KORU Medical extends $5M revolver maturity

KORU Medical Systems, Inc. amended its loan and security agreement with HSBC Ventures USA Inc. covering a $5,000,000 revolving credit facility and a $5,000,000 term loan.

Rhea-AI Filing Summary

KORU Medical Systems, Inc. amended its loan and security agreement with HSBC Ventures USA Inc. covering a $5,000,000 revolving credit facility and a $5,000,000 term loan. The company has not drawn on this credit facility and is not required to do so.

The amendment extends the revolver maturity from December 31, 2026 to March 30, 2028 and the term loan maturity from December 1, 2028 to December 1, 2029. It also extends the term loan interest-only period to June 30, 2027, with a possible extension to December 31, 2027 if certain EBITDA milestones are met, lowers the interest rate floor to 5.50% from 6.50%, removes the adjusted quick ratio covenant, and adds a remaining months liquidity covenant of at least twelve months once the revolver is drawn.

Insights

Credit and capital structure analyst

Amended $10M credit facilities extend maturities and ease covenants while remaining undrawn.

KORU Medical Systems revised its loan and security agreement with HSBC Ventures USA Inc., maintaining access to a $5,000,000 revolver and $5,000,000 term loan. Key changes push out maturities and adjust interest and covenant terms while the company has not drawn on the facilities.

The revolver now matures on March 30, 2028, and the term loan on December 1, 2029. The term loan’s interest-only period runs to June 30, 2027, potentially to December 31, 2027 if specified EBITDA milestones are achieved. The interest rate floor on both facilities was reduced to 5.50% from 6.50%, easing pricing if benchmark rates fall.

Covenant structures also shift: the adjusted quick ratio covenant is removed, replaced for the revolver by a remaining months liquidity covenant of at least twelve months, tested monthly once the revolver is drawn, with compliance allowed if trailing three-month average Adjusted EBITDA is positive. Actual impact depends on whether the company chooses to access these undrawn facilities and how it manages liquidity and EBITDA performance over time.

8-K Event Classification

3 items: 1.01, 2.03, 9.01

3 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Revolving credit facility size: $5,000,000 Term loan facility size: $5,000,000 Revolver maturity date: March 30, 2028 +4 more

7 metrics

Revolving credit facility size $5,000,000 Aggregate principal amount of revolver under Credit Facility

Term loan facility size $5,000,000 Aggregate principal amount of term loan under Credit Facility

Revolver maturity date March 30, 2028 Extended from December 31, 2026

Term loan maturity date December 1, 2029 Extended from December 1, 2028

Interest rate floor after amendment 5.50% Reduced from 6.50% for both revolver and term loan

Term loan interest-only period To June 30, 2027 Possible further extension to December 31, 2027 upon EBITDA milestones

Liquidity covenant At least 12 months Remaining months liquidity covenant on revolver once drawn, tested monthly

Key Terms

revolving credit facility, Term Loan, interest-only period, adjusted quick ratio covenant, +2 more

6 terms

revolving credit facility financial

"relating to a revolving credit facility in an aggregate principal amount not to exceed $5,000,000"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

Term Loan financial

"a term loan facility in an aggregate principal amount not to exceed $5,000,000 (the “Term Loan”"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

interest-only period financial

"extends the interest-only period of the $5,000,000 Term Loan from September 30, 2026 to June 30, 2027"

A period during a loan when the borrower pays only the interest charges and none of the original principal, so monthly payments are lower but the loan balance does not shrink. For investors, this affects cash flow and risk: borrowers may have higher near-term liquidity but face larger payments or refinancing later, which can influence a company’s ability to pay dividends, meet obligations, or require new financing — similar to paying rent on borrowed money before starting to pay it down.

adjusted quick ratio covenant financial

"The Amendment removes the adjusted quick ratio covenant for both the Term Loan and the Revolver."

remaining months liquidity covenant financial

"replaced with a remaining months liquidity covenant of at least twelve months, to be tested monthly"

Adjusted EBITDA financial

"the Company will be in compliance if trailing three (3) month average Adjusted EBITDA (as defined in the Revolver) is positive."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What credit facilities does KORU Medical Systems (KRMD) have with HSBC after this amendment?

KORU Medical Systems maintains a revolving credit facility of $5,000,000 and a term loan facility of $5,000,000 with HSBC Ventures USA Inc. These together form the company’s Credit Facility under the amended loan and security agreement described in the filing.

Has KORU Medical Systems (KRMD) drawn on its $5,000,000 revolver or $5,000,000 term loan?

The filing states that KORU Medical Systems has not drawn on the Credit Facility and has no obligation to do so. This means both the $5,000,000 revolver and $5,000,000 term loan are currently undrawn, serving as available but unused borrowing capacity.

How did the amendment change the maturities of KORU Medical Systems’ credit facilities?

The amendment extends the revolver maturity from December 31, 2026 to March 30, 2028. It also extends the term loan maturity from December 1, 2028 to December 1, 2029, giving the company a longer time horizon before principal repayment obligations fully come due.

What interest rate and covenant changes did KRMD’s loan amendment introduce?

The amendment lowers the interest rate floor on both facilities to 5.50% from 6.50%. It removes the adjusted quick ratio covenant and adds a remaining months liquidity covenant of at least twelve months for the revolver, with compliance allowed if trailing three-month average Adjusted EBITDA is positive.

How did the interest-only period for KORU Medical Systems’ term loan change?

The interest-only period for the $5,000,000 term loan is extended from September 30, 2026 to June 30, 2027. It may be further extended to December 31, 2027 if certain EBITDA milestones specified in the agreement are achieved, delaying scheduled principal amortization.

What new liquidity covenant applies to KRMD’s revolver under the amended agreement?

The revolver now carries a remaining months liquidity covenant of at least twelve months, tested monthly beginning with the first month the revolver is drawn. The company will be considered in compliance if trailing three‑month average Adjusted EBITDA, as defined in the revolver, is positive.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 04/03/2026 - 04:00 PM Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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)   March 30, 2026

KORU Medical Systems, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-39086	13-3044880
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

100 Corporate Drive, Mahwah, NJ	07430
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code   (845) 469-2042

_________________________________________________

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[_]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[_]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[_]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
common stock, $0.01 par value	KRMD	The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  [_]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [_]

ITEM 1.01  ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

Reference is made to the disclosure under Item 2.03 below which is hereby incorporated in this Item 1.01 by reference.

ITEM 2.03  CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.

On March 30, 2026, KORU Medical Systems, Inc. (the “Company”) entered into an amendment (the “Amendment”) to its loan and security agreement, by and between the Company and HSBC Ventures USA Inc., as lender, dated March 8, 2024, as amended (the “Loan and Security Agreement”), relating to a revolving credit facility in an aggregate principal amount not to exceed $5,000,000 (the “Revolver”) and a term loan facility in an aggregate principal amount not to exceed $5,000,000 (the “Term Loan” and collectively with the Revolver, the “Credit Facility”). The Company has not drawn on the Credit Facility, and there is no obligation for the Company to do so at any time.

The Amendment extends the maturity of the $5,000,000 Revolver from December 31, 2026 to March 30, 2028, and extends the interest-only period of the $5,000,000 Term Loan from September 30, 2026 to June 30, 2027 with a possible further extension to December 31, 2027 upon the achievement of certain EBITDA milestones as set forth therein. The Term Loan maturity has been extended from December 1, 2028 to December 1, 2029. The Amendment lowers the interest rate floor to 5.50% from 6.50% for the Revolver and the Term Loan. The Amendment removes the adjusted quick ratio covenant for both the Term Loan and the Revolver. The adjusted quick ratio covenant for the Revolver has been replaced with a remaining months liquidity covenant of at least twelve months, to be tested monthly beginning the first month the Revolver is drawn on; provided, however, the Company will be in compliance if trailing three (3) month average Adjusted EBITDA (as defined in the Revolver) is positive.

The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment attached as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated by reference into this Item 1.01.

ITEM 9.01  FINANCIAL STATEMENTS AND EXHIBITS.

(d)   Exhibits.

Exhibit No.		Description
10.1+		Amendment No. 3 to Loan and Security Agreement dated as of March 30, 2026 by and between KORU Medical Systems, Inc. and HSBC Ventures USA Inc.
104		Cover Page Interactive Data File (embedded within the inline XBRL document)

+ Schedules and exhibits have been omitted pursuant to Item 601(b)(10) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the U.S. Securities and Exchange Commission upon request.

- 2 -

SIGNATURES

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.

	KORU Medical Systems, Inc. (Registrant)
Date:  April 3, 2026	By:	/s/ Thomas Adams
		Thomas Adams Chief Financial Officer

- 3 -

Filing Exhibits & Attachments

4 documents

Other Documents

• EX-10 AMENDMENT NO. 3 TO LOAN & SECURITY AGREEMENT 03-30-2026 - HSBC VENTURES USA INC. 59.2 KB
• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB