NOTES PAYABLE – RELATED PARTIES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| NOTES PAYABLE – RELATED PARTIES | 6. NOTES PAYABLE – RELATED PARTIES
Notes payable- related party are summarized in the following table (in thousands):
(a) The Company has outstanding notes payable to Frost Gamma Investments Trust (“Frost Gamma”) which pertained to promissory notes issued in fiscal 2021 and 2022, in the principal amount of $75,000 and $75,000, respectively. The promissory notes accrue interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025, as amended on August 15, 2023. The Frost Gamma promissory note may be prepaid in advance of the maturity date without penalty. Frost Gamma is a trust controlled by Dr. Phillip Frost, a current director of the Company, and who beneficially owns in excess of 10% of the Company’s common stock.
On August 15, 2023, the Company entered into a new promissory note agreement with Frost Gamma in the principal amount of $200,000, which also accrues interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025. This promissory note may also be prepaid in advance of the maturity date without penalty.
On September 25, 2024, October 23, 2024 and January 23, 2025, the Company entered into new promissory note agreements with Frost Gamma in the aggregate principal amount of $95,000, which also accrues interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025. The promissory notes may also be prepaid in advance of the maturity date without penalty.
There were no payments made on the promissory notes to Frost Gamma and as such, total outstanding notes payable balance was $445,000 as of April 30, 2025 and $350,000 as of July 31, 2024.
(b) The Company has outstanding notes payable Jane Hsiao, Ph.D. (“Dr. Hsiao”) which pertained to promissory notes issued in fiscal 2021 and 2022, in the principal amount of $75,000 and $75,000, respectively. The promissory notes accrue interest at a rate of 11% per annum, payable on the maturity date on July 31, 2025, as amended on August 15, 2023. The promissory notes to Dr. Hsiao may be prepaid in advance of the maturity date without penalty. Dr. Hsiao is the Company’s Chairman and Interim CEO, and who beneficially owns in excess of 10% of the Company’s common stock.
There were no payments made on the promissory notes to Dr. Hsiao and as such, total outstanding notes payable balance was $150,000 as of April 30, 2025 and July 31, 2024.
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