Precipio, Inc. Debt Disclosure

5. LONG-TERM DEBT

Long-term debt consists of the following:

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Department of Economic and Community Development

On January 8, 2018, the Company entered into an agreement with DECD by which the Company received a loan of $300,000 secured by substantially all of the Company’s assets (the “DECD 2018 Loan”). The DECD 2018 Loan is a ten-year loan due on December 31, 2027 and includes interest paid monthly at 3.25%.  The maturity date of the DECD 2018 Loan was extended to May 31, 2028 and the modification did not have a material impact on the Company’s cash flows.

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Debt issuance costs associated with the DECD 2018 Loan were approximately $31.0 thousand. Amortization of the debt issuance cost was approximately $3.0 thousand and $3.0 thousand for the years ended December 31, 2025 and 2024, respectively. Net debt issuance costs were approximately $6.0 thousand and $9.0 thousand at December 31, 2025 and 2024, respectively, and are presented as a reduction of the related debt in the accompanying consolidated balance sheets. Amortization for each of the next two years is expected to be approximately $3.0 thousand.

Financed Insurance Loan.

The Company finances certain of its insurance premiums (the “Financed Insurance Loans”).  In July 2024, the Company financed $0.3 million with a 9.99% interest rate and made payments on a monthly basis through June 2025. As of December 31, 2025 and 2024, the Financed Insurance Loan’s outstanding balance of zero and $0.2 million, respectively, was included in current maturities of long-term debt in the Company’s consolidated balance sheets. A corresponding prepaid asset was included in other current assets in the Company’s consolidated balance sheets.

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Business Loan Agreement.

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On May 1, 2024, the Company entered into a Business Loan and Security Agreement (the “Loan Agreement”) with Altbanq Lending LLC, pursuant to which the Company obtained a loan in the principal amount of $250,000 (the “Secured Loan”). According to the Loan Agreement, the Company granted the lender a continuing security interest in certain collateral (as defined in the Loan Agreement). Furthermore, the Company’s Chief Executive Officer provided a personal guaranty for the Secured Loan. The Secured Loan has a term of one year and an interest rate of 20%, such that pursuant to the Loan Agreement, the Company is obligated to pay the Lender fifty-two payments of $5,769 on a weekly basis and the total sum of the Secured Loan and interest (not including any fees) is equal to a total repayment amount of $300,000 (“the Repayment Amount“). If the Company defaulted on payments then a default fee of $15,000 shall be payable to the lender. As of the date hereof, the Repayment Amount was paid in full and the Company did not default on any payments

As of December 31, 2025 and December 31, 2024, the outstanding balance of zero and $0.1 million, respectively, under the Loan Agreement, was included in current maturities of long-term debt in the Company’s consolidated balance sheets.

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The aggregate future maturities required on gross long-term debt at December 31, 2025 are as follows:

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