---
schema_version: "secwatch.filing_event.v1"
accession: "0001437749-24-002284"
form_type: "8-K"
ticker: "RMCF"
cik: "0001616262"
company_name: "Rocky Mountain Chocolate Factory, Inc."
filed_at: "2024-01-26T23:59:59+00:00"
generated_at: "2026-06-06T16:35:33.609059+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

# RMCF receives waiver from Wells Fargo for current ratio covenant breach (1.42 vs 1.5)

## Summary
- As of Nov 30, 2023, company's current ratio was 1.42, below the required 1.5 in credit agreement with Wells Fargo.
- On Jan 22, 2024, Wells Fargo issued a waiver of default rights for this specific breach, avoiding immediate repayment demand.
- Waiver applies only to this instance; future noncompliance could trigger acceleration of $4M credit line.
- Credit line is $4M secured by substantially all assets; lender retains right to cease advances if future breach.

## SEC filing metadata
- accession: 0001437749-24-002284
- form_type: 8-K
- ticker: RMCF
- cik: 0001616262
- company_name: Rocky Mountain Chocolate Factory, Inc.
- filed_at: 2024-01-26T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1616262/000143774924002284/0001437749-24-002284-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1616262/000143774924002284/rmcfd20240125_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001437749-24-002284
- JSON: https://secwatch.observer/filing/0001437749-24-002284.json
- Plain text: https://secwatch.observer/filing/0001437749-24-002284.txt

## Key facts
- Material Agreements
  Rocky Mountain Chocolate Factory, Inc. entered into Credit Agreement with Wells Fargo Bank N.A. valued at $4.0 million (effective 2021-10-13).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Wells Fargo Bank N.A.
  - Value: $4.0 million
  - Effective: 2021-10-13
  source text: on October 13, 2021, Rocky Mountain Chocolate Factory, Inc. (the “Company”) entered into a credit agreement (as amended, the “Credit Agreement”) with Wells Fargo Bank N.A. (the “Lender”), pursuant to which the Company has a $4.0 million credit line for general corporate and working capital purposes (the “Credit Line”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1616262/000143774924002284/0001437749-24-002284-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.