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Debt
 9 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt

5. Debt

 

Line of credit

 

On November 29, 2022, the Company entered into a 9% agreement for the purchase of inventory with a total capacity of $886,469. During March 2023, the Company replaced the November 29, 2022 agreement with an 8% inventory financing facility totaling $1,000,000 for the purchase of inventory. $500,000 is due on June 11, 2023, with the remaining balance and accrued interest due at maturity on July 11, 2023.

 

Notes payable

 

The Company’s notes payable as of June 30, 2023, are summarized as follows:

 

Noteholder  Origination  Maturity    Interest   Principal   Discount 
Noteholder A1  8/15/2022  2/15/2024     6.667%  $540,758   $- 
Noteholder A2  8/15/2022  2/15/2024     6.667%   1,498,450    - 
Noteholder A3  8/15/2022  2/15/2024     6.667%   2,336,858    - 
Noteholder B  9/2/2021  9/2/2022 *   12%   100,000    - 
Noteholder B  10/7/2021  10/7/2022     15%   50,000    - 
Noteholder C  4/1/2022  4/1/2023     10%   85,594    4,291 
Noteholder C  8/15/2022  2/15/2024     6.667%   1,876,191    - 
Noteholder G  6/20/2017  8/5/2017 *   18%   55,353    - 
Noteholder F  8/15/2022  2/15/2024     6.667%   288,720    - 
Noteholder D  8/15/2022  2/15/2024     6.667%   1,263,164    - 
Noteholder I  6/17/2020  6/17/2050     4%   160,000    - 
Noteholder J  8/15/2022  2/15/2024     6.667%   640,239    - 
Noteholder K  8/28/2021  9/1/2022 *   15%   50,000    - 
Noteholder K  10/6/2021  10/6/2022     15%   66,980    - 
Noteholder L  7/12/2022  -     10%   24,500    - 
Noteholder M  7/12/2022  -     10%   25,000    - 
Noteholder M  7/25/2022  -     5%   30,000    - 
Noteholder N  7/28/2022  -     10%   50,000    - 
Noteholder O  8/31/2022  8/31/2031     3.15%   8,000,000    7,925,926 
                $17,141,807   $7,930,217 

 

* In default at June 30, 2023

 

** In default subsequent to June 30, 2023

 

 

The Company’s notes payable as of September 30, 2022, are summarized as follows:

 

Noteholder  Origination  Maturity   Interest   Principal   Discount 
Noteholder A1  8/15/2022   2/15/2024    6.667%  $540,758   $- 
Noteholder A2  8/15/2022   2/15/2024    6.667%   1,498,450    - 
Noteholder A3  8/15/2022   2/15/2024    6.667%   2,336,858    - 
Noteholder B  9/2/2021   9/2/2022*   12%   100,000    - 
Noteholder B  10/7/2021   10/7/2022    15%   50,000    - 
Noteholder C  4/1/2022   4/1/2023    10%   85,594    4,291 
Noteholder C  8/15/2022   2/15/2024    6.667%   1,876,191    - 
Noteholder G  6/20/2017   8/5/2017*   18%   55,353    - 
Noteholder F  8/15/2022   2/15/2024    6.667%   288,720    - 
Noteholder D  8/15/2022   2/15/2024    6.667%   1,263,164    - 
Noteholder I  6/17/2020   6/17/2050    4%   160,000    - 
Noteholder J  8/15/2022   2/15/2024    6.667%   640,239    - 
Noteholder K  8/28/2021   9/1/2022    15%   50,000    - 
Noteholder K  10/6/2021   10/6/2022    15%   66,980    - 
Noteholder L  7/12/2022   -    10%   24,500    - 
Noteholder M  7/12/2022   -    10%   25,000    - 
Noteholder M  7/25/2022   -    5%   30,000    - 
Noteholder N  7/28/2022   -    10%   50,000    - 
Noteholder O  8/31/2022   8/31/2031    3.15%   8,000,000    7,925,926 
                $17,141,807   $7,930,217 

 

* In default at September 30, 2022

 

At June 30, 2023 and September 30, 2022, accrued interest related to notes payable totaled $873,905 and $191,437, respectively.

 

Convertible notes payable

 

The Company’s convertible notes payable as of June 30, 2023, are summarized as follows:

 

Noteholder  Origination   Maturity    Interest   Conversion   Principal  Discount 
Noteholder C   8/23/2022    8/23/2023**    12%  $0.0245/share   1,451,087   143,166 
Noteholder D   8/23/2022    8/23/2023**    12%  $0.0245/share   722,826   67,446 
Noteholder E   11/4/2020    5/4/2021*    15%  $0.059/share   100,000   - 
                        $2,273,913  $210,612 

 

*   In default at June 30, 2023

 

**   In default subsequent to June 30, 2023

 

 

The Company’s convertible notes payable as of September 30, 2022, are summarized as follows:

 

Noteholder   Origination     Maturity     Interest     Conversion     Principal     Discount  
Noteholder C     8/23/2022       8/23/2023       12 %   $ 0.0245/share       1,451,087       1,002,198  
Noteholder D     8/23/2022       8/23/2023       12 %   $ 0.0245/share       722,826       472,140  
Noteholder E     11/4/2020       5/4/2021 *     15 %   $ 0.059/share       100,000       -  
                                    $ 2,273,913     $ 1,474,338  

 

*   In default at September 30, 2023

 

At June 30, 2023 and September 30, 2022, accrued interest related to convertible notes payable totaled $165,445 and $46,266, respectively.

 

Future maturities

 

Future maturities of the Company’s debt as of June 30, 2023 are as follows:

 

      
September 30, 2023  $7,354,059 
September 30, 2024   4,582,366 
September 30, 2025   3,400 
September 30, 2026   3,500 
September 30, 2027   3,600 
Thereafter   8,005,807 
 Long term debt  $19,952,732