NOTE 11 - LEASES

The following summarizes the Company’s operating leases:

 SCHEDULE OF OPERATING LEASES

The amortization of the right-of-use assets for the three months ended July 31, 2026 and 2025 was $164,235 and $200,913, respectively. The amortization of the right-of-use assets for the nine months ended July 31, 2026 and 2025 was $508,854 and $583,643, respectively.

Maturities of lease liabilities by year for our operating leases are as follows:

 SCHEDULE OF MATURITY LEASE LIABILITY

The aggregate cash payments under these leasing agreements were $280,141 and $347,600 for the three months ended July 31, 2026 and 2025, respectively. The aggregate cash payments under these leasing agreements were $839,074 and $749,524 for the nine months ended July 31, 2026 and 2025, respectively.

Variable lease payments were $75,418 and $102,000 during the three months ended July 31, 2026 and 2025, respectively. Operating lease costs were $204,724 and $245,600 for the three months ended July 31, 2026 and 2025, respectively. Variable lease payments were $224,903 and $372,724 during the nine months ended July 31, 2026 and 2025, respectively. Operating lease costs were $614,171 and $736,800 for the nine months ended July 31, 2026 and 2025, respectively.

In November 2024, the Company entered into a new lease in connection with the Second Empire Acquisition. As a result, the Company recognized a right-of-use asset and lease liability of $2,113,581 in connection with such new lease.

In October 2025, the Company ceased operations of its Comfort Foods manufacturing subsidiary and exited the leased facility located in North Andover, Massachusetts. The lease for the facility was scheduled to expire on May 31, 2028. Upon the closure of Comfort Foods, the Company determined that the right-of-use asset associated with the lease was fully impaired, as the facility would no longer be utilized in the Company’s operations. During October 2025, the Company recognized a gain of $210,567 upon the extinguishment of a portion of the lease liability, which is presented as gain on extinguishment of lease within other income (expense) in the consolidated statements of operations. Based on ongoing legal discussions with the landlord and management’s estimate of the expected settlement amount, the remaining obligation associated with the facility was approximately $200,000 as of July 31, 2026.

During the three months ended July 31, 2026, the Company renewed the lease for its operating facility through March 31, 2029. As a result of the lease renewal, the Company recognized an additional right-of-use asset and corresponding operating lease liability of approximately $119,358.