Annual report pursuant to Section 13 and 15(d)

Short-Term Notes Payable

Short-Term Notes Payable

12 Months Ended

Dec. 31, 2020

6. Short-Term Notes Payable

The Company had the following short-term notes payable as of December 31, 2020 and 2019:

	2020		2019
Product liability insurance financing of $17,688 due in monthly installments of $1,599 including principal and interest at 5.69% with the final payment being made on February 14, 2020, respectively	$	—	$	3,177
Directors’ and officers’ liability insurance financing of $413,784 and $254,889 due in monthly installments of $38,638 and $23,842 including principal and interest at 5.39% and 5.74% through June 24, 2021 and June 24, 2020, respectively		228,227		140,687
Total short-term notes payable	$	228,227	$	143,864

Paycheck Protection Program

On May 5, 2020, the Company received loan proceeds in the amount of $132,088 under the Paycheck Protection Program (the “PPP”). The PPP, established by the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) administered by the Small Business Administration, provides for loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. The loan and accrued interest were subject to forgiveness after an initial period of eight weeks (extended to twenty-four weeks on June 5, 2020) as long as the Company used the proceeds for eligible purposes, including payroll, benefits, rent, and utilities and maintains it payroll levels. On November 19, 2020, the Company received notice from the Small Business Administration that the loan amount of $132,088 plus accrued interest had been forgiven.