DIGIMARC CORPORATION (NASDAQ:DMRC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
DIGIMARC CORPORATION (NASDAQ:DMRC) Files An 8-K Entry into a Material Definitive Agreement
On April 16, 2020, Digimarc Corporation (the “Company”), entered into a loan with Stearns Bank, N.A. as the lender (“Lender”) in an aggregate principal amount of $5,032,072 (the “Loan”) to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).
The Loan is evidenced by a promissory note (the “Note”) dated April 16, 2020, and matures 2 years from the disbursement date. The Note bears interest at a rate of 1.000% per annum, with the first six months of interest deferred. Principal and interest are payable monthly commencing 6 months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Note contains customary events of default relating to, among other things, payment defaults or breaches of the terms of the Note. Upon the occurrence of an event of default, the Lender may require immediate repayment of all amounts outstanding under the Note.
Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The Loan is subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest expenses (collectively, “Qualifying Expenses”), to the terms and limitations of the PPP. The Company intends to use a significant majority of the Loan amount for Qualifying Expenses. However, no assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part.
Reference is made to the disclosure under Item 1.01 above, which is hereby incorporated in this Item 2.03 by reference.
(d) Exhibits
Digimarc CORP Exhibit
EX-10.1 2 dmrc-ex101_42.htm EX-10.1 dmrc-ex101_42.htm Exhibit 10.1 NOTE SBA Loan # 1098167107 SBA Loan Name Digimarc Corporation Date 04/16/2020 Loan Amount $5,…
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About DIGIMARC CORPORATION (NASDAQ:DMRC)
Digimarc Corporation (Digimarc) enables governments and enterprises to give digital identities to media and objects that computers can sense and recognize. The Company’s Digimarc Discover and Digimarc Barcode Intuitive Computing Platform are designed to optimize the identification of consumer brand impressions, facilitating mobile-centric shopping. The Company operates through media management solutions segment. The Company’s platform includes means to embed Digimarc Barcodes, invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into various forms of media content, including consumer product packaging. Its Digimarc Barcodes have various applications, including facilitating scanning of products at retail checkout, as well as improved engagement with smartphone-equipped consumers. The Digimarc Barcode allows automatic identification of media without visible computer codes, such as traditional barcodes.
