IRIDEX CORPORATION (NASDAQ:IRIX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement

The information under Item 2.03 of this Current Report on Form 8-K is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On April 23, 2020, Iridex Corporation (the “Company”) received $2,497,199 (the “Loan Proceeds”) from a U.S. Small Business Administration Loan (the “SBA Loan”) from Silicon Valley Bank, to the Paycheck Protection Program established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

The SBA Loan, which is in the form of a promissory note, dated April 22, 2020 (the “Promissory Note”), has a fixed interest rate of 1.0% per annum, a maturity date of April 22, 2022, and no payments are due on the SBA Loan for six months.  There is no prepayment penalty.   to the terms of the SBA Loan and Promissory Note, the Company may apply for forgiveness of the amount due on the SBA Loan in an amount equal to the sum of the following costs incurred by the Company during the eight-week period (or any other period that may be authorized by the U.S. Small Business Administration) beginning on the date of first disbursement of the SBA Loan: payroll costs, including employee benefits, any payment of interest on a covered mortgage obligation, payment on a covered rent obligation, and any covered utility payment.  The amount of SBA Loan forgiveness shall be calculated in accordance with the requirements of the Paycheck Protection Program, including the provisions of Section 1106 of the CARES Act, although no more than 25% of the amount forgiven can be attributable to non-payroll costs.  No assurance is provided that the Company will obtain forgiveness of the SBA Loan in whole or in part.

With respect to any portion of the SBA Loan that is not forgiven, the SBA Loan will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults, breaches of the provisions of the Promissory Note.

The description of the Promissory Note contained herein does not purport to be complete and is qualified in its entirety by Exhibit 10.1, incorporated herein by reference.

(d) Exhibits

IRIDEX CORP Exhibit
EX-10.1 2 irix-ex101_7.htm EX-10.1 irix-ex101_7.htm       Exhibit 10.1       Silicon Valley Bank   U.S. Small Business Administration Paycheck Protection Program Note   SBA Loan No. 9560177107 SBA Loan Name Borrower Legal Name   IRIDEX CORPORATION DBA   Date 4/22/2020 Loan Amount $2,…
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About IRIDEX CORPORATION (NASDAQ:IRIX)

IRIDEX Corporation is a provider of therapeutic based laser consoles, delivery devices and consumable instrumentation used to treat sight-threatening eye diseases in ophthalmology. The Company operates through ophthalmology segment. Its ophthalmology products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes, and are used in the treatment of serious eye diseases, including the over three causes of irreversible blindness, such as diabetic retinopathy, glaucoma and age-related macular degeneration (AMD). In addition, the Company’s ophthalmology products are often used in vitrectomy procedures (used to treat proliferative diabetic retinopathy, macular holes, retinal tears and detachments), which are generally performed in the operating room and require a consumable single use intraocular laser probe (EndoProbe) to deliver light to the back of the eye together with other instrumentation.