XML 39 R22.htm IDEA: XBRL DOCUMENT
v3.23.1

LINES OF CREDIT AND LONG-TERM LIABILITIES | 6 Months Ended
--- | ---
Mar. 31, 2023
Debt Disclosure [Abstract] |
LINES OF CREDIT AND LONG-TERM LIABILITIES | NOTE 15 – LINES OF CREDIT AND LONG-TERM LIABILITIES On January 12, 2023, the Company entered into a standstill agreement with Streeterville Capital, LLC. The lender has agreed to refrain and forbear temporarily from making redemptions under the notes for a period ending on April 12, 2023. In addition, the company has agreed to an increase of the outstanding balance of the note issued on September 30, 2021 for the original amount of $5,755,000 by $148,000, and the outstanding balance of the note issued on February 22, 2022 for the original amount of $9,205,000 by $303,422. The aggregate amount of $451,422 has been recorded as interest expense on the Company’s Consolidated Condensed Statement of Operations and Condensed Consolidated Statements of Cash Flow. On February 15, 2023, the Company and Fulton Bank agreed to an amendment to the Master Agreement Regarding Financial Covenants and Financial Deliverables dated September 22, 2020. On March 3, 2023, the Company and NIL Funding agreed at an amendment to the term loan agreement dated September 18, 2018. This agreement amends the maturity date to December 31, 2024 and amends the interest rate to 11.5%. Additionally, the Company paid $10,000 in fees and made an additional principal payment of $100,000 on March 29, 2023 and is required to make another additional principal payment of $100,000 on or before March 29, 2024. The Company has accounted for this amendment as a debt modification. On May 3, 2023, the Company and Streeterville Capital, LLC. agreed to an amendment to the note issued on September 30, 2021 for the original amount of $5,755,000. The agreement extends the maturity date to June 30, 2024, in exchange for a fee of 5% of the outstanding balance or approximately $252,912 added to the outstanding balance of the note. The Company has accounted for this amendment as a debt modification. The following table outlines the Company’s lines of credit and secured liabilities. SCHEDULE OF LINES OF CREDIT AND LIABILITIES
|  |  |  |  |  |  | March 31, |  |  | September 30, |
|  | Interest Rate |  |  | Maturity |  | 2023 |  |  | 2022 |
Fulton Bank line of credit $3,500,000 - The terms of this line of credit are subject to the bank’s review annually on February 1. |  |  | Secured Overnight Financing Rate (“SOFR”) plus 2.37% (7.24% as of March 31, 2023 and 5.35% as of September 30, 2022) |  |  | N/A |  | $ | - |  |  | $ | - |
Fulton Bank loan $5,250,000 for the purchase of AIS $5,000,000 of the proceeds went to the direct purchase of AIS. The Company was in compliance with loan covenants as of March 31, 2023. This loan is secured by certain assets of the Company. |  |  | SOFR plus 2.37%(7.24% as of March 31, 2023 and 5.35% as of September 30, 2022) |  |  | 12/15/2022 |  |  | - |  |  |  | 247,284 |
Fulton Bank loan $400,000 fund equipment for AIS. The Company was in compliance with loan covenants as of March 31, 2023. This loan is secured by certain assets of the Company. |  |  | SOFR plus 2.37% (7.24% as of March 31, 2023 and 5.35% as of September 30, 2022) |  |  | 5/1/2023 |  |  | 16,070 |  |  |  | 63,280 |
Fulton Bank - $360,000 fund equipment for AIS. The Company was in compliance with loan covenants as of March 31, 2023. This loan is secured by certain assets of the Company. |  |  | SOFR plus 2.37% (7.24% as of March 31, 2023 and 5.35% as of September 30, 2022). |  |  | 5/1/2023 |  |  | 146,915 |  |  |  | 183,839 |
Fulton Bank mortgage $2,476,000. The Company was in compliance with loan covenants as of March 31, 2023. |  |  | SOFR plus 2.62% (7.49% as of March 31, 2023 and 5.6% as of September 30, 2022). |  |  | 1/28/2040 |  |  | 2,211,359 |  |  |  | 2,245,664 |
Note payable - $439,774. For the purchase of VDI. Payable in two installments on October 26, 2021, and October 26, 2022. |  |  | 5 | % |  | 10/26/2022 |  |  | - |  |  |  | 219,370 |
Note payable - $5,755,000 - Less original issue discount $750,000 and legal fees $5,000, net cash received $5,000,000 Unamortized original issue discount balance of $0 and $250,000, as of March 31, 2023 and September 30, 2022 respectively. |  |  | 8 | % |  | 6/30/2024 |  |  | 5,171,271 |  |  |  | 4,943,929 |
Note payable - $9,205,000. Less original issue discount $1,200,000 and legal fees $5,000,net cash received $8,000,000. 28,572 shares of common stock valued at $700,400 recognized as additional original issue discount. Unamortized original issue discount balance of $422,311 and $1,064,778 as of March 31, 2023 and September 30, 2022 respectivly. |  |  | 8 | % |  | 8/23/2023 |  |  | 10,601,904 |  |  |  | 9,738,632 |
Term Loan Agreement with NIL Funding Corporation (“NIL”) - $5,600,000 The Company was in compliance with loan covenants as of March 31, 2023. |  |  | 11.50 | % |  | 12/31/2024 |  |  | 2,479,743 |  |  |  | 2,804,743 |
Paycheck Protection Program loan - $121,400 - The issuing bank determined that this loan qualifies for loan forgiveness; however the Company is awaiting final approval from the Small Business Administration. |  |  | 1 | % |  | 5/5/2025 |  |  | 111,367 |  |  |  | 121,400 |
Total lines of credit and secured liabilities |  |  |  |  |  |  |  | $ | 20,738,629 |  |  | $ | 20,568,141 |
Less: Current maturities |  |  |  |  |  |  |  |  | (16,441,488 | ) |  |  | (16,894,743 | )
Less: Unamortized original issue discount |  |  |  |  |  |  |  |  | (422,311 | ) |  |  | (1,305,778 | )
Lines of credit and secured liabilities, Long Term |  |  |  |  |  |  |  | $ | 3,874,830 |  |  | $ | 2,367,620 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration