Long term debt (Notes)

9 Months Ended

Mar. 31, 2022

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 promissory note had a fixed payment schedule. 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 bore 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 and was included in other income in the unaudited condensed consolidated statement of operations for the nine-month period ended March 31, 2022.

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 started on July 1st, 2021. The EIDL loan is secured by the tangible and intangible personal property of the Company. The Company submitted an EIDL loan increase application on May 6, 2022, increasing the loan amount from $150,000 to $200,000. The loan modification is being proceed.

The future annual principal amounts to be paid as of March 31, 2022 are as follows:



Year ending June 30,	EIDL Loan Payment
2022(remainder of FY 2022)	$	725
2023	2,971
2024	3,084
2025	3,202
2026	3,324
Thereafter	140,123
Total	$	153,429

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 had deferred approximately $82,000 of the social security tax. 50% of the deferred employment taxes was paid before December 31, 2021. The remaining 50% is not due until December 31, 2022. Approximately $41,000 was reported as short-term other liabilities as of March 31, 2022.