Related-Party Transactions

9 Months Ended

Jul. 31, 2021

Related Party Transactions [Abstract]

Related-Party Transactions

Note 5 – Related-Party Transactions

Revenue and Accounts Receivable

During the nine months ended July 31, 2021, the Company recognized revenue of $132,145 from three companies owned by Nirajkumar Patel, the Chief Executive Officer of the Company, and/or his wife.

During the nine months ended July 31, 2021, Lakshmi Distributors Inc., doing business as C Store Master (“C Store Master”), a large customer of the Company, elected to return the inventory associated with the consignment order placed on April 1, 2021, which was located at the staging warehouse in California, to the Company at no cost. The Company then returned this same inventory to Bidi’s warehouse in Florida at no cost. This reduced the Company’s inventory and reduced the related-party amount due to Bidi Vapor by $13,846,950.

Purchases and Accounts Payable

During the nine months ended July 31, 2021, the Company purchased Products equal to $62,394,093 from Bidi, a related party company that is also owned by Nirajkumar Patel, the Company’s Chief Executive Officer. As of July 31, 2021, the Company had accounts payable to Bidi of $16,813,962 and products valued at $14,947,200 were held in inventory at July 31, 2021.

Office Space

On August 1, 2020, the Company began leasing office space for its main corporate office in Grant, Florida. The five-year lease agreement is with a related party, Just Pick, LLC (“Just Pick”). The Company’s Chief Executive Officer is an officer of Just Pick.

Prior to this, the Company utilized the home office space and warehouse of its management at no cost through July 31, 2020.