NOTE 9 - NOTES PAYABLE

Notes payable consisted of the following at April 30, 2019:

In the fiscal year ended April 30, 2020, the Company paid in full all borrowings under financing arrangements with third-party lenders in the aggregate amount of $2.5 million, excluding accrued interest payable, which are shown on the table above.

In November 2018, the Company entered into financing agreements with two third-party lenders pursuant to which the Company agreed to sell certain future trade receipts, in the aggregate amount of $1,270,000, to the lenders. Net proceeds from these transactions aggregated $975,000, net of initial financing fees aggregating $25,000 and applicable financing costs calculated at an implied interest rate of 27%. In December 2018, the Company entered into a Loan Agreement and Promissory Note (the “loan agreement”) with Global Payroll Gateway pursuant to which the Company borrowed the principal amount of $1,000,000. Borrowings under the loan agreement were payable, with interest at 10%, in 52 weekly installments. In March 2019, the Company entered into financing agreements with three third-party lenders pursuant to which the Company agreed to sell certain future trade receipts, in the aggregate amount of $1,950,000, to the lenders. Net proceeds from these transactions aggregated $1,380,715, net of initial financing fees aggregating $119,285 and applicable financing costs calculated at an APR rate ranging from 79% to 80%.

Borrowings under the Company’s financing arrangements generally were secured by a lien on the Company’s accounts receivable, inventory, and property and equipment to the extent of borrowings outstanding at any point in time. In the fiscal year ended April 30, 2020 and 2019, interest expense associated with the Company’s promissory notes was $333,559 and $348,639, respectively, and is included in interest expense in our consolidated statements of operations.