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Note 7 - Paycheck Protection Program Loan

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Note 7 - Paycheck Protection Program Loan
6 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Long-term Debt [Text Block]
7.
Paycheck
Protection
Program Loan
 
The Paycheck Protection Program (“PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. On
April 24, 2020,
Viveve, Inc. (“Viveve”), a wholly-owned subsidiary of the Company, entered into a promissory note evidencing an unsecured loan in the aggregate amount of approximately
$1,343,000
made to Viveve under the PPP (the “PPP Loan”). The PPP Loan to Viveve is being made through Western Alliance Bank. The interest rate on the PPP Loan is
1.00%
and the term is
two
years. Beginning
seven
months from the date of the PPP Loan, Viveve is required to make monthly payments of principal and interest. The promissory note evidencing the PPP Loan contains customary events of default relating to, among other things, payment defaults or breaching the terms of the PPP Loan documents. The occurrence of an event of default
may
result in the repayment of all amounts outstanding, collection of all amounts owing from Viveve, or filing suit and obtaining judgment against Viveve. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities.
No
assurance is provided that Viveve will obtain forgiveness of the PPP Loan in whole or in part.
 
As of
June 30, 2020,
future minimum payments under the PPP loan are as follows (in thousands): 
 
Year Ending December 31,
 
 
 
 
2020 (remaining 6 months)
  $
143
 
2021
   
860
 
2022
   
358
 
2023
   
-
 
Total payments
   
1,361
 
Less: Amount representing interest
   
(18
)
Present value of obligations
   
1,343
 
Paycheck Protection Program loan,current portion
   
559
 
Paycheck Protection Program loan, noncurrent portion
  $
784