Universal Solar Technology, Inc. (UNSS)

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UNSS - PPP Loan = $290,473 (Per Note 5 - Loans payable).

1. How do you get a PPP Loan for $290,473 when you have $-0- rent expense and $15,502 in Salaries?

2. Where did the $290,473 in loan proceeds go? Why are the loan proceeds not on the Statement of Cash Flows for 12/31/20?

3. Why is there only $624 in Cash at year end 12/31/20 if you received a loan of $290,473?

The Statement of Cash Flows for 12/31/20 makes no sense.
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On June 30, 2020, the Company received a loan from United States Small Business Administration (“SBA”) under the Payroll Protection Program (“PPP”) totaling $290,473. The loan bears interest at 1% per annum. Principal and unpaid interest are forgivable if used for stipulated expenses such as payroll, rent and other defined areas. Loan payments are deferred for borrowers who apply for forgiveness. As of December 31, 2020, the balance due of the PPP loan is $290,473 in included in Loans Payable in the accompanying balance sheet.