LCTC · Lifeloc Technologies, Inc.

On May 4, 2026, Lifeloc Technologies entered into a loan transaction with its Chief Financial Officer and Chairman of the Board, Vern Kornelsen, for $500,000. The proceeds are earmarked for the continued development of the company's SpinDetect product. The note carries an initial interest rate of 10.5% per annum, subject to upward adjustment based on changes in the prime rate, with interest-only payments through the end of 2026. Starting January 31, 2027, the company will make 60 equal monthly installments of principal and interest, with the entire unpaid balance due on December 31, 2031. The note is secured by a deed of trust on the company's principal office and a security interest in substantially all of its assets, both subordinate to existing senior indebtedness to Citywide Banks. The loan can be prepaid at any time without penalty. This insider loan provides capital for product development while adding debt secured by company assets.