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Subsequent Events
9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

On September 14, 2020, the Company signed an initial agreement for the purchase of an office building to relocate its corporate headquarters, in Irving, Texas, for $3.521 million. The building has approximately 73,000 rentable square feet, and is approximately 70% leased. We closed on the purchase of the building on November 4, 2020. The purchase was partly financed through a $2.96 million, 5 year loan, bearing an annual interest rate of 3.25%, amortized over 20 years, payable to Texas Bank & Trust. The Company will continue to sublet the building to offset the note payments.

 

The coronavirus disease 2019 (COVID-19) pandemic has adversely affected global economic business conditions. Future sales on products like ours could decline due to increased commodities prices, particularly gold. Although we are continuing to monitor and assess the effects of the COVID-19 pandemic, the ultimate impact is highly uncertain and subject to change. We saw an adverse impact on the Company’s sales for the quarter ended June 30, 2020, and the pandemic may have a negative impact on our operations into year 2021. The duration of any such impact cannot be predicted, and the Company believes additional liquidity may be necessary to support ongoing operations during this period of uncertainty. The Company entered into a Federal Loan effective April 20, 2020 with Truist Bank (f/k/a BB&T Bank) as the lender in an aggregate principal amount of approximately $1.67 million pursuant to the Paycheck Protection Program under the Coronavirus Aid Relief, and Economic Security (CARES) Act. Subject to the terms of the note, the Federal Loan bears interest at a fixed rate of 1% per annum, with interest deferred up to 7 months payable monthly thereafter, has an initial term of two years and is unsecured and guaranteed by the Small Business Administration. The loan is intended to pay employees and cover certain rent and utility-related costs during the COVID-19 pandemic. The Federal Loan is forgivable to the extent that certain criteria are met. We will apply for the forgiveness of the Federal Loan during the fourth quarter ending December 31, 2020. There is no assurance that the Company will be granted forgiveness of the Federal Loan.