BOISE, Idaho, Jan. 28, 2021 (GLOBE NEWSWIRE) — PCS Edventures!, Inc., (PCSV) a leading provider of K-12 Science, Technology, Engineering and Mathematics (STEM) education programs and drone products, today announced the following updates on its operations.
On a preliminary basis, the Company achieved profitability for calendar year 2020. This marks the third calendar year in a row that the Company has reported profitability. Our financial results for the quarter ending December 31, 2020 will be released on February 12, 2021.
The Company’s largest customer will have in-person summer school this year after cancelling most of their programs last year due to the pandemic. This customer placed their annual order with the Company last year, prior to the onset of the pandemic, and has warehoused the inventory over the past year. They plan to use up this inventory this summer, which clears the way for a large annual order with the Company in the January 2022 timeframe. Their order in 2020 was $1,884,622.
On December 27, 2020, the President signed a COVID-19 relief bill into law. The following are the provision in the new law that apply to the Company.
The Employee Retention Tax Credit (ERTC) was made available to Paycheck Protection Program (PPP) loan borrowers. Previously, PPP loan recipients were not allowed to claim the ERTC. The change was made retroactive to 2020. To take full advantage of this new provision in the law, PCS filed form 941-X to amend its second 2020 941 to claim the ERTC. The amount of the Company’s refund from this filing will be $92,273.
In addition, the Company has filed its Form 941 for the quarter ending December 31, 2020 in which we have claimed the remaining ERTC available to the Company for 2020 of $7,470.
In addition to making the ERTC retroactively available to PPP borrowers, the new law also provides an ERTC for the first two quarters of 2021 for qualified companies. We are confident that PCS will qualify for both quarters of 2021 for the ERTC. Management estimates that the Company will receive between $100,000 and $120,000 per quarter in 2021 for the ERTC.
The new law also makes the PPP program available to certain qualified borrowers who received a first PPP loan. Management is confident that PCS will qualify for this new “Second Draw” PPP loan. The amount the Company expects to receive is approximately $220,000. The company has contacted the bank who underwrote its first PPP loan, has applied, and is awaiting further instructions from the bank on the application process.
In March of 2020, the Company applied for an Emergency Disaster and Injury Loan (EIDL) through the SBA and received a $10,000 advance that was forgivable even if the Company did not complete an EIDL loan. Given the other relief available to the Company at the time, Management decided not to pursue the EIDL loan at that time. PPP borrowers who received the $10,000 EIDL loan were required to pay back the $10,000 as part of their PPP loan covenants. The new law removed that requirement such that the $10,000 EIDL advance does not have to be paid back.
The company applied for and was successful in receiving loan forgiveness of its first PPP loan. Management is confident that its second PPP loan will likewise be forgiven in its entirety.
Todd Hackett, CEO, commented, “We feel encouraged about the future of PCS. We believe we are going to come out of the COVID-19 pandemic in a very good position. After coming off our best two calendar years in 2018 and 2019, 2020 has been a difficult, although profitable year. However, with more and more schools reopening to in-person learning, the massive vaccination distribution underway, and the aid we received from the two combined stimulus packages, we believe PCS will re-establish our growth trajectory that began in 2018. I want to thank all of our shareholders for being patient with us through these unprecedented times.”
For more information about PCS Edventures!, Inc., visit our website.
Company financial information and reports can be found at https://www.otcmarkets.com/.
About PCS Edventures!, Inc.
PCS Edventures!, Inc. (OTCPK: PCSV) is a Boise, Idaho company that designs and delivers technology-rich products and services for the K-12 market that develop 21st-century skills. PCS programs emphasize experiential learning in Science, Technology, Engineering, and Math (STEM). https://edventures.com/.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934; actual results could differ materially from such statements.
Investor Contact: Michael Bledsoe 1.800.429.3110, firstname.lastname@example.org