Government and Vendor Notes Payable

12 Months Ended

Dec. 31, 2020

Government Notes Payable [Abstract]

GOVERNMENT AND VENDOR NOTES PAYABLE

NOTE 12 – GOVERNMENT AND VENDOR NOTES PAYABLE

Government and vendor notes payable as of December 31, 2020 and 2019 were comprised of the following:

	Year Ended December 31,
	2020			2019
PPP loans	$	632,826		$	---
Disaster relief loans		450,000			---
Vendor note		51,109			---
Total government and vendor notes payable		1,133,935			---
Less: long term portion		(722,508	)		---
Government and vendor notes payable, current portion	$	411,427		$	---

During May and June 2020, the Company and certain of its subsidiaries received an aggregate of $621,069 in loans under the Paycheck Protection Program (the “PPP”). The Company also acquired a PPP loan in the MOD acquisition with an inception date of April 3, 2020 and a face value of $11,757. The PPP loans, administered by the U.S. Small Business Administration (the “SBA”) and processed through Wells Fargo bank, were issued under the recently enacted Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. The loans bear interest at 1% per annum and mature in May 2022. Principal and interest payments are deferred for the first six months of the loans. Pursuant to the terms of the PPP, principal amounts may be forgiven if loan proceeds are used for qualifying expenses as described in the CARES Act, including costs such as payroll, benefits, employer payroll taxes, rent and utilities. The Company used the proceeds from the PPP loans in accordance with the CARES Act, and as such believes that the PPP loans will be waived when the instituting bank processes the waiver request, which is expected in second quarter 2021.

During June, July and August 2020, the Company and its subsidiaries received an aggregate of $450,000 in Disaster Relief Loans from the SBA. The loans bear interest at 3.75% per annum and mature 30 years from issuance. Mandatory principal and interest payments begin 12 months from the inception date of each loan.

In connection with the October 19, 2020 of MOD, the Company acquired (i) a PPP loan with an inception date of April 3, 2020 and a face value of $11,757, and (ii) a note payable to MOD’s primary product vendor with a remaining principal balance of $79,002 as of the acquisition date that was reduced to $51,109 via repayments as of December 31, 2020. The balance on the vendor note was repaid in full in March 2021.

Interest accrued on government and vendor notes payable as of December 31, 2020 and 2019 was $12,240 and $-0-, respectively. Interest expense on the loans was $12,240 and $-0- for the years ended December 31, 2020 and 2019, respectively.