XML 37 R18.htm IDEA: XBRL DOCUMENT v3.20.1
Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 13. Subsequent Events

 

The impact of COVID-19 on the Company is evolving rapidly with events unfolding on a daily and weekly basis. The direct impact to our operations has begun to take affect at the close of the first quarter ended March 31, 2020. Specifically, our business has been impacted by dining bans targeted at restaurants to reduce the size of public gatherings. We have noted restaurant chains have closed operations and furloughed employees which would preclude our single serve products from being served at those establishments for a number of weeks. Furthermore, many school districts have closed regular attendance through the remainder of the school year. This will directly impact the sales of our Bulk Product into that sales channel. Our headquarters, located in Los Angeles, California, were subject to an executive order issued by the Governor of California on March 19, 2020 to “shelter in place.” On May 4, 2020, an executive order informed local health jurisdictions and industry sectors that they may gradually reopen under guidance provided by the State. Our staff resumed a modified schedule in the headquarter office on May 18, 2020. At this point, we have not experienced a disruption in the supply chain for manufacturing our products. The Company applied for and obtained a Small Business Administration loan under the Paycheck Protection Program [PPP] of the CARES Act of approximately $568,000. On June 5, 2020, the President signed a bill which extended the period of loan forgiveness for PPP loans from 8 weeks to 24, which we believe will enable the loan to be completely forgiven. While several states have commenced the process of reopening various types of businesses in staged plans, the path to resuming normal activity volumes is unclear. Consequently, the developments surrounding COVID-19 remain fluid and will require the Company to continue to monitor news headlines from government and health officials, as well as, the business community.