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Capital Leases Payable
6 Months Ended
Jul. 31, 2018
Debt Disclosure [Abstract]  
Capital Leases Payable

Note 8 – Capital Leases Payable

 

Capital lease obligations consisted of the following at July 31, 2018:

 

      July 31, 2018    
           
(i) Capital lease obligation to a financing company for a term of four (4) years, collateralized by equipment, with interest at 7.5% per annum, with principal and interest due and payable in monthly installments of $5,152 and buyout purchase option of $31,988 at end of lease   $ 201,643    
             
(ii) Capital lease obligation to a financing company for a term of five (5) years, collateralized by kitchen equipment, with interest at 5.9% per annum, with principal and interest due and payable in monthly installments of $610 and buyout purchase option of $1 at end of lease     29,570    
             
        231,213    
             
  Less current maturities     53,730    
             
  Capital lease obligation, net of current maturities   $ 177,483    

 

  (i) In May 2018, the Company executed a sale-leaseback arrangement with an unrelated third party whereby the Company sold its equipment and leased it back for a period of 4 years. Pursuant to the agreement, the Company received gross proceeds of $213,250. This transaction is recorded as a financing transaction with the assets and related financing obligation on the condensed consolidated balance sheet. The lease expires in April 2022 and includes purchase, renewal and return options and certain default provisions requiring the Company to perform repairs and maintenance, make timely rent payments and insure the equipment.

 

Future maturities of all debt and capital leases (including debt discussed above in Notes 5, 6, 7 and 8) are as follows:

 

For the Twelve Months Ending July 31,      
2019   $ 4,103,220  
2020     892,837  
2021     227,714  
2022     216,871  
2023     19,866  
    $ 5,460,508