Note 5 - Note Payable - PPP Loan

12 Months Ended

Jun. 28, 2020

Notes to Financial Statements

Long-term Debt [Text Block]

5.

NOTE PAYABLE – PPP LOAN

          In

March 2020

the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which is administered by the Small Business Administration was signed into law. The CARES Act established a Paycheck Protection Program (“PPP”) under which qualified businesses could apply for a loan to help fund payroll, rent and related costs. The Company applied for a PPP loan and on

June 1, 2020

received

$1,500,000

under a loan agreement which calls for interest of

1%.

The loan repayment, after a

seven

month deferral, begins

January 1, 2021,

based on a level amortization of principal over a

two

year period and final payment equal to the unpaid principal plus unpaid accrued interest and any other amount owed, is due

June 1, 2022.

Future payments due prior to any forgiveness are

$1,500,000.

All or a portion of payments of principal and interest

may

be forgiven if used for covered, documented payroll costs, rent and utilities. We anticipate applying for loan forgiveness in the

second

quarter of fiscal

2021.

Any amount

not

forgiven will be due at maturity. Any expenses paid with the loan and forgiven will

not

be deductible for federal tax purposes.