Quarterly report pursuant to Section 13 or 15(d)

NOTE PAYABLE

v3.21.2
NOTE PAYABLE
3 Months Ended
Jul. 31, 2021
Note Payable  
NOTE PAYABLE

 

11. NOTE PAYABLE

 

In May 2020, the Company received loan proceeds in the amount of $62,110 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after the earlier of (i) 24 weeks after the loan disbursement date and (ii) December 31, 2020 as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels.

 

In December 2020, the Company met the conditions and received forgiveness of the $62,110 principal amount of the loan and $308 of accrued interest payable. The company derecognized the debt under ASC 470, in accordance with the guidance in ASC 405-20, Liabilities: Extinguishments of Liabilities, recognized in the income statement as a gain on extinguishment of debt.