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12. DEBT

9 Months Ended

Jun. 30, 2020

NOTE 12

DEBT

On April 1, 2016, IPS entered into a term loan with a lender in the amount of $325,000. The loan matured on April 1, 2020 and bore interest at a rate of 4.215% per annum. Interest and principal of $7,378 were paid on a monthly basis through maturity. This loan was secured by all of IPS’ assets and was guaranteed by the Company. The outstanding balance at September 30, 2019 was $52,000. The loan was paid off in April 2020 per the agreement and therefore there is no remaining balance for this loan on the balance sheet at June 30, 2020.

On December 11, 2017, IPS entered into an installment payment financing arrangement with a lender in the amount of $23,000. IPS made monthly payments of $1,035, which included an implied interest rate of 9.5%, for 24 months. The last payment was made in December 2019. The loan balance was $0 and $3,000 at June 30, 2020 and September 30, 2019, respectively.

On April 18, 2020, the Company entered into a loan in an aggregate principal amount of $1,357,000 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 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 November 18, 2020 until maturity 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 subject to forgiveness in accordance with the terms of the CARES Act. The application is subject to review by the Small Business Administration. We have accounted for these proceeds as a loan and the current and long- term portions of $597,000 and $760,000, respectively, are included in the corresponding categories of notes payable on the condensed consolidated balance sheets.