Note 10 - Payroll Protection Program (PPP) Loan

3 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Long-term Debt [Text Block]

NOTE

10

 –

PAYROLL PROTECTION PROGRAM (PPP)

Loan

On

May 6, 2020,

the Company received loan proceeds in the amount of approximately

$381,000

under the Small Business Administration ("SBA") Paycheck Protection Program (“PPP”).  The PPP, will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities, with at least

60%

being used for payroll. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. Principal and interest payments on any unforgiven portion of the PPP will be deferred to the date the SBA remits the borrower's loan forgiveness amount to the lender or, if the borrower does

not

apply for loan forgiveness,

10

months after the end of the borrower's loan forgiveness covered period. This loan has an interest rate of

1%

and a maturity of

2

years, which can be extended to up to

5

years if the Company and lender agree.

No

collateral or personal guarantees were required for the loan.

The Company intends to use the entire PPP proceeds for designated qualifying expenses and to apply for forgiveness of the PPP in accordance with the terms of the PPP.

No

assurance can be given that the Company will obtain forgiveness of the PPP in whole or in part. With respect to any portion of the PPP that is

not

forgiven, the PPP will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults, breaches of the provisions of the PPP note and cross defaults