Annual report pursuant to Section 13 and 15(d)

Loans Payable

v3.21.2
Loans Payable
 12 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Loans Payable

Note 9. Loans Payable

 

Paycheck Protection Program Loan

 

On May 20, 2020, Akoustis, Inc., the operating subsidiary of the Company, issued a promissory note (the “Promissory Note”) in favor of Bank of America, NA (the “Lender”) that provided for a loan in the principal amount of $1.6 million pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Promissory Note accrued interest at a rate of 1.00% per annum. The Company treated the Promissory Note as debt and included the future monthly repayment amounts payable within 12 months as a short-term liability and the remainder of the Promissory Note debt as a long-term liability on the balance sheet.

 

On April 9, 2021, Akoustis, Inc. received notice from the Lender that the full amount of the Promissory Note was forgiven pursuant to the PPP. The Company recorded approximately $1.6 million of debt extinguishment gain as a result of this forgiveness.

 

The following table summarizes the Promissory Note debt as of June 30, 2020 (in thousands):

 

    Maturity
Date		   Stated
Interest
Rate		     Face
Value		     Remaining
Debt
(Discount)		     Carrying
Value		  
Long Term Loans payable                                    
Promissory Note   05/20/2022     1.00 %   $ 1,633     $ (42 )   $ 1,591  
Ending Balance as of June 30, 2020               $ 1,633     $ (42 )   $ 1,591  

 

The amortization of the Promissory Note debt discount of $19.7 thousand and $2.8 thousand for the years ended June 30, 2021 and 2020, respectively, was treated as interest expense on the statement of operations.