Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Notes Payable

v3.21.1
Note 9 - Notes Payable
 3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Debt Disclosure [Text Block]
9.
Notes Payable
 
First Insurance Funding
 
In
November 2019,
we prepaid
$349,000
of insurance premiums through the issuance of a note payable to First Insurance Funding (“FIF”) with an interest rate of
5.0%.
The note was payable in
eight
monthly installments of
$44,000,
with the final payment made in
July 2020.
 
Interest expense related to the FIF note payable totaled
$3,000
during the
three
-month period ended
March 31, 2020.
 
IPFS Corporation
 
In
November 2020,
we prepaid
$442,000
of insurance premiums through the issuance of a note payable to IPFS Corporation (“IPFS”) with an interest rate of
3.5%.
The note is payable in
seven
monthly installments of
$64,000,
with the final payment due in
June 2021.
 
Interest expense related to the IPFS note payable totaled
$3,000
during the
three
-month period ended
March 31, 2021.
The balance of the IPFS note was approximately
$191,000
as of
March 31, 2021,
and was included in notes payable, current in the consolidated balance sheets.
 
Paycheck Protection Program
 
The CARES Act was enacted on
March 27, 2020.
Among the provisions contained in the CARES Act was the creation of the PPP that provides for SBA loans for qualified small businesses. PPP loan proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves; rent; utilities; and interest on certain other outstanding debt.  On
May 18, 2020,
the Lender funded the PPP Loan to the Company in the amount of
$366,000.
In accordance with the loan forgiveness requirements of the CARES Act, the Company used the proceeds from the PPP Loan primarily for payroll costs, rent and utilities. On
February 23, 2021,
the Lender notified the Company that the entire PPP Loan amount of
$366,000
has been forgiven. See Note
2.
 
Summary
 
During the
three
-month periods ended
March 
31,
2021
and
2020,
we recorded interest expense of
$3,000
in both periods related to our notes payable.