According to the Pearl S. Buck International (PSBI) audit of June 30, 2021 (Note 15, Concentrations of Credit Risks and Uncertainties):
"PSBI's operations involve a number of risks and uncertainties. Factors that could affect [PSBI's] future operating results and cause actual results to vary materially from expectations include, but are not limited to general economic factors, lack of government spending, and dependence on key personnel. During 2020, a global pandemic due to the spread of the COVID-19 virus caused the United States government to declare a national emergency. The full economic impact resulting from the uncertainty of the COVID-19 pandemic that could continue to affect [PSBI's] operations and finances, is unknown at this time [November 1, 2021].
"During the year ended June 30, 2021 and 2020, PSBI received proceeds of $152,500 and $172,614, respectively under the Paycheck Protection Program (PPP). The PPP was established as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). Under the Cares [sic] Act, there is a potentiality for a portion of this loan to be forgiven if certain conditions are met. The unforgiven portion of the PPP loan is payable over two years at an interest rate of 1% with deferral payments for the first six months. PSBI has expended the entire proceeds on payroll and payroll related expenses. PSBI has determined that it has met the criteria for forgiveness and has recorded the proceeds as income.
"On April 1, 2020, PSBI received $10,000 under the Economic Injury Disaster Loan (EIDL) Program from the Small Businesses Administration (SBA). Based on interpretations of regulations available at the time the [audited] financial statements were available for release [November 1, 2021], the EIDL loan advance will be deducted from the amount of loan forgiveness available under the PPP loan program. Accordingly, $10,000 was included in deferred revenues on the [audited] Statement of Financial Position at June 30, 2020. For the year ended June 30, 2021, this amount has been recognized as revenue."