aibioLifeloc borrows $500,000 from its Chairman and CFO
Tickers LCTC
Lifeloc Technologies entered into a $500,000 promissory note with Vern Kornelsen, its Chief Financial Officer and Chairman of the Board. The note carries 10.5% interest and is secured by its Wheat Ridge office and most of its assets.
Key facts
- Company
- Lifeloc Technologies, Inc (OTC: LCTC)
- News type
- Debt Financing
- Primary source
- Lifeloc Technologies, Inc 8-K (2026-05-08)
Lifeloc Technologies, Inc. (OTC: LCTC) entered into a $500,000 loan transaction with Vern Kornelsen, its Chief Financial Officer and Chairman of the Board, on May 4, 2026. The company reported the transaction in a Form 8-K dated May 8, 2026, under Item 1.01 (Entry into a Material Definitive Agreement) and Item 2.03 (Creation of a Direct Financial Obligation). The filing was signed by Wayne Willkomm, Chief Executive Officer and President.
The note
The transaction consists of a promissory note dated May 1, 2026, in the principal amount of $500,000. Lifeloc said the proceeds will be used to fund the continued development of its SpinDetect product. The note bears an initial interest rate of 10.5% per annum, which is subject to upward adjustment based on changes in the prime rate.
Interest-only payments run through December 31, 2026. Beginning January 31, 2027, the note is payable in sixty (60) equal monthly installments of principal and interest, with the entire unpaid balance due on December 31, 2031. The note may be prepaid at any time without penalty.
Security and ranking
The note is secured by a Deed of Trust on the company's principal office at 12441 West 49th Avenue, Wheat Ridge, Colorado, and by a security interest in substantially all of the company's assets. Both forms of security are subordinate to the company's existing senior indebtedness to Citywide Banks.
The lender is Vern Kornelsen, an individual, not a bank. The filing describes the note's full terms and says the summary does not purport to be complete. The full text is filed as Exhibit 10.1, a Promissory Note dated May 1, 2026, in favor of Vern Kornelsen.
The filing names no underwriter or placement agent, and it names no financial advisor or counsel for this loan.
A related-party loan
The lender holds two roles at the company. Vern Kornelsen is both its Chief Financial Officer and the Chairman of its board, so the loan is a transaction with an insider rather than with an outside lender. The 8-K does not say whether directors other than Mr. Kornelsen reviewed or approved the terms, and it does not say how the 10.5% rate was set beyond describing it as an initial rate that can rise with the prime rate. It also does not give the amount of any fee, warrant or equity feature attached to the note.
Timeline in the filing
The filing gives several dates. The promissory note is dated May 1, 2026. The company says it entered into the loan transaction on May 4, 2026, which the cover page lists as the date of the earliest event reported. The report itself is dated May 8, 2026. Interest-only payments cover the period through December 31, 2026, the first of sixty monthly installments falls on January 31, 2027, and the full unpaid balance is due on December 31, 2031.
Financial position
The company's annual report on Form 10-K, filed in March 2026, shows revenue of $9.0 million for the fiscal year ended December 31, 2025, compared with $8.5 million for 2024. Research and development expense was $2.2 million in both years.
The net loss was $2.5 million for 2025, compared with $1.1 million for 2024. Cash from operations was negative $499,319 in 2025, compared with negative $1.3 million in 2024.
What comes next
The 8-K does not describe further borrowings or equity offerings. Principal payments begin after the interest-only period ends on December 31, 2026, and the schedule of installments runs to the final payment on December 31, 2031.