Debt and Liabilities

6 Months Ended

Jun. 30, 2020

NOTE 4 – DEBT AND LIABILITIES

Accrued Liabilities

A summary of accrued liabilities as of June 30, 2020 and December 31, 2019 is as follows:

	2020		2019
Accrued payables	$	558,353	$	394,896
Driver deposit		146,801		161,601
Deferred rent		88,920		98,000
Payroll liabilities		—		161,113
Other accrued liabilities		—		88,302
Accrued liabilities	$	794,074	$	903,912

Note Payable

On April 13, 2020, the Company entered into a loan with JPMorgan Chase Bank, N.A. as the lender (“Lender”) in an aggregate principal amount of $2,004,175 pursuant to the Paycheck Protection Program ("PPP") under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a promissory note (“Note”). Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1%) per annum, with the first six months of interest deferred, has an initial term of two years, and is unsecured and guaranteed by the Small Business Administration. The Company may apply to the Lender for forgiveness of the PPP Loan, with the amount which may be forgiven equal to the sum of payroll costs, covered rent, and covered utility payments incurred by the Company during the eight-week period beginning on April 13, 2020, calculated in accordance with the terms of the CARES Act. The Note provides for customary events of default including, among other things, cross-defaults on any other loan with the Lender. The PPP Loan may be accelerated upon the occurrence of an event of default.

As of June 30, 2020, the PPP note payable is $1,999,175. The loan proceeds were used for payroll, covered rent and other covered payments and is expected to be forgiven based on current information available.