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contextRef="Duration_12_30_2021_To_12_30_2021_oRrNc1MlWEaND_2M7Pkoew" name="dei:AmendmentFlag" id="Tc_rPoQN5AksUu12gYpD-42ew_3_1">false</ix:nonNumeric></ix:hidden><ix:references><link:schemaRef xlink:href="xelb-20211230.xsd" xlink:type="simple"></link:schemaRef></ix:references><ix:resources><xbrli:context id="Duration_12_30_2021_To_12_30_2021_oRrNc1MlWEaND_2M7Pkoew"><xbrli:entity><xbrli:identifier scheme="http://www.sec.gov/CIK">0001083220</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:startDate>2021-12-30</xbrli:startDate><xbrli:endDate>2021-12-30</xbrli:endDate></xbrli:period></xbrli:context></ix:resources></ix:header></div><div style="max-width:100%;padding-left:5.88%;padding-right:5.88%;position:relative;"><div style="clear:both;max-width:100%;position:relative;min-height:12.65pt;"><a id="_43283218_e392_4db7_a4e8_fde750636ded"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><b style="font-size:18pt;font-weight:bold;">UNITED STATES</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;text-align:center;margin:0pt;"><b style="font-size:18pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;text-align:center;margin:0pt;"><b style="font-weight:bold;">WASHINGTON, DC 20549</b></p><div style="font-family:'Times New Roman','Times','serif';font-size:11.0pt;margin-bottom:6pt;min-height:1.19em;position:relative;width:100%;"><div style="background-color:#000000;height:1pt;position:relative;top:0.6em;width:100%;border:none;margin:0 auto;"></div></div><p style="font-family:'Times New Roman','Times','serif';font-size:18pt;text-align:center;margin:0pt;"><b style="font-weight:bold;">FORM&#160;</b><ix:nonNumeric contextRef="Duration_12_30_2021_To_12_30_2021_oRrNc1MlWEaND_2M7Pkoew" name="dei:DocumentType" id="Narr_7hkbIPTHq0aO2QUyENpLBg"><b 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id="_8a417300_c0e8_4f31_b5ed_23452253289a"></a><div style="margin-left:0pt;"><a id="Tc_-gC9HPBYXEmcTgPdX0Oxdw_1_0"></a><a id="Tc_7WREot2BIE2LxiWaf8BBmQ_1_1"></a><a id="Tc_eG6xd2gSL0izwbK3jWu6NQ_1_2"></a><a id="Tc_DveI2Md6Xk2GlOOoDu9wyQ_2_2"></a><table style="border-collapse:collapse;font-size:16pt;height:max-content;margin-left:auto;margin-right:auto;padding-left:0pt;padding-right:0pt;width:100%;"><tr style="height:1pt;"><td style="vertical-align:top;width:38.31%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:top;width:23.36%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:top;width:38.32%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></div></div></td></tr><tr><td style="vertical-align:top;width:38.31%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;">Title&#160;of&#160;each&#160;class</p></td><td style="vertical-align:top;width:23.36%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;">Trading&#160;Symbol</p></td><td style="vertical-align:top;width:38.32%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;">Name&#160;of&#160;each&#160;exchange&#160;on&#160;which&#160;registered</p></td></tr><tr><td style="vertical-align:top;width:38.31%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><ix:nonNumeric contextRef="Duration_12_30_2021_To_12_30_2021_oRrNc1MlWEaND_2M7Pkoew" name="dei:Security12bTitle" id="Tc_nsnxAEm3IESLvylsvlaICg_2_0">Common Stock, par value $0.001 per share</ix:nonNumeric></p></td><td style="vertical-align:top;width:23.36%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><ix:nonNumeric contextRef="Duration_12_30_2021_To_12_30_2021_oRrNc1MlWEaND_2M7Pkoew" name="dei:TradingSymbol" id="Tc_MNDUyE_HZkmw8Lp-TI8Paw_2_1">XELB</ix:nonNumeric></p></td><td style="vertical-align:top;width:38.32%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><ix:nonNumeric contextRef="Duration_12_30_2021_To_12_30_2021_oRrNc1MlWEaND_2M7Pkoew" name="dei:SecurityExchangeName" id="Narr_wCd-ps-3y0qdwCYDhI06-A">NASDAQ</ix:nonNumeric> Global 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<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:88.24%;border:0;margin:30pt 5.88% 30pt 5.88%;"></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><a id="_365b44b4_70bc_4b11_8002_eefc99207349"></a><table style="border-collapse:collapse;border:0;"><tr><td style="vertical-align:text-top;white-space:nowrap;width:72pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:0pt;margin-top:0pt;text-align:justify;"><b style="font-weight:bold;">Item 1.01 </b></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:0pt;margin-top:0pt;text-align:justify;"><b style="font-weight:bold;">Entry into a Material Definitive Agreement.</b></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><a id="_acf06343_dd8f_440e_b854_cadbd354073b"></a><table style="border-collapse:collapse;border:0;"><tr><td style="vertical-align:text-top;white-space:nowrap;width:72pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><b style="font-weight:bold;">Item 2.03</b></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><b style="font-weight:bold;">Creation of a Direct Financial Obligation or Obligation Under an Off-balance Sale Arrangement of a Registrant.</b></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">On December 30, 2021, Xcel, as Borrower, and its wholly-owned subsidiaries, IM Brands, LLC, JR Licensing, LLC, H Licensing, LLC, C Wonder Licensing, LLC, Xcel Design Group, LLC, Judith Ripka Fine Jewelry, LLC, H Heritage Licensing, LLC, Xcel-CT MFG, LLC and Gold Licensing, LLC, as Guarantors (each a &#8220;Guarantor&#8221; and collectively, the &#8220;Guarantors&#8221;), entered into a Loan and Security Agreement (the &#8220;Loan Agreement&#8221;) with FEAC Agent, LLC (&#8220;FEAC&#8221;), as lead arranger and as administrative agent and collateral agent for the lenders party to the Loan Agreement (in such capacity, the &#8220;Administrative Agent&#8221;), and the financial institutions party thereto as lenders (the &#8220;Lenders&#8221;). &#160;Pursuant to the Loan Agreement, the Lenders made a term loan in the aggregate amount of $29,000,000 (the &#8220;Term Loans&#8221;). &#160;The proceeds of the Term Loan used for the purpose of refinancing existing indebtedness and to pay fees, costs and expenses incurred in connection with entering into the Loan Agreement, and may be used for the purpose of consummating acquisitions by Xcel or its subsidiaries that are permitted under the Loan Agreement and working capital purposes.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">The Loan Agreement also provides that Xcel may request the Lenders make incremental term loans of up to $25,000,000 (the &#8220;Incremental Term Loans&#8221;). &#160;The terms and conditions of the Incremental Term Loans will be agreed in an amendment to the Loan Agreement prior to the funding by the Incremental Term Loans.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Upon entering into the Loan Agreement, Xcel paid closing fees to the Administrative Agent (i) in the amount of $213,750 for the benefit of each Lender and (i) in the amount of $75,000 for the benefit of each Lender that was a party to the existing indebtedness refinanced by the Term Loan.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">The Term Loans mature on April 14, 2025. &#160;Principal on the Term Loans shall be payable in quarterly installments of $625,000 on each of March 31, June 30, September 30 and December 31 of each year, commencing on March 31, 2022. &#160;</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Xcel has the right upon thirty (30) days prior written notice to prepay all or any portion of the Term Loans or Incremental Term Loans and accrued and unpaid interest thereon; provided that any prepayment shall applied first to prepay the Term Loans in full and second to the Incremental Term Loans.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">If the Term Loans are prepaid in whole or in part on or prior to the second anniversary of the Closing Date (including as a result of an event of default), Xcel shall pay a prepayment premium as follows: &#160;an amount equal to the principal amount of the Term Loan prepaid multiplied by: (i) &#160;five percent (5.00%) if such prepayment occurs on or before the first anniversary of the Closing Date; (ii) two percent (2.00%) if such prepayment occurs at any time after the first anniversary of the Closing Date and on or prior to the second anniversary of the Closing Date; and (iii) one percent (1.00%) if such prepayment occurs at any time after the second anniversary of the Closing Date.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Xcel&#8217;s obligations under the Loan Agreement are guaranteed by the Guarantors and secured by all of the assets of Xcel and the Guarantors (as well as any subsidiary formed or acquired that becomes a credit party to the Loan Agreement) and, subject to certain limitations contained in the Loan Agreement, equity interests of the Guarantors (as well as any subsidiary formed or acquired that becomes a credit party to the Loan Agreement).</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Xcel also granted the Lenders a right of first offer to finance any acquisition for which the consideration therefore will be paid other than by cash of Xcel or the Guarantors, the issuance of equity interest of Xcel or the issuance of notes to the applicable seller.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Interest on the Term Loans will accrue at LIBOR plus 7.5% per annum. &#160;Interest on the Term Loans is payable on the last business day of each calendar month. &#160;LIBOR is defined in the Loan Agreement as the greater of (a) the rate of interest per annum for deposits in dollars for an interest period equal to three months as published by Bloomberg or a comparable or successor quoting service at approximately 11:00 a.m. (London time) two business days prior to the last business day of each calendar month and (b) 1.0% per annum.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><span style="white-space:pre-wrap;"> </span>The Loan Agreement contains customary covenants, including reporting requirements, trademark preservation and the following financial covenants of Xcel (on a consolidated basis with the Guarantors and any subsidiaries subsequently formed or acquired that become a credit party under the Loan Agreement):</p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:79.3%;border:0;margin:30pt 10.35% 30pt 10.35%;"></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><div style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin-bottom:12pt;margin-left:0pt;margin-top:0pt;text-align:justify;text-indent:36pt;"><span style="display:inline-block;font-size:10pt;min-width:36pt;text-indent:0pt;white-space:nowrap;">&#9679;</span><span style="font-size:10pt;">liquid assets of (i) during the first fiscal month of each fiscal quarter $2,500,000 if cash payments from revenue licenses during the immediately succeeding 30 days are expected to be at least $4,000,000 and (ii) at least $3,000,000 at all other times; </span></div><div style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin-bottom:12pt;margin-left:0pt;margin-top:0pt;text-align:justify;text-indent:36pt;"><span style="display:inline-block;font-size:10pt;min-width:36pt;text-indent:0pt;white-space:nowrap;">&#9679;</span><span style="font-size:10pt;">a fixed charge coverage ratio for (i) the fiscal quarter ending September 20, 2022 of not less than 1.00 to 1.00 and (ii) the twelve fiscal month period ending at the end of each fiscal quarter commencing with the fiscal quarter ending December 31, 2022 of not less than 1.00 to 1.00; </span></div><div style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin-bottom:12pt;margin-left:0pt;margin-top:0pt;text-align:justify;text-indent:36pt;"><span style="display:inline-block;font-size:10pt;min-width:36pt;text-indent:0pt;white-space:nowrap;">&#9679;</span><span style="font-size:10pt;">a loan to value ratio not to exceed 50%;</span></div><div style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin-bottom:0pt;margin-left:0pt;margin-top:0pt;text-align:justify;text-indent:36pt;"><span style="display:inline-block;font-size:10pt;min-width:36pt;text-indent:0pt;white-space:nowrap;">&#9679;</span><span style="font-size:10pt;">minimum revenues of not less than the amounts set forth below at the end of the appliable fiscal period set forth below:</span></div><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><table style="border-collapse:collapse;font-size:16pt;height:max-content;margin-left:auto;margin-right:auto;width:80%;"><tr style="height:1pt;"><td style="vertical-align:top;width:66.96%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"></div></div></td><td style="vertical-align:top;width:2.57%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:bottom;width:30.45%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="bottom:0pt;position:absolute;width:100%;"></div></div></td></tr><tr><td style="vertical-align:bottom;width:66.96%;border-bottom:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">Fiscal Period</p></td><td style="vertical-align:top;width:2.57%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">&#160;&#160;&#160;&#160;</p></td><td style="vertical-align:bottom;width:30.45%;border-bottom:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">Minimum Revenue</p></td></tr><tr><td style="vertical-align:top;width:66.96%;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">April 1, 2021 thru December 31, 2021</p></td><td style="vertical-align:top;width:2.57%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:bottom;width:30.45%;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">$16,445,000</p></td></tr><tr><td style="vertical-align:top;width:66.96%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">For the trailing twelve month period ending March 31, 2022</p></td><td style="vertical-align:top;width:2.57%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:bottom;width:30.45%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">$23,500,000</p></td></tr><tr><td style="vertical-align:top;width:66.96%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">For the trailing twelve month period ending June 30, 2022</p></td><td style="vertical-align:top;width:2.57%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:bottom;width:30.45%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">$24,491,000</p></td></tr><tr><td style="vertical-align:top;width:66.96%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">For the trailing twelve month periods ending September 30, 2022 and each Fiscal Quarter end thereafter</p></td><td style="vertical-align:top;width:2.57%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:bottom;width:30.45%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">$25,000,000</p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><div style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin-bottom:12pt;margin-left:0pt;margin-top:0pt;text-indent:36pt;"><span style="display:inline-block;font-size:10pt;min-width:36pt;text-indent:0pt;white-space:nowrap;">&#9679;</span><span style="font-size:10pt;">the sum of (i) the eligible inventory plus (ii) eligible cash on hand to the extent not used to satisfy the Minimum Accounts Amount (as defined below) plus (iii) the eligible accounts to the extent not used to satisfy the Minimum Accounts Amount (as defined below) of not less than $1,250,000 at all times (&#8220;Minimum Inventory Amount&#8221;); and the sum of (i) the eligible accounts plus (ii) eligible cash on hand to the extent not used to satisfy the Minimum Inventory Amount of not less than $1,500,000 at all times (&#8220;Minimum Accounts Amount&#8221;); and</span></div><div style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin-bottom:0pt;margin-left:0pt;margin-top:0pt;text-align:justify;text-indent:36pt;"><span style="display:inline-block;min-width:36pt;text-indent:0pt;white-space:nowrap;">&#9679;</span><span style="font-size:10pt;">EBITDA of not be less than $2,000,000 for the trailing 6 fiscal month period ending June 30, 2022.</span></div><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><a id="_1bb625d0_b64e_42f1_8c55_70861b40a7bb"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 12pt 0pt;"><span style="display:inline-block;text-indent:0pt;width:72pt;"><b style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:bold;">Item 9.01</b></span>Financial Statements and Exhibits</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Exhibits</p><table style="border-collapse:collapse;font-size:16pt;height:max-content;padding-left:0pt;padding-right:0pt;width:100%;"><tr style="height:1pt;"><td style="vertical-align:top;width:7.41%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:top;width:92.58%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:1pt;visibility:hidden;">&#8203;</span></p></div></div></td></tr><tr><td style="vertical-align:top;width:7.41%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">10.1</p></td><td style="vertical-align:top;width:92.58%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;text-align:justify;margin:0pt;"><a style="-sec-extract:exhibit;font-family:&quot;'Times New Roman','Times','serif'&quot;;font-size:10pt;" href="xelb-20211230xex10d1.htm"><span style="font-family:'Times New Roman','Times','serif';font-style:normal;font-weight:normal;">Loan and Security Agreement dated as of December 30, 2021</span></a></p></td></tr><tr><td style="vertical-align:top;width:7.41%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;text-align:justify;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:top;width:92.58%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;text-align:justify;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td></tr><tr><td style="vertical-align:top;width:7.41%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">104</p></td><td style="vertical-align:top;width:92.58%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">Cover Page Interactive Data File (embedded within the Inline XBRL document)</p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:79.3%;border:0;margin:30pt 10.35% 30pt 10.35%;"></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><a id="_7baee6f9_110d_400a_950e_7caa6d8cb22c"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;text-align:center;margin:0pt 0pt 12pt 0pt;">SIGNATURES</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized.</p><table style="border-collapse:collapse;font-size:16pt;height:max-content;padding-left:0pt;padding-right:0pt;width:100%;"><tr><td style="vertical-align:top;width:49.97%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;font-weight:bold;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td colspan="2" style="vertical-align:top;width:50.02%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">XCEL BRANDS,&#160;INC.</p></td></tr><tr><td style="vertical-align:top;width:49.97%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td colspan="2" style="vertical-align:top;width:50.02%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">(Registrant)</p></td></tr><tr><td style="vertical-align:top;width:49.97%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td colspan="2" style="vertical-align:top;width:50.02%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td></tr><tr><td style="vertical-align:top;width:49.97%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td colspan="2" style="vertical-align:top;width:50.02%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td></tr><tr><td style="vertical-align:top;width:49.97%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:top;width:3.69%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">By:</p></td><td style="vertical-align:top;width:46.32%;border-bottom:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">/s/ James F. Haran</p></td></tr><tr><td style="vertical-align:top;width:49.97%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:top;width:3.69%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:top;width:46.32%;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">James F. Haran</p></td></tr><tr><td style="vertical-align:top;width:49.97%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:top;width:3.69%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;margin:0pt;"><span style="font-size:10pt;margin-bottom:12pt;visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:top;width:46.32%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">Chief Financial Officer</p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">Date: January 6, 2022</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="visibility:hidden;">&#8203;</span></p></div></div>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 30, 2021
XCEL BRANDS, INC.
(Exact name of registrant as specified in its charter)
​
​
​
​
​
Delaware
001-37527
76-0307819
(State or Other Jurisdiction
of Incorporation)
​
(Commission
File Number)
​
(IRS Employer
Identification No.)
​
​
​
​
​
1333 Broadway
,
New York
,
New York
​
​
​
10018
(Address of Principal Executive Offices)
​
​
​
(Zip Code)
​
Registrant's telephone number, including area code (
347
)
727-2474
​
​
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
​
Securities registered pursuant to Section 12(b) of the Act:
​
​
​
​
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, par value $0.001 per share
XELB
NASDAQ
Global Select Market
​
​
Item 1.01
Entry into a Material Definitive Agreement.
​
Item 2.03
Creation of a Direct Financial Obligation or Obligation Under an Off-balance Sale Arrangement of a Registrant.
On December 30, 2021, Xcel, as Borrower, and its wholly-owned subsidiaries, IM Brands, LLC, JR Licensing, LLC, H Licensing, LLC, C Wonder Licensing, LLC, Xcel Design Group, LLC, Judith Ripka Fine Jewelry, LLC, H Heritage Licensing, LLC, Xcel-CT MFG, LLC and Gold Licensing, LLC, as Guarantors (each a "Guarantor" and collectively, the "Guarantors"), entered into a Loan and Security Agreement (the "Loan Agreement") with FEAC Agent, LLC ("FEAC"), as lead arranger and as administrative agent and collateral agent for the lenders party to the Loan Agreement (in such capacity, the "Administrative Agent"), and the financial institutions party thereto as lenders (the "Lenders").  Pursuant to the Loan Agreement, the Lenders made a term loan in the aggregate amount of $29,000,000 (the "Term Loans").  The proceeds of the Term Loan used for the purpose of refinancing existing indebtedness and to pay fees, costs and expenses incurred in connection with entering into the Loan Agreement, and may be used for the purpose of consummating acquisitions by Xcel or its subsidiaries that are permitted under the Loan Agreement and working capital purposes.
The Loan Agreement also provides that Xcel may request the Lenders make incremental term loans of up to $25,000,000 (the "Incremental Term Loans").  The terms and conditions of the Incremental Term Loans will be agreed in an amendment to the Loan Agreement prior to the funding by the Incremental Term Loans.
Upon entering into the Loan Agreement, Xcel paid closing fees to the Administrative Agent (i) in the amount of $213,750 for the benefit of each Lender and (i) in the amount of $75,000 for the benefit of each Lender that was a party to the existing indebtedness refinanced by the Term Loan.
The Term Loans mature on April 14, 2025.  Principal on the Term Loans shall be payable in quarterly installments of $625,000 on each of March 31, June 30, September 30 and December 31 of each year, commencing on March 31, 2022.
Xcel has the right upon thirty (30) days prior written notice to prepay all or any portion of the Term Loans or Incremental Term Loans and accrued and unpaid interest thereon; provided that any prepayment shall applied first to prepay the Term Loans in full and second to the Incremental Term Loans.
If the Term Loans are prepaid in whole or in part on or prior to the second anniversary of the Closing Date (including as a result of an event of default), Xcel shall pay a prepayment premium as follows:  an amount equal to the principal amount of the Term Loan prepaid multiplied by: (i)  five percent (5.00%) if such prepayment occurs on or before the first anniversary of the Closing Date; (ii) two percent (2.00%) if such prepayment occurs at any time after the first anniversary of the Closing Date and on or prior to the second anniversary of the Closing Date; and (iii) one percent (1.00%) if such prepayment occurs at any time after the second anniversary of the Closing Date.
Xcel's obligations under the Loan Agreement are guaranteed by the Guarantors and secured by all of the assets of Xcel and the Guarantors (as well as any subsidiary formed or acquired that becomes a credit party to the Loan Agreement) and, subject to certain limitations contained in the Loan Agreement, equity interests of the Guarantors (as well as any subsidiary formed or acquired that becomes a credit party to the Loan Agreement).
Xcel also granted the Lenders a right of first offer to finance any acquisition for which the consideration therefore will be paid other than by cash of Xcel or the Guarantors, the issuance of equity interest of Xcel or the issuance of notes to the applicable seller.
Interest on the Term Loans will accrue at LIBOR plus 7.5% per annum.  Interest on the Term Loans is payable on the last business day of each calendar month.  LIBOR is defined in the Loan Agreement as the greater of (a) the rate of interest per annum for deposits in dollars for an interest period equal to three months as published by Bloomberg or a comparable or successor quoting service at approximately 11:00 a.m. (London time) two business days prior to the last business day of each calendar month and (b) 1.0% per annum.
The Loan Agreement contains customary covenants, including reporting requirements, trademark preservation and the following financial covenants of Xcel (on a consolidated basis with the Guarantors and any subsidiaries subsequently formed or acquired that become a credit party under the Loan Agreement):
●
liquid assets of (i) during the first fiscal month of each fiscal quarter $2,500,000 if cash payments from revenue licenses during the immediately succeeding 30 days are expected to be at least $4,000,000 and (ii) at least $3,000,000 at all other times;
●
a fixed charge coverage ratio for (i) the fiscal quarter ending September 20, 2022 of not less than 1.00 to 1.00 and (ii) the twelve fiscal month period ending at the end of each fiscal quarter commencing with the fiscal quarter ending December 31, 2022 of not less than 1.00 to 1.00;
●
a loan to value ratio not to exceed 50%;
●
minimum revenues of not less than the amounts set forth below at the end of the appliable fiscal period set forth below:
​
​
Fiscal Period
Minimum Revenue
April 1, 2021 thru December 31, 2021
​
$16,445,000
For the trailing twelve month period ending March 31, 2022
​
$23,500,000
For the trailing twelve month period ending June 30, 2022
​
$24,491,000
For the trailing twelve month periods ending September 30, 2022 and each Fiscal Quarter end thereafter
​
$25,000,000
​
●
the sum of (i) the eligible inventory plus (ii) eligible cash on hand to the extent not used to satisfy the Minimum Accounts Amount (as defined below) plus (iii) the eligible accounts to the extent not used to satisfy the Minimum Accounts Amount (as defined below) of not less than $1,250,000 at all times ("Minimum Inventory Amount"); and the sum of (i) the eligible accounts plus (ii) eligible cash on hand to the extent not used to satisfy the Minimum Inventory Amount of not less than $1,500,000 at all times ("Minimum Accounts Amount"); and
●
EBITDA of not be less than $2,000,000 for the trailing 6 fiscal month period ending June 30, 2022.
​
Item 9.01
Financial Statements and Exhibits
Exhibits
​
​
10.1
Loan and Security Agreement dated as of December 30, 2021
​
​
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
​
​
​
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized.
​
XCEL BRANDS, INC.
​
(Registrant)
​
​
​
​
​
By:
/s/ James F. Haran
​
​
James F. Haran
​
​
Chief Financial Officer
​
Date: January 6, 2022
​