Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: May 21, 2021
Event: Termination of a Material Definitive Agreement (Item 1.02)
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or general liquidity metrics. It specifically addresses the resolution of a debt obligation:
- Debt Obligation: Paycheck Protection Program (PPP) Loan
- Lender: City National Bank
- Original Loan Amount: $769,816
- Loan Status: Fully forgiven; remaining balance is zero.
Material Changes
On May 21, 2021, the Company received notification from the Lender that the U.S. Small Business Administration (SBA) approved the Company's application for forgiveness of the entire PPP Loan balance. This results in the termination of the promissory note entered into on April 20, 2020.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future operations, or discussion of new risks. The document solely confirms the administrative completion of the loan forgiveness process.
Investor Verification Checklist
- Confirm the $769,816 loan forgiveness is reflected in the Company's next quarterly financial statements as a gain or reduction of debt.
- Verify that no contingent liabilities remain associated with the PPP Loan or the SBA audit process.
- Review the original April 2020 8-K filing for the initial terms of the promissory note.