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Debt Obligations
6 Months Ended
Jun. 30, 2021
Debt Obligations  
Note 7. Debt Obligations

Note 7. Debt Obligations

 

During the three months ended June 30, 2021, the Company settled the long-term debt agreement with the PBGC for $200,000 on the outstanding principal of $246,000 and accrued interest of approximately $74,500. During the three months ending September 30, 2021, the PBGC is expected to release the remaining principal and accrued interest owed. The Company will record a gain of approximately $120,500 at that time.

 

During the six months ended June 30, 2021, the Company received proceeds of $299,999 from related parties. The Company issued a short-term note payable to a board member for $100,000. The note bears a 6% interest rate and is due on October 1, 2021. The Company also borrowed $199,000 on the previously disclosed note payable agreement for up to $500,000 with a related party. The note has an interest rate of 7.5% and is due on August 31, 2026. The balance is $449,000 at June 30, 2021.