Convertible Debt

3 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Convertible Debt

Note 6. Convertible Debt

	Debt
	September 30, 2023				June 30, 2023
	Current		Non-Current		Current		Non-Current
2019 Secured Convertible Notes	$	4,169,690		—	$	—	$	4,277,690
Less: unamortized discount and issuance costs		—		—		—		(4,862	)
	$	4,169,690	$	—	$	—	$	4,272,828

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. During period ended September 30, 2023, the maturity of the 2019 Convertible Notes was extended to the earlier of

September 30, 2024 or the date of funding of the transaction contemplated by a non-binding term sheet between the Company and Sprott Resource and Streaming Royalty Corp and the annual interest rate increased to 12% commencing on October 1, 2023. As of September 30, 2023, 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. For the three months ended September 30, 2023 and 2022, the Company amortized $4,862 and $15,201 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 cash balance of $250,000. At September 30, 2023, the cash covenant was met by the Company.

During the three months ended September 30, 2023, there were no conversions of 2019 Convertible Notes to common stock of the Company.

As of September 30, 2023, there were 4,170 (2022 - 4278) notes outstanding of which 3,510 (2022 -3,618) were held by third parties and 660 (2022 - 660) were held by related parties. Of the notes held by related parties 250 were held by a director of the Company and 410 were held by and affiliated shareholder.