Annual report pursuant to Section 13 and 15(d)

Loans and Notes Payable

Loans and Notes Payable
12 Months Ended
Oct. 31, 2017
Debt Disclosure [Abstract]  
Loans and Notes Payable



Loans and notes payable consisted of the following at October 31, 2017 and 2016:


    2017     2016  
On April 28, 2017, the Company repaid in full all outstanding amounts due under certain Debentures. These Debentures were paid using the $8,000,000 proceeds of the Secured Loan from HSBC Bank NA (see below for further information) and the accrued and unpaid interest under the Debentures of approximately $1,133,261 was satisfied through the issuance to Debenture holders of 1,000 shares of Series C Convertible Preferred Stock, par value $0.001, with a stated value of $1,000 each (the “Series C Preferred Stock”). The Company paid the balance in cash.   $ -     $ 9,744,123  
Secured note payable to HSBC with interest payable on the 28th day of each month at 4.56% per annum and the Company is required to make monthly principal and interest payment of $149,350. Additionally, within 150 days of the end of each fiscal year the Company is required to pay an additional amount of $700,000 which will be applied to reduce the principal outstanding under the Secured Loan. The loan is scheduled to mature on April 28, 2022; based on the payment scheduled in the Loan Agreement it is expected that the Loan will be repaid in full in approximately 45 months.     7,279,353          
One of the subsidiaries has an unsecured working capital loan from the CEO of the Group. The note is due on November 30, 2018 and carries an interest rate of 4.5%.     1,000,000       -  
The Company had in the 2016 period a 10-year secured mortgage for $527,675, secured by a building in the UK that required monthly principal payments of $4,018 along with interest at 2.75%, and was due to mature in October 2023. The conversion rate varied according to exchange rates fluctuations. This mortgage was secured by our building, located in Portland UK. This mortgage was paid in full on December 13, 2016.     -       281,801  
Total     8,279,353       10,025,924  
Less: current portion     (2,212,951 )     (846,994 )
Total Long-Term Loans and Notes Payable   $ 6,066,402     $ 9,178,930  


A reconciliation of the convertible Senior Secured Debenture which was redeemed on or around April 28, 2017 is as follows:


    2017     2016  
Bond Principal   $ -     $ 8,600,000  
Accrued Interest     -       1,144,123  
Total Bond Payable   $ -     $ 9,744,123  


The convertible senior secured debenture was paid off on April 28, 2017, with the proceeds from the HSBC Senior Note, the issuance of Preferred Series C stock and cash.


Principal maturities on the current HSBC Senior Note as of October 31, 2017 are as follows:


Years Ending October 31,   Amount  
2018   $ 2,212,951  
2019     2,315,919  
2020     2,423,678  
2021     326,805  
Totals   $ 7,279,353