Note 10 - Subsequent Events

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

1 0 . Subsequent Events

During the

first

quarter of

2020,

government offices throughout the United States and around the world issued shelter in place orders due to the global outbreak of the COVID-

19

virus. On

March 27, 2020,

the President of the United States signed into law the Families First Coronavirus Response Act and

two

phases of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act which are intended to provide emergency assistance to individuals and business affected by COVID-

19.

The CARES Act includes a small business stimulus program, Paycheck Protection Program (“PPP”), which is intended to provide loans to qualified businesses to guarantee

eight

weeks of payroll and other identified costs which

may

be eligible for partial or full forgiveness.

In

April 2020,

the Company successfully secured a

$189,228

Small Business Association (“SBA”) loan under the Payroll Protection Program to secure payroll expenses for otherwise furloughed employees impacted by government imposed shelter in place orders. Per the terms of the loan, the full amount

may

be forgiven as long as loan proceeds are used to cover payroll costs and other specified non-payroll costs (provided any non-payroll costs do

not

exceed

40%

of the forgiven amount) over a

24

-week period after the loan is made; and employee and compensation levels are maintained. In the event the Company is required to repay the loan, all payments are deferred for

10

months with accrued interest over this period. Amounts outstanding under the loan bear a fixed interest rate of

1.00%

per annum with a maturity date of

2

years from commencement date. The Company has

not

yet applied for loan forgiveness.

In

April 2020,

the Company executed a

$25,000

non-interest bearing loan with a maturity date of

April 16, 2021

with Savings Bank of Mendocino County.