XML 77 R15.htm IDEA: XBRL DOCUMENT

Leases

9 Months Ended

Apr. 30, 2023

NOTE 9 – LEASES

The leased properties have a remaining lease term of three to sixty months as of April 30, 2023. 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.
8023 Vantage Dr., Suite 660, San Antonio, Texas 78230	$	49,136	Sep-27	Executive offices		2,843
10967 Via Frontera, San Diego, CA 92127	$	369,229	Mar-26	Office space		18,541
1610 Royal Palm Avenue, Suite 300, Fort Myers, FL 33901	$	83,260	Dec-25	Office space and network facilities		6,800
2121 Ponce de Leon Blvd., Suite 200, Coral Gables FL 33134	$	106,553	Dec-27	Office space & wireless internet network		4,623
7218 McNeil Dr., FL-1, Austin, TX 78729	$	21,000	Mar-24	Network facilities		25
9701 S. John Young Parkway, Orlando, FL 32819	$	25,440	May-23	Network facilities		540
50 NE 9th St, Miami, FL 3313	$	41,300	May-23	Network facilities		25
350 NW 215 St., Miami Gardens, FL 33169	$	29,254	May-23	Wireless internet network		100
8333 NW 53rd St, Doral, FL 33166	$	14,021	Jul-25	Wireless internet network		100
100 SE 2nd Street, Miami, FL 33131	$	36,466	Jan-24	Wireless internet network		100
9055 SW 73rd Ct, Miami, FL 33156	$	8,787	Dec-23	Wireless internet network		100
9517 Fontainebleau Blvd., Miami, FL 33172	$	11,907	Aug-24	Wireless internet network		100

The Company has not entered into any sale and leaseback transactions during the nine months ended April 30, 2023.

On May 17, 2022, the Company extended the office and wireless internet network leases in Coral Gables, Florida. The Company accounted for the extension as a lease modification. The Company used the discount rate of 5% and recognized $482,865 as a day one ROU asset and liability. These leases are identified in the table above. The leases expire in December 2027, 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.

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. The Company is not reasonably certain that it will exercise the renewal option.

In December 2021, as part of the acquisition of Skynet Telecom LLC’s assets, the Company assumed an office lease in San Antonio, Texas. In May 2022, the lease was extended until September 2027, 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. The Company accounted for the extension as a lease modification.

Amounts recognized as of July 31, 2022 and April 30, 2023 for operating leases are as follows:

ROU Asset	July 31, 2022	$	2,436,035
Amortization		$	(549,702	)
Addition - Asset		$	-
ROU Asset	April 30, 2023	$	1,886,333

Lease Liability	July 31, 2022	$	2,584,865
Payments		$	(573,450	)
Addition - Liability		$	-
Lease Liability	April 30, 2023	$	2,011,415

Lease Liability	Short term	$	608,774
Lease Liability	Long term	$	1,402,641
Lease Liability	Total:	$	2,011,415

Operating lease cost:		$	599,955

Cash paid for amounts included in the measurement of lease labilities:

Operating cashflow from operating leases:		$	599,955

Weighted-average remain lease term-operating lease:			3.5 years

Weighted-average discount rate			5.0	%

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

	Lease
Period Ending July 31,	Payments
2023 (three months remaining)		180,680
2024		650,734
2025		603,439
2026		431,377
2027		176,771
Total:	$	2,043,001

Less: amounts representing interest		31,586

Present value of net minimum operating lease payments	$	2,011,415