11. Small Business Administration Loans and Grant	6 Months Ended
Jun. 30, 2020
Notes
11. Small Business Administration Loans and Grant	11. Small Business Administration Loans and Grant On April 10, 2020, the Company received a loan of $358,346 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 10, 2020 matures on April 9, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on October 9, 2020. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. On May 19, 2020 the Company received a loan of $149,900 pursuant to the Small Business Act Section 7(b). The loan which was in the form of a Note dated May 16, 2020 matures May 16, 2050 and bears interest at a rate of 3.75% per annum. Payments of $731 are due monthly and will begin twelve months from the date of the Note. At June 30, 2020, total accrued interest on the two loans is $1,471 which is included in the current portion of the consolidated balance on the consolidated balance sheet. Under the terms of both loans, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. Qualifying expenses include payroll costs, costs used to continue group health care benefits, mortgage payments, rent, and utilities. The Company intends to use the entire loan amount for qualifying expenses, but there is no guarantee that the loan will be forgiven. Amendments to the CARES Act have modified repayment terms with payments beginning in August 2021. Management believes that it is unlikely that the balance of $187,996 shown as current on the consolidated balance sheet will be paid before June 30, 2021 but have chosen to present as current to reflect the provisions of the related Notes. During the three months ended June 30, 2020, the Company received $10,000 under Division A, Title I, Section 1110 of the CARES Act. The Company is not required to pay this amount back and thus recognized $10,000 as government grant income during the period.

11. Small Business Administration Loans and Grant

6 Months Ended

Jun. 30, 2020

11. Small Business Administration Loans and Grant

11. Small Business Administration Loans and Grant

On April 10, 2020, the Company received a loan of $358,346 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 10, 2020 matures on April 9, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on October 9, 2020. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties.

On May 19, 2020 the Company received a loan of $149,900 pursuant to the Small Business Act Section 7(b). The loan which was in the form of a Note dated May 16, 2020 matures May 16, 2050 and bears interest at a rate of 3.75% per annum. Payments of $731 are due monthly and will begin twelve months from the date of the Note.

At June 30, 2020, total accrued interest on the two loans is $1,471 which is included in the current portion of the consolidated balance on the consolidated balance sheet.

Under the terms of both loans, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. Qualifying expenses include payroll costs, costs used to continue group health care benefits, mortgage payments, rent, and utilities. The Company intends to use the entire loan amount for qualifying expenses, but there is no guarantee that the loan will be forgiven.

Amendments to the CARES Act have modified repayment terms with payments beginning in August 2021. Management believes that it is unlikely that the balance of $187,996 shown as current on the consolidated balance sheet will be paid before June 30, 2021 but have chosen to present as current to reflect the provisions of the related Notes.

During the three months ended June 30, 2020, the Company received $10,000 under Division A, Title I, Section 1110 of the CARES Act. The Company is not required to pay this amount back and thus recognized $10,000 as government grant income during the period.