Item 1.01 Entry into a Material Definitive Agreement.
On
The term of the PPP Loan is two years. The annual interest rate on the PPP Loan is 1%, which shall be deferred for the first six months of the term of the loan. The promissory note evidencing the PPP Loan contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, and/or filing suit and obtaining judgment against the Company.
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. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payroll costs and mortgage interest, rent or utility costs and the maintenance of employee and compensation levels. No assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part.
The foregoing description of the Promissory Note does not purport to be complete and is qualified in its entirety by reference to the full text of the Promissory Note attached to this Form 8-K as Exhibit 10.1 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off Balance Sheet Arrangement of the Registrant.
The disclosure in Item 1.01 and Exhibit 10.1 of this report are incorporated herein by reference.
Forward- Looking Statements
Certain statements contained in this report on Form 8-k, including, without
limitation, statements containing the words "believes", "anticipates", "hopes",
"intends", "expects", and other words of similar import, constitute "forward
looking" statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements involve known and unknown risks,
uncertainties and other factors which may cause actual events to differ
materially from expectations. Such factors include those set forth in the
Company's Annual Report on Form 10-K for the year ended
? Technological, engineering, manufacturing, quality control or other
circumstances that could delay the sale or shipment of products;
? Economic, business, market and competitive conditions in the software industry
and technological innovations that could affect the Company's business;
? The Company's ability to protect its trade secrets or other proprietary rights,
operate without infringing upon the proprietary rights of others and prevent
others from infringing on the proprietary rights of the Company; and
? General economic and business conditions and the availability of sufficient
financing.
Except as otherwise required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, as a result of new information, future events or otherwise.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits Exhibit Number Exhibit Description 10.1 Promissory Note, betweenWells Fargo Bank, N.A . andiSign Solutions Inc. , datedMay 4, 2020 . 1
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