Quarterly report pursuant to Section 13 or 15(d)

Right to Use Assets and Liabilities ??? Operating Leases

v3.20.4
Right to Use Assets and Liabilities – Operating Leases
6 Months Ended
Nov. 30, 2020
Disclosure Text Block [Abstract]  
Lessee, Operating Leases [Text Block]

Note 10 – Right to Use Assets and Liabilities – Operating Leases


The Company has operating leases for offices and warehouses. The Company’s leases have remaining lease terms of 1 year to 4 years, some of which include options to extend.


The Company’s lease expense for the three and six months ended November 30, 2020 was entirely comprised of operating leases and amounted to $104,793 and $270,410, respectively. The Company’s right of use (“ROU”) asset amortization for the three and six months ended November 30, 2020 was $88,897 and $175,727, respectively. The difference between the lease expense and the associated ROU asset amortization consists of interest. 


Right to use assets – operating leases are summarized below:


   

November 30,

2020

 

Amount at inception of leases

  $ 2,703,821  

Amount amortized

    (1,476,119

)

Balance – November 30, 2020

  $ 1,227,702  

Operating lease liabilities are summarized below:


Amount at inception of leases

  $ 2,675,310  

Amount amortized

    (1,409,668

)

Balance – November 30, 2020

  $ 1,265,642  

   

November 30,

2020

 

Warehouses and offices

  $ 1,265,642  

Lease liability

  $ 1,265,642  

Less: current portion

    (176,275

)

Lease liability, non-current

  $ 1,089,367  

Maturity analysis under these lease agreements is as follows:


Twelve months ended November 30, 2021

  $ 268,577  

Twelve months ended November 30, 2022

    178,570  

Twelve months ended November 30, 2023

    167,234  

Twelve months ended November 30, 2024

    172,035  

Twelve months ended November 30, 2025

    176,980  

Thereafter

    810,327  

Total

  $ 1,773,723  

Less: Present value discount

    (508,081

)

Lease liability

  $ 1,265,642