On March 3, 2020, Vicon Industries, Inc. amended the $5.6 million Term Loan Agreement with NIL Funding Corporation. Upon closing, $500,000 of outstanding borrowings were repaid to NIL, additionally, another $500,000 is to be paid in one year. The Agreement requires monthly payments of accrued interest that began on October 1, 2018. In addition, the Agreement requires equal monthly principal payments of $25,000, plus accrued interest, that began on April 1, 2019 until the amended loan maturity date of March 30, 2022, at which point the full outstanding balance of the loan and accrued interest are due. The Agreement provides for a formula that limits outstanding indebtedness based upon eligible accounts receivable and is secured by a first priority security interest in substantially all of the Company’s assets. Borrowings under the Agreement bear interest at a rate of 8.85% per annum. The Agreement includes provisions that are customarily found in similar financing agreements, including a financial covenant which requires the Company to maintain a minimum level of inventory and liquid assets as defined in the Agreement.