Debt

12 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 7. Debt

	Debt
	June 30, 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		—		(55,880	)		—		(116,188	)
	$	—	$	4,221,810		$	—	$	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 September 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 is 9.24%. 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 year-ended June 30, 2022, the Company amortized $60,308 (2021-$62,903) 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 June 30, 2022, the working capital covenant was met by the Company.

During the year-ended June 30, 2022, there were no notes converted to shares of Common Stock (2021 – 1,200 notes converted in 1,200,000 shares of Common Stock). Also during the year-ended June 30, 2022, the Company recorded an interest expense of $325,283 (2021 - $359,253).

As of June 30, 2022, there were 4,278 (2021 - 4278) notes outstanding of which 660 (2021 - 660) were held by related parties. Related parties consisted of a director of the Company and an affiliate shareholder.

On May 5, 2020, the Company was granted a loan (the “PPP Loan”) from Wells Fargo Bank, N.A. in the amount of $35,628 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The PPP Loan which was in the form of a Promissory Note matures on May 3, 2022 and bears interest at a rate of 0.98% per annum, payable monthly commencing on November 1, 2020. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the PPP, certain amounts of the PPP Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. During the year-ended June 30, 2021, the PPP Loan and accrued interest was forgiven and a gain of $35,947 was recorded on the Company’s Consolidated Statements of Operation.