Quarterly report pursuant to Section 13 or 15(d)

Debt and Other Financing Arrangements

v3.21.1
Debt and Other Financing Arrangements
3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Debt and Other Financing Arrangements

Note 5. Debt and Other Financing Arrangements

 

 

 

March 31, 2021

 

 

December 31,

2020 (Audited)

 

 

$

38,503

 

 

$

96,257

 

 

 

 

 

 

 

 

 

 

Promissory note issued by a financial institution, bearing interest at 1.0%, interest and no principal payments.   The note matures April 30, 2022. Annualized interest is 1.0%. This is a U.S. Small Business Administration’s Paycheck Protection Program (the “PPP Loan”)

 

 

185,785

 

 

 

185,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

224,288

 

 

$

282,042

 

 

As of March 31, 2021, minimum annual principal payments are as follows:

 

 

 

 

 

 

2021

 

 

224,288

 

2022

 

 

-

 

2023

 

 

-

 

2024

 

 

-

 

2025

 

 

-

 

After 2025

 

 

-

 

 

 

$

224,288

 

 

On April 30, 2020, the company obtained a $185,785 Paycheck Protection Program loan. These business loans were established by the 2020 US Federal government Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to help certain businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue paying their workers.

 

The Paycheck Protection Program allows entities to apply for low interest private loans to pay for their payroll and certain other costs. The loan proceeds will be used to cover payroll costs, rent, interest, and utilities. The loan may be partially or fully forgiven if the Company keeps its employee counts and employee wages stable. The program was implemented by the U.S. Small Business Administration. The interest rate is 1.0% and has a maturity date of 2 years. We have applied for loan and interest forgiveness in the fourth quarter of 2020.

 

On May 6, 2021, we received notice from the Paycheck Protection Program that $157,250 of our loan had been forgiven.  As such, we owe the remaining balance of $28,534 which will be repaid by June 30, 2021. See details regarding forgiveness in Footnote 10.