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EX-10 - Track Group, Inc. | ex10-05272020_020554.htm |
(Exact name of registrant as specified in its charter.)
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
(Address of principal executive offices)
(Registrant's Telephone number)
(Former Name or Former Address, if Changed Since Last Report)
None
TRCK
N/A
The information set forth below under Item 2.03 is hereby incorporated by reference into this Item 1.01.
On May 12, 2020, Track Group, Inc. (the "Company") received net proceeds of approximately $933,200 from a potentially forgivable loan from the U.S. Small Business Administration ("SBA") pursuant to the Paycheck Protection Program ("PPP") enacted by Congress under the of the Coronavirus Aid, Relief, and Economic Security Act (15 U.S.C. 636(a)(36)) (the "CARES Act") administered by the SBA (the "PPP Loan"). To facilitate the PPP Loan, the Company entered into a Note Payable Agreement with BMO Harris Bank National Association as lender (the "Lender") (the "PPP Loan Agreement").
The PPP Loan provides for working capital to the Company and will mature on May 12, 2022. However, under the CARES Act and the PPP Loan Agreement, all payments of both principal and interest will be deferred until at least December 12, 2020. The PPP Loan will accrue interest at a rate of 1.00% per annum, and interest will continue to accrue throughout the period the PPP Loan is outstanding, or until it is forgiven. The CARES Act (including the guidance issued by SBA and U.S. Department of the Treasury related thereto) provides that all or a portion of the PPP Loan may be forgiven upon request from the Company to Lender, subject to requirements in the PPP Loan Agreement and the CARES Act. Upon expiration of the eight-week period following the issuance of the PPP Loan, the Company intends to complete and file the application for forgiveness with the SBA.
The foregoing summary of the PPP Loan is qualified in its entirety by reference to the PPP Loan Agreement, which is attached as Exhibit 10.1 hereto.
The Chilean government recently elected to impose an unexpected 2-week quarantine period with an additional 1-week extension in the Nation's capital of Santiago which ends on June 5, 2020 (the "Chilean Order"). The Chilean Order has delayed the full reopening of the country's court system which has reduced the size of the Company's program for the Chilean prison service thereby adversely impacting the Company's total revenue.
(d) Exhibits.
Exhibit No.
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Description
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Note Payable Agreement by and between Track Group, Inc. and BMO Harris Bank National Association, dated May 12, 2020.
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Track Group, Inc. |
By: | /s/ Peter K. Poli |
Name: Peter K. Poli | |
Title: Chief Financial Officer |