Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

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Notes Payable
 6 Months Ended
Apr. 30, 2021
Debt Disclosure [Abstract]  
Notes Payable

NOTE 11 – NOTES PAYABLE

  

    April 30, 2021     October 31, 2020  
             
Secured note payable to HSBC NA with interest payable on the 28th day of each month at 4.56% per annum. Our monthly repayment obligation under this loan is $43,777 (comprising both principal and interest repayment). The maturity of this Loan is December 28, 2021   $ 321,258     $ 573,108  
                 
Total     321,258       573,108  
Less: current portion     (321,258 )     (509,769 )
Total Long Term Note Payable   $ -     $ 63,339  

 

The HSBC loan is secured by a blanket lien on all of the Company’s US subsidiaries. The foreign subsidiaries are each guarantors of the obligations undertaken in the loan agreement.

 

During the six months ended April 30, 2021, the Company received $648,872 under the Payroll Protection Program, which was initially recorded as long-term debt. The Company has expended all of the loan funds on qualifying expenditures (as defined). The Company has therefore reduced long-term debt and recorded as Other Income, the total amount of the loans. The Company has applied for forgiveness of the loans under the SBA rules.

  

The Company entered into a $4,000,000 revolving line of credit facility with HSBC NA on November 27, 2019, with the interest rate established as the applicable prime rate. The outstanding balance on the line of credit was $0 as of April 30, 2021. This revolving credit line which is subject to renewal will expire on November 26, 2021 unless renewed by the bank.