KLNG 8-K filed 2026 · insiderdelta

ITEM 1.01

Entry into a Material Definitive Agreement.

On May 19, 2026, Koil Energy Solutions, Inc., a Nevada
corporation, and its subsidiary Koil Energy Solutions, Inc., a Delaware corporation (together, the “Borrower”), entered into
a Loan and Security Agreement (the “Loan Agreement”) with nFusion Capital Finance, LLC, including its successors and assigns,
as lender (the “Lender”). The Loan Agreement provides for a revolving credit facility in a maximum principal amount of up
to $5.0 million, with availability based on an advance rate of 85% of the Borrower’s eligible accounts, in each case subject to
customary reserves, adjustments and conditions precedent. The loans under the Loan Agreement bear interest at an annual rate equal to
the prime rate as published in the Wall Street Journal, subject to a floor of 6.75%, plus a margin of 4.75%, calculated on the basis of
a 360-day year for the actual number of days elapsed, and are subject to a default interest rate as provided in the Loan Agreement. The
Loan Agreement has an initial stated maturity date of 12 months from the effective date of the Loan Agreement and will automatically renew
for successive one-year terms unless earlier terminated in accordance with its terms, including the Lender’s right to terminate
upon 90 days’ notice or immediately upon an event of default. The Loan Agreement includes customary representations and warranties,
affirmative and negative covenants (including, among others, limitations on additional indebtedness, liens, investments, asset dispositions,
and dividends and share repurchases), reporting obligations and events of default.

The Borrower’s obligations under the Loan Agreement
are secured by a first-priority security interest in substantially all of the personal property assets of the Borrower, including accounts,
inventory, equipment, deposit accounts, general intangibles and other collateral, subject to permitted liens and customary intercreditor
arrangements, and the Loan Agreement contains customary provisions permitting the Lender, among other things, to adjust reserves, conduct
collateral audits and require control, landlord and bailee agreements. In connection with the Loan Agreement, the Borrower paid a loan
fee equal to 1.0% of the $5.0 million maximum revolver amount and agreed to pay a monthly collateral monitoring fee equal to 0.25% of
the average gross balance of eligible accounts, together with specified lockbox, wire, ACH, UCC and tax monitoring fees, and an early
termination fee equal to 2.0% of the maximum revolver amount in certain circumstances.

The foregoing description of the Loan Agreement does not purport to be
complete and is qualified in its entirety by reference to the full text of the Loan Agreement filed as Exhibit 10.1 to this Current Report
on Form 8-K.

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
KLNG Koil Energy Solutions, Inc. - 8-K

Item 1.01 - Entry into a Material Definitive Agreement

Item 9.01 - Financial Statements and Exhibits
