Note 22. Subsequent event

On May 1, 2020, the Company entered into a promissory note (the “Promissory Note”) with Texas Capital Bank, N.A. that provides for a loan in the amount of $1,872 (the “PPP Loan”) pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). The PPP Loan matures on April 27, 2022 and bears interest at a rate of 1.0% per annum. Monthly amortized principal and interest payments are deferred for six months after the date of disbursement. The Promissory Note contains events of default and other provisions customary for a loan of this type. The Paycheck Protection Program provides that the use of PPP Loan amount shall be limited to certain qualifying expenses and may be partially or wholly forgiven in accordance with the requirements set forth in the CARES Act. The Company intends to apply for forgiveness of a portion of the loan in accordance with the terms of the CARES Act to the extent applicable.

On April 23, 2020, as a result of the COVID-19 pandemic, the Company entered into an amendment to its contract services agreement with Southern California Gas Company (“SoCal Gas”) whereby SoCal Gas agreed to advance the Company $555 against the provision of future services.  The advanced payment may only be utilized for the costs associated with labor and sustaining ARCA Recycling’s workforce.   The Company received the funds on May 11, 2020.