Long-term Debt (Notes)

12 Months Ended

Jun. 30, 2021

Long-term Debt, Unclassified [Abstract]

7. Long-term debt

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. The PPP loan was unsecured. A final payment for the unpaid principal and accrued interest was payable no later than two years after the funding date. The note had an interest at a rate of 1.00% per annum.The Company submitted the loan forgiveness application on August 2, 2021. The full amount of the PPP loan and accrued interest were forgiven on August 13, 2021. The full amount of the PPP loan was classified as current as of June 30, 2021.

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 $150,000 EIDL loan. The annual interest rate is 3.75%. The payment term is 30 years and the monthly payment is $731 from July 1, 2021. The EIDL loan is secured by the tangible and intangible personal property of the Company.

The future annual principal amounts to be paid as of June 30, 2021 are as follows:



Year ending June 30,	EIDL Loan Payment
2022	$	2,862
2023	2,971
2024	3,084
2025	3,202
2026	3,324
Thereafter	134,557
Total	$	150,000

Other Short-term and 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 June 30, 2021. Approximately $41,000 of the employer payroll tax withholding deferral was included in other short-term liabilities and the remaining half was included in other long-term liabilities.