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HARDESTY & HANOVER, LLC Notes to Statement of Direct Labor, Fringe Benefits and General Overhead For the Year Ended December 31, 2019 NOTE 14: MANAGEMENT’S EVALUATION OF SUBSEQUENT EVENTS The Company evaluated all subsequent events through June 26, 2020, the date the Statement of Direct Labor, Fringe Benefits, and General Overhead was available to be issued. In December, 2019 an outbreak of a novel strain of coronavirus (COVID19) was reported. The World Health Organization (WHO) has declared a public health emergency of International concern. In early 2020, foreign, federal, state and local governments have encouraged self-isolation to curtail the spread of the global pandemic, and have begun mandating temporary work stoppage for many industry sectors and imposing limitations on travel and the size and duration of group meetings. Many business sectors are experiencing a range of disruption to business operations due to the COVID-19 outbreak. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers, employees and vendors, all of which are unprecedently uncertain and cannot be predicted. Management cannot quantify the financial and other affects to the Company’s financial position and results of future operations. In April 2020, the Company entered into a loan agreement for approximately $7.1 million dollars under the new Payroll Protection Program (PPP) with the bank that administers the line of credit agreement. The loan is unsecured and matures in April, 2022. The loan is payable in interest-only payments through October 2020 at an interest rate of 1.00% per annum. Some of this loan may be forgiven and not taxable. The regulations are undetermined at this time but some overhead costs may not be allowable due to this forgiveness. No additional adjustments or disclosures were necessary. -16-