Annual report pursuant to Section 13 and 15(d)

Note 23 - Subsequent Events

Note 23 - Subsequent Events
12 Months Ended
Dec. 31, 2020
Note 23 - Subsequent Events

Note 23 – Subsequent events


On February 11, 2021, Mentor received a second Paycheck Protection Plan Loan (2nd PPP Loan) in the amount of $76,593 from the Bank of Southern California. Mentor may apply to the SBA for loan forgiveness of the amount due on the loan in an amount equal to the sum of costs allowed under the Paycheck Protection Program as amended by the Economic Aid Act during the chosen loan forgiveness covered period (either 8 or 24-week period) beginning on the date of the first disbursement of the loan, February 17, 2021. The Company has ten months from the last day of the loan covered period to apply for forgiveness. Not more than 40% of the amount forgiven can be attributable to non-payroll costs. If the borrower fails to apply for loan forgiveness, loan payments will be deferred for ten months after the end of the loan forgiveness covered period. The 2nd PPP Loan matures five years from date of first disbursement of the loan and bears interest at one percent per year. The Company must pay any remaining principal and interest payments commencing on a date determined based upon Lender’s receipt of loan forgiveness funds from SBA; and monthly thereafter.


On February 18, 2021, WCI signed a Sixth Amendment to Commercial Lease effective March 1, 2021 to extend its Tempe, Arizona office lease through February 28, 2023. Monthly base rent for March 1, 2021 through February 28, 2022 will be $2,350 per month. Monthly base rent for March 1, 2022 through February 28, 2023 will be $2,500 per month. In addition, beginning January 1, 2022, WCI will pay 1.90% of the common area operating expenses increase over the common area operating area expenses incurred by the landlord in calendar year 2021. ASC 842, Leases, requires a lease modification to be accounted for on the lease modification date.


On March 12, 2021, Mentor received a $100,000 loan from its CEO, with interest at 7.8% per annum compounded quarterly, payable within thirty (30) days of demand.


On March 16, 2021, The Republic Bank of Arizona notified WCI of receipt of the reconciliation payment of $1,681 and full forgiveness of the $10,000 EIDL Advance. Forgiveness of the advance will be recognized as other income in the first quarter of 2021.