Note 11 - Coronavirus Outbreak in the United States

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Contingencies Disclosure [Text Block]

11

. Coronavirus Outbreak in the United States

Uncertainties surrounding the effects of the coronavirus, particularly potential diversion of time and resources of federal government entities which make up a significant concentration of our customer base, could cause a material adverse effect on our results of operations and financial results. The extent of the impact of COVID-

19

on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on our customers, employees and vendors all of which are uncertain and cannot be predicted. A material disruption in our workplace as a result of the coronavirus could affect our ability to carry on our business operations in the ordinary course and

may

require additional cost and effort should our employees

not

be able to be physically on-premises.

On

March 27, 2020,

the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which includes provision for a Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”). The PPP allows qualifying businesses to borrow up to

$10

million calculated based on qualifying payroll costs. PPP loans bear a fixed interest rate of

1%

over a

two

-year term, are guaranteed by the federal government, and do

not

require collateral. The loans

may

be forgiven, in part or whole, if the proceeds are used to retain and pay employees and for other qualifying expenditures. The Company has applied for a PPP loan in the amount of

$629

thousand, which was approved by the SBA on

April 30, 2020.

The Company expects to use the full proceeds of the PPP loan in accordance with the provisions of the CARES Act.