Note 11 - Paycheck Protection Program (PPP) Loan

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

11. Paycheck Protection Program (PPP) loan

We obtained a $1.5 million loan (the "PPP Loan") from JPMorgan Chase Bank, N.A. (the “Lender”) under the Paycheck Protection Program ("PPP") on April 7, 2020 (the “Note”). The Note had a two-year term, bore interest at the rate of 0.98% per annum, and could be prepaid at any time without payment of any premium or penalty. The principal and accrued interest under the Note was forgivable after an eight- or 24-week period if we used the PPP Loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and otherwise comply with PPP requirements. In April 2021, we applied for forgiveness of this loan in accordance with the program, and in June 2021, we received confirmation that the loan principal (and related accrued interest) was forgiven in its entirety. The gain on loan forgiveness is included in other income (loss), net on the statement of operations for the three and six months ended June 30, 2021, and as a gain on extinguishment of debt in the statement of cash flows for the six months ended June 30, 2021.

At June 30, 2021 and December 31, 2020, the PPP Loan balance was as follows (in thousands):

	June 30, 2021		December 31, 2020
PPP Loan, .98%, due April 2022:
Principal	$	-	$	1,572
Accrued interest		-		12
	$	-	$	1,584
PPP Loan payable:
Current portion	$	-		950
Long-term portion		-		634
	$	-	$	1,584