Track Group, Inc.
name of registrant as specified in its charter.)
or other jurisdiction of incorporation or
Employer Identification No.)
200 E 5th Ave, Suite 100, Naperville, Illinois 60563
of principal executive offices)
Name or Former Address, if Changed Since Last Report)
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:
] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
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
growth company [ ]
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. [
registered pursuant to Section 12(b) of the Act:
Name of exchange on which registered
Item 1.01 Entry into a Material Definitive
The information set forth below under Item 2.03 is hereby
incorporated by reference into this Item 1.01.
Item 2.03 Creation of a Direct Financial Obligation or an
Obligation Under an Off-Balance Sheet Arrangement of a
On May 12, 2020, Track Group, Inc. (the "Company") received net
proceeds of approximately $933,200 from a potentially forgivable
loan from the U.S. Small Business Administration ("SBA") pursuant
to the Paycheck Protection Program ("PPP") enacted by Congress
under the of the Coronavirus Aid, Relief, and Economic Security Act
(15 U.S.C. 636(a)(36)) (the "CARES Act") administered by the SBA
(the "PPP Loan"). To facilitate the PPP Loan, the Company entered
into a Note Payable Agreement with BMO Harris Bank National
Association as lender (the "Lender") (the "PPP Loan
The PPP Loan provides for working capital to the Company and will
mature on May 12, 2022. However, under the CARES Act and the PPP
Loan Agreement, all payments of both principal and interest will be
deferred until at least December 12, 2020. The PPP Loan will accrue
interest at a rate of 1.00% per annum, and interest will continue
to accrue throughout the period the PPP Loan is outstanding, or
until it is forgiven. The CARES Act (including the guidance issued
by SBA and U.S. Department of the Treasury related thereto)
provides that all or a portion of the PPP Loan may be forgiven upon
request from the Company to Lender, subject to requirements in the
PPP Loan Agreement and the CARES Act. Upon expiration of the
eight-week period following the issuance of the PPP Loan, the
Company intends to complete and file the application for
forgiveness with the SBA.
The foregoing summary of the PPP Loan is qualified in its entirety
by reference to the PPP Loan Agreement, which is attached as
Exhibit 10.1 hereto.
Item 8.01 Other Events.
The Chilean government recently elected to impose an unexpected
2-week quarantine period with an additional 1-week extension in the
Nation's capital of Santiago which ends on June 5, 2020 (the
"Chilean Order"). The Chilean Order has delayed the full reopening
of the country's court system which has reduced the size of the
Company's program for the Chilean prison service thereby adversely
impacting the Company's total revenue.
Item 9.01 Financial Statements and Exhibits.
Payable Agreement by and between Track Group, Inc. and BMO Harris
Bank National Association, dated May 12, 2020.
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
May 27, 2020
||/s/ Peter K.
|Name: Peter K.