NOTE

10:

LONG-TERM DEBT

As of

April 30, 2021,

our long-term debt consisted of the following:

	April 30, 2021			July 31, 2020
Principal amount	$	10,000,000		$	20,000,000
Unamortized discount and accrued fees		(178,427	)		(130,523	)
Long-term debt, net of unamortized discount	$	9,821,573		$	19,869,477
Current portion		9,821,573			-
Long-term debt, net of current portion	$	-		$	19,869,477

For the

three

and

nine

months ended

April 30, 2021,

amortization of debt discount totaled

$296,401

and

$1,122,096

(

three

and

nine

months ended

April 30, 2020:

$399,231

and

$1,244,032

), respectively, which was recorded as interest expense and included in our condensed consolidated statements of operations and comprehensive loss. During the

three

and

nine

months ended

April 30, 2021,

we paid

$274,222

and

$1,051,111

(

three

and

nine

months ended

April 30, 2020:

$400,000

and

$1,217,778

), respectively, in cash to our lenders (the “Lenders”) for interest on the long-term debt.

During the

nine

months ended

April 30, 2021,

we made voluntary principal payments totaling

$10,000,000

to certain Lenders, which decreased the principal balance outstanding to

$10,000,000

under our credit facility (the “Credit Facility”).

During the

nine

months ended

April 30, 2021,

and pursuant to the terms of our Third Amended and Restated Credit Agreement with our Lenders, we issued an aggregate of

1,249,039

shares with a fair value of

$1,170,000,

representing

6.5%

of the

$18,000,000

principal balance outstanding at the time, as payment of anniversary fees to our Lenders.

The Company's Credit Facility with our remaining Lender has a maturity date on

January 31, 2022,

with an interest rate of

per annum and an underlying effective interest rate of

18.10%.

As of

April 30, 2021,

our working capital ratio, excluding the current portion of the long-term debt, was

32:1,

which was in compliance with the debt covenant requirement under our Credit Facility being a working capital ratio, excluding any current portion of the long-term debt, of

not

less than

1:1.

The aggregate yearly maturities of long-term debt based on principal amounts outstanding as at

April 30, 2021

are as follows:

Fiscal 2021	$	-
Fiscal 2022		10,000,000
Total	$	10,000,000