Item 1.01 Entry into a Material Definitive Agreement.
PPP Loan
On
Increased capacity of the asset-based revolving line of credit
On
The foregoing descriptions of the Promissory Note, the PPP Loan and the Changes in Terms Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the Promissory Note and the Changes in Terms Agreement, copies of which are attached to this Form 8-K as Exhibit 10.1 and Exhibit 10.2, respectively, and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosure required by this Item is included in Item 1.01 of this Current Report on Form 8-K and is incorporated in this Item 2.03 by reference.
Forward Looking Statements
This report contains forward-looking statements, which are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally can be identified by use of
statements that include, but are not limited to, phrases such as "anticipate,"
"believe," "expect," "future," "intend," "plan," and similar expressions to
identify forward-looking statements. Forward-looking statements include, without
limitation, the ability of the Company to retain and hire key personnel and
maintain relationships with its customers, suppliers, partners, and others with
whom it does business, or on its operating results and businesses generally, the
Company's ability to increase income streams, to grow revenue and earnings, the
contemplated forgiveness of the PPP Loan, the uncertainty in the financial
markets in the wake of the COVID-19 pandemic and the effect of the COVID-19
pandemic on the Company's business and operating results. These statements are
only predictions and are subject to certain risks, uncertainties, and
assumptions, which include, but are not limited to, those identified and
described in the Company's public filings with the
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 10.1* Promissory Note datedApril 15, 2020 , between Torotel Products andCornerstone Bank * 10.2* Change in Terms Agreement datedApril 15, 2020 , between the Company andCornerstone Bank *
* A portion of this exhibit has been omitted in accordance with Regulation S-K Item 601(b)(10)(iv).
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