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Notes Payable
9 Months Ended
Apr. 30, 2019
Debt Disclosure [Abstract]  
Notes Payable

4. NOTES PAYABLE

 

The Company entered into various notes payable with related parties from 2010 to 2018 with an aggregate principal total of $2,175,000 and with an unrelated third party for $50,000 for total principal amount of $2,225,000. The interest rate was 11% and the maturity date was July 31, 2020. The Company could prepay these notes in advance of the maturity date without premium or penalty.

 

As discussed further in Note 5, on December 21, 2018, the Company issued 50,584,413 shares of Common Stock in exchange for the extinguishment of debt and related accrued interest totaling approximately $3,541,000. The Company incurred interest expense related to the Credit Facility and notes payable of $0 and $93,000 for the three and nine months ended April 30, 2019, respectively, and 56,000 and $161,000 for the three and nine months ended April 30, 2018, respectively.

 

As a result of this transaction on April 30, 2019, the Company no longer has debt under the promissory notes and Credit Facility discussed above.