The information set forth below under Item 2.03 is hereby incorporated by reference into this Item 1.01.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

On May 29, 2020, SANUWAVE Health, Inc. (the “Company”) received net proceeds of approximately $454,335 from a potentially forgivable loan from the U.S. Small Business Administration (“SBA”) to the Paycheck Protection Program (“PPP”) enacted by Congress under the Coronavirus Aid, Relief, and Economic Security Act (15 U.S.C. 636(a)(36)) (the “CARES Act”) administered by the SBA (the “PPP Loan”). To facilitate the PPP Loan, the Company entered into a Promissory Note with Truist Bank, a North Carolina banking corporation, as lender (the “Lender”) (the “PPP Loan Agreement”).
The PPP Loan provides for working capital to the Company and will mature on May 28, 2022. However, under the CARES Act and the PPP Loan Agreement, all payments of both principal and interest will be deferred until at least December 12, 2020. The PPP Loan will accrue interest at a rate of 1.00% per annum, and interest will continue to accrue throughout the period the PPP Loan is outstanding, or until it is forgiven. The CARES Act (including the guidance issued by SBA and U.S. Department of Treasury related thereto) provides that all or a portion of the PPP Loan may be forgiven upon the request of the Company to the Lender, subject to requirements in the PPP Loan Agreement and the CARES Act. The Company intends to use the proceeds of the PPP Loan for eligible purposes and to pursue forgiveness, although the Company may take action that could cause some or all of the PPP Loan to become ineligible for forgiveness. No assurance is provided that forgiveness for all or any portion of the PPP Loan will be obtained.
The PPP Loan Agreement contains customary events of default relating to, among other things, payment defaults and breaches of representations, warranties or covenants. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company.
The foregoing summary of the PPP Loan is qualified in its entirety by reference to the full text of the PPP Loan Agreement, which is attached as Exhibit 10.1 hereto and is incorporated herein by reference.
Item 9.01
Financial Statements and Exhibits.

(d) Exhibits.

SANUWAVE Health, Inc. Exhibit
EX-10.1 2 snwv_ex101.htm PROMISSORY NOTE BY AND BETWEEN SANUWAVE HEALTH,…
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About SANUWAVE Health, Inc. (OTCMKTS:SNWV)

SANUWAVE Health, Inc. is an acoustic pressure shock wave technology company using a system of noninvasive, high-energy, acoustic pressure shock waves for indications, such as regenerative medicine and other applications. The Company is focused on regenerative medicine utilizing noninvasive (extracorporeal), acoustic pressure shock waves to produce a biological response resulting in the body healing itself through the repair and regeneration of skin, musculoskeletal tissue and vascular structures. Its lead regenerative product in the United States is the dermaPACE device, used for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, enabling to restore the body’s normal healing processes and regeneration. It is focused on developing its Pulsed Acoustic Cellular Expression (PACE) technology to activate healing in wound conditions.