NOTES PAYABLE – RELATED PARTIES

3 Months Ended

Oct. 31, 2024

Debt Disclosure [Abstract]

NOTES PAYABLE – RELATED PARTIES

6. NOTES PAYABLE – RELATED PARTIES

Notes payable- related party are summarized in the following table (in thousands):

	As of October 31, 2024		As of July 31, 2024
(a) Notes payable- Frost Gamma Investments Trust	$	405	$	350
(b) Notes payable- Dr. Jane Hsiao		150		150
Total Notes payable - related party	$	555	$	500

(a) The Company has outstanding notes payable to Frost Gamma Investments Trust (“Frost Gamma”) which pertained to promissory notes issued in fiscal 2021 and 2022, in the principal amount of $75,000 and $75,000, respectively. The promissory notes accrue interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025, as amended on August 15, 2023. The Frost Gamma promissory note may be prepaid in advance of the maturity date without penalty. Frost Gamma is a trust controlled by Dr. Phillip Frost, a current director of the Company, and who beneficially owns in excess of 10% of the Company’s common stock.

On August 15, 2023, the Company entered into a new promissory note agreement with Frost Gamma in the principal amount of $200,000, which also accrues interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025. This promissory note may also be prepaid in advance of the maturity date without penalty. At July 31, 2024, the Company outstanding notes payable to Frost Gamma were in the aggregate amount of $350,000.

On September 25, 2024 and October 23, 2024, the Company entered into a new promissory note agreements with Frost Gamma in the aggregate principal amount of $55,000, which also accrues interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025. The promissory notes may also be prepaid in advance of the maturity date without penalty.

(b) The Company has outstanding notes payable Jane Hsiao, Ph.D. (“Dr. Hsiao”) which pertained to promissory notes issued in fiscal 2021 and 2022, in the principal amount of $75,000 and $75,000, respectively. The promissory notes accrue interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025, as amended on August 15, 2023. The promissory notes to Dr. Hsiao may be prepaid in advance of the maturity date without penalty. Dr. Hsiao is the Company’s Chairman and Interim CEO, and who beneficially owns in excess of 10% of the Company’s common stock.

There were no payments made on the promissory notes to Dr. Hsiao and as such, total outstanding notes payable balance was $150,000 as of October 31, 2024 and July 31, 2024.