Note 8 - Note Payable

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

8

 — NOTE PAYABLE 

  

On

April 27, 2020,

the Company, was granted a loan (the “Loan”) from Savoy Bank in the aggregate amount of approximately

$276,000,

pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted

March 27, 2020.

The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to

2.5

times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after

seven

weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the

eight

-week period.

 
The Loan matures on

April 27, 2022

and bears interest at a rate of

1.00%

per annum, payable monthly commencing on

November 26, 2020.

The Note is due

April 27, 2022

in a balloon payment if the loan is

not

forgiven. The Note

may

be prepaid by the Borrower at any time prior to maturity with

no

prepayment penalties. Funds from the Loan

may

only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations originating before

February 15, 2020.

The Company used the entire Loan amount for qualifying expenses.

On

May 7, 2021,

the Company has been notified that approximately

$201,000

in eligible expenditures for payroll and other expenses described in the CARES Act has been forgiven. The company still  has pending loan forgiveness application for

$75,000.