Note P - Subsequent Event

9 Months Ended

Mar. 27, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

P. Subsequent Event

On

March 27, 2020,

the U.S. government signed the CARES Act, which included the establishment of a liquidity facility program called the Paycheck Protection Plan (“PPP’) in the total program amount of

$349

billion in forgivable loans to qualified businesses. Loan amounts are forgiven to the extent proceeds are used to cover documented payroll, mortgage interest, rent, and utility costs over an

eight

-week measurement period following loan funding.

On

April 17, 2020,

the Company entered into a promissory note (the “Note”) evidencing an unsecured loan in the amount of

$8,200

(the “Loan”) made to the Company under the PPP. The Loan to the Company is being administered by BMO Harris Bank N.A. The Loan has a

two

-year term and bears interest at a rate of

1.0%

per annum.  Monthly principal and interest payments are deferred for

six

months. Beginning

November 17, 2020,

seven

months from the date of the Note, the Company is required to make monthly payments of principal and interest.

In connection with the Loan, the Company entered into a

fourth

amendment to the Credit Agreement. This amendment: (

1

) permits the Company to incur indebtedness in the form of the Loan notwithstanding the Credit Agreement’s restrictions limiting the Company’s ability to incur indebtedness, and (

2

) provides that the Loan (to the extent that the Loan is forgiven) shall be disregarded for purposes of calculating financial covenants in the Credit Agreement. Any unforgiven portion of the Loan and the interest thereon will

not

be disregarded for purposes of calculating the covenants.