On May 11, 2020 the Company received loan proceeds in the amount of $2,237,000

under the Paycheck Protection Program (“PPP”). The loans and accrued interest are forgivable after eight weeks, as long as, the Company uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintain its payroll levels. The amount of loan forgiveness will be reduced if the Company terminates employees or reduces salaries during the eight-week period. The unforgiven portion of the PPP loans are payable over two years at an interest rate of

1%,

with a deferral of payments for the first seven months. The Company has begun the process of applying for PPP loan forgiveness in February of 2021, however, the Company cannot guarantee that it will be successful in obtaining forgiveness of the remaining principal amount of the PPP oan. During the three months ended March 31, 2021,

$114,000

related to one PPP loan was forgiven.

 

9,000 over a seven-year amortization including 7% interest, with a maturity date of June 1, 2024.