|3 Months Ended|
Mar. 31, 2020
Note 14 – Subsequent Events
On May 4, 2020, the Company implemented a Company-wide payroll reduction program for individuals earning more than $60,000 annually with required base salary reductions of 15% to 25% depending upon the respective base salary level in the period from May to December 31, 2020. The expected cash savings will be $1,200,000 and will result in the issuance of stock awards under the Company’s 2014 Stock Incentive Plan, at a rate 150% of the net cash wage reductions. The FMV of these stock awards has been determined at $1.53 and a total of 1,178,590 stock awards were issued. These awards are subject to vesting and resale rules.
On April 21, 2020, the Company entered into a Paycheck Protection Program (PPP) Term Note under the Paycheck Protection Program of the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “US SBA”). The Company received total proceeds of $1,555,900 from the PPP Note. The PPP Note bears interest at the annual rate of 1%, with the first six months of interest deferred, has a term of two years, and is unsecured and guaranteed by the US SBA. The Company may apply for forgiveness of the PPP Note, with the amount which may be forgiven equating to the sum of payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company during the eight-week period beginning on April 21, 2020, calculated in accordance with the terms of the CARES Act.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef