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Related Party Transactions
3 Months Ended
Apr. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions

Note 6 - Related Party Transactions

 

WWS, Inc.

 

Alfred D’Agostino, a director of the Company, is an affiliate of WWS, Inc.

 

For the three months ended April 30, 2022 and 2021, the Company recorded $12,000 in commission expense from WWS, Inc. generated sales.

 

Promissory Note – Related Party

 

Upon consummation of the acquisition of T&L, the Company executed a $3,000,000 promissory note with the sellers. The promissory note requires annual principal payments of $750,000 payable on each anniversary of the closing, together with accrued interest at a rate of three and one-half (3.5%) per annum. As of April 30, 2022 and January 31, 2022, the outstanding balance under the note including accrued interest was $3,036,036 and $3,009,917, respectively. Interest expense related to this note was $26,119 for the three months ended April 30, 2022. As of April 30, 2022 and January 31, 2022, accrued interest was $36,036 and $9,917, respectively.

 

Lease – Related Party

 

The Company leases a fully contained facility in Farmingdale, NY from 148 Allen Blvd LLC for production and distribution of T&L Creative Salads and Olive Branch products. 148 Allen Blvd LLC is owned by Anthony Morello, Jr., CEO of T&L Acquisition Corp., a 100% owned subsidiary of the Company. This lease term is through November 30, 2031 with the option to extend the lease for two additional ten-year terms with rent of $20,200 per month through December 31, 2026, increasing after that date to $23,567 through the end of the initial lease term. The exercise of optional renewal is uncertain and therefore excluded from the calculation of the right of use asset. Rent expense pursuant to the lease for the three months ended April 30, 2022 was $59,857.

 

Other Related Party Transactions

 

During the three months ended April 30, 2022 and 2021, the Company reimbursed an entity 100% owned by the CEO of the Company for certain investor relation conference expenses totaling $1,931 and $4,517, respectively.

 

During the three months ended April 30, 2022, the CFO exercised 30,000 options on a cashless basis in exchange for 15,676 shares of common stock.