Quarterly report pursuant to Section 13 or 15(d)

NOTE PAYABLE

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NOTE PAYABLE
 9 Months Ended
Jul. 31, 2021
Debt Disclosure [Abstract]  
NOTE PAYABLE

NOTE 11 – NOTE PAYABLE

 

    July 31,     October 31,  
    2021     2020  
             
Total Long Term Note Payable   $ -     $ 63,339  
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.   $ 193,345     $ 573,108  
                 
Total     193,345       573,108  
Less: current portion     (193,345 )     (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 nine months ended July 31, 2021, the Company received $648,872 under the Payroll Protection Program (“Second Round PPP”), which was initially recorded as long-term debt. The proceeds from the Second Round PPP were used for payroll expenses. The Company has therefore reduced long-term debt and recorded as Other Income, the total amount of the loans received under the Second Round PPP. The loans received under the Second Round PPP were forgiven on June 14 and 22, 2021 under the applicable SBA rules.

 

In April and May 2020, our US companies, received $648,872 under the US Government Payroll Protection Program (“First Round PPP”). The proceeds from the First Round PPP were used for payroll expenses. The amount received under the First Round PPP has now been forgiven under the Program and is recorded in our Q4 2020 financial statements as “Other Income.”

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 11 – NOTE PAYABLE (Continued)

 

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 July 31, 2021. This revolving credit line which is subject to renewal expires on November 26, 2021.