Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.4
Leases
6 Months Ended
Jan. 31, 2021
Leases [Abstract]  
Leases

Note 9 – Leases

 

Lease Agreements

 

On August 25, 2020, the Company entered into a second amended lease agreement (“Second Amendment”) with MawIt Inc. to further extend the lease term at 24 N. Main Street, Pennington, New Jersey, which serves as the Company’s New Jersey corporate headquarters. Under the Second Amendment, effective January 1, 2021, the lease term is extended through and included December 31, 2021 and the base rent for 2021 is $12,416 per month. The lease term shall automatically renew for up to two additional one-year terms unless the Company gives the Landlord a notice of non-renewal at least six months prior to the end of the renewal term then in effect. During 2022, the base rent will be $12,665 per month and during 2023, the base rent will be $12,918 per month. The Company accounted for the Second Amendment as a contract modification, and accordingly, recorded an additional ROU asset for approximately $388,000 and lease liabilities of approximately $388,000 for this operating lease.

 

The Company has operating leases for corporate offices and lab space. These leases have remaining lease terms of approximately one year to seven years, some of which include options to extend the lease. For any lease where the Company is reasonably certain that a renewal option will be exercised, the lease payments associated with the renewal option period are included in the ROU asset and lease liability as of January 31, 2021.

 

Supplemental balance sheet information related to leases as of January 31, 2021 was as follows:

 

Operating Leases:      
Operating lease right-of-use assets   $ 5,869,984  
Operating Leases:        
Current portion included in current liabilities   $ 784,371  
Long-term portion included in non-current liabilities     5,739,873  
Total operating lease liabilities   $ 6,524,244  

 

Supplemental lease expense related to leases was as follows:

 

   

For the Three Months Ended

January 31, 2021

   

For the Six Months Ended

January 31, 2021

 
Operating lease cost   $ 371,414     $ 743,373  
Total lease expense   $ 371,414     $ 743,373  

 

Other information related to leases where the Company is the lessee is as follows:

 

   

As of

January 31, 2021

 
Weighted-average remaining lease term     5.5 years  
         
Weighted-average discount rate     9.94 %

 

Supplemental cash flow information related to operating leases was as follows:

 

   

For the Three Months Ended

January 31, 2021

   

For the Six Months Ended

January 31, 2021

 
Cash paid for operating lease liabilities   $ 206,215     $ 516,392  
Total cash flows related to operating lease liabilities   $ 206,215     $ 516,392  

 

Future minimum lease payments under non-cancellable leases as of January 31, 2021 were as follows:

 

Years ending July 31,      
2021   $ 755,898  
2022     1,418,580  
2023     1,585,224  
2024     1,539,142  
2025     1,516,126  
Thereafter     1,774,569  
Total minimum lease payments     8,589,539  
Less: Imputed interest     (2,065,295 )
Total   $ 6,524,244