Note 9 - Payment Protection Program

3 Months Ended

Mar. 31, 2021

Paycheck Protection Program CARES Act [Member]

Notes to Financial Statements

Long-term Debt [Text Block]

9. PAYMENT PROTECTION PROGRAM

On

April 21, 2020,

the Company entered into a promissory note and received a Paycheck Protection Program loan “PPP Loan” from the Small Business Association “SBA”, which was established under the CARES Act. The Company received net proceeds of

$646,000

from the PPP Loan. The term of the PPP Loan is

two

years with an interest rate of

1.00%

per annum, which was deferred for the

first

six

months of the term of the loan or after an application is filed for loan forgiveness, whichever is later. Each monthly payment shall be in the amount which would fully amortize the principal balance outstanding under the PPP Loan. Pursuant to the terms of the CARES Act, the proceeds of the PPP Loan

may

be used for payroll costs, mortgage interest, rent or utility costs. The promissory note of the PPP Loan contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default

may

result in a claim for the immediate repayment of the amount outstanding under the PPP Loan. In late

December 2020,

the Company applied with the SBA for forgiveness of the PPP Loan and was notified on

March 30, 2021

that the SBA had approved our application to forgive the entire amount of the loan and accrued interest. For the

three

months ended

March 31, 2021,

the Company recorded a gain on extinguishment of debt of

$652,000

representing the principal and accrued interest for the PPP Loan.