Related Party Transactions

12 Months Ended

Aug. 31, 2023

Related Party Transactions

Related Party Transactions

Note 9. Related Party Transactions

On November 21, 2017, the Company entered into the Chicago Lease with the Trust, which is the grantor trust of Glen Ceiley, our Chief Executive Officer, Chairman of the Board and the Company’s majority shareholder, for the lease of a facility in Glendale Heights, Illinois. The Company relocated its Chicago sales office and distribution center to this facility in December 2017. The Chicago Lease is a ten year triple net lease with an initial monthly rental rate of $22,600, which is subject to annual rent increases of approximately 2.5% as set forth in the Chicago Lease.

On July 26, 2019, the Company entered into the Hunter Lease with the Trust, for the lease of the Hunter Property, which houses the Company’s corporate headquarters. The Company completed its move to the current headquarters located at the Hunter Property in March 2020. The Hunter Lease is a ten year triple net lease, which commenced on September 2, 2019 and ends on August 31, 2029 with an initial monthly rental rate of $66,300. On October 23, 2023, the lease was terminated when the Company closed escrow on purchase of the Hunter Property from the Trust for a purchase price of $31,000,000. See Note 11.

During fiscal 2023 and fiscal 2022, the Company paid approximately $1,162,000 and $1,134,000, respectively, of rent related to all leases with the Trust.