On September 5, 2023, Cumberland Pharmaceuticals Inc. entered into a new Revolving Credit Loan Agreement with Pinnacle Bank. The New Pinnacle Agreement provides for an aggregate principal funding amount of up to $25 million. It provides an initial revolving line of credit of up to $20 million with the ability for Cumberland to increase the amount to $25 million, under certain conditions.

The New Pinnacle Agreement has a three year term expiring on October 1, 2026. The interest rate is based on a benchmark (Term SOFR) plus a spread of 2.75%. Cumberland is subject to one financial covenant, the maintenance of a Funded Debt Ratio, as such term is defined in the New Pinnacle Agreement referenced in Exhibit 10.1 below, and determined on a quarterly basis.

The Prior Loan Agreement: On September 5, 2023, the Company entered into the New Pinnacle Agreement. The material terms and conditions to the extent required are included in Item 1.01 above and are incorporated by reference into this Item 1.02. Effective upon the execution of the New Pinnacle Agreement described in Item 1.01 above, the prior Revolving Credit Loan Agreement, as amended, originally dated July 28, 2017, by and between the Company and Pinnacle Bank (the "Prior Pinnacle Agreement") was terminated.

The Company incurred no early termination penalties upon termination of the Prior Pinnacle Agreement and the remaining outstanding balance of $5.1 million was transferred to the New Pinnacle Agreement.