Monitor for product development milestones and any subsequent financing needs. The high insider interest rate suggests limited alternative funding sources; watch for progress on SpinDetect.
Price Chart
Executive Summary
Lifeloc Technologies entered into a $500,000 promissory note with its CFO/Chairman Vern Kornelsen, bearing 10.5% interest and secured by company assets, subordinate to existing senior debt. Proceeds will fund SpinDetect product development. The insider loan signals potential financing challenges but provides growth capital.
Key Financial Metrics
Key Facts
- Promissory note of $500,000 from CFO/Chairman Vern Kornelsen
- Interest rate: 10.5% per annum, adjustable with prime rate
- Interest-only through Dec 31, 2026, then 60 monthly installments
- Secured by company office and substantially all assets, subordinated to Citywide Banks senior debt
- Proceeds for continued development of SpinDetect product
Financial Impact
$500,000 principal at 10.5% interest, secured by company assets, subordinate to $existing senior debt
Risk Factors
- Related-party transaction with potential conflicts of interest
- High interest rate (10.5%) increases financial burden
- Collateral risk if company defaults on subordinate loan
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001079973-26-000624 |
| Document: 0001079973-26-000624-index-headers.html | 0001079973-26-000624 |
| Document: 0001079973-26-000624-index.html | 0001079973-26-000624 |
| Document: 0001079973-26-000624.txt | 0001079973-26-000624 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 14, 2026 10w ago | 8-K | $4.00 $4.25 | ▲ +6.25% | ▲ +8.24% | $3.50 (−12.50%) |
Jun 5, 2026 20w ago | 8-K | $2.20 $3.39 | ▲ +54.09% | ▲ +52.68% | $3.50 (+59.09%) |
May 19, 2026 22w ago | 8-K | $2.18 $2.70 | ▲ +23.85% | ▲ +22.87% | $3.50 (+60.55%) |
May 8, 2026 24w ago | 8-K | $2.05 $2.16 | ▲ +5.37% | ▲ +5.67% | $3.50 (+70.73%) |
US Market Status
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