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Convertible Debt
 6 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Convertible Debt

Note 6. Convertible Debt

 

 

 

Debt

 

 

 

December 31, 2022

 

 

June 30, 2022

 

 

 

Current

 

 

Non-Current

 

 

Current

 

 

Non-Current

 

2019 Secured Convertible Notes

 

$

4,277,690

 

 

 

—

 

 

$

—

 

 

$

4,277,690

 

Less: unamortized discount and issuance costs

 

 

(25,478

)

 

 

—

 

 

 

—

 

 

 

(55,880

)

 

 

$

4,252,212

 

 

$

—

 

 

$

—

 

 

$

4,221,810

 

 

In September 2019, the Company completed a private offering of 5,478 Senior Secured Convertible Notes (“2019 Convertible Notes”) at $975 per $1,000 face amount due in 2023. Each 2019 Convertible Note will bear an interest rate of 7.5% per annum, payable semi-annually. The effective interest rate of the 2019 Convertible Notes is 8.46%. The principal amount of the 2019 Convertible Notes will be convertible at a price of $1.00 per share of Paramount common stock. Unamortized discount and issuance costs of $275,883 will be amortized as an additional interest expense over the four year term of the 2019 Convertible Notes. For the six months ended December 31, 2022 and 2021, the Company amortized $30,402 of discount and issuance costs. At any point after the second anniversary of the issuance of the convertible notes, Paramount may force conversion if the share price of its common stock remains above $1.75 for 20 consecutive trading days. The convertible notes are secured by a lien on all assets of the Company and the Company is required to maintain a working capital balance of $250,000. At December 31, 2022, excluding the current 2019 Secured Convertible Notes, the working capital covenant was met by the Company.

During the three and six months ended December 31, 2022, there were no conversions of 2019 Convertible Notes to common stock of the Company.

As of December 31, 2022, there were 4,278 (2021 - 4278) notes outstanding of which 660 (2021 - 660) were held by related parties. Related parties consisted of a director of the Company and an affiliated shareholder Seabridge Gold Inc. ("Seabridge").