Data I/O Corporation filed a current report on Form 8-K on October 29, 2026, disclosing a Loan and Security Agreement dated October 26, 2026, with Western Alliance Bank, establishing a revolving credit facility of up to $7.5 million for the company and its newly acquired subsidiaries V-Tek, Inc. and A&J Programming, Inc.

Key Highlights

  • Revolving facility cap: The Loan Agreement provides for a revolving loan facility of up to the lesser of $7.5 million and a borrowing base determined by eligible accounts and eligible inventory.
  • Maturity date: All outstanding advances become due on October 26, 2028, unless payable earlier under the Loan Agreement.
  • Interest rate: Advances bear interest at 1.00% above the Prime Rate, defined as the greater of 5.75% and the U.S. prime rate most recently quoted in The Wall Street Journal, with interest payable monthly.
  • Annual facility fee: Borrowers must pay a non-refundable facility fee of $18,750 on the closing date and each anniversary.
  • Cash covenant: The Loan Agreement requires at least $3.0 million of unrestricted cash on deposit with Western Alliance.
  • Fixed charge coverage ratio: Borrowers must maintain a fixed charge coverage ratio of at least 1.25 to 1.00.
  • Subsidiary acquisitions: The company disclosed it acquired V-Tek, Inc. and A&J Programming, Inc. on October 20, 2026; both are now subsidiaries and co-borrowers under the agreement.

Data I/O and Subsidiaries Obligated Under Western Alliance Loan Agreement

According to the filing, Data I/O Corporation (NASDAQ:DAIO), V-Tek, Inc. and A&J Programming, Inc. entered into the Loan and Security Agreement with Western Alliance Bank on October 26, 2026. The filing notes the company acquired V-Tek and A&J on October 20, 2026, and each is a subsidiary of the company. The agreement became effective and the borrowers became obligated on October 26, 2026. The three entities are jointly and severally liable under the agreement.

The revolving facility allows advances to be repaid and reborrowed until the October 26, 2028 maturity date, and the filing states advances "may be used solely for working capital and general business requirements." Advances may be prepaid without penalty or premium. During an event of default, the filing discloses that outstanding obligations bear interest at five percentage points above the otherwise applicable rate, unless Western Alliance elects a smaller or no increase. The borrowers granted Western Alliance a continuing security interest in collateral including accounts, inventory, equipment, deposit accounts, investment property, intellectual property and related proceeds, as well as pledged subsidiary equity interests.

The Loan Agreement also contains affirmative and negative covenants, according to the filing, including restrictions on dispositions, changes of control, mergers and acquisitions, indebtedness, liens, distributions, investments and affiliate transactions. Upon an event of default, Western Alliance may, among other things, accelerate obligations, cease making advances, exercise setoff, collect accounts and take possession of and dispose of collateral. The filing was signed by Charles DiBona, Chief Financial Officer of Data I/O Corporation.

What Was Disclosed

Data I/O Corporation reported entry into a $7.5 million revolving credit facility with Western Alliance Bank on October 26, 2026, covering the company and its two newly acquired subsidiaries, with a two-year term, a Prime Rate-plus-1.00% interest rate, and financial covenants including a minimum cash requirement and a fixed charge coverage ratio.