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Subsequent Events
9 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

20. Subsequent Events

 

On April 16, 2020, the Company entered into an unsecured loan with TCF National Bank in an aggregate principal amount of $2.5 million (the “PPP Loan”), pursuant to the “PPP” under the “CARES Act”.

 

The PPP Loan is evidenced by a promissory note (the “Note”) dated April 16, 2020. The PPP Loan matures two years from the disbursement date and bears interest at a rate of 1.000% per annum, with the first six months of interest deferred. Principal and interest are payable monthly commencing six months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties.

 

Under the terms of the CARES Act, PPP loan recipients can apply for forgiveness for all or a portion of loans granted under the PPP which is dependent upon the Company having initially qualified for the loan. Furthermore, the loans issued under PPP are subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest expenses incurred or paid during an eight week period (the “Covered Period”) following the disbursement date (collectively, “Qualifying Expenses”), pursuant to the terms and limitations of the PPP. The Company expects to be able to use a significant portion, but not all, of the PPP Loan proceeds for Qualifying Expenses.  In addition, the amount of the PPP Loan otherwise eligible for forgiveness will be reduced as a result of provisions of the PPP that reduces the amount of loan forgiveness if the number of full-time equivalent employees during the Covered Period is less than in certain prior periods specified in the CARES Act. Any portion of the PPP Loan that is not used for Qualifying Expenses or is not otherwise forgiven is expected to be repaid on the terms set forth above. Because the details for forgiveness of the PPP Loan are still being developed by the Small Business Administration and analyzed by us, the Company cannot be certain as to the amount of the PPP Loan that will be forgiven.