Note 5 - Debt

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 5. DEBT

In February 2020, the Company obtained a general credit and security agreement with a lender, which provides a revolving credit line of up to $500,000 and expires on February 1, 2022, which was subsequently extended through February 1, 2023. The line of credit is collateralized by all receivables, inventory, equipment, and general intangibles of the Company. The Company had no borrowings under the credit line during the year ending December 31, 2021 and 2020. Interest on outstanding borrowing is payable monthly and charged at the Prime Rate, subject to a floor of 3.75%, at December 31, 2021.  

On April 14, 2020, the Company entered into a Promissory Note with Alerus Financial, N.A. (the “Promissory Note”), which provides for an unsecured loan of $473,400 pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act and applicable regulations (the “CARES Act”). Forgiveness of the Promissory Note will be determined in accordance with the provisions of the CARES Act and applicable regulations. The Company used the entire loan amount for designated qualifying expenses and to applied for forgiveness of the loan in accordance with the terms of the PPP on September 16, 2020.  Notice of PPP forgiveness payment was received on December 21, 2020, and accordingly, the Company recognized forgiveness income of $473,400 as other income on the statement of operations during the year ended December 31, 2020. 

On February 8, 2021, the Company entered into a Promissory Note with Alerus Financial, N.A. (the “Promissory Note”), which provided an unsecured loan of $473,400 pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act and applicable regulations (the “CARES Act”). Forgiveness of the Promissory Note will be determined in accordance with the provisions of the CARES Act and applicable regulations. The Company used the entire loan amount for designated qualifying expenses and applied for forgiveness of the loan in accordance with the terms of the PPP on September 28, 2021.  Notice of PPP forgiveness payment was received on October 22, 2021, and accordingly, the Company recognized forgiveness income of $473,400 as other income on the statement of operations during the year ended December 31, 2021.