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Leases
 9 Months Ended
Apr. 30, 2022
Leases [Abstract]  
LEASES

NOTE 9 - LEASES

 

The leased properties have a remaining lease term of twelve to thirty-seven months as of August 1, 2021 (Beginning on the current fiscal year). At the option of the Company, it can elect to extend the term of the leases. See table below:

 

Location  Annual
Rent		   Lease
Expiration
Date		  Business Use  Approx.
Sq. Ft.		 
               
825 W. Bitters, Suite 104, San Antonio, TX 78216  $26,529   Jul-22  Executive offices   1,546 
8023 Vantage Dr., Suite 660, San Antonio, Texas 78230  $49,752   Sep-22  Office space   2,843 
10967 Via Frontera, San Diego, CA 92127  $366,767   Mar-26  Office space   18,541 
1610 Royal Palm Avenue, Suite 300, Fort Myers, FL 33901  $82,102   Dec-25  Office space and network facilities   6,800 
2121 Ponce de Leon Blvd., Suite 200, Coral Gables FL 33134  $164,475   Jul-22  Office space & wireless internet network   4,623 
7218 McNeil Dr., FL-1, Austin, TX  78729  $21,000   Mar-24  Network facilities   25 
6606 Lyndon B. Johnson, Fwy., FL1, Suite 125, Dallas, TX 75240  $14,200   May-22  Network facilities   25 
9701 S. John Young Parkway, Orlando, FL 32819  $30,528   May-23  Network facilities   540 
50 NE 9th St, Miami, FL 3313  $49,560   May-23  Network facilities   25 
350 NW 215 St., Miami Gardens, FL 33169  $23,403   May-22  Wireless internet network   100 
8333 NW 53rd St, Doral, FL 33166  $13,612   Jul-25  Wireless internet network   100 
100 SE 2nd Street, Miami, FL 33131  $36,024   Jan-24  Wireless internet network   100 
9055 SW 73rd Ct, Miami, FL 33156  $8,674   Dec-23  Wireless internet network   100 
9517 Fontainebleau Blvd., Miami, FL 33172  $11,860   Aug-24  Wireless internet network   100 

 

The Company has not entered into any sale and leaseback transactions during the nine months ended April 30, 2022

 

In February 2022, as part of the acquisition of NLI, the Company secured an office lease, with a monthly base lease payment of $30,222. The lease expires in March 2026. At the option of the Company, the lease can be extended for two additional five-year terms, with a base rent at the prevailing market rate at the time of the renewal.

 

In December 2021, as part of the acquisition of Skynet Telecom LLC’s assets, the Company assumed an office lease in San Antonio, Texas. The lease expires in September 2022, and at the option of the Company, the lease can be extended for a period of five years, with a base rent at the prevailing market rate at the time of the renewal.

 

In January 2021, the Company entered into a new office lease, with a monthly base lease payment and applicable shared expenses of $4,750 and $2,140, respectively. The base rent will increase on an annual basis by 2% of the base lease payment. The lease expires on December 31, 2025., and at the option of the Company, the lease can be extended for one (1) five (5) year term with a base rent at the prevailing market rate at the time of the renewal.

 

In November 2020, as part of the acquisition of Nexogy, Inc., the Company assumed an office lease in Coral Gable Florida, two network facilities and five wireless internet network leases. The leases’ expiration dates range from May 2022 to July 2025, and at the option of the Company, the leases can be extended for various periods ranging from one to five years, with a base rent at the prevailing market rate at the time of the renewal.

 

Amounts recognized on July 31, 2021, and April 30, 2022, for operating leases are as follows:

 

ROU Asset  July 31, 2021  $934,260 
Amortization     $(213,662)
Addition - Asset     $1,246,262 
ROU Asset  April 30, 2022  $1,966,860 
         
Lease Liability  July 31, 2021  $934,260 
Amortization     $(268,000)
Addition - Liability     $1,455,978 
Lease Liability  April 30, 2022  $2,122,238 
         
Lease Liability  Short term  $773,233 
Lease Liability  Long term  $1,349,005 
Lease Liability  Total:  $2,122,238 

 

Operating  lease cost:  $470,935 
      
Cash paid for amounts included in the measurement of lease labilities   
 
 
      
Operating cashflow from operating leases:  $470,935 
      
Weighted-average remain lease term-operating lease:   3.4 years 
      
Weighted-average discount rate   5.0%

 

For the nine months ended April 30, 2022, the amortization of operating ROU assets was$213,662.

 

For the nine months ended April 30, 2022, the amortization of operating lease liabilities was $268,000

 

The future minimum lease payment under the operating leases are as follows:

 

Period Ending July 31,  Lease Payments 
2022*  $218,569 
2023   658,144 
2024   532,546 
2025   491,145 
2026   260,209 
Total:  $2,160,613 

 

*remaining 3 Months