Positron arranges $2,000,000 line of credit at 12% from investor George Ortiz

Positron Corporation, a Texas corporation with its principal office in North Tonawanda, New York, issued a $2,000,000 promissory note dated August 13, 2026 to George Ortiz. The note is a line of credit note under a Line of Credit Agreement of the same date, according to an exhibit to a Form 8-K filed in August 2026. The note is signed by Adel Abdullah, President. The filing names no placement agent, underwriter or financial advisor. It names Peter Campitiello, Esq., of Lucosky Brookman, LLP, as the person to receive copies of notices to Positron.

The note refers to a Line of Credit Agreement of the same date for the terms on which money is advanced. The note does not state how draws work, whether there are minimum draws or quarterly caps, or what the money is for.

Interest and payment

The note bears fixed interest at 12% per year on the unpaid principal from the date of issuance, calculated on actual days elapsed over a 365-day year. Principal and unpaid interest are due on August 13, 2028, or earlier when they become due after an event of default. The note's maturity clause reads "due and payable or converted", but the note sets no conversion terms. Payments must be made in cash. Under the note, the holder can collect cash only on the demand of the Required Holders on or after the maturity date, or while an event of default continues.

Positron may prepay all or part of the note without the holders' consent. Any payment received is applied first to collection costs, then to interest, and then to principal. Any payment above the legal maximum is credited against principal.

Default and remedies

Events of default include a failure to pay principal or interest within ten (10) business days after written demand. They also include a material breach of the note or the Line of Credit Agreement that is not cured within thirty (30) days after notice, involuntary bankruptcy, receivership or winding-up proceedings that continue for sixty (60) days, voluntary bankruptcy filings and assignments for the benefit of creditors, and any liquidation, dissolution or winding up.

On a default, the Required Holders may declare the entire unpaid principal and accrued interest due without presentment, demand or notice. For bankruptcy, insolvency and winding-up defaults, the note becomes due automatically. The holder may enforce through an action at law or in equity, including specific performance of the note or of an Exchange Agreement that the note mentions. The note does not describe that agreement. Positron waives presentment, demand, protest and notice, and it agrees its obligations are not subject to reduction, set-off, counterclaim or recoupment. It must also pay collection costs, including reasonable attorneys' fees. Texas law governs the note.

Financial position

Revenue was $461,452 in 2025, down from $587,500 in 2024. The net loss was $10.6 million in 2025, against $2.4 million in 2024. Cash used in operations was $4.7 million in 2025, against $1.7 million in 2024. These annual figures come from the 10-K filed March 31, 2026.

The note does not say how much of the $2,000,000 line has been drawn. Against a 2025 net loss of $10.6 million and $4.7 million used in operations, the full $2,000,000 would cover only part of one year's cash use, and it comes from a single holder at 12% interest with a maturity in 2028.

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