DEBT |
12 Months Ended |
|---|---|
Jun. 30, 2022 | |
| Debt Disclosure [Abstract] | |
| Debt Disclosure [Text Block] | NOTE 2 – DEBT
A former board member, Silas O. Kines, who passed away on January 11, 2012, was also the principal owner of Forklift Tire of Florida and K-2 Industrial Tire, Inc. In accordance with the Commission Agreement with Forklift Tire of Florida, dated February 2, 2011, between Amerityre Corporation and K-2 Industrial Tire, Inc., K-2 is due a five percent (5%) commission on all forklift tire sales. In exchange for the forklift models transferred to Amerityre under that agreement, the first $96,000 in commission payments will be used to extinguish the long-term liability recorded on the transaction. As of June 30, 2022, $2,000 and $60,713 (2021, $2,000 and $61,326) were recorded for the current and long-term portion, respectively, of the related liability.
In April 2020, the Company secured a loan from the Small Business Administration Paycheck Protection Program. The loan amount was $149,570 and had a term of 2 years at 1% interest. In November 2020, the Company received full forgiveness by the Small Business Administration.
In February 2020, the Company secured a $50,000 line of credit with a local community bank. The Company drew down from this line of credit for the first time in February 2022 due to a late customer payment. The amount borrowed was paid back in full in March 2022. As of March 31, 2022, the Company also negotiated to increase the line from $50,000 to $100,000 and reduce the floor rate of variable interest from 5.75% to 4.50%. This variable interest is indexed to the Wall Street Journal West Coast Edition Prime Rate. |