Leases

12 Months Ended

Jan. 31, 2021

Leases [Abstract]

Leases

16. LEASES

The Trust has operating leases for its corporate offices in Phoenix, Arizona and land leased in Albuquerque, New Mexico, and a cable equipment finance lease in Tucson, Arizona. The Trust’s corporate office lease includes options to extend or terminate the leases and the Trust includes these options in the lease term when it is reasonably certain to exercise that option. All leases are non-cancelable.

Operating Leases

On August 4, 2017, the Trust entered into a five-year office lease agreement with Northpoint Properties for a commercial office lease at 1730 E Northern Ave, Suite 122, Phoenix, Arizona 85020 commencing on September 1, 2017. Base monthly rent of $4,100 increases 6% on a yearly basis. No rent is due for October 2018 and October 2022 months. The Trust also agreed to pay electricity and applicable sales tax. The office lease agreement provides early termination with a 90-day notification with an early termination fee of $12,000, $8,000, $6,000, $4,000, and $2,000 for years 1 - 5 of the lease term.

The Trust’s Albuquerque Hotel is subject to non-cancelable ground lease. The Albuquerque Hotel non-cancelable ground lease was extended on January 14, 2014 and expires in 2058.

The Trust’s Operating Lease costs recognized in the consolidated statement of operations for the year ended January 31, 2021 consist of the following:

	Fiscal Year Ended January 31, 2021
Operating Lease Costs:
Operating lease cost	$	200,347

Supplemental cash flow information is as follows:

	Fiscal Year Ended January 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	168,780
Lease Obligations obtained:
Operating leases, net	$	2,369,281
Long-term obligations	$	2,310,745

Weighted average remaining lease terms and discount rates were as follows:

Weighted average remaining lease term (years)	January 31, 2021
Operating leases		37
Weighted average discount rate
Operating leases		4.85	%

The aggregate future lease payments for Operating Lease Liability as of January 31, 2021 are as follows:

For the Years Ending January 31,
2022	$	172,177
2023		148,348
2024		112,116
2025		112,116
2026		112,116
Thereafter		5,039,195
Total minimum lease payments	$	5,696,068
Less: amount representing interest		3,326,787
Total present value of minimum payments		2,369,281
Less: current portion of operating lease liability	$	58,536
Long term portion of operating lease liability		2,310,745

Finance Leases

The Company’s Tucson Oracle Hotel is subject to non-cancelable cable lease that expires in 2023.

The Trust’s Finance Lease costs recognized in the Consolidated Statement of Income for the Fiscal Year ended January 31, 2021 consist of the following:

	Fiscal Year Ended
	January 31, 2021
Finance Lease Costs:
Amortization of lease obligations	$	27,749
Interest on lease obligations		4,581

Supplemental cash flow information is as follows:

	Fiscal Year Ended
	January 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	31,123
Lease Obligations obtained:
Finance leases, net	$	79,976
Long-term obligations	$	52,118

Weighted average remaining lease terms and discount rates were as follows:

Weighted average remaining lease term (years)	January 31, 2021
Finance leases		3
Weighted average discount rate
Finance leases		4.85	%

The aggregate future lease payments for Finance Lease Liability as of January 31, 2021 are as follows:

For the Years Ending January 31,
2022	$	31,123
2023		31,123
2024		23,343
Total minimum lease payments	$	85,589
Less: amount representing interest		5,613
Total present value of minimum payments		79,976
Less: current portion	$	27,858
Long term portion of finance lease liability		52,118

The aggregate annual lease obligations at January 31, 2021 are as follows:

Fiscal Year	Operating Leases			Finance Leases
2022	$	172,177		$	31,123
2023		148,348			31,123
2024		112,116			23,343
2025		112,116			-
2026		112,116			-
Thereafter		5,039,195			-
Total undiscounted lease obligations		5,696,068			85,589
Less imputed interest		(3,326,787	)		(5,613	)
Net lease obligations	$	2,369,281		$	79,976