Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

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NOTES PAYABLE
3 Months Ended
Dec. 31, 2020
Notes Payable [Abstract]  
NOTES PAYABLE

NOTE 5 – NOTES PAYABLE

 

The Company’s notes payable consisted of the following as of September 30, 2020 and December 31, 2020.

 

    September 30, 
2020
    December 31, 
2020
   
PPP Loan Payable   $ 100,300     $ 0    
Insurance Note Payable     20,527       0    
Total   $ 120,827     $ 0    

 

PPP Loan 

 

On April 16, 2020, GulfSlope Energy, Inc. entered into a promissory note (the “Note“) evidencing an unsecured $100,300 loan under the Paycheck Protection Program (the “PPP Loan“). The Paycheck Protection Program was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act“) and is administered by the U.S. Small Business Administration. The PPP Loan was made through Zions Bancorporation, N.A. dba Amegy Bank (the “Lender“). On December 17, 2020, the PPP Loan plus accrued interest of approximately $600 was formally forgiven in full by the U.S. Small Business Administration. The forgiven loan balance and related interest totaling approximately $100,900 was accounted for as a gain on debt extinguishment in the Condensed Statements of Operations during the three months ended December 31, 2020.

 

Insurance Note Payable

 

In November 2019, the Company purchased an insurance policy for approximately $241,000 and financed $220,629 of the premium by executing a note payable at an interest rate of 5.6%. The note was paid in full with the October 2020 payment. The balance of the note payable was nil and approximately $21,000 at December 31, 2020 and September 30, 2020, respectively. This note is included in the Notes Payable balance in the Condensed Balance Sheet.