8. Other Indebtedness

The Company has other outstanding debt consisting of equipment loans and unsecured notes.


	March 31,		September 30,
	2020		2019
Unsecured notes	$	—	$	977,966
Equipment loans		75,073		98,487
		75,073		1,076,453
Less: current portion		(49,364)		(1,026,168)
Long-term debt	$	25,709	$	50,285

On March 7, 2019, the Company entered into a forbearance and exchange agreement with Iliad Research and Trading, L.P., a Utah limited partnership (the "Lender"). Concurrently with the execution of this agreement, the Lender purchased two stockholder notes issued by the Company previously in the original principal amount of $1,000,000 with an aggregate outstanding balance as of March 7, 2019 of $1,947,133 including accrued interest. The stockholder notes were accruing interest at the rate of 2.5% per month. The Lender agreed to refrain and forbear from bringing any action to collect under the stockholder notes until March 7, 2020 and to reduce the interest rates currently in effect to 12.0% per annum simple interest during such forbearance period. The Company also agreed to, at Lender's election, repay or exchange the stockholder notes (or portions thereof) for shares of the Company's common stock at an exchange rate of $13.44 per share or, beginning September 2019, at 95% of the average of the two lowest closing bid prices in the prior twenty trading days, as applicable.

In September 2019, the Lender began exchanging the outstanding principal and accrued interest from those notes for the Company’s common stock per the terms of the March 2019 forbearance and exchange agreement. During the six months ended March 31, 2020, the remaining unsecured notes with a carrying amount of $977,966 and accrued interest of $570,460 were exchanged for 1,475,258 shares of the Company’s common stock at a weighted average exchange price of $1.10. As of March 31, 2020, these unsecured notes were no longer outstanding.

During the three months ended March 31, 2019, the Company recognized interest expense related to the unsecured notes of $63,576 and $12,997 and $136,576 for the six months ended March 31, 2020 and 2019, respectively. No interest expense related to the unsecured notes was recognized during the three months ended March 31, 2020.