Note 5 - Paycheck Protection Program ("PPP") Loan

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

5. Paycheck Protection Program (“PPP”) Loan

On May 7, 2020, prior to the Company’s acquisitions, ONTA entered into a loan agreement with Wells Fargo, N.A. in the aggregate amount of $544,842 (the “Loan”), pursuant to the PPP under the CARES Act. The Loan was necessary to support ongoing operations due to the economic uncertainty resulting from the COVID-19 pandemic and lack of access to alternative sources of liquidity.

The Loan is scheduled to mature five years from the date on which ONTA applies for loan forgiveness under the CARES Act, bears interest at a rate of 1% per annum and is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration (“SBA”) under the CARES Act. The PPP provides that the use of the Loan amount shall be limited to certain qualifying expenses and may be partially or wholly forgiven in accordance with the requirements set forth in the CARES Act. ONTA used all of the PPP proceeds toward qualifying expenses.

On September 16, 2021, ONTA received notice from the SBA that the full amount of the loan was forgiven.  The forgiveness of the loan is included as gain on extinguishment of debt on the Consolidated Statements of Operations.