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Notes Payable
12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Notes Payable

Note 8: Notes Payable


Small Business Administration (“SBA”) Paycheck Protection Program:  On April 17, 2020, the Company received $71,268 in proceeds from the SBA Paycheck Protection Program, which was created under the Coronavirus Aid, Relief and Economic Security Act (CARES).  Under the program, the Company, on December 23, 2020, received forgiveness of the debt from the SBA based on the use of the proceeds over the 24-week period following funding of the loan.  Loan forgiveness was recorded as cancellation of debt income in other operating (income) expense on the consolidated statement of operations.


Although management considers it probable that the Company was initially eligible for the loan and subsequent forgiveness, the SBA has the ability to review the Company’s loan file for a period subsequent to the date the loan was forgiven and could request additional documentation to support the Company’s initial eligibility for the loan and request for loan forgiveness. In the event the SBA subsequently determines the Company did not meet the initial; eligibility requirements for the PPP loan or did not qualify for loan forgiveness, the SBA may pursue legal remedies at its discretion.


SBA Economic Injury Disaster Loan:  On June 5, 2020, the Company received a $3,000 Economic Injury Disaster Loan (“EIDL”) advance and $150,000 in proceeds from the SBA’s EIDL Program.  Installment payments, including interest at the rate of 3.75% per annum, of $731 monthly over thirty years from the date of the promissory note will begin twelve months from the date of the promissory note (June 5, 2021).  The Company granted to the SBA a continuing security interest in all tangible and intangible personal property.  The Company may not make any distribution of assets of the Company to any shareholder without the written consent of the SBA.  As of December 31, 2020, the Company recognized $2,261 of accrued interest on the note.


Dole Food Company:


On August 19, 2020, the Company entered into a Development and Commercialization Agreement (“DCA”) with Dole Food Company (“Dole”) for the development of our banana genes.  The DCA provides for payments from Dole to the Company of $800,000 upon execution, $800,000 by the twelve-month anniversary, $250,000 by the thirty-six month anniversary and $250,000 by the forty-eight month anniversary.  Dole will also reimburse the Company for costs incurred at the University of Wisconsin-Madison (“UW”) not to exceed $2,200,000 in coordination with the Standard Research Agreement that the Company entered into with UW on September 18, 2020 which includes payments from the Company to UW in the amount of $2,159,719 over the two-year expected term of the project.  If the UW research is successful, Dole expects to incur costs of $750,000 to perform field trials.


The DCA also specifies that the Company will execute notes payable to Dole for the funding that Dole is providing up to $5,050,000.  Upon receipt of $800,000 on August 26, 2020 and $1,295,831 on December 29, 2020, the Company executed the notes under this DCA and recorded them as long-term notes payable for financial statement purposes.  The notes are non-interest bearing and allow Dole to offset fifty percent of future royalty payments to the Company by reducing the amount of principal due on these notes.  Other than this offset of future royalty payments, repayment of principal and interest is only required in the case of termination of the DCA by Dole for cause.