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Subsequent Event
6 Months Ended
Mar. 31, 2020
Subsequent Event  
Subsequent Event

 

8. Subsequent Events

 

Paycheck Protection Program Application

 

On May 4, 2020, as a result of the increased costs resulting from, and uncertainty created by, the COVID-19 pandemic and to help ensure adequate liquidity during this period, the Company's wholly-owned subsidiary, Innovative Solutions and Support LLC, a Pennsylvania limited liability, entered into an unsecured loan in the aggregate principal amount of $1,203,900 (the “Loan”) with PNC Bank, National Association under the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration. The PPP is part of the CARES Act (and the related regulatory relief programs) enacted by the U.S. federal government to provide economic relief to U.S. companies impacted by the COVID-19 pandemic. However, since the time of our loan application, additional guidance has been issued by the Small Business Administration and the U.S. Treasury Department that creates uncertainty regarding the qualification requirements for a PPP loan. Out of an abundance of caution and in light of the new guidance, the Company has concluded that it is prudent to repay the Loan. The Company expects that the $1,203,900 in proceeds from the Loan, which were not used by the Company, will be withdrawn from the Company’s account by PNC Bank, National Association by the close of business on the date of this report.