Creative Realities (CREX) Announces Reflect Settlement Agreement

Creative Realities, Inc. (NASDAQ: CREX), a leading provider of digital signage and AdTech solutions, today announced that it settled and resolved its dispute with former stockholders of Reflect Systems, Inc. (“Reflect”) related to the Company’s obligation to pay to former Reflect stockholders contingent supplemental cash payments under the terms of the Company’s merger with Reflect (the “Guaranteed Consideration”). The settlement terminates and releases the Company’s obligation to pay the Guaranteed Consideration in exchange for: (i) a cash payment of $3 million; (ii) a $4 million, 30-month promissory note (the “Note”); and (iii) the issuance of certain warrants to purchase common stock of the Company. The Note is an unsecured obligation of the Company that accrues interest at a rate of 14.0% per annum, and requires the Company to make a balloon payment of $2.3 million on the maturity date, September 14, 2027. A more detailed description of the settlement and settlement documents are included in a Current Report on Form 8-K of the Company being filed with the SEC.

“I’m very pleased to announce this settlement with the former Reflect stockholders, positioning us for a more certain future,” said Rick Mills, Chief Executive Officer. “We worked hard to resolve this liability in a way that is beneficial to the Company, our investors, and the former Reflect stockholders. We believe the settlement accomplishes this objective and provides a great deal of financial flexibility while removing a significant overhang on our shares. CRI will pay $3 million in cash utilizing our existing credit agreement with First Merchants Bank, and we entered into a $4 million, 30-month promissory note that includes a balloon payment in 2027. This long-term plan, along with warrants, provides us time to continue growing the Company and enhance shareholder value while giving former Reflect stockholders an additional return on their investment. I think this is a win-win for all involved that quantifies a payment schedule and eliminates uncertainty through a clear, simplified financing structure. We are very pleased with this development that allows us to focus on expansion and improved operating results for the remainder of fiscal 2025.”

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