The US Bankruptcy Court gave an order to Applied UV, Inc and and Sterilumen, Inc. to obtain DIP financing on an interim basis on June 3, 2024. As per the order, the debtor has been authorized to obtain an amount not to exceed (a) 85% of the aggregate net face amount of eligible accounts, plus (b) the least of (1) the sum of 20% of the aggregate eligible inventory value of raw materials eligible inventory and 35% of the aggregate eligible inventory value of finished goods Eligible Inventory, (2) $1.50 million (with such amount to be reduced by $0.15 million monthly commencing on June 15, 2024), or (3) 80% if the net orderly liquidation value of raw materials and finished goods eligible inventory as determined by an outside inventory appraisal, but in no event greater than $3.5 million less any outstanding amounts due under the secured promissory note (purchase order financing ? revolving) (?p/o note?) which provides for advances up to the lesser of a certain borrowing base formula or the maximum available amount of $0.50 million from Pinnacle Bank.

Interest shall accrue on the daily balance at 2.5% per annum (the ?interest margin?) above the greater of (a) the prime rate, or (b) 4% per annum, but with that portion of the daily balance consisting of advances against eligible inventory, the interest margin shall be 3% per annum. The p/o note shall bear interest at 2.5% per annum above the prime rate but not less than the deemed prime rate, along with an additional interest of 1.5% of the advance limit per annum. As per the terms of the DIP agreement, the loan carries a facility fee of 1.5% of the sum of the advance limit plus the original principal balance of any term loans and advances other than under the revolving credit facility and an administrative fee of in the amount of .15% of the daily average outstanding balance of the Advances during each month, payable monthly.

The DIP facility would mature either on January 25, 2025, or on the effective date of the plan, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.03 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. Final Hearing shall be held on June 18, 2024.