Long term debt (Notes)

6 Months Ended

Dec. 31, 2020

Paycheck Protection Program ("PPP") loan

On April 27, 2020, the Company entered into a PPP loan for $500,000 in connection with the CARES Act related to COVID-19. $304,664 of the PPP loan is classified as current. The promissory note has a fixed payment schedule. The PPP loan is unsecured. A final payment for the unpaid principal and accrued interest will be payable no later than two years after the funding date. The note will bear interest at a rate of 1.00% per annum. The deferral period for loan payments is either (1) the date that SBA remits the borrower’s loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. Therefore estimated commencing payment date is in ten months after the 24-week covered period. Major portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. No assurance is provided that the Company will in fact obtain forgiveness of the PPP loan in whole or in part. The PPP loan forgiveness application hasn't been submitted.

Economic Injury Disaster ("EIDL") Loan

EIDL is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to the Coronavirus (COVID-19) pandemic. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments. The Company received a $150,000 EIDL loan. The annual interest rate is 3.75%. The payment term is 30 years and the monthly payment of $731 will start on July 1st, 2021.The EIDL loan is secured by the tangible and intangible personal property of the Company. The accrued interest as of December 31, 2020 is $2,813.

The future annual principal amounts to be paid as of December 31, 2020 are as follows:



Year ending June 30,	EIDL Loan Payment
2021(remainder of 2021)	$	234
2022	2,870
2023	2,980
2024	3,094
2025	3,212
Thereafter	137,610
Total	$	150,000

Other Long-term Liabilities

The CARES Act allows employers to defer the deposit and payment of the employer share of Social Security tax that would otherwise be due on or after March 27, 2020, and before January 1, 2021. The Company has deferred approximately $82,000 of the social security tax as of December 31, 2020.