Lifeloc Technologies, Inc 8-K

What Happened

• Lifeloc Technologies, Inc. filed an 8‑K reporting that on May 4, 2026 it entered into a loan transaction with Vern Kornelsen (the Company’s Chief Financial Officer and Chairman of the Board). The Company executed a Promissory Note dated May 1, 2026 for $500,000 to fund continued development of its SpinDetect™ product. The filing is reported under Item 1.01 (material agreement) and Item 2.03 (creation of a direct financial obligation).

Key Details

• Principal: $500,000 promissory note dated May 1, 2026; transaction entered May 4, 2026.
• Interest and payments: initial interest rate 10.5% per annum; interest‑only payments through December 31, 2026; beginning January 31, 2027 the Note is payable in 60 equal monthly installments of principal and interest; final maturity December 31, 2031. Interest rate may increase with changes in the prime rate.
• Security and ranking: secured by a Deed of Trust on the Company’s principal office (12441 West 49th Avenue, Wheat Ridge, Colorado) and by a security interest in substantially all Company assets, each subordinate to existing senior indebtedness to Citywide Banks.
• Other terms: Note may be prepaid at any time without penalty. The full Note is filed as Exhibit 10.1 to the 8‑K.

Why It Matters

• This creates new indebtedness and is a related‑party transaction (the lender is the Company’s CFO and Chairman), which investors should note when evaluating governance and financing.
• The loan provides near‑term funding specifically for SpinDetect™ development, so it directly supports the Company’s product advancement but also increases secured liabilities on Company assets.
• Repayment obligations (interest‑only through 2026, then 60 monthly payments beginning January 2027) and a variable interest rate could affect future cash flow and interest expense. For full terms, see the Note filed as Exhibit 10.1.