Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt

Debt consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
PPP Loan Principal	$	2,417	$	2,417
Less: current maturities	—		2,014
Long-term obligations, net of current maturities	$	2,417	$	403

Paycheck Protection Program Loan

On April 10, 2020 (the “Origination Date”), the Company received $2,417,000 in aggregate loan proceeds (the “PPP Loan”) from MidFirst Bank (the “Lender”) pursuant to the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a Promissory Note (the “Note”), dated April 10, 2020, by and between the Company and the Lender. Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1.0%) per annum. Payments of principal and interest are deferred for the first six months following the Origination Date. The PPP Loan is unsecured and guaranteed by the U.S. Small Business Administration (the “SBA”).

The PPP provides for forgiveness of up to the full amount borrowed as long as the Company uses the loan proceeds during the 24-week period following disbursement for eligible purposes as described in the CARES Act and related guidance. In May 2021, the Company submitted an application to the Lender for full forgiveness of the PPP Loan and, as of June 30, 2021, the application was under review by the SBA. On July 28, 2021, the Company received notice that the PPP Loan had been forgiven in its entirety.

As of December 31, 2020, the Company accounted for payments that are due within 12 months of the balance sheet date as current liabilities and payments due thereafter as non-current liabilities. As of June 30, 2021, the remaining principal balance on the Note was $2,417,000 and $27,000 of interest has been accrued. As no payments will be made on the PPP Loan, due to the forgiveness notice received on July 28, 2021, we have classified the entire balance as long term as of June 30, 2021. Since the PPP Loan was forgiven in its entirety (including the principal balance and accrued interest), the Company will recognize other income as of the date of forgiveness, during the three months ended September 30, 2021, for the extinguishment of the PPP Loan.