Convertible Debt

9 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Convertible Debt

Note 6. Convertible Debt

	Debt
	March 31, 2022					June 30, 2021
	Current		Non-Current			Current		Non-Current
2019 Secured Convertible Notes	$	—	$	4,277,690		$	—	$	4,277,690
Less: unamortized discount and issuance costs		—		(70,916	)		—		(116,188	)
	$	—	$	4,206,774		$	—	$	4,161,502

In September 2019, the Company completed a private offering of 5,478 Senior Secured Convertible Notes (“2019 Convertible Notes”) at $975 per $1,000 face amount due in 2023. Each 2019 Convertible Note will bear an interest rate of 7.5% per annum, payable semi-

annually. The effective interest rate of the 2019 Convertible Notes in 9.23%. The principal amount of the 2019 Convertible Notes will be convertible at a price of $1.00 per share of Paramount common stock. Unamortized discount and issuance costs of $275,883 will be amortized as an additional interest expense over the four year term of the 2019 Convertible Notes. During the nine-month period ended March 31, 2022, the Company amortized $45,272 (2021- $47,868) of discount and issuance costs. At any point after the second anniversary of the issuance of the convertible notes, Paramount may force conversion if the share price of its common stock remains above $1.75 for 20 consecutive trading days. The convertible notes are secured by a lien on all assets of the Company and the Company is required to maintain a working capital balance of $250,000. At March 31, 2022, the working capital covenant was met by the Company.

During the nine-month period ended March 31, 2022, there were no conversions of 2019 Convertible Notes to common stock of the Company.

During the nine-month period ended March 31, 2021, 1,200 of the 2019 Convertible Notes outstanding were converted into 1,200,000 shares of common stock of the Company (Note 5) and $42,371 of unamortized discount and issuance costs were debited to additional paid in capital to reflect the issued common stock.