Notes Payable and Other Liabilities

12 Months Ended

Dec. 31, 2021

Notes Payable and Other Liabilities

Notes Payable and Other Liabilities

9. Notes Payable and Other Liabilities

Paycheck Protection Program

On April 7, 2020, the Company applied for a loan from ServisFirst Bank, as lender, pursuant to the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) as administered by the U.S. Small Business Administration (the "SBA"). On April 13, 2020, the Loan was approved and the Company received the proceeds from a loan in the amount of $632,000 (the “PPP Loan”).

The PPP Loan, which took the form of a promissory note (the “Promissory Note”), was set to mature on April 7, 2022 and bore interest at a rate of 1% per annum. Monthly principal and interest payments, less the amount of any potential forgiveness, was to commence on November 7, 2020. All or a portion of the Loan may have been forgiven by the SBA and lender upon application by the Company upon documentation of expenditures in accordance with the SBA requirements. On July 21, 2020, the Company voluntarily extinguished the Promissory Note by paying the outstanding principal and accrued interest in cash.

The Company’s other long-term liabilities are summarized as follows:

	December 31,
	2021		2020
Lease obligation, long-term portion (see Note 6)	$	1,123,662	$	1,468,124
Conditional economic incentive grants		250,000		250,000
Other		80,541		110,319
Total other long-term liabilities	$	1,454,203	$	1,828,443

Economic Incentive Grants

The Company has two conditional economic incentive grants for a total of $250,000 from Montgomery County, Maryland and the State of Maryland. The Montgomery County grant was received in May 2018, with a term expiring on February 28, 2028. The State of Maryland grant was received in October 2019, with a 10-year term expiring on December 31, 2029. These grants are conditional primarily based on the Company maintaining its current headquarter locations in addition to employing a required number of employees at different reporting dates through the term of the grants. The Company is accruing 3% interest on both grants and has recorded $7,563 and $7,583 in interest expense for the years ended December 31, 2021 and 2020, respectively.