The following is from the Latest Quarterly Financials just released by Management.
For starters looks like there MUST BE a Typo with regard to the Date Posted @ May 1,
2018 as the Lease is for 10 Years EXPIRING @ March 31,
2030 ???
But more important does ANYONE out there KNOW What the HECK all THIS MEANS eh????
Like WHO the HECK is
"""the President of the Company’s family""" ???
WHAT FAMILY???__WHAT COMPANY ????__WHO IS GETTING PAID the $$$$$$ ?????
HARRYS MANUFACTURING INC.
Notes to Condensed Interim Consolidated Financial Statements
For the nine months ended April 30, 2020
(unaudited)
(Expressed in Canadian dollars)
8. Lease Liability
On May 1, 2018, the Company entered into a lease agreement with a company controlled the President of the Company’s family for inventory warehouse space located at 30445 Progressive Way, Abbotsford, British Columbia. The lease is for a 10-year term, expiring on March 31, 2030, with one 5-year renewal option and an option for the Company to terminate the lease with 60 days notice. The base rent due under the lease agreement is $5,875 per month during the first year.
Lease liability as at July 31, 2019 - 0
Lease liabilities incurred 275,114
Less: lease payments (5,875)
Interest expense 5,273
Lease liability as at April 30, 2020 274,512
Less: current portion (8,190)
Long-term portion 266,322
The lease liability was discounted using the Company’s incremental borrowing rate of 23%. The
Company’s future minimum lease payments for the retail space lease is as follows:
Fiscal year ending July 31, 2020 17,625
Fiscal year ending July 31, 2021 70,500
Fiscal year ending July 31, 2022 70,500
Fiscal year ending July 31, 2023 70,500
Fiscal year ending July 31, 2024 70,500
Fiscal years ended July 31, 2025 to 2030 399,500
Total lease payments 699,125
Amounts representing interest over the term of the lease (424,613)
Present value of net lease payments 274,512