Note Payable:

In April 2020, the Company obtained a $722,726 loan, with an interest rate of .98% per annum, issued by a bank through the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) under Division A. Title I of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). PPP provides forgiveness of loan proceeds used for qualified and documented payroll costs, mortgage interest payments, rent payments and utilities, if less than 40% of such proceeds are used for non-payroll costs. PPP loan payments are deferred until the SBA remits the Company’s loan forgiveness to the lender.

The Company applied for 100% loan forgiveness as soon as lender application forms became available in January, 2021. After the SBA remits the Company’s loan forgiveness to the lender, such proceeds aggregating $722,726 expected in the year ending July 31, 2021 will be recorded as a reduction of the note payable and extinguishment of debt income.