Related Party Transactions |
10. Related Party Transactions: The Company has two operating leases with Weinstein Enterprises,
Inc. (“Landlord”), an affiliated company, principally owned by the Chairman of the Board of Directors of both the Company
and Landlord. One lease is for building, improvements, and land located at Jamaica Avenue at 169th Street, Jamaica,
New York. Another lease is for Premises located at 504-506 Fulton Street, Brooklyn, New York. In July 2022, the Company
entered into lease agreements with Landlord as follows:
(1) | Jamaica Avenue at 169th Street,
Jamaica, New York - Giving the Company four five-year option periods to extend its lease beyond the current expiration date of May 31,
2030 for a total of twenty years through May 31, 2050. As of October 31, 2022, it is not reasonably certain such options to extend the lease
will be exercised by the Company. |
(2) | 504-506 Fulton Street, Brooklyn, New York – Modification
of the lease agreement to increase monthly lease payments from $30,188 per month to $34,716 per month commencing on May 1, 2026 through
April 30, 2031. |
Rent payments and expense relating to these two operating
leases with Landlord follow:
| |
Rent Payments Three Months Ended October 31 | | |
Rent Expense Three Months Ended October 31 | |
Property | |
2022 | | |
2021 | | |
2022 | | |
2021 | |
Jamaica Avenue at 169th Street | |
$ | 156,249 | | |
$ | 156,249 | | |
$ | 379,359 | | |
$ | 379,359 | |
504-506 Fulton Street | |
| 90,564 | | |
| 90,564 | | |
| 95,299 | | |
| 87,609 | |
Total | |
$ | 246,813 | | |
$ | 246,813 | | |
$ | 474,658 | | |
$ | 466,968 | |
The following summarizes assets and liabilities related
to these two operating leases:
| |
Right-Of-Use Assets | | |
Liabilities | | |
| |
Property | |
October 31 2022 | | |
July 31 2022 | | |
October 31 2022 | | |
July 31 2022 | | |
Expiration Date | |
Jamaica Avenue at 169th Street | |
$ | 11,089,961 | | |
$ | 11,442,093 | | |
$ | 4,322,315 | | |
$ | 4,451,338 | | |
| May 31, 2030 | |
504-506 Fulton Street | |
| 2,621,785 | | |
| 2,683,787 | | |
| 2,732,444 | | |
| 2,789,709 | | |
| April 30, 2031 | |
Total | |
$ | 13,711,746 | | |
$ | 14,125,880 | | |
$ | 7,054,759 | | |
$ | 7,241,047 | | |
| | |
Upon termination of the Jamaica, New York lease, currently
in 2030, all premises included in operating lease right-of-use assets plus leasehold improvements will be turned over to the Landlord.
|