Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
On May 31, 2023, the Company entered into an Amendment to Security Agreement and
Promissory Note (the Burish Amendment") with Mark Burish ("Burish"), the
Company's chair of the Board of Directors. The Burish Amendment provides for
deferral of a Regular Monthly Payment amount with the payment of a $10,909
Deferral Fee, beginning June 1, 2023. The Deferral Fee is in addition to any
other fees, expenses, interest or principal subject to the Security Agreement
and Promissory Note, as amended. At any time after September 1, 2023, regardless
of whether an Event of default has occurred, Burish may issue a notice in
writing to Borrower a Deferral Fee Cancellation Notice at any time after the
15th day of the preceding month that the Deferral Fee will no longer be accepted
and that the full Regular Monthly Payment will be due on the first day of the
month immediately following said notice.
The Burish Amendment further provides for an increase to the original principal
amount of $3,000,000 by up to an additional $2,000,000 in one or more tranches.
Such additional borrowings are subject to the same 12% rate of interest per
annum. Regular Monthly Payment when resumed will be recalculated based on the
remaining months until the Maturity Date and the final principal amount.
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses