LIFELOC TECHNOLOGIES, INC. (OTCMKTS:LCTC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On May 1, 2020, Lifeloc Technologies, Inc. (the “Company”) executed an unsecured promissory note (the “Note”) with Bank of America for the aggregate principal amount of $465,097 to the Paycheck Protection Program under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020 and as administered by the U.S. Small Business Administration (the “PPP Loan”). The PPP Loan has a two-year term and bears interest at a rate of 1.0% per annum. Monthly principal and interest payments are deferred for six months after the date of disbursement. The PPP Loan may be prepaid at any time prior to maturity with no prepayment penalties. The Note contains events of default and other provisions customary for a loan of this type
The Paycheck Protection Program provides that the PPP Loan may be partially or wholly forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. The Company intends to use the entire PPP Loan amount for qualifying expenses and to apply for forgiveness of the loan in accordance with the terms of the CARES Act. The terms of any forgiveness may also be subject to further requirements in any regulations and guidelines the U.S. Small Business Administration may adopt. While the Company currently believes that its use of the Note proceeds will meet the conditions for forgiveness under the Paycheck Protection Program, no assurance is provided that the Company will obtain forgiveness of the Note in whole or in part.
The foregoing description of the Note is qualified by reference to the complete text of the Note, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
The information contained in Item 1.01 above and Exhibit 10.1 is hereby incorporated by reference into this Item 2.03.
(d) Exhibits.
10.1 PPP Promissory Note dated May 1, 2020
Lifeloc Technologies, Inc Exhibit
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About LIFELOC TECHNOLOGIES, INC. (OTCMKTS:LCTC)
Lifeloc Technologies, Inc. is a developer, manufacturer and marketer of portable hand-held and fixed station breathalyzers and related accessories, supplies and education. The Company operates through two segments: Products and Rentals. The Products segment includes the sale of physical products, including portable hand-held breathalyzers and related accessories, supplies, education, training, and royalties from development contracts with original equipment manufacturer (OEM). The Rentals segment includes rental of a portion of the Company’s building. It designs, produces and sells fuel-cell based breath alcohol testing equipment. In addition, it offers a line of supplies, accessories, services, and training to support customers’ alcohol testing programs. It product line, FC Series, is designed for domestic and international law enforcement and corrections markets. It also provides the EV30 and Phoenix 6.0 Evidential Breath Tester (Phoenix 6.0).