Kodiak AI, Inc. 8-K

What Happened
Kodiak AI, Inc. (with subsidiary Kodiak Robotics, Inc.) announced on December 31, 2025 that it entered into a venture loan and security agreement with Horizon Technology Finance Corporation for a senior secured term loan facility of $30.0 million. The company borrowed the full $30.0M at closing; proceeds were used to repay prior indebtedness to the lender and for working capital and general corporate purposes.

Key Details

• Loan amount: $30.0 million borrowed on the Closing Date (Dec 31, 2025).
• Interest: prime rate + 3.50% with a prime-rate floor of 6.50% (implies a minimum effective rate of 10.00%).
• Payment schedule: monthly interest-only payments Feb 1, 2026 – Jul 1, 2028; then 18 equal monthly principal+interest payments starting Aug 1, 2028. Maturity: Jan 1, 2030.
• Fees and prepayment: $300,000 commitment fee paid at closing; $1.2 million final payment due on full repayment; prepayment premium of 2.0% if prepaid within 24 months, 1.0% thereafter.
• Security and covenants: loan is senior secured by substantially all assets (including IP) and contains customary affirmative/negative covenants and events of default; remedies include acceleration, termination of commitments and a potential 5% increase in the interest rate.
• Related action: the prior venture loan agreement dated Sept 28, 2022 (as amended) was terminated in connection with the new loan.

Why It Matters
This financing provides Kodiak AI with immediate liquidity ($30M) to pay down previous debt and support operations, which can help fund near-term working capital needs. However, it is a senior secured obligation backed by substantially all company assets (including intellectual property), and carries a relatively high minimum interest cost and additional fees (commitment fee and $1.2M final payment), which increase the effective cost of the loan. Investors should note the loan’s covenants and default remedies—if breached, the lender can accelerate repayment and exercise remedies that could materially affect the company’s assets and operations.