<SEC-DOCUMENT>0001140361-18-043500.txt : 20181120
<SEC-HEADER>0001140361-18-043500.hdr.sgml : 20181120
<ACCEPTANCE-DATETIME>20181120164412
ACCESSION NUMBER:		0001140361-18-043500
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20181114
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20181120
DATE AS OF CHANGE:		20181120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			USA TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000896429
		STANDARD INDUSTRIAL CLASSIFICATION:	CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578]
		IRS NUMBER:				232679963
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33365
		FILM NUMBER:		181196005

	BUSINESS ADDRESS:	
		STREET 1:		100 DEERFIELD LANE
		STREET 2:		SUITE 300
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
		BUSINESS PHONE:		6109890340

	MAIL ADDRESS:	
		STREET 1:		100 DEERFIELD LANE
		STREET 2:		SUITE 300
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	USA ENTERTAINMENT CENTER INC
		DATE OF NAME CHANGE:	19931029
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
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<DESCRIPTION>8-K
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      <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 14pt;">SECURITIES AND EXCHANGE COMMISSION</div>
      <div style="text-align: center; font-size: 12pt;"><font style="font-family: &quot;Times New Roman&quot;;">Washington, D.C. 20549</font></div>
      <div><br>
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      <div style="text-align: center; font-size: 18pt;"><font style="font-family: &quot;Times New Roman&quot;; font-weight: bold;">FORM 8-K</font></div>
      <div><br>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Current Report Pursuant to Section 13 or 15(d) of</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The Securities Exchange Act of 1934</font></div>
      <div><br>
      </div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Date of report (Date of earliest event reported): November 14, 2018</font></div>
      <div><br>
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      <div style="text-align: center; font-size: 24pt;"><font style="font-family: &quot;Times New Roman&quot;;"><font style="font-family: &quot;Times New Roman&quot;; font-weight: bold;">USA TECHNOLOGIES, INC</font>.</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Exact name of registrant as specified in its charter)</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Pennsylvania</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">001-33365</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">232679963</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(State or other jurisdiction of incorporation or organization)</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Commission File Number)</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(I.R.S. Employer Identification No.)</font></div>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">100 Deerfield Lane, Suite 300</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Malvern, Pennsylvania 19355</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Address of principal executive offices and zip code)</font></div>
      <div><br>
      </div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Registrant&#8217;s telephone number, including area code: 610-989-0340</font></div>
      <div><br>
      </div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">n/a</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Former name or former address, if changed since last report</font></div>
    </div>
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      <div><br>
      </div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">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:</font></div>
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      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';"> </font><br>
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                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
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                <div style="text-align: left;">&#9744;</div>
              </td>
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                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
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              <td style="vertical-align: top; width: 18pt;">&#9744;</td>
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                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div>
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                <div style="text-align: left;">&#9744;</div>
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                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div>
              </td>
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      <div><br>
      </div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this
          chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</font></div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';"> <br>
        </font></div>
    </div>
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      <div style="text-align: right;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Emerging growth company&#160; <font style="font-size: 10pt; font-family: &quot;Segoe UI Symbol&quot;,sans-serif;">&#9744;</font></font></div>
    </div>
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      <div><br>
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      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">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.&#160; <font style="font-size: 10pt; font-family: &quot;Segoe UI Symbol&quot;,sans-serif;">&#9744;</font></font></div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Segoe UI Symbol', sans-serif;"> <br>
          </font></font></div>
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              <td style="width: 72pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Item 1.01.</font></td>
              <td style="width: auto; vertical-align: top; text-align: left;">
                <div><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Entry into a Material Definitive Agreement.</font></div>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">On November 15, 2018, USA Technologies, Inc. (the &#8220;Company&#8221;), entered into a new consent letter (the &#8220;New Consent Agreement&#8221;) relating to the
        Company&#8217;s existing Credit Agreement dated November 9, 2017 (&#8220;Credit Agreement&#8221;) by and among the Company, as the borrower, its subsidiaries, as guarantors, and JPMorgan Chase Bank, N.A., as the lender and administrative agent for the lender (the
        &#8220;Lender&#8221;). The New Consent Agreement, among other things, extends until December 31, 2018 the time period for delivery to the Lender of the Company&#8217;s audited financial statements for the fiscal year ended June 30, 2018 and the unaudited financial
        statements for the fiscal quarter ended September 30, 2018, and the related compliance certificates required pursuant to the Credit Agreement. The New Consent Agreement also requires the Company to deliver to the Lender a nonrefundable extension
        fee of $52,800.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The first consent letter previously entered into by the Company and the Lender on September 28, 2018, had, among other things, extended until
        November 15, 2018 the time period for delivery to the Lender of the Company&#8217;s audited financial statements for the fiscal year ended June 30, 2018, and the related compliance certificate.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">The foregoing description of the New Consent Agreement does not purport to be complete and is qualified in its entirety by reference to the full
        text of the New Consent Agreement, a copy of which is filed as Exhibit 10.1 hereto and incorporated herein by reference.</font></div>
    <div>
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                <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Item 3.01</font></div>
              </td>
              <td style="vertical-align: top; width: auto;">
                <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.</font></div>
              </td>
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      <div><br>
      </div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">On November 14, 2018, the Company received a notice (the &#8220;Notice&#8221;) from The Nasdaq Stock Market LLC (&#8220;Nasdaq&#8221;) stating that because the Company
          had not yet filed its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2018 (the &#8220;Quarterly Report&#8221;), the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the &#8220;Rule&#8221;). The Rule requires listed companies
          to timely file all required periodic financial reports with the Securities and Exchange Commission (the &#8220;SEC&#8221;).</font></div>
      <div><br>
      </div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">As previously reported, on October 2, 2018, the Company received a notice (the &#8220;Original Notice&#8221;) from Nasdaq stating that the Company was not
          in compliance with the Rule because the Company had not timely filed its Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (the &#8220;Annual Report&#8221;). Pursuant to the Original Notice, the Company submitted to Nasdaq a plan to regain
          compliance (the &#8220;Plan&#8221;), and Nasdaq accepted the Plan and granted an exception pursuant to which the Company is required to file the Annual Report and the Quarterly Report with the SEC on or before March 12, 2019. The Notice also requires the
          Company to submit to Nasdaq an update to its Plan by no later than December 3, 2018.</font></div>
      <div><br>
      </div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">On November 20, 2018, the Company issued a press release announcing its receipt of the Notice. A copy of the press release is attached as
          Exhibit 99.1 and is incorporated herein by reference.</font></div>
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                <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Item 9.01.</font></div>
              </td>
              <td style="vertical-align: top; width: auto;">
                <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Financial Statements and Exhibits</font></div>
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        <div> <br>
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                <div>
                  <div style="text-align: justify;"><a href="ex10_1.htm"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Exhibit
                        10.1</font></a></div>
                </div>
              </td>
              <td style="width: 86%; vertical-align: top;">
                <div>
                  <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Consent Agreement by and among the Company, its subsidiaries, and JPMorgan Chase Bank, N.A., dated November 15, 2018</font></div>
                </div>
              </td>
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              <td rowspan="1" style="width: 14%; vertical-align: top;">&#160;</td>
              <td rowspan="1" style="width: 86%; vertical-align: top;">&#160;</td>
            </tr>
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              <td style="width: 14%; vertical-align: top;">
                <div>
                  <div style="text-align: justify;"><a href="ex99_1.htm"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Exhibit
                        99.1</font></a></div>
                </div>
              </td>
              <td style="width: 86%; vertical-align: top;">
                <div>
                  <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Press Release of the Company dated November 20, 2018</font></div>
                </div>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">SIGNATURES</font></div>
    </div>
    <div>
      <div><br>
      </div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pursuant to the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly
          authorized.</font></div>
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    <table cellspacing="0" cellpadding="0" border="0" style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; width: 100%; border-collapse: collapse;" id="zac0376230cca43d9b6801293cff8c2da">

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          <td colspan="2" style="vertical-align: top;">
            <div>
              <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">USA TECHNOLOGIES, INC.</font></div>
            </div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
          <td colspan="2" rowspan="1" style="vertical-align: top;">&#160;</td>
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            <div>
              <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Dated: November 20, 2018</font></div>
            </div>
          </td>
          <td rowspan="1" style="width: 3%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">By:<br>
              </font></div>
          </td>
          <td rowspan="1" style="width: 47%; vertical-align: top;"><u><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman';">/s/ Stephen P. Herbert</font>&#160; </font></u></td>
        </tr>
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          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 3%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 47%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Stephen P. Herbert,</font></div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 3%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 47%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Chairman and Chief Executive Officer</font></div>
          </td>
        </tr>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10_1.htm
<DESCRIPTION>EXHIBIT 10.1
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  <div style="text-align: right;"><font style="font-weight: bold;">Exhibit 10.1</font><br>
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      <div style="text-align: right; font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-weight: bold;">EXECUTION VERSION</div>
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    <div style="text-align: left; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> <br>
    </div>
    <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt;">November 15, 2018</div>
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    <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">USA Technologies, Inc.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">100 Deerfield Lane</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Suite 300</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Malvern, PA&#160; 19355</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Attention: Priyanka Singh</font></div>
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            <td style="width: 36pt;">&#160;</td>
            <td style="vertical-align: top; width: 36pt;">
              <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Re:</font></div>
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              <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><u>CONSENT TO EXTENSION</u></font></div>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Dear Sir or Madam:</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">We refer to that certain Credit Agreement, dated as of November 9, 2017 (as amended, restated, supplemented, or otherwise modified from
        time to time, the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Credit Agreement</u></font>&#8221;), among USA Technologies, Inc., a Pennsylvania corporation (the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Borrower</u></font>&#8221;),

        the other Loan Parties party thereto (together with the Borrower, the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Loan Parties</u></font>&#8221;), the lenders party thereto from time to time (the &#8220;<font style="font-size: 10pt;
          font-family: 'Times New Roman';"><u>Lenders</u></font>&#8221;), and JPMorgan Chase Bank, N.A., as administrative agent (the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Administrative Agent</u></font>&#8221;) for the Lenders.&#160;
        Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Credit Agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The Loan Parties have requested that the Administrative Agent consent to an extension of the delivery of the Borrower&#8217;s audited
        financial statements for the fiscal year ended June 30, 2018, the unaudited financial statements for the fiscal quarter ended September 30, 2018, and the related compliance certificates required to be delivered pursuant to Section 5.01(a), (b) and
        (c), as applicable, of the Credit Agreement to December 31, 2018 (collectively, the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Specified Extension</u></font>&#8221;).</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">At your request and subject to the terms and conditions of this letter agreement, the Administrative Agent and the Lenders consent to
        the Specified Extension.&#160; As a condition to such consent, the Loan Parties hereby agree that the Applicable Rate from and after the date of this letter agreement shall be set at Category 1 until the unaudited financial statements and related
        compliance certificate required to be delivered pursuant to Sections 5.01(b) and (c) with respect to the fiscal quarter ending September 30, 2018, are delivered to the Administrative Agent.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Each of the Loan Parties hereby (a) agrees that no Default or Event of Default exists as of the date hereof, (b) reaffirms all of its
        obligations and covenants under the Credit Agreement and the other Loan Documents to which it is a party, (c) restates and renews each and every representation and warranty heretofore made by it in the Credit Agreement and the other Loan Documents
        as fully as if made on the date hereof (except with respect to representations and warranties made as of an expressed date, in which case such representations and warranties shall be true and correct as of such date) and (d) agrees that none of its
        respective obligations and covenants shall be reduced or limited by the execution and delivery of this letter agreement.</font></div>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">This letter agreement shall not become effective until (a) each of the Loan Parties and the Administrative Agent have executed and
        delivered this letter agreement to the Administrative Agent, (b) the Loan Parties shall have paid to the Administrative Agent, for the benefit of the Lenders, a non-refundable extension fee of $52,800.00 in immediately available funds, and (c) the
        Loan Parties shall have paid (or made arrangements acceptable to the Administrative Agent to pay) all outstanding legal fees of counsel to the Administrative Agent.&#160; Except for the consents set forth above, the text of the Credit Agreement and all
        other Loan Documents shall remain unchanged and in full force and effect.&#160; This letter agreement shall not constitute an amendment to of any other provision of the Credit Agreement or any other Loan Document. The Specified Extension is a one-time
        consent and shall not be construed as an agreement to consent to any future event. No consent by the Administrative Agent or the Lenders under the Credit Agreement or any other Loan Document is granted or intended except as expressly set forth
        herein.&#160; Except as set forth herein, the consents agreed to herein shall not constitute a modification of the Credit Agreement or any of the other Loan Documents, or a course of dealing with the Administrative Agent and the Lenders at variance with
        the Credit Agreement or any of the other Loan Documents, such as to require further notice by the Administrative Agent or the Lenders to require strict compliance with the terms of the Credit Agreement and the other Loan Documents in the future.&#160;
        This letter agreement shall be a &#8220;Loan Document&#8221; for all purposes under the Credit Agreement. This letter agreement shall be governed by, and construed in accordance with, the laws of the State of New York.&#160; This letter agreement may be executed in
        any number of counterparts, each of which shall be deemed to be an original, but all such separate counterparts shall together constitute but one and the same instrument.&#160; Delivery by one or more parties hereto of an executed counterpart of this
        letter agreement via facsimile, telecopy, or other electronic method of transmission pursuant to which the signature of such party can be seen (including, without limitation, Adobe Corporation&#8217;s Portable Document Format) shall have the same force
        and effect as the delivery of an original executed counterpart of this letter agreement.&#160; Any party delivering an executed counterpart of this letter agreement by facsimile or other electronic method of transmission shall also deliver an original
        executed counterpart to the Administrative Agent, but the failure to do so shall not affect the validity, enforceability, or binding effect of this letter agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">[<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;">remainder of page intentionally left blank;
          signature pages follow</font>]</font></div>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">BORROWER</font>:</font></div>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">USA TECHNOLOGIES, INC.</font></div>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left;"><br>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By: <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>/s/ Stephen P. Herbert</u></font></font></div>
          </td>
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          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><br>
            </div>
          </td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Name: Stephen P. Herbert</font></div>
          </td>
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            <div style="text-align: left;"><br>
            </div>
          </td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Title: Chairman and Chief Executive Officer</font></div>
          </td>
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    <div style="text-align: left; text-indent: -216pt; margin-left: 216pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">ADMINISTRATIVE AGENT AND SOLE
          LENDER</font>:</font></div>
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            <div style="text-align: left;"><br>
            </div>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">JPMORGAN CHASE BANK, N.A</font>.</font></div>
          </td>
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          <td style="width: 49.87%; vertical-align: top;">&#160;</td>
          <td style="width: 49.87%; vertical-align: top;">&#160;</td>
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          <td style="width: 49.87%; vertical-align: top;">&#160;</td>
          <td style="width: 49.87%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By: <font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><u>/s/Eleftherios J. Karsos</u></font></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 49.87%; vertical-align: top;">&#160;</td>
          <td style="width: 49.87%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Name: Eleftherios Karsos</font></div>
          </td>
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          <td style="width: 49.87%; vertical-align: top;">
            <div style="text-align: left;"><br>
            </div>
          </td>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Title: Authorized Officer</font></div>
          </td>
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    <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">CONSENT, REAFFIRMATION, AND AGREEMENT OF GUARANTORS</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Each of the undersigned (a) acknowledges receipt of the foregoing consent (the &#8220;<font style="font-size: 10pt; font-family: 'Times New
          Roman';"><u>Agreement</u></font>&#8221;); (b) consents to the execution and delivery of the Agreement; and (c) reaffirms all of its obligations and covenants under the Credit Agreement (as defined in the Agreement) and all of its other obligations
        under the Loan Documents to which it is a party, and, agrees that none of its obligations and covenants shall be reduced or limited by the execution and delivery of the Agreement or any of the other instruments, agreements or other documents
        executed and delivered pursuant thereto.</font></div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">This Consent, Reaffirmation, and Agreement of Guarantors (this &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Consent</u></font>&#8221;)

        may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute
        but one and the same instrument.&#160; This Consent may be executed by each party on separate copies, which copies, when combined so as to include the signatures of all parties, shall constitute a single counterpart of the Consent.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> <br>
      </font></div>
    <div style="text-align: left; margin-left: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">As of November 15, 2018</font></div>
    <div><br>
    </div>
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          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">STITCH NETWORKS CORPORATION</font></div>
          </td>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By: <u><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">/s/ Stephen P. Herbert</font></u></font></div>
          </td>
        </tr>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Name: Stephen P. Herbert</font></div>
          </td>
        </tr>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Title: Chairman and Chief Executive Officer</font></div>
          </td>
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          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">USAT CAPITAL CORP, LLC</font></div>
          </td>
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          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By: <u><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">/s/ Stephen P. Herbert</font></u></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Name: Stephen P. Herbert</font></div>
          </td>
        </tr>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Title: Chairman and Chief Executive Officer</font></div>
          </td>
        </tr>
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          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">CANTALOUPE SYSTEMS, INC.</font></div>
          </td>
        </tr>
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          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 50%; vertical-align: top;">&#160;</td>
        </tr>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">By: <u><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">/s/ Stephen P. Herbert</font></u></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Name: Stephen P. Herbert</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Title: Chairman and Chief Executive Officer</font></div>
          </td>
        </tr>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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      <div style="text-align: right;"><font style="font-weight: bold;">Exhibit 99.1</font><br>
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      <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-weight: bold;">USA Technologies, Inc. Provides Update on Nasdaq Notification of Deficiency</div>
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      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">MALVERN, Pa.,</font> November 20, 2018<font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;"> -- </font>USA Technologies, Inc. (NASDAQ: USAT) (the &#8220;Company&#8221;), a premier digital payment, consumer engagement and logistics service provider for the
          self-service retail market, today announced that, as expected, it&#160; received a notice (the &#8220;Notice&#8221;) from The Nasdaq Stock Market LLC (&#8220;Nasdaq&#8221;) notifying the Company that, as a result of its failure to timely file its Quarterly&#160; Report on Form
          10-Q for the fiscal quarter ended September&#160; 30, 2018 (the &#8220;Quarterly Report&#8221;), the Company is noncompliant with&#160; Nasdaq Listing Rule 5250(c)(1) (the &#8220;Rule&#8221;). The Rule requires listed companies to timely file all required periodic financial
          reports with the Securities and Exchange Commission (the &#8220;SEC&#8221;). The Company had previously received an original notice (the &#8220;Original Notice&#8221;) from Nasdaq of noncompliance with the Rule due to the failure of the Company to timely file its Annual
          Report on Form 10-K for the fiscal year ended June 30, 2018 (the &#8220;Annual Report&#8221;). Pursuant to the Original Notice, the Company had submitted to Nasdaq a plan to regain compliance (the &#8220;Plan&#8221;), and on November 13, 2018, Nasdaq notified the
          Company that it had accepted the Plan and had granted the Company until March 12, 2019 in order to file the Quarterly Report and the Annual Report with the SEC. The Notice also requires the Company to submit to Nasdaq an update to the Plan by no
          later than December 3, 2018. Neither the Notice nor the Original Notice has any immediate effect on the listing or trading of the Company&#8217;s common stock or preferred stock, and the common stock and preferred stock will continue to trade on the
          Nasdaq Global Market under the symbols &#8220;USAT&#8221; and &#8220;USATP&#8221;, respectively.</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">As previously reported, the Company was unable to timely file its Annual Report and Quarterly Report due to an internal investigation being
          conducted by the Audit Committee of the Company&#8217;s Board of Directors into certain of the Company&#8217;s contractual arrangements. The investigation remains ongoing, and the Audit Committee is working closely with its advisors to complete its
          investigation in as timely a manner as possible. Once the investigation has been completed, the Company plans to file the Annual Report and the Quarterly Report as soon as practicable. The Company will not be in a position to file the Annual
          Report or the Quarterly Report until the Company and its independent auditor assess the results of the investigation, and the Company implements any remedial actions which may be deemed necessary by the Board of Directors.</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">About USA Technologies, Inc.</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">USA Technologies, Inc. is a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail
          market. The company also provides a broad line of cashless acceptance technologies including its NFC-ready ePort&#174; G-series, ePort Mobile&#174; for customers on the go, ePort&#174; Interactive, and QuickConnect, an API Web service for developers. Through
          its acquisition of Cantaloupe Systems, Inc. ("Cantaloupe"), the company also offers logistics, dynamic route scheduling, automated pre-kitting, responsive merchandising, inventory management, warehouse and accounting management solutions.
          Cantaloupe is a premier provider of cloud and mobile solutions for vending, micro markets, and office coffee services.</font></div>
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      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">Forward-looking Statements:</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">&#8220;Safe Harbor&#8221; Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact
          included in this release are forward-looking statements. When used in this release, words such as &#8220;anticipate,&#8221; &#8220;believe,&#8221; &#8220;estimate,&#8221; &#8220;expect,&#8221; &#8220;intend,&#8221; and similar expressions, as they relate to the Company or its management, identify forward
          looking statements. Such forward-looking statements are based on the beliefs of the Company&#8217;s management, as well as assumptions made by and information currently available to the Company&#8217;s management. Actual results could differ materially from
          those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, uncertainty as to the scope, timing&#160; and ultimate findings of the internal&#160; investigation; the costs and expenses relating thereto;
          the impact of the internal investigation on the Company, its management and operations, including potential&#160; financial impact on the Company; the risk of&#160; litigation or regulatory action arising from the internal investigation and its findings or
          from the failure to timely file the Annual Report or Quarterly Report; the ability of the Company to regain and maintain compliance with Nasdaq&#8217;s continued listing requirements; the timing of the review by, and the conclusions of, the Company&#8217;s
          independent auditor regarding the investigation and its impact on the financial statements; possible default by the Company under its credit facility; the potential identification of control deficiencies, including potential material weaknesses
          in internal control over financial reporting and the impact of the same; potential reputational damage that the Company may suffer as a result of the matters under investigation; the impact of the pendency of the investigation on the value of the
          Company&#8217;s common and preferred stock; and the risk that the filing of the Annual Report or Quarterly Report will take longer than currently anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements. Any
          forward-looking statement made by us speaks only as of the date of this release. Unless required by law, the Company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or
          circumstances or to reflect the occurrence of unanticipated events.</font></div>
      <div><br>
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      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-weight: bold;">MEDIA CONTACT:</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;">Media:</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Joele Frank, Wilkinson Brimmer Katcher</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Tim Lynch / Meaghan Repko</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">212-355-4449</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">or</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;; font-style: italic;">Investors:</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Blueshirt Group</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Monica Gould, +1 212-871-3927</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">monica@blueshirtgroup.com</font></div>
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