Note 19 - Leases

6 Months Ended

May 31, 2022

Notes to Financial Statements

Leases [Text Block]

19. LEASES

Operating Leases

The Company has operating leases for real estate in the United States and South Africa and does not have any finance leases.

In 2019, the Company had entered into a real estate lease for office space in Andover, Massachusetts.  In August 2021, the lease was amended to include additional space and extend the term of the existing space by one year. The new lease expiration date is February 29, 2028.  The base rent is approximately $15.0 thousand per month. 

The Company leases office and warehouse space in South Africa that expires in November 2024. The base rent during the six months ended May 31, 2022 is approximately $5.0 thousand per month.  In October 2021, the Company entered into an additional lease in South Africa for a storage facility. The lease expires October 31, 2022.

The Company leases warehouse and manufacturing space in Fort Wayne, Indiana. The lease expires on July 31, 2025. The base rent is approximately $8.0 thousand per month. In November 2021, the Company entered into a lease to replace this facility which will commence in August 2022.  The lease expires July 31, 2027. The Company may potentially sub-lease the former Fort Wayne facility upon the commencement of the new lease. 

The Company also leases office space in Las Vegas, Nevada. The lease expires on August 31, 2022. The base rent is approximately $4.0 thousand per month.  In anticipation of not renewing the aforementioned space, the Company entered into a new lease on December 1, 2021, which expires on January 31, 2027.  The base rent is approximately $4.0 thousand per month. 

Certain of the Company’s leases contain options to renew and extend lease terms and options to terminate leases early. Reflected in the right-of-use asset and lease liability on the Company’s balance sheets are the periods provided by renewal and extension options that the Company is reasonably certain to exercise, as well as the periods provided by termination options that the Company is reasonably certain to not exercise.

As of May 31, 2022 and 2021 the elements of lease expense were as follows (in thousands):

	Three Months Ended		Six Months Ended
	May 31, 2022		May 31, 2022
Lease Cost:
Operating lease cost	$	114	$	218
Short-term lease cost		4		8
Total lease cost	$	118	$	226
Other Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	119	$	108
Operating lease liabilities arising from obtaining right-of-use assets	$	100	$	326
Operating Leases:
Weighted-average remaining lease term (in years)				4.7
Weighted-average discount rate				9.2	%

Future lease payments under non-cancelable operating leases as of May 31, 2022 are as follows (in thousands):

Fiscal Year Ending November 30,
2022 (six months)	$	228
2023		427
2024		438
2025		326
2026		254
Thereafter		269
Total lease payments		1,942
Less: imputed interest		362
Total lease liabilities	$	1,580