XML 42 R18.htm IDEA: XBRL DOCUMENT v3.20.1
Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 11. Subsequent Events

 

Sales Pursuant to FBR At Market Issuance Sales Agreement

 

From April 1, 2020 through May 8, 2020, the Company issued 798,245 shares of common stock pursuant to the FBR Sales Agreement at a weighted average price of $1.64 per share for total proceeds of $1,308,948.

 

CARES Act Loan

 

On April 13, 2020, the Company was advised that one of its principal banks, JP Morgan, had approved a $417,830 loan (the "Loan") under the Paycheck Protection Program ("PPP") pursuant to the Coronavirus Aid, Relief and Economic Security Act that was signed into law on March 27, 2020.

 

As a U.S. small business, the Company has qualified for the PPP, which allows businesses and nonprofits with fewer than 500 employees to obtain loans of up to $10 million to incentivize companies to maintain their workers as they manage the business disruptions caused by the COVID-19 pandemic. The PPP provides for loans for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The PPP loan proceeds may be used for eligible purposes, including payroll, benefits, rent and utilities.

 

The Loan, has a term of two years, is unsecured, and is guaranteed by the Small Business Administration. The Loan bears interest at a fixed rate of one percent per annum, with the first six months of interest and principal deferred. Some or all of the Loan may be forgiven if at least 75 percent of the Loan proceeds are used by the Company to cover payroll costs, including benefits and if the Company maintains its employment and compensation within certain parameters during the eight-week period following the Loan origination date and complies with other relevant conditions. The Company intends to use the proceeds for purposes consistent with the PPP and expects to meet the conditions for forgiveness of the Loan.