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Government Loans and Note Payable and Government Subsidy (Tables)
12 Months Ended
Aug. 31, 2022
Government Loans And Note Payable And Government Subsidy  
Schedule of Governmental Loans and Note Payable

Governmental loans and note payable at August 31, 2022 and 2021 consisted of the following:

 

 Schedule of Governmental Loans and Note Payable

   2022   2021 
Government loans issued under the Government of Canada’s Canada Emergency Business Account (“CEBA”) program (A).   91,526    63,336 
           
Note payable to the Small Business Administration (“SBA”). The note bears interest at 3.75% per annum, requires monthly payments of $190 after 12 months from funding and is due 30 years from the date of issuance and is secured by certain equipment of PRO-DIP.   40,320    40,320 
           
Note payable dated December 3, 2019; accrues interest at 3% per annum; secured by land, building and personal property; due June 30, 2022. (On June 30, 2022, paid in full)   -    5,069,858 
           
Note payable dated December 3, 2018; accrues interest at 4.53% per annum; unsecured; annual payments of approximately $4,000; due December 2, 2028.   29,614    30,739 
           
Note payable dated June 24, 2021; accrues interest at 9% per annum; secured by real property of Acenzia; lender at its sole discretion may require monthly principal payments of $950,000 after December 24, 2021; any unpaid principal and interest due on June 24, 2022. (On December 14, 2021, the note was paid in full.)   -    4,415,000 
Total government loans and notes payable   161,460    9,619,253 
Less current portion   -    (4,485,649)
Long-term portion  $161,460   $5,133,604 

 

(A) The Government of Canada launched the Canada Emergency Business Account (“CEBA”) loan to ensure that small businesses have access to the capital that they need during the current challenges faced due to the COVID-19 virus. The Company obtained a CAD$80,000 loan (US$61,017 at August 31, 2022), which is unsecured, non-interest bearing and due on or before December 31, 2022. If the loan amount is paid on or before December 31, 2022, 25% of the loan will be forgiven (“Early Payment Credit”). In the event that the Company does not repay 75% of such term debt on or before December 31, 2022, the Early Payment Credit will not apply and the lender will automatically extend the term of the loan by three years until December 31, 2025 and will accrue on the outstanding amount of the CEBA Loan at a fixed rate of 5% per year, calculated daily and compounded monthly. In addition, with acquisition of Terragenx, the Company acquired a CEBA loan in the amount of CAD$60,000 net of CAD$20,000 repayment (US$30,509 at August 31, 2022) under the same terms.
Schedule of Future Maturities Outstanding of Governmental Loans and Note Payable

Future scheduled maturities of outstanding government loans and notes payable are as follows:

 

Years Ending August 31,    
2023  $6,362 
2024   97,889 
2025   6,362 
2026   6,362 
2027   6,362 
Thereafter   38,122 
Total  $161,460