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Commitments and Contingencies
9 Months Ended
Apr. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

8. COMMITMENTS AND CONTINGENCIES

 

Leases.

 

The Company is under an operating lease agreement with a related party for our corporate office space that expired in 2012. The lease currently continues on a month to month basis at no cost.

 

We house a majority of our inventory in approximately 4,000 square feet of warehouse space in Pembroke Park, Florida. The lease commenced September 15, 2014 and originally expired on September 30, 2015 and we have exercised our option to renew the lease and extended the expiration to September 15, 2017. Following the expiration, we have remained on a month-to-month term.

 

The Pembroke Park lease agreement requires the payment of base rent. Rental expense for operating leases amounted to $34,000 and $33,000 for the nine months ended April 30, 2019 and 2018, respectively, and $11,300 and $11,000 for the three months ended April 30, 2019 and 2018, respectively. As discussed in Note 11, on May 3, 2019 the Company exchanged the inventory stored in the warehouse for forgiveness of the accrued rent.