Loan payable

9 Months Ended

Sep. 30, 2023

Loan Payable

Loan payable

13. Loan payable

a) During the year ended December 31, 2022, the Company entered into a loan agreement with a third party for the purchase of property located in West Seneca, New York, the details of which are disclosed in the Company’s Form 8-K filed with the United States Securities and Exchange Commission on May 11, 2022. The Company received $5,300,000 with an interest rate of prime plus 2.25% with an initial maturity date of May 10, 2024, and the option to extend the loan for an additional year. In order to service the loan throughout the term, the Company deposited $667,409 in a restricted account. As of September 30, 2023, the balance in the restricted account was $869,728 (December 31, 2022 - $411,016) and is included in cash and cash equivalents on the accompanying balance sheet. During the nine months ended September 30, 2023, the Company failed certain debt covenants relative to this loan . Subsequently, the loan holder decided to waive the failure of the debt covenants, requiring the Company to provide certain quarterly financial information.

b) During the year ended December 31, 2020, the Company received $28,387 ($40,000 CAD) interest-free from the Government of Canada as part of the COVID-19 small business relief program. Repaying the balance of the loan on or before December 31, 2023 resulted in loan forgiveness of 25 percent (25%). As of September 30, 2022, the Company made the repayment of $28,387 ($40,000 CAD) and, as of February 14, 2023, received the forgiven debt of $7,493 ($10,000 CAD). As at September 30, 2023 and December 31, 2022, there are no amounts owing, and the loan has been fully settled.