Leases |
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| Leases | Note 4 – Leases
During fiscal year 2025, the Company had an operating lease for office and inventory storage space with Just Pick, LLC.
Cash flow information related to the above-mentioned lease was as follows:
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. In May 2025, the Company paid the total unpaid lease payments through May 2025 amounting to $78,217.
On January 7, 2026, the Company executed a settlement agreement with Just Pick, LLC. where both parties agreed to no further payments remaining for the office lease liability. The lease liability was written off as of October 31, 2025 and the Company recognized a net gain of approximately $59,000 from the termination of the lease.
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