Attached files
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| EX-10.1 - PAYCHECK PROTECTION PROGRAM NOTE - BK Technologies Corp | bkti_ex101.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
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Date of Report (Date of Earliest Event Reported):
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April 13, 2020
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BK Technologies Corporation
__________________________________________
(Exact name of registrant as specified in its charter)
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Nevada
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001-32644
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83-4064262
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(State
or other jurisdiction of
incorporation)
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(Commission
File
Number)
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(I.R.S.
Employer Identification
No.)
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7100
Technology Drive, West Melbourne, FL
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32904
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s telephone number, including area code:
(321) 984-1414
N/A
______________________________________________
Former name or former address, if changed since last
report
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
[ ] Written communications pursuant to Rule
425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[ ] Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
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Title
of each class
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Trading
Symbol(s)
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Name of
each exchange on which registered
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Common Stock, par value $0.60 per share
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BKTI
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NYSE American
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Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933
(§ 230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§ 240.12b-2 of this
chapter).
Emerging
growth company [ ]
If an
emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. [ ]
Item
1.01.
Entry into a Material
Definitive Agreement.
See the
information set forth in Item 2.03 of this Current Report on Form
8-K (this “Current Report”), which is 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.
On
April 13, 2020, BK Technologies, Inc. (the “Borrower”),
a wholly-owned operating subsidiary of BK Technologies Corporation,
a holding company (the “Company”), received approval
and funding pursuant to a promissory note (the “Note”)
evidencing an unsecured loan in the amount of $2,196,335 under the
Paycheck Protection Program (the “Loan”). The Paycheck
Protection Program (or “PPP”) was established under the
Coronavirus Aid, Relief, and Economic Security Act (the
“CARES Act”) and is administered by the U.S. Small
Business Administration (“SBA”). The Loan is being made
through JPMorgan Chase Bank, N.A. (the
“Lender”).
The
Loan has a two-year term and bears interest at a rate of 0.98% per
annum. Monthly principal and interest payments are deferred for six
months. Beginning seven months from the date of the Note, the
Borrower is required to make monthly payments of principal and
interest to the Lender, each in such equal amount required to fully
amortize the principal amount outstanding on the Note on the last
day of the deferral period by the maturity date. The Loan may be
prepaid at any time prior to maturity with no prepayment penalties.
The Note matures on April 8, 2022. The Note contains customary
events of default relating to, among other things, payment
defaults, making materially false and misleading representations to
the SBA or Lender, or breaching the terms of the Loan documents.
The occurrence of an event of default may result in the immediate
repayment of all amounts outstanding, collection of all amounts
owing from the Borrower, or filing suit and obtaining
judgment.
Under
the terms of the CARES Act, PPP loan recipients can apply for and
be granted forgiveness for all or a portion of loan granted under
the PPP. Such forgiveness will be determined, subject to
limitations, based on the use of loan proceeds for payment of
payroll costs and any payments of mortgage interest, rent, and
utilities. However, no assurance is provided that forgiveness for
any portion of the Loan will be obtained.
The
foregoing description of the Note is a summary only and is
qualified in its entirely by the reference to the full text of the
Note, which is filed as Exhibit 10.1
to this Current Report and is incorporated herein by
reference.
Item
9.01
Financial
Statements and Exhibits.
(d)
Exhibits.
Paycheck Protection
Program Note, approved as of April 13, 2020, executed by BK
Technologies, Inc., as borrower, for the benefit of JPMorgan Chase
Bank, N.A., as lender.
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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BK TECHNOLOGIES CORPORATION |
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Date:
April 16, 2020
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By:
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/s/ William P.
Kelly
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William P.
Kelly
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Executive Vice
President and
Chief
Financial Officer
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