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NOTES PAYABLE | 12 Months Ended
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Jun. 30, 2020
Notes Payable [Abstract] |
NOTES PAYABLE | The Company had the following notes payable obligations at June 30, 2020 and 2019:
Notes Payable: |  | 2020 |  | 2019
Note payable to a bank, due in monthly installments of $29,097 bearing interest at 4.99% due April 1, 2023 secured by related capital equipment |  | $ | 920,754 |  |  | $ | 1,215,922 |
Unsecured Paycheck Protection Program loans which carries an interest rate of 1%. Principle payments begin on November 23, 2020 in the amount of $61,429. |  |  | 1,109,350 |  |  |  |  |
|  | $ | 2,030,104 |  |  | $ | 1,215,922 |
Less current portion notes payable |  |  | (790,108 | ) |  |  | (295,168 | )
|  | $ | 1,239,996 |  |  | $ | 920,754 |
Maturities of notes payable at June 30, 2020 are as follows:
Year ending June 30: |  |
| 2021 |  |  | $ | 790,108 |
| 2022 |  |  | $ | 1,239,996 |
Receipt of Loans under the Economic Injury Disaster Loan Program and the Paycheck Protection Program In response to COVID-19, the SBA is making small business owners eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000 under its Economic Injury Disaster Loan program (the “EIDL”). This advance provides economic relief to businesses that are currently experiencing a temporary loss of revenue. Park City Group also applied for and received the PPP Loan under the Paycheck Protection Program (the “PPP”) under the CARES Act, which was enacted March 27, 2020. The PPP Loan was issued by the Lender in the aggregate principal amount of $1,099,350 and evidenced by a promissory note (the “Note”), dated April 23, 2020 issued by Park City Group to the Lender. The Note matures on April 23, 2022. The Note bears interest at a rate of 1.00% per annum, payable monthly commencing on November 23, 2020, following an initial deferral period as specified under the PPP. As of June 30, 2020, Park City Group had an accrual of $0 for the interest on the PPP Loan. The Note may be prepaid by Park City Group at any time prior to maturity with no prepayment penalties. Proceeds from the PPP Loan will be available to Park City Group to fund designated expenses, including certain payroll costs and other permitted expenses, in accordance with the PPP. Under the terms of the PPP, up to the entire amount of principal and accrued interest of the PPP Loan may be forgiven to the extent that at least 75% of the PPP Loan proceeds are used for qualifying expenses as described in the CARES Act and applicable implementing guidance issued by the SBA under the PPP. Park City Group believes that it has used at least 75% of the PPP Loan amount for designated qualifying expenses and Park City Group plans to apply for forgiveness of the PPP Loan in accordance with the terms of the PPP. No assurance can be given that Park City Group will obtain forgiveness of the PPP Loan in whole or in part. With respect to any portion of the PPP Loan that is not forgiven, the PPP Loan will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults, and breaches of the provisions of the Note and Loan Agreement.

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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- References No definition available. + Details
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