Current Report Filing (8-k)
May 08 2020 - 6:05AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event
reported): May 4, 2020
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IDEAL POWER INC.
(Exact name of registrant as specified in
Charter)
Delaware
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001-36216
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14-1999058
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(State or other jurisdiction of
incorporation or organization)
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(Commission File No.)
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(IRS Employee Identification No.)
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4120 Freidrich Lane, Suite 100
Austin, Texas, 78744
(Address of Principal Executive Offices)
512-264-1542
(Issuer Telephone number)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction
A.2 below).
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Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR240.14a-12)
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Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
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Pre-commencement communications
pursuant to Rule 13e-(c) under the Exchange Act (17 CFR 240.13(e)-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
Title
of each class
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Trading
Symbol
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Name of
each exchange on which registered
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Common Stock
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IPWR
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Nasdaq Capital Market
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Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange
Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ¨
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Item 1.01.
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Entry into a Material Definitive Agreement.
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The information in Item 2.03
below is incorporated by reference in this Item 1.01.
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Item 2.03.
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Creation of a Direct Financial Obligation or an Obligation
Under an Off-Balance Sheet Arrangement of a Registrant.
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On May 4, 2020, Ideal Power Inc. (the “Company”)
entered into a Loan Agreement and Promissory Note (collectively, the “PPP Loan”) with BBVA USA pursuant to the Paycheck
Protection Program (the “PPP”) under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES
Act”) administered by the U.S. Small Business Administration (the “SBA”). The Company received total proceeds
of $91,407 from the unsecured PPP Loan. The PPP Loan is scheduled to mature on May 4, 2022 and has an interest rate of 1.00% and
is subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The PPP Loan may be prepaid
by the Company at any time prior to maturity with no prepayment penalties.
The PPP Loan contains customary events of default relating
to, among other things, payment defaults and breaches of representations and warranties. Subject to certain conditions, the
PPP Loan may be forgiven in whole or in part by applying for forgiveness pursuant to the CARES Act and the PPP. The amount of
loan proceeds eligible for forgiveness is based on a formula based on a number of factors, including the amount of loan
proceeds used by the Company during the eight-week period after the loan origination for certain purposes, including payroll
costs, rent payments on certain leases and certain qualified utility payments, provided that, among other things, at least
75% of the loan amount is used for eligible payroll costs, the employer maintaining or rehiring employees and maintaining
salaries at certain level. In accordance with the requirements of the CARES Act and the PPP, the Company intends to use the
proceeds from the PPP Loan primarily for payroll costs. It is the Company’s expectation that the PPP Loan will be
forgiven but no assurance can be given that the Company will be granted forgiveness of the PPP Loan in whole or in part.
The foregoing description of the PPP Loan is qualified in its
entirety by reference to the Loan Agreement filed as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated herein
by reference.
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ITEM 9.01.
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FINANCIAL STATEMENTS AND EXHIBITS.
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(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this Current Report to be signed on its behalf by the undersigned hereunto
duly authorized.
Dated: May 7, 2020
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IDEAL POWER INC.
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By:
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/s/ Timothy Burns
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Timothy Burns
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Chief Financial Officer
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