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Debt Obligations
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Debt Obligations

NOTE 3. DEBT OBLIGATIONS

 

Debt obligations is comprised of the following:

 

    March 31,
2021		     December 31, 2020  
Economic injury disaster loan (EIDL)   $ 150,000     $ 150,000  
Payroll protection program loan (PPP)     10,000       10,000  
Debt obligations     160,000       160,000  
Less: current maturities of debt obligations     12,234       11,727  
Debt obligations, long-term   $ 147,766     $ 148,273  

 

Debt obligations mature as follows as of March 31, 2021:

 

    March 31, 2021  
2021 (April 1, 2021 to December 31, 2021)   $ 7,602  
2022     6,206  
2023     3,166  
2024     3,286  
2025     3,412  
2026 and thereafter     136,328  
         
Total   $ 160,000  

 

2020 Small Business Administration Notes.

 

On May 4, 2020, the Company issued a promissory note in connection with the receipt of the Paycheck Protection Program (“PPP”) Loan of $1,418,900 (the “PPP Loan”) under the Small Business Administration’s (the “SBA”) PPP Program under the Coronavirus Aid, Relief, and Economic Security Act ( the “CARES Act”). The PPP Loan has a two-year term and bears interest at a rate of 1.0% per annum. Monthly principal and interest payments were deferred for nine months after the date of disbursement and total $79,851 per month thereafter. The PPP Loan could have been prepaid at any time prior to maturity with no prepayment penalties. The promissory note contained events of default and other provisions customary for a loan of this type. The PPP provides that the PPP Loan may be partially or wholly forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. The Company intends to use the majority of the PPP Loan amount for qualifying expenses and to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. The Company used the majority of the PPP Loan amount for qualifying expenses and to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. The Company applied for forgiveness of the PPP Loan and December 10, 2020, the Company was fully forgiven of its $1,418,900 PPP Loan, less the $10,000 EIDL advance received with the PPP Loan.

 

On May 12, 2020, the Company received $150,000 in loan funding from the SBA under the EIDL program administered by the SBA, which program was expanded pursuant to the recently enacted CARES Act. The EIDL is evidenced by a secured promissory note, dated May 8, 2020, in the original principal amount of $150,000 with the SBA, the lender.

 

Under the terms of the note issued under the EIDL program, interest accrues on the outstanding principal at the rate of 3.75% per annum. The term of such note is thirty years, though it may be payable sooner upon an event of default under such note. Monthly principal and interest payments are deferred for twelve months after the date of disbursement and total $731 per month thereafter. Such note may be prepaid in part or in full, at any time, without penalty. The Company granted the secured party a continuing interest in and to any and all collateral, including but not limited to tangible and intangible personal property.