LEASES (Tables)

12 Months Ended

May 31, 2023

Leases

SCHEDULE OF FINANCING LEASE

Financing leases consist of the following as of May 31:

	2023			2022
Non-cancelable financing leases	$	60,485		$	2,163,043
Less: Current portion of financing leases		(31,981	)		(1,630,895	)
Non-cancelable financing leases, net of current portion	$	28,504		$	532,148

SCHEDULE OF NON-CANCELABLE FINANCING LEASES

The production equipment under the non-cancelable financing leases as of May 31, 2023 and 2022 was as follows:

	2023			2022
Production equipment under financing leases	$	176,565		$	8,497,798
Less: Accumulated amortization		(95,447	)		(3,481,223	)
Production equipment under financing leases, net	$	81,118		$	5,016,575

SCHEDULE OF OPERATING LEASES

The outstanding liability for right to use assets under operating leases as of May 31, 2023 and 2022 is as follows:

	2023			2022
Liability under operating leases	$	5,360,034		$	55,535
Less: Current portion		(240,346	)		(33,881	)
Long-term portion of liability under operating leases	$	5,119,688		$	21,654

SUMMARY OF LEASE ACTIVITY

For the years ended May 31, 2023 and 2022, a summary of lease activity follows:

	2023			2022
Lease Expense
Financing lease expense -
Amortization of right-of-use assets	$	197,626		$	946,535
Interest on lease liabilities		24,927			127,898
Operating lease expense		501,712			61,881
Short-term lease expense		1,532,005			1,493,169
Total	$	2,256,270		$	2,629,483
Other Information
Cash paid for amounts included in the measurement of lease liabilities for finance leases -
Operating cash flows	$	24,927		$	127,898
Financing cash flows	$	578,151		$	1,455,404
Cash paid for amounts included in the measurement of lease liabilities for operating leases -
Operating cash flows	$	478,881		$	61,881
Right-of-use assets obtained in exchange for lease liabilities – financing lease		-		$	24,441
Weighted-average remaining lease term (in years) -
Financing leases		1.7			1.3
Operating leases		14.1			1.6
Weighted-average discount rate -
Financing leases		4.4	%		7.3	%
Operating leases		6.0	%		5.4	%

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

Future minimum lease payments under non-cancelable operating and financing leases as of May 31, 2023, are approximately:

	Operating Leases			Financing Leases
Year ending May 31, 2024	$	552,557		$	39,062
Year ending May 31, 2025		535,291			19,173
Year ending May 31, 2026		534,000			4,512
Year ending May 31, 2027		534,000			-
Year ending May 31, 2028		556,300			-
Thereafter		5,280,100			-
Total lease payments		7,992,248			62,747
Less: Imputed interest		(2,632,214	)		(2,262	)
Present value of minimum lease payments	$	5,360,034		$	60,485