IIOT OXYS : Accelaration/Increase of Financial Obligation - Form 8-K
March 21, 2024 at 03:22 pm EDT
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Item 2.04
Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On January 22, 2018, IIOT-OXYS, Inc., a Nevada corporation (the "Company"), issued a Senior Secured Convertible Promissory Note in the principal amount of $500,000 to Sergey Gogin (the "2018 Note"). In addition, on March 6, 2019, the Company issued a Senior Secured Convertible Promissory Note in the principal amount of $50,000 to YVSGRAMORAH LLC (the "2019 Note" and, together, with the 2018 Note, each, a "Note" or, together, the "Notes").
The Company has entered into several amendments to each of the Notes which have extended the maturity dates of each of the Notes to March 1, 2024.
On March 1, 2024, the Notes matured without payment by the Company and the Notes went into default. Under the Notes, the Company had ten Trading Days (as defined in the Notes) to cure the defaults; however, the Company failed to do so.
Due to the defaults, under the Notes, the outstanding principal plus liquidated damages, interest and other amounts owing through the date of acceleration, are now, at the holder's election, immediately due and payable in cash. Commencing ten Trading Days after the occurrence of the defaults (i) the principal amounts on each Note were increased 20%, (ii) the number of warrant shares exercisable pursuant to warrants previously issued to the Note holders were increased from 50% to 100%, and (iii) the Note holders have the right to appoint a Board member to join the Company's Board of Directors.
We are currently in negotiations with these lenders to negotiate new terms and believe that new terms will be agreed to in the near future.
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IIOT-OXYS, Inc. is a technology company. The Company is engaged in industrial Internet of things (IIOT), artificial intelligence (AI) and machine learning, edge computing and manufacturing operations. It provides actionable mission-critical insights for the Medical/Pharmaceutical, Manufacturing, Agriculture, Defense, and Structural Health, and other industries. It uses domain-specific AI to solve industrial and environmental challenges. The Company helps its customers maintain machine uptime and increase operational efficiency. Its engineered solutions focus on common sense approaches to machine learning, algorithm development and hardware and software products. The Company designs a system of hardware and software, assembles, installs, monitors data and applies its algorithms to help provide customer insight. It develops algorithms that help its customers create insights from data streams. The Company's wholly owned subsidiaries are OXYS Corporation and HereLab, Inc.