{"schema_version":"secwatch.filing_event.v1","accession":"0000707388-25-000023","form_type":"8-K","ticker":null,"cik":"0000707388","company_name":"STAR EQUITY HOLDINGS, INC.","filed_at":"2025-03-04T23:59:59+00:00","discovered_at":"2026-05-14T18:03:06.104139+00:00","generated_at":"2026-05-25T16:21:22.749276+00:00","sec_items":["1.01","2.01","2.02","2.03","3.02","7.01","9.01"],"event_type":"m_and_a","sentiment":"positive","materiality_score":0.8,"calibrated_materiality_score":0.8,"confidence":"high","headline":"Star Equity acquires Alliance Drilling Tools for $12.65M enterprise value; establishes Energy Services division","bullets":["Total consideration $12.65M: $4.9M cash + 775,000 Series A Preferred shares ($7.75M liquidation value).","ADT's 2024 revenue ~$10.5M, 48% gross margin, $2.4M Adjusted EBITDA.","Transaction funded via $2.5M debt from Austin Financial plus cash on hand; secured $3M credit line.","ADT will operate as new Energy Services division; real estate valued at >$3M to be sale-leaseback."],"urls":{"canonical":"https://secwatch.observer/filing/0000707388-25-000023","json":"https://secwatch.observer/filing/0000707388-25-000023.json","markdown":"https://secwatch.observer/filing/0000707388-25-000023.md","text":"https://secwatch.observer/filing/0000707388-25-000023.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/0000707388-25-000023-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/strr-20250303.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-05-25T16:21:22.749276+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"ed7fb2fe937e1af958f218f9e31aaa011f6245e7","claim":"STAR EQUITY HOLDINGS, INC. incurred credit facility of up to $3,000,000 with Austin Financial Services, Inc. at prime rate plus 1.75% maturing March 4, 2028.","evidence_excerpt":"On March 3, 2025, Alliance Drilling Tools, LLC (the “Borrower”) entered into a Loan and Security Agreement (the “Austin Loan Agreement”) with Austin Financial Services, Inc. (“Austin”) providing the Borrower with a working capital line of credit of up to $3,000,000, subject to the conditions and procedures set forth in the Austin Loan Agreement. Availability under the Austin Loan Agreement is based on a formula tied to the Borrower’s eligible accounts receivable, inventory and equipment, and borrowings bear interest at the prime rate plus 1.75%, with interest payable monthly and the outstanding principal balance payable March 4, 2028 (the “Maturity Date”).","evidence_source":"SEC 8-K Item 2.03/2.04","evidence_url":"https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/0000707388-25-000023-index.htm","confidence":0.9,"family_label":"Debt Financings","details":[{"label":"Instrument","value":"credit facility"},{"label":"Principal","value":"up to $3,000,000"},{"label":"Counterparty","value":"Austin Financial Services, Inc."},{"label":"Rate","value":"prime rate plus 1.75%"},{"label":"Maturity","value":"March 4, 2028"},{"label":"Event","value":"incurrence"}],"fact_type":"debt_financing"},{"claim_id":"af18087fb3a33cc62a8a08d783e87438143a6385","claim":"STAR EQUITY HOLDINGS, INC. completed an acquisition involving Alliance Drilling Tools, LLC for up to $4,900,000 in cash and 775,000 shares of Series A Preferred Stock (closed 2025-03-03).","evidence_excerpt":"Company shall become a wholly owned subsidiary of the Company. In connection with the closing of the transaction, the Company will pay the Sellers aggregate consideration of (i) $4,900,000 (the “Cash Consideration”) and (ii) issue 775,000.00 shares (the “Stock Consideration”) of the Company’s 10% Series A Cumulative Perpetual Preferred Stock, par value $0.0001 per","evidence_source":"SEC 8-K Item 2.01/5.01","evidence_url":"https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/0000707388-25-000023-index.htm","confidence":0.9,"family_label":"M&A Transactions","details":[{"label":"Action","value":"acquisition"},{"label":"Counterparty","value":"Alliance Drilling Tools, LLC"},{"label":"Consideration","value":"up to $4,900,000 in cash and 775,000 shares of Series A Preferred Stock"},{"label":"Closing","value":"2025-03-03"}],"fact_type":"ma_transaction"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}