NOTE

LONG-TERM DEBT

As at

January 31, 2020,

our long-term debt consisted of the following:

	January 31, 2020			July 31, 2019
Principal amount	$	20,000,000		$	20,000,000
Unamortized discount and accrued fees		(955,236	)		(400,037	)
Long-term debt, net of unamortized discount	$	19,044,764		$	19,599,963

For the

three

months ended

January 31, 2020

and

2019,

amortization of debt discount totaled

$412,580

and

$358,349,

(

six

months ended

January 31, 2020

and

2019:

$844,801

and

$666,120

), respectively, which was recorded as interest expense and included in our Condensed Consolidated Statements of Operations and Comprehensive Loss.

During the

three

months ended

January 31, 2020,

and pursuant to the terms of our Third Amended and Restated Credit Agreement with our Lenders, we issued an aggregate of

1,743,462

shares with a fair value of

$1,400,000

to our Lenders, representing

of the

$20,000,000

principal balance outstanding at

October 31, 2019,

as payment of anniversary fees to our Lenders.

The Company’s Credit Facility has a maturity date on

January 31, 2022,

with an interest rate of

per annum and an underlying effective interest rate of

16.67%.

The aggregate yearly maturities of long-term debt based on principal amounts outstanding at

January 31, 2020

are as follows: