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NOTES PAYABLE

9 Months Ended

Sep. 30, 2021

20. NOTES PAYABLE

Notes payable at September 30, 2021 and December 31, 2020, were comprised of the following:

	Interest Rate		Due Date		September 30, 2021			December 31, 2020
Esousa purchased notes					$	-		$	200,000
Short-term notes payable		12.0%		Past Due		660,000			1,089,000
Notes payable to Wells Fargo						-			183,000
Note payable to Dept. of Economic and Community Development						-			196,000
Paycheck Protection Program Loans						-			1,162,000
SBA Economic Injury Disaster Loan						-			150,000
Short-term bank credit		3.9%		2021		1,037,000			1,404,000
Total notes payable					$	1,697,000		$	4,384,000
Less: current portion						(1,697,000	)		(4,048,000	)
Notes payable – long-term portion					$	-		$	336,000

Master Exchange Agreement

On February 10, 2020, the Company entered into a master exchange agreement (the “Master Exchange Agreement”) with Esousa Holdings, LLC (“Esousa”) which acquired certain promissory notes that had been previously issued by the Company. During January 2021, the Company issued to Esousa an aggregate of 183,214 shares of the Company’s common stock upon the exchange of principal and interest in the aggregate amount of $216,000. 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. On January 11, 2021, the Company received forgiveness in the principal amount of $715,000. On May 20, 2021, Microphase received forgiveness in the principal amount of $467,000.