DEBT

12 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

DEBT

NOTE 18         DEBT

On April 18, 2020, the Company entered into a PPP loan in an aggregate principal amount of $1,357,000. The loan was unsecured, bore interest at a rate of 1.0% per annum and was scheduled to mature on April 18, 2022. The Company accounted for the proceeds as a loan and the current and long-term portions of $827,000 and $530,000, respectively, are included in the corresponding categories of notes payable on the consolidated balance sheet at September 30, 2020. In October 2020, the Company filed for forgiveness of this loan and in December 2020, the SBA approved its forgiveness request. The forgiveness has been accounted for as an extinguishment of debt and the resulting gain has been recorded as forgiveness of note payable on the consolidated statement of operations for Fiscal 2021. There is a six-year period during which the SBA can review the Company’s forgiveness.

In connection with the acquisition of Kablooe, the Company assumed a loan payable with a principal amount of $170,000. The loan matured in August 2021, bore interest at a rate of 6.0% per annum and was secured by all of Kablooe’s assets. Interest and principal payments of $15,000 were payable monthly until maturity. The outstanding balance at September 30, 2021 and 2020 was $0 and $156,000, respectively.