XML 22 R12.htm IDEA: XBRL DOCUMENT

LOANS PAYABLE

6 Months Ended

Jun. 30, 2021

NOTE 6 - LOANS PAYABLE

Term Loans

We have outstanding balances of $64,618 and $77,040 pursuant to two term loans as of June 30, 2021 and December 31, 2020, respectively, which mature in 2023. The loans have variable interest rates, with current rates at 6.0% and 7.76%, respectively. Current monthly payments under the loans are $1,691 and $1,008, respectively.

One of the term loans is a Small Business Administration (“SBA”) loan. As a result of the COVID-19 uncertainty, the SBA has paid the loan for February and March 2021. The SBA made payments on our behalf of $3,382 during the three months ended June 30, 2021, which have been recorded as grant income in the financial statements. These payments were applied $2,992 to principal and $390 to interest expense for the three months ended June 30, 2021.

The status of these loans as of June 30, 2021 and December 31, 2020 are summarized as follows:

	June 30, 2021			December 31, 2020
Term loans	$	64,618		$	77,040
Less current portion		(30,653	)		(28,249	)
Non-current portion (excluding PPP loan discussed below)	$	33,965		$	48,791

Future principal payments under the term notes are as follows:

Year Ending December 31,

2021	$	15,770
2022		30,133
2023		18,715
Total minimum principal payments	$	64,618

Our Chief Operating Officer, who is also a shareholder, has personally guaranteed the loans described above.

Paycheck Protection Program Loan

During 2021 our remaining loan pursuant to the Paycheck Protection Program under the CARES Act in the amount of $24,750 was forgiven. We recorded forgiveness of debt income of $24,925 for the $24,750 of principal and $175 of related accrued interest forgiven.