XML 30 R15.htm IDEA: XBRL DOCUMENT

Notes Payable

12 Months Ended

Mar. 31, 2022

Note 8 — Notes Payable

The Company’s notes payable at March 31, 2022 and 2021 were as follows (in thousands):

	March 31,			March 31,
	2022			2021
Senior promissory note	$	-		$	351
SBA loan		160			153
PPP loans		-			3,110
		160			3,614
Less: Current portion of Notes payable		(12	)		(2,729	)
Notes payable	$	148		$	885

Senior Promissory Note

On December 31, 2014, the Company converted accounts payable into a Promissory Note (the “Note”) in the aggregate principal amount of $0.2 million. As of March 31, 2022 the promissory note and related Delaware and California judgments have been satisfied in full.

SBA Loan

On June 17, 2020, the Company received the proceeds from a loan in the amount of less than $0.2 million from the SBA. Installment payments, including principal and interest, begin 12-months from the date of the promissory note. The balance is payable 30-years from the date of the promissory note, and bears interest at a rate of 3.75% per annum. The Company was in compliance with all debt covenants associated with the SBA loan as of March 31, 2022.

PPP Loans

In April 2020, the Company received proceeds of $2.0 million from a PPP loan. In April 2021, the Company received confirmation from the SBA that the entire balance of such PPP loan was forgiven as a result of the Company’s application and acceptance under the terms of the CARES Act. On July 1, 2020, the Company acquired PodcastOne that had previously obtained a PPP loan, which had a balance of $0.5 million as of March 31, 2021. On May 11, 2021, the Company received confirmation from the SBA that the entire balance of such PPP loans were forgiven as a result of the Company’s application and acceptance under the terms of the CARES Act.

On March 20, 2021, the Company received proceeds of $0.6 million from a second loan (the “Second PPP loan”) under the PPP of the CARES Act, which the Company intends to use to retain employees and for other qualifying expenses. The Second PPP Loan matures on March 20, 2026 and bears annual interest at a rate of 1.0%. In March 2022, the Company received confirmation from the SBA that the entire balance of the Second PPP loan was forgiven as a result of the Company’s application and acceptance under the terms of the CARES Act.

The Company recognized a $3.1 million gain on forgiveness of PPP loans, included in total other expense, net in the accompanying consolidated statement of operations as a result of the balance of PPP loans forgiven during the year ended March 31, 2022.