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Note 7 - Long-term Debt
 3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Long-term Debt [Text Block]
NOTE
7:
         LONG-TERM DEBT
 
The Company has a loan agreement with HSBC which is secured by a mortgage against our Central Islip, NY headquarters. The loan is payable in
120
consecutive equal monthly installments of
$25,000
in principal plus interest and a final balloon payment upon maturity in
March 2022.
The balances as of
March 31, 2021
and
December 31, 2020
were approximately
$2.0
million and
$2.1
million respectively. Interest accrues on the loan, at our option, at the variable rate of LIBOR plus
1.75%
or Prime less
0.5%
(
1.86%
and
1.89%
at
March 31, 2021
and
December 31, 2020,
respectively).
 
On
November 30, 2017,
the Company purchased the premises located at
555
North Research Place, Central Islip, NY. The purchase price of the building was
$13,850,000
exclusive of closing costs. The Company's wholly-owned subsidiary,
555
N Research Corporation (the “Assignee”) and the Islip IDA, entered into a Fee and Leasehold Mortgage and Security Agreement (the ”Loan”) with HSBC in the amount of
$10,387,500,
which was used to finance a portion of the purchase price to acquire the premises located at
555
North Research Place, Central Islip, New York. The Loan was evidenced by the certain note, dated
November 30, 2017 (
the “Note”), by and between Assignee and the Bank, and secured by a certain Fee and Leasehold Mortgage and Security Agreement (the “Mortgage”), dated
November 30, 2017,
as well as a collateral Assignment of Leases and Rents.
 
The Note is payable in
60
consecutive equal monthly installments of
$62,481
including interest and a final balloon payment upon maturity in
December 2022.
The balance outstanding as of
March 31, 2021
and
December 31, 2020
were approximately
$9.2
million and
$9.3
million respectively. The Note bears interest for each Interest Period (as defined in the Note), at the fixed rate of
3.9148%.
As a condition of the Bank making the Loan, the Company was required to guaranty Assignee's obligations under the Loan pursuant that certain Unlimited Guaranty, dated
November 30, 2017 (
the “Guaranty”). As of
March 31, 2021,
the full amount of this Note is recorded as Liabilities Held For Sale (see Note
8
).
 
On
August 5, 2019,
the Company entered into a Mortgage Modification Agreement which replaced the former covenant with a Minimum Liquid Assets (“MLC”) covenant, and on
October 22, 2020,
the Company entered into a Second Mortgage Modification Agreement modifying certain MLC balances. The Company is in compliance with its financial covenant under the mortgage at
March 31, 2021.
 
On
April 21, 2020,
the Company entered into a loan agreement (the “Loan Agreement”) with HSBC Bank USA, National Association pursuant to which the Company was granted a loan in the principal amount of
$2,415,970,
pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted by the United States Congress on
March 27, 2020.
 
The PPP loan, the obligation of which is represented by a note issued by the Company, matures on
April 21, 2022
and bears interest at a rate of
1%
per annum. The note
may
be prepaid by the Company at any time prior to maturity with
no
prepayment penalties. Under the terms of the PPP, all or a portion of the Loan
may
be forgiven, based upon payments made in the
first
twenty-four
weeks following receipt of the proceeds, related to payroll costs, continue group health care benefits, utilities and mortgage interest on other debt obligations incurred before
February 15, 2020.
The Company has filed an application for forgiveness in
April 2021,
and anticipates all or substantially all of the PPP loan to be forgiven.