|9 Months Ended|
Jul. 31, 2021
|Debt Disclosure [Abstract]|
NOTE 11 – NOTE PAYABLE
SCHEDULE OF NOTE PAYABLE
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.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef