. Debt

	June		December 31
	2020		2019

Revolving line of credit	$	500,000	$	500,000
PPP SBA note		862,000		-
		1,362,000		500,000
Less current portion		833,649		500,000
Total long-term debt	$	528,351	$	-

Revolving

ine of

redit

September 30, 2015,

we entered into a series of lending agreements with our primary lender which included agreements for a term loan and a revolving credit facility. The term loan was repaid in

2018

and the revolver has been periodically amended and extended.

Effective with a

September 11, 2018

amendment, the revolving line of credit's maximum borrowing amount was

$750,000.

The revolver's maturity date was

April 29, 2019

and the revolver's interest rate was based on the

-day LIBOR plus

2.25%.

January 2019,

we borrowed

$500,000

under the revolving line of credit.

Effective with a

March 25, 2019

amendment, the revolving line of credit's maturity date was extended to

April 28, 2020

and the interest rate was revised to the

-day LIBOR plus

3.00%.

As amended, the revolver's maximum borrowing amount remains

$750,000.

April 28, 2020,

our revolving line of credit agreement was extended

six

months to

October 28, 2020

under the same terms and conditions as the expiring agreement. At

June 30, 2020,

outstanding borrowings under the revolving line of credit were

$500,000

at an interest rate of

3.18%.

Borrowings under the lending agreement continue to be secured by all of our tangible and intangible assets and by a mortgage on the real estate of our headquarters facility. At

June 30, 2020,

we were in compliance with our loan covenant requirements.

PPP SBA Note

May 4, 2020,

we executed a promissory note (“SBA Note”) dated

April 20, 2020

in the amount of

$862,000

with our primary lender under the

March 2020

U.S enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act Payroll Protection Program (“PPP”). In accordance with the PPP, we used the loan proceeds of

$862,000

primarily for payroll costs. The PPP SBA Note is scheduled to mature

April 20, 2022

and has an interest rate of

1.0%.

The PPP SBA Note is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act which include:

●

A deferral of principal repayment and interest for

six

months from loan origination, and

●

The opportunity to apply for possible loan forgiveness for some or all of the loan amount.

Our PPP SBA loan forgiveness accounting policy is to recognize, if applicable, any loan forgiveness amounts only when we have applied for loan forgiveness, forgiveness realization is probable, and the forgiveness amount is reasonably determinable. At

June 30, 2020

we have

not

applied for PPP SBA loan forgiveness.