Note 8 - Right-of-use Asset and Lease Liability

3 Months Ended

May 31, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note

8

– Right-of-use Asset and Lease Liability

The Company has entered into lease agreements with various

third

parties. The terms of operating leases are

one

to

two

years. These operating leases are included in "Right-of-use Asset" on the Company's Consolidated Balance Sheet, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in "Lease liability" on the Company's Consolidated Balance Sheet. Upon adoption of ASC Topic

842,

Leases (Topic

842

), based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recorded net right-of-use assets of

$78,263

and lease liability of

$78,263

on

January 1, 2019.

Operating lease right-of-use assets and liabilities commencing after

January 1, 2019

are recognized at commencement date based on the present value of lease payments over the lease term. As of

May 31, 2019,

total right-of-use assets and operating lease liabilities were

$35,871

 and 

$36,353,

respectively.

Additionally, the Company has entered into various short-term operating leases with an initial term of

twelve

months or less. These leases are

not

recorded on the Company's balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term in the

three

months ended

May 31, 2019.

Information related to the Company's right-of-use assets and related lease liabilities were as follows:

	May 31,
	2019
	(Unaudited)
Right-of-use assets in exchange for operating lease obligations	$	78,263
Less: accumulated depreciation		(42,392	)
Right-of-use assets, net		35,871
Lease liability		36,353
Weighted-average remaining lease term (in years)		2
Weighted-average discount rate		2.48	%

Due in 12 months period ended May 31,	May 31,
	2019
	(Unaudited)
2020	$	36,806
Thereafter		-
Less: imputed interest		(453	)
Total lease liability	$	36,353
Current lease liability	$	36,353
Non-current lease liability		-
Total lease liability	$	36,353