XML 29 R12.htm IDEA: XBRL DOCUMENT v3.21.2
Notes Payable
 12 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
NOTES PAYABLE

5. NOTES PAYABLE

 

Notes Payable – Related Parties

 

The aggregate principal balance consisted of notes payable held by our Chairman, Leonard Mazur, in the amount of $160,470 and notes payable held by our Chief Executive Officer, Myron Holubiak, in the amount of $12,500. Notes with an aggregate principal balance of $104,000 accrued interest at the prime rate plus 1.0% per annum and notes with an aggregate principal balance of $68,970 accrued interest at 12% per annum.

 

In June 2021, we repaid the $172,970 principal balance of these notes and paid accrued interest of $38,917. Accrued interest of $59,917 was forgiven and has been recorded as other income during the year ended September 30, 2021.

 

Interest expense on notes payable – related parties for the years ended September 30, 2021 and 2020 was $9,606 and $14,932, respectively.

 

Paycheck Protection Program

 

On April 12, 2020, due to the business disruption caused by the COVID-19 health crisis, the Company applied for a forgivable loan through the Small Business Association’s Paycheck Protection Program (the “PPP”). In accordance with the provisions of the PPP, the loan accrued interest at a rate of 1% and a portion of the loan may be forgiven if it is used to pay qualifying costs such as payroll, rent and utilities. Amounts that are not forgiven will be repaid two years from the date of the loan. On April 15, 2020, the Company received $164,583 from the PPP through its bank.

 

Interest expense on the PPP loan was $1,233 and $741 for the years ended September 30, 2021 and 2020, respectively.

 

On July 28, 2021, the Small Business Administration (“SBA”) gave full forgiveness of the PPP loan. The Company recorded a gain from debt extinguishment of $166,557 consisting of the principal balance and related accrued interest expense.