looks like higher interest costs and lower margins per busLast financial statements filed July 29th for the 9 months ended May 31st states that "on
May 16th, the company entered into a
$2,000,000 purchase order financing agreement with a company
controlled by a shareholder. The advances bear monthly interest at 10%. The funds are restricted to firm purchase orders received by the Company." This can be found on page 9, note 6 of the Consolidated Financial report.
The loan has been recorded as a current liability with the offset in cash on the balance sheet.
Expect much higher interest costs (and lower margins) on the consolidated statement of comprehensive loss going forward although I suspect they will bury it in Cost of Sales.