Newton Golf Company, Inc. 8-K

What Happened
Newton Golf Company, Inc. announced on July 1, 2026 that it entered into a Loan and Security Agreement with Brynnwood, LLLP providing a senior secured revolving credit facility of up to $5,000,000. The facility matures on July 1, 2028 and is secured by a first-priority lien on substantially all of the Company’s assets.

Key Details

• Facility size and timing: up to $5,000,000 revolving line; effective July 1, 2026; matures July 1, 2028.
• Pricing and fees: interest at Daily Simple SOFR + 13% per annum; default interest 22% (or legal maximum); one-time commitment fee of 2.0% of the Revolving Line paid at closing.
• Borrowing terms: minimum advance of $200,000; availability period ends one month before maturity; interest computed on a 360-day year with semi-annual interest payments due last business day of June and December.
• Security and covenants: secured by substantially all company assets; contains customary affirmative/negative covenants (limits on additional debt, liens, dividends, dispositions, related-party transactions), reporting requirements, events of default (including payment defaults, covenant breaches, insolvency, judgments > $500,000, change in control) and lender remedies (acceleration, cessation of advances, enforcement of collateral).

Why It Matters
This agreement creates a new secured financing source that can provide up to $5M of working capital for Newton Golf through mid‑2028, which may support operations or strategic needs. At the same time, it adds a material secured debt obligation and brings lender covenants and default remedies that investors should monitor, since breaches could lead to acceleration of the loan and enforcement against the Company’s assets. The interest and fee structure, along with the collateral requirement, are key terms investors should note when assessing the Company’s cash flow needs and balance-sheet flexibility.