Geospace Technologies Corporation (the Company) entered into a Credit Agreement by and among the Company and certain of the Company?s subsidiaries, as borrowers (the Borrowers), and Woodforest National Bank, as lender. The Agreement refinanced the Company?s Revolving Loan and Security Agreement, dated as of May 6, 2022, between the Company, GTC Inc., Amerisource Funding Inc., as administrative agent and as a lender, and Woodforest National Bank, as a lender. The Agreement provides a revolving credit facility with a maximum availability of $15 million.

Availability under the revolving credit facility is determined based upon a borrowing base comprised of certain of the Company?s domestic assets which include (i) 80% of Eligible Accounts, plus (ii) 90% of Eligible Foreign Insured Accounts, plus (ii) 25% of Eligible Inventory plus (iii) 50% of the orderly liquidation value of Eligible Equipment, in each case subject to certain limitations and adjustments. Interest shall accrue on outstanding borrowings at a rate equal to Term SOFR plus a margin equal to 3.25% per annum. The Borrowers are required to make monthly interest payments on borrowed funds.

The Agreement is secured by substantially all of the assets of the Borrowers, except for certain Excluded Property. The Agreement requires the Company to maintain (i) a minimum consolidated tangible net worth of $100 million, (ii) minimum liquidity of $5,000,000, and (iii) a minimum current ratio no less than 2.00 to 1.00, in each case tested quarterly. The Agreement also requires the Borrowers to maintain a springing minimum interest coverage ratio of 1.50 to 1.00, tested quarterly whenever there is an outstanding balance on the revolving credit facility.