Related-Party Transactions |
6 Months Ended |
|---|---|
Apr. 30, 2025 | |
| Related Party Transactions [Abstract] | |
| Related-Party Transactions | Note 8 – Related-Party Transactions
In March 2020, the Company commenced business operations as a result of becoming the exclusive distributor of certain ENDS and related components (the “Products”) manufactured by Bidi, a related party company that was also owned by Nirajkumar Patel, the former Chief Executive Officer and Director of the Company.
Revenue and Accounts Receivable
During the six months ended April 30, 2025, and 2024, the Company recognized revenue of zero and $3,700, respectively, from one company owned by Nirajkumar Patel, the former Chief Executive Officer and Director of the Company, and/or his wife. There was no accounts receivable balance for these transactions as of April 30, 2025 and October 31, 2024.
Purchases and Accounts Payable
During the six months ended April 30, 2024, 100% of the inventories of Products, consisting solely of the BIDI® Stick, were purchased from Bidi, a related party controlled by Nirajkumar Patel, the former Chief Executive Officer and Director of the Company, in the amount of $273,060.
There were no purchases of inventory from Bidi for the six months ended April 30, 2025 and no amounts owed to Bidi for inventory purchases as of April 30, 2025.
The KBI License agreement provides that KBI shall pay Bidi license fees equivalent to 50% of the adjusted earned royalty payments, after any offsets due to jointly agreed costs such development costs incurred for entry to specific international markets.
During the three and six months ended April 30, 2025, the Company paid license fees of approximately $90,000 and $198,215, respectively to Bidi. As of April 30, 2025, the Company had a payable to Bidi of $35,000 related to the PMI License Agreement.
During the three and six months ended April 30, 2024, the Company paid license fees of $60,000 and $60,000, respectively, to Bidi. As of October 31, 2024, the Company had a payable to Bidi of $131,683 related to the PMI License Agreement.
Leased Office Space and Storage Space
On June 10, 2022, the Company entered into the 2022 Lease with Just Pick, owned and controlled by Nirajkumar Patel, the former Chief Executive Officer and Director of the Company. The Company had $70,051 and $120,979 in operating lease expenses for the three and six months ended April 30, 2025, respectively, and $49,335 and $98,168 for the three and six months ended April 30, 2024, respectively.
On April 23, 2025, the Company received a letter of demand from Just Pick, LLC. noting that the Company was in breach of the lease as base rent and operating expenses have not been paid since January 8, 2025. On April 30, 2025, the Company responded and provided Just Pick, LLC with a termination notice. As of April 30, 2025, the Company determined that it would no longer be using the leased office space in its business and recorded a loss on the ROU assets of $707,626, accordingly. As of April 30, 2025, there is ongoing negotiation between Just Pick, LLC and the Company regarding the settlement of the remaining reported office lease liability. In May 2025, the Company paid the total unpaid lease payments through May 2025 amounting to $78,217. |