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Notes Payable
 9 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
NOTES PAYABLE

4. 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 in the three and nine months ended June 30, 2021.

 

Interest expense on notes payable – related parties was $2,509 and $3,909, respectively, for the three months ended June 30, 2021 and 2020. Interest expense on notes payable – related parties was $9,605 and $11,880, respectively, for the nine months ended June 30, 2021 and 2020.

 

Paycheck Protection Program

 

On April 12, 2020, due to the 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”). The loan accrues 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 2 years from the date of the loan. On April 15, 2020, the Company received $164,583 from the PPP and in June 2021, the Company applied for forgiveness of the loan. Interest expense was $423 and $1,234 for the three and nine months ended June 30, 2021, respectively. Interest expense was $336 for the three and nine months ended June 30, 2020. The Company received notification of the PPP loan formal forgiveness approval on July 28, 2021.