PURADYN FILTER TECHNOLOGIES, INC. Item 1.01 Entry into a Material Definitive Agreement.
The information set forth in Item 2.03 of this Current Report is hereby incorporated by reference into 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
The PPP Loan is scheduled to mature two years from the date of issuance (the "Maturity Date") and has a 1% interest rate. Commencing on the date which is two years following the date of the loan and continuing on the same day of each following month, the Company must pay principal and interest payments which will fully amortize all principal and interest (including accrued interest prior to the initial payment date) by the Maturity Date. The promissory note evidencing the PPP Loan contains customary events of default relating to, among other things, payment defaults and provisions of the promissory 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. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payroll costs and mortgage interest, rent and utility costs. No assurance is provided that the Company will apply for and obtain forgiveness of the PPP Loan in whole or in part.
Item 8.01 Other Events.
The Company will be relying on the
Notwithstanding the foregoing, the Company expects to file the First Quarter
2020 10-Q no later than
In light of the continuing impact of the Covid-19 pandemic on the Company's
business and operations, the Company will be including the following Risk Factor
in its First Quarter 2020 10-Q which updates the Risk Factor included in its
Annual Report on Form 10-K for the year ended
WE EXPECT THE IMPACT OF THE COVID-19 PANDEMIC ON OUR COMPANY TO MATERIALLY IMPACT OUR RESULTS OF OPERATIONS IN 2020.
We have been materially and adversely impacted by the disruptions in our
business as a result of the Covid-19 pandemic. Our company is located in
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As described elsewhere herein, we are materially dependent on revenues from a limited number of customers. Even before the "stay at home" order was issued, we were experiencing a significant decline in orders from our customers because of disruptions in our customers' businesses as a result of the Covid-19 pandemic. In addition, as a result of our historic concentration on sales to customers in the oil and gas industry, the decline in oil prices has had a materially adverse impact our sales beginning with the first quarter of 2020 and continuing through the second quarter of 2020. During the first quarter of 2020 we experienced a slowdown from customer's inquiries from other industries and we expect that trend to continue until such time as the full impact of the virus is known, travel restrictions are lifted and corporate capital expenditures are normalized;
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We also expect delays in our supply chain, including delivery of raw materials and component products as companies throughout the country are affected by local quarantines and disruptions.
While the foregoing are some of the immediate impacts we are witnessing, this list is not exhaustive and we are unable to predict the overall impact on our company at this time. Our loss of revenues will materially impact our liquidity, and we do not know if we have sufficient access to working capital from historic sources to continue as a going concern. Our senior management will continue to monitor our situation on a daily basis. However, we expect that these factors and others we have yet to experience will materially adversely impact our company, its business and operations for the foreseeable future.
Item 9.01 Financial Statements and Exhibits.
(d)
Exhibits.
Incorporated by Reference Filed or
Furnished
No. Exhibit Description Form Date Filed Number Herewith
10.1 Note between Puradyn Filter Filed
Technologies Incorporated and
Bank of America N.A .
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