NOTE

10:

OTHER LOANS PAYABLE

During Fiscal

2020,

our Canadian subsidiary received a loan of

$29,842

(

CA$40,000

) through the Canada Emergency Business Account (“CEBA Loan”) program, which provides financial relief for Canadian small businesses during the COVID-

pandemic. During Fiscal

2021,

we repaid

CA$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

CA$10,000.

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

$7,759

during Fiscal

2021.

During Fiscal

2020,

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

$277,250

(the “PPP Loan”). During Fiscal

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 the 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 Fiscal

2021.

During Fiscal

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 Fiscal

2021,

we paid

$10,831

in cash for interest on the Promissory Note.

As at

July 31, 2021,

other loans payable consisted of the following:

	July 31, 2021		July 31, 2020
Government loan payable	$	-	$	307,092
Promissory note payable		257,462		-
	$	257,462	$	307,092

Current portion
Government loan payable	$	-	$	-
Promissory note payable		191,510		-
	$	191,510	$	-
Non-current portion
Government loan payable	$	-	$	307,092
Promissory note payable		65,952		-
	$	65,952	$	307,092