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Subsequent Events
6 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 14. 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 took 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. Restaurant chains have closed operations and furloughed employees which precludes our single serve products from being served at those establishments. Many school districts closed regular attendance during the 2019-2020 school year and are now debating whether to resume in person instruction for the 2020-2021 school year. This directly impacts the sales of our Bulk Product into that sales channel. Our headquarters is located in Los Angeles, California, one of the hardest affected states. We have not experienced a disruption in the supply chain for the manufacturing of our products. The Company applied for and obtained a Small Business Administration loan under the Paycheck Protection Program [PPP] of the CARES Act for approximately $568,000. On June 5, 2020, the President signed a bill which extended the period of loan forgiveness for PPP loans from 8 to 24 weeks, which we believe will enable the loan to be completely forgiven. While many states have commenced the process of reopening various types of businesses, the path to recovering normal activity volumes is uncertain. Three of the largest states [California, Florida and Texas] have experienced a resurgence of both new cases and fatalities. 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.