Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

Notes Payable
3 Months Ended
Jan. 31, 2021
Debt Disclosure [Abstract]  
Notes Payable



    January 31,     October 31,  
    2021     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    $ 447,966     $ 573,108  
Unsecured Payroll Protection Program loan from the SBA that carries an interest rate of 1%. Principal payments begin on November 29, 2021 in the amount of $29,252.     436,574       -  
Total     884,540       573,108  
Less: current portion     (447,966 )     (509,769 )
Total Long Term Note Payable   $ 436,574     $ 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 three months ended January 31, 2021, the Company received $526,545 under the Payroll Protection Program, which was initially recorded as long-term debt. As the Company makes qualifying expenditures (as defined), the Company reduces long-term debt and records Other Income. During the three months ended January 31, 2021, the Company recorded $89,971 as Other Income related to the Payroll Protection Program. The remaining amount of Payroll Protection Program funds that had not yet been spent as of January 31, 2021 is $436,574. The Company anticipates using the full $526,545 for qualifying expenditures.


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 October 31, 2020. This revolving credit line will expire on November 26, 2021 unless renewed by the bank.