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Related-Party Transactions
6 Months Ended
Apr. 30, 2022
Related Party Transactions [Abstract]  
Related-Party Transactions

Note 6 – Related-Party Transactions

 

Revenue and Accounts Receivable

 

During the six months ended April 30, 2022, the Company recognized revenue of approximately $31,150 from four companies owned by Nirajkumar Patel, the Chief Executive Officer of the Company, and/or his wife. There was no accounts receivable balance for these transactions as of April 30, 2022.

 

During the six months ended April 30, 2021, the Company recognized revenue of approximately $61,545 from three companies owned by Nirajkumar Patel, the Chief Executive Officer of the Company, and/or his wife. The accounts receivable balance for these transactions was $765 as of April 30, 2021.

 

Concentration Purchases and Accounts Payable

 

During the six months ended April 30, 2022, the Company did not purchase Products from Bidi, a related party. Sales of Products during the first six months of fiscal year 2022 were drawn from the inventory purchase made on September 6, 2021. As of April 30, 2022, the Company had accounts payable to Bidi of approximately $3,394,759 and Products valued at approximately $9,214,320 were held in inventory.  

 

During the six months ended April 30, 2021, the Company purchased Products of approximately $75,065,602 from Bidi, a related party. As of April 30, 2021, the Company had accounts payable to Bidi of approximately $38,001,633. During the six months ended April 30, 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. The liability for rent not paid from the beginning of the lease through April 30, 2022 is $21,900.

 

For additional information regarding leases as of the date these unaudited consolidated financial statements were issued, please see Note 8, Subsequent Events.