NOTE

11:

OTHER LOANS PAYABLE

During Fiscal

2020,

we applied for a Paycheck Protection Program loan and received the proceeds of

$277,250

(the “PPP Loan”). During the

nine

months ended

April 30, 2021,

we received a Notice of Paycheck Protection Program Forgiveness Payment from the Small Business Administration regarding the approval of our application for forgiveness of our PPP Loan of

$277,250

and accrued interest. As a result, we recognized a gain on extinguishment of the PPP Loan of

$278,617

during the

nine

months ended

April 30, 2021.

During Fiscal

2020,

our Canadian subsidiary received a loan of

$29,842

(

CAD$40,000

) under the Canadian Emergency Business Account Program (“CEBA”), which provides financial relief for Canadian small businesses during the COVID-

pandemic (the “CEBA Loan”). During the

three

months ended

April 30, 2021,

we repaid

CAD$30,000

of the CEBA Loan,

75%

of the total CEBA Loan principal before its initial term date on

December 31, 2022

and received a CEBA Loan Closure Confirmation for forgiveness of

CAD$10,000.

As a result, we recognized a gain on extinguishment of the CEBA Loan of

$7,759

during the

three

months ended

April 30, 2021.

During the

nine

months ended

April 30, 2021,

in connection with the Goliad Land Purchase, we issued a promissory note with a principal amount of

$380,000

to a landowner (the “Promissory Note”). The Promissory Note carries an interest rate of

per annum with principal and interest payable in

monthly installments with a maturity date of

November 1, 2022.

may

prepay the Promissory Note in any amount at any time before the maturity date without penalty.

During the

three

and

nine

months ended

April 30, 2021,

we paid

$4,124

and

$7,235,

respectively, in cash for interest on the Promissory Note.

As of

April 30, 2021,

other loans payable consisted of the following:

	April 30, 2021		July 31, 2020
Government loan payable	$	-	$	307,092
Promissory note payable		303,880		-
	$	303,880	$	307,092

Current portion
Government loan payable	$	-	$	-
Promissory note payable		189,143		-
	$	189,143	$	-
Non-current portion
Government loan payable	$	-	$	307,092
Promissory note payable		114,737		-
	$	114,737	$	307,092