Note 12 - Related Party Transactions

3 Months Ended

Feb. 28, 2019

12 )	Related Party Transactions

From time to time, the Company purchases various supplies from related parties, which are companies owned by J. Ward McConnell, Jr., the Company’s Vice Chairman of the Board of Directors. Also, J. Ward McConnell, Jr. as a shareholder owning more than

20%

of the Company’s outstanding stock, was required to guarantee a portion of the Company’s term debt in accordance with the USDA guarantee on the Company’s term loan. Mr. McConnell is paid a monthly fee for his guarantee. During the

first

quarter of fiscal

2019,

the Company recognized expenses of

$8,148

for transactions with a related party, compared to

$5,001

in the

first

quarter of fiscal

2018.

The accrued expenses balance as of

February 28, 2019

contains

$1,452

due to a related party, compared to

$1,663

for the same period

2018.