Amount

Term Loan Note payable to Main Street Bank with monthly principal payments of $35,173, excluding six months in Fiscal 2025, plus interest at a fixed rate of 7.0% per annum. Secured by all assets of the Company, and subject to certain periodic reporting to the bank and other conditions including an annual minimum EBITDA plus stock-based compensation to debt service coverage ratio of 1.20:1 commencing with the fiscal year ending June 30, 2023. The Term Loan Note matures on October 15, 2028.

$

1,516,667

Permanent Working Capital Loan payable to Main Street Bank with monthly principal payments of $14,375, excluding six months in Fiscal 2025, plus interest at a fixed rate of 8.625% per annum. Secured by all assets of the Company, and subject to certain periodic reporting to the bank and other conditions including an annual minimum EBITDA plus stock-based compensation to debt service coverage ratio of 1.20:1 commencing with the fiscal year ending June 30, 2023. The Permanent Working Capital Loan matures on June 15, 2028.

562,500

Less current maturities

(576,405

)

Less debt issuance and modification costs, net of accumulated amortization of $25,320

(67,417

)

Long-term debt, net of current maturities and debt issuance costs

$

1,435,345