Note 8 - Notes Payable

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

8. Notes Payable

Due to the coronavirus uncertainty and staffing and payroll cuts that were being considered in early 2020 due to liquidity constraints, the Company applied for a Paycheck Protection Program loan, guaranteed by the SBA. The Company was funded by its lender on April 20, 2020, in the amount of $450,000. The loan accrues interest at a fixed rate of 1% and has a term of two years. The first payment is deferred until the date the SBA remits the Company’s loan forgiveness amount to the lender, though interest accrues during the deferral period. The loan has been used exclusively to support maintaining employee payroll and benefits. The Company began making principal and interest payments in August 2021 while also continuing to pursue its application for loan forgiveness. On, October 6, 2021, the Company was notified that its lender had approved the full amount of $450,000 for forgiveness, and the forgiveness package had been submitted to the SBA for final approval. The SBA may take up to 90 days to complete their review of the submission. The Company expects its application for loan forgiveness to be resolved during the fourth quarter of 2021.

In conjunction with the Tellenger acquisition, on April 16, 2021, the Company and Tellenger jointly procured a $1 million term loan (“Term Loan”) with Summit Community Bank to assist with post-acquisition cash flow and integration costs. The loan is payable in monthly installments consisting of a fixed principal amount plus accrued interest over the course of two years at a fixed interest rate of 4.89%. The loan is collateralized by a security interest in substantially all the assets of both companies.

To provide additional net working capital support, the Company borrowed $150,000 from the sellers of Tellenger for a period of 90 days from the closing date of April 7, 2021, without interest accumulation. The sellers were repaid in July 2021.

The following table represents note payable balances at September 30, 2021 and December 31, 2020:

	September 30, 2021			December 30, 2020
PPP loan	$	406,484		$	450,000
Term loan		791,667			-
Total		1,198,151			450,000
Less current portion		(797,295	)		(93,009	)
Non-current portion	$	400,856		$	356,991

	Notes Payable Payment Schedule
	Term Loan		PPP Loan		Total
Remainder of 2021	$	125,000	$	74,045	$	199,045
2022		500,000		298,039		798,039
2023		166,667		34,400		201,067
Total payments	$	791,667	$	406,484	$	1,198,151