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Related-Party Transactions
3 Months Ended
Jan. 31, 2022
Related Party Transactions [Abstract]  
Related-Party Transactions

Note 6 – Related-Party Transactions

 

Revenue and Accounts Receivable

 

During the three months ended January 31, 2022, the Company recognized revenue of approximately $23,765 from four companies owned by Nirajkumar Patel, the Chief Executive Officer of the Company, and/or his wife. As of January 31, 2022, the Company has accounts receivable from this related party in the amount of approximately $245.

 

During the three months ended January 31, 2021, the Company recognized revenue of approximately $50,300 from three companies owned by Nirajkumar Patel, the Chief Executive Officer of the Company, and/or his wife.

 

Concentration Purchases and Accounts Payable

 

During the three months ended January 31, 2022, the Company did not purchase Products from Bidi, a related party company that is also owned by Nirajkumar Patel, the Company’s Chief Executive Officer. As of January 31, 2022, the Company had accounts payable to Bidi of approximately $9,129,759 and Products valued at approximately $11,841,750 were held in inventory.

 

During the three months ended January 31, 2021, the Company purchased Products of approximately $32,479,100 from Bidi, a related party company. As of January 31, 2021, the Company had accounts payable to Bidi of approximately $6,247,882. During the three months ended January 31, 2021, 100% of all Product purchases were made by the Company from Bidi.

 

Leased Office Space and Storage 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. The Company’s Chief Executive Officer is an officer of Just Pick. During fiscal year 2021, the Company was not charged for the leased space under the terms and conditions of the lease between the Company and Just Pick and was not charged for the separate warehouse space provided by Just Pick; thus, no payments were made on the lease. During the three months ended January 31, 2022, no payments were made on the lease because the Company continued to not be charged under the five-year lease agreement for this office and storage space.