Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.20.2
Debt
6 Months Ended
Jun. 30, 2020
Debt  
Debt

Note 6 – Debt

Long-term debt consisted of the following:

June 30, 

December 31, 

 

    

2020

    

2019

Unsecured Term Note - Two-year term beginning on April 22, 2020. The note bears an annual interest rate of 1%, with no principal or interest payments for six (6) months.

$

1,555,900

$

Less: Amount Due Within One Year

 

(684,286)

 

Amount Due After One Year

$

871,614

$

On April 21, 2020, the Company entered into a Paycheck Protection Program (“PPP”) Term Note (“PPP 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 intends to apply for forgiveness of the PPP Note once rules are finalized, with the amount which may be forgiven expected to equal the sum of payroll costs, covered rent obligations, and covered utility payments incurred by the Company during the twenty four-week period beginning on April 21, 2020, calculated in accordance with the terms of the CARES Act.