XML 34 R24.htm IDEA: XBRL DOCUMENT

NOTES PAYABLE

3 Months Ended

Mar. 31, 2021

18. NOTES PAYABLE

Notes Payable at March 31, 2021 and December 31, 2020, are comprised of the following:

	March 31, 2021			December 31, 2020
Esousa purchased notes	$	—		$	200,000
Short-term notes payable		1,087,491			1,088,899
Notes payable to Wells Fargo		174,290			182,615
Note payable to Dept. of Economic and Community Development		185,546			196,597
Paycheck Protection Program Loans		447,201			1,162,302
SBA Economic Injury Disaster Loan		150,000			150,000
Short term bank credit		429,195			1,404,096
Total notes payable	$	2,473,723		$	4,384,509
Less: current portion		(2,154,676	)		(4,048,009	)
Notes payable – long-term portion	$	319,047		$	336,500

Master Exchange Agreement

On February 10, 2020, the Company entered into a master exchange agreement (the “Master Exchange Agreement”) with Esousa Holdings, LLC (“Esousa” or the “Creditor”) which acquired certain promissory notes that had been previously issued by the Company. During January 2021, the Company issued to the investor an aggregate of 183,214 shares of the Company’s common stock upon the exchange of principal and interest in the amount of $200,000 and $15,948, respectively. A loss on extinguishment of $234,000 was recognized on the issuance of common stock based on the fair value of the Company’s common stock at the date of the exchanges.

Paycheck Protection Program

During April 2020, the Company received loans under the Paycheck Protection Program (“PPP”) in the principal amount of $715,000 and the Company’s majority owned subsidiary, Microphase, received loans in the principal amount of $467,000. The principal of the loan may be forgiven up to the total cost of payroll, mortgage interest payments, rent and utility payments made during the eight-week period after origination. On January 11, 2021, the Company received forgiveness in the principal amount of $715,000. The Company expects the remaining amount received under the PPP shall also be forgiven.