Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Jul. 31, 2021
Leases [Abstract]  

Note 10 – 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 July 31, 2021.


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


Operating Leases:      
Operating lease right-of-use assets   $ 5,445,744  
Operating Leases:        
Current portion included in current liabilities   $ 845,483  
Long-term portion included in non-current liabilities     5,238,207  
Total operating lease liabilities   $ 6,083,690  


Supplemental lease expense related to leases was as follows:



For the Year


July 31, 2021

Operating lease cost   $ 1,482,956  
Total lease expense   $ 1,482,956  


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



As of

July 31, 2021

Weighted-average remaining lease term     5 years  
Weighted-average discount rate     9.95 %


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



For the Year Ended

July 31, 2021

Cash paid for operating lease liabilities   $ 1,272,290  
Total cash flows related to operating lease liabilities   $ 1,272,290  


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


Years ending July 31,      
2022   $ 1,418,580  
2023     1,585,224  
2024     1,539,142  
2025     1,516,126  
2026     1,533,882  
Thereafter     240,688  
Total minimum lease payments     7,833,642  
Less: Imputed interest     (1,749,952 )
Total   $ 6,083,690