Note 12 - Paycheck Protection Program Loan

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

12.

Paycheck Protection Program loan

Our PPP Loan is evidenced by a promissory note, dated as of

April 7, 2020 (

the “Note”), between us and JPMorgan Chase Bank, N.A. (the “Lender”). The Note has a

two

-year term, bears interest at the rate of

0.98%

per annum, and

may

be prepaid at any time without payment of any premium.  

No

payments of principal or interest are due during the

six

-month period beginning on the date of the Note (the “Deferral Period”).  The principal and accrued interest under the Note is forgivable after

eight

weeks if we use the PPP Loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and otherwise comply with PPP requirements. In order to obtain forgiveness of the PPP Loan, we must submit a request and provide satisfactory documentation regarding our compliance with applicable requirements.  We must repay any unforgiven principal amount of the Note, with interest, on a monthly basis following the Deferral Period.  We intend to use the proceeds of the PPP Loan for eligible purposes and to pursue forgiveness, although we

may

take action that could cause some or all of the PPP Loan to become ineligible for forgiveness.

The Note contains customary events of default relating to, among other things, payment defaults and breaches of representations, warranties, or covenants.  The occurrence of an event of default

may

result in the repayment of all amounts outstanding, collection of all amounts owing from us, or filing suit and obtaining judgment against us.

At

June 30, 2020

 and

December 31, 2019

, the PPP Loan balance was as follows (in thousands):

	June 30, 2020		December 31, 2019
PPP Loan, .98%, due April 2022:
Principal	$	1,572	$	-
Accrued interest		4		-
	$	1,576	$	-
PPP Loan payable:
Current portion	$	695
Long-term portion		881
	$	1,576	$	-