Note 12 - Related Party Transactions

12 Months Ended

Oct. 31, 2022

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note 12 – Related party transactions

A portion of our operating leases are leased from K&K Unlimited, a company controlled by Darren Clark, the former owner and current President of Cables Unlimited. Cables Unlimited’s monthly rent expense under the lease is $16,000 per month, plus payments of all utilities, janitorial expenses, routine maintenance costs, and costs of insurance for Cables Unlimited’s business operations and equipment. During the fiscal year ended October 31, 2022, we paid a total of $180,000 under the leases.

During fiscal 2022, we paid royalties to Elmec Ltd. (“Elmec”), a European-based company that owns the intellectual property that is used in Schrofftech’s products. One third of Elmec is jointly owned by David Therrien and Richard DeFelice, two of the former owners and current President and Vice President, respectively, of Schrofftech. For the year ended October 31, 2022, we paid a total of $19,000 of royalty payments to Elmec, and have accrued an additional $4,000 as of October 31, 2022. The expenses related to these transactions are included in cost of goods sold.