Long-Term Debt

6 Months Ended

Dec. 31, 2022

(13) LONG-TERM DEBT

The following table is a summary of the outstanding loan balances as of December 31, 2022 and June 30, 2022.

Noteholder	Interest Rate	Maturity Date	December 31, 2022			June 30, 2022
Truist Bank	1%	In Default	$	72,930		$	72,930
Total Debt				72,930			72,930
Current Portion of Debt				(72,930	)		(72,930	)
Total Long-term Debt			$	-		$	-

On May 9, 2020, the Company entered into a loan with Truist Bank, a lender pursuant to the Paycheck Protection Program of the CARES Act as administered by the SBA in the amount of $79,600. The loan, in the form of a promissory note, had an original maturity date of May 1, 2025. No additional collateral or guarantees were provided by the Company for the loan. The PPP loan provides for customary events of default. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, rent payments, mortgage interest and covered utilities during the 24-week period beginning on the date of loan disbursement. The Company is required to repay the entire amount of outstanding principal, along with accrued interest, as the Company is not eligible for forgiveness. The Company began to make payments, beginning October 2021, including interest accruing at an annual interest rate of 1.0% beginning on the date of disbursement. On May 17, 2022, the Company received a default and demand letter from Truist Bank in regards to the PPP loan due to non-payment. As such the remaining balance of the PPP loan became due immediately. As of December 31, 2022 and June 30, 2022, the Company reported an accrued interest balance related to the PPP Loan of $557 and $186, respectively. The accrued interest is included in accounts payable and accrued expenses on our balance sheets.

IMAGING DIAGNOSTIC SYSTEMS INC /FL/ 10-Q