Quarterly report pursuant to Section 13 or 15(d)

Note Payable

v3.22.1
Note Payable
9 Months Ended
Apr. 30, 2022
Debt Disclosure [Abstract]  
Note Payable

Note 5—Note Payable

 

On April 27, 2020, the Company was granted a two-year loan (the “Loan”) from the Banc of California in the aggregate amount of $952,744, pursuant to the PPP under the CARES Act, which was enacted on March 27, 2020. Interest accrued at 1% per year, effective on the date of initial disbursement.

 

The Company submitted its application for full loan forgiveness on January 6, 2021. On February 12, 2021, the Company received notice that the full Loan amount of $952,744 and $8,046 of accrued interest had been forgiven. As a result, the Company recorded a $960,790 gain on extinguishment of debt in its condensed consolidated statement of operations for the three and nine months ended April 30, 2021.

 

On July 1, 2021, the Company entered into a finance agreement with AFCO Premium Credit LLC (“AFCO”). Pursuant to the terms of the agreement, AFCO loaned the Company the principal amount of $1,355,919, which would accrue interest at 2.894% per annum, to partially fund the payment of the premium of the Company’s Director & Officer insurance. The agreement requires the Company to make eleven monthly payments of $125,056, including interest starting on July 18, 2021. At April 30, 2022, the outstanding balance related to this finance agreement was $124,755.