORU more time and flexibility on its credit lines by extending maturities and easing certain covenants, and it lowers the minimum interest floor — all of which can reduce near-term financing pressure.
• Because the Company hasn't drawn the facilities and has no obligation to, the amendment primarily preserves an available source of potential liquidity on improved terms, which investors may view as risk-mitigating without increasing current debt.