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15. SUBSEQUENT EVENTS
6 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 15          SUBSEQUENT EVENTS

 

On April 18, 2020, the Company entered into a loan with TD Bank, N.A. in an aggregate principal amount of approximately $1.4 million under the Paycheck Protection Program (the “PPP Loan”) pursuant to the recently enacted U.S. Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The loan matures two years from the date of the note on April 18, 2022 and bears an interest rate of 1.00% per annum. The Company must pay monthly principal and interest payments on the outstanding principal balance of the PPP Loan amortized over the term of the loan beginning seven months from the month this Note is dated until the Maturity Date when the entire principal balance remaining unpaid, along with all accrued and unpaid interest, shall be due and payable in full. This loan is unsecured, and the Company may apply for forgiveness of the loan in accordance with the terms of the CARES Act. Subsequent to receiving the loan, the Company amended the loan application to address certain inconsistencies. The application is subject to review by the Small Business Administration.

 

The Company has entered into a non-binding letter of intent to acquire all of the assets of a design-development company focused on products in the medical industry, for consideration of cash, assumption of liabilities and stock in the aggregate of up to approximately $1.5 million.  The Company can provide no assurance that the transaction will close and, if so, it will close on the terms disclosed herein.