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Government Loans and Note Payable and Government Subsidy (Tables)
12 Months Ended
Aug. 31, 2023
Government Loans And Note Payable And Government Subsidy  
Schedule of Governmental Loans and Note Payable

Governmental loans and note payable at August 31, 2023 and 2022 consisted of the following:

 

   2023   2022 
Government loans issued under the Government of Canada’s Canada Emergency Business Account (“CEBA”) program (A).   88,680    91,526 
           
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, 2018; accrues interest at 4.53% per annum; unsecured; annual payments of approximately $4,000; due December 2, 2028.   28,693    29,614 
           
Note payable received May 25, 2023 accruing interest at 18% per 3-months term, unsecured, with principal and interest due 3-month from loan issuance. The note was repaid on October 26, 2023.   73,900    - 
           
Note payable received May 10, 2023 accruing interest at 15% per 4-months term, with a first priority security interest in all of Acenzia’s production equipment, with principal and interest due 4-month from loan issuance. The note was repaid on October 23, 2023.   110,850    - 
Total government loans and notes payable   342,443    161,460 
Less current portion   (277,405)   - 
Long-term portion  $65,038   $161,460 

 

 

(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 ($59,120 at August 31, 2023), which is unsecured, non-interest bearing and due on or before January 18, 2024. If the loan amount is paid on or before January 18, 2024, 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 January 18, 2024, the Early Payment Credit will not apply and the lender will automatically extend the term of the loan 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 ($29,560 at August 31, 2022) under the same terms.
Schedule of Future Maturities Outstanding of government Loans and Notes Payable

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

 

      
Years Ending August 31,     
2024   $277,405 
2025    6,408 
2026    6,557 
2027    6,714 
2028    6,878 
Thereafter    38,481 
Total   $342,443