Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On March 8, 2022, Tech Capital, LLC ("Tech Capital"), the lender under the Loan
and Security Agreement, dated as of October 21, 2020 (as amended, the "Loan
Agreement"), by and among Tech Capital, Taronis Fuels, Inc. (the "Company"), and
certain subsidiaries of the Company, provided a notice of default (the "Notice
of Default") to the Company alleging a material adverse change in the Company's
business and financial condition as the result of: the ongoing investigation of
the Company by the Securities and Exchange Commission; possible outcomes of such
investigation, including without limitation potential disgorgement of amounts
raised by the Company in private placements in 2020 and the potential payment of
civil penalties by the Company; and the inability of the Company to raise
capital in light of such possible outcomes.
Pursuant to the Notice of Default, the rate of interest on the obligations
outstanding under the Loan Agreement increased immediately by 5%. Tech Capital
reserved the right to exercise its other rights and remedies under the Loan
Agreement, including, without limitation, ceasing to make advances under the
Loan Agreement, accelerating all obligations outstanding under the Loan
Agreement, and terminating the Loan Agreement. As of March 14, 2022,
approximately $5.2 million was outstanding under the Loan Agreement.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 8, 2022, the Company's Board of Directors appointed Jered Ruyle as the
President and Chief Executive Officer of the Company, and as a director of the
Company, each effective immediately. Mr. Ruyle had previously served as interim
President and Chief Executive Officer of the Company since November 30, 2021.
There are no family relationships between Mr. Ruyle and any of the Company's
directors or executive officers. There have been no related party transactions
involving Mr. Ruyle (or any of his immediate family members) required to be
disclosed pursuant to Item 404(a) of Regulation S-K, other than (i) Mr. Ruyle
and his father purchased an aggregate of 66,668 shares of common stock from the
Company in a private placement closing on June 4, 2021 for an aggregate purchase
price of $200,004, and (ii) following the Company's acquisition of the Ruyle
family's packaged gas business in 2018, Mr. Ruyle's father and brother have been
employed by the Company and several members of the Ruyle family directly or
indirectly lease properties to the Company. Mr. Ruyle has entered into the
Company's standard form of indemnification agreement. The Board has not yet made
a determination as to Mr. Ruyle's compensation for his service as the Company's
President and Chief Executive Officer.
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TARONIS FUELS, INC. 
