Quarterly report pursuant to Section 13 or 15(d)

PAYCHECK PROTECTION PROGRAM LOAN

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PAYCHECK PROTECTION PROGRAM LOAN
9 Months Ended
Dec. 31, 2020
Debt Disclosure Abstract  
PAYCHECK PROTECTION PROGRAM LOAN [Text Block]

NOTE 4 - PAYCHECK PROTECTION PROGRAM LOAN

 

On April 29, 2020, Alkaline 88, LLC (the "Borrower"), a wholly owned subsidiary of the Company, signed a promissory note with MidFirst Bank (the "Lender") in the amount of $325,800, pursuant to the Paycheck Protection Program (the "PPP") under Division A, Title I of the CARES Act, which was enacted March 27, 2020.

 

The promissory note issued by Borrower, matures on April 29, 2022 and bears interest at a rate of 1% per annum.  Borrower shall pay principal plus interest accrued under the promissory note in 18 equal monthly installments beginning on October 29, 2020. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Funds from the Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. The Company intends to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company will apply for loan forgiveness with the Lender.