Note 12 - Related Party Transactions

9 Months Ended

Aug. 31, 2019

)

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

three

and

nine

months ended

August 31, 2019,

the Company recognized expenses of

$6,624

and

$21,273,

respectively, for transactions with a related party, compared to

$5,957

and

$17,986

for the same respective periods in fiscal

2018.

The accrued expenses balance as of

August 31, 2019

contains

$1,581

due to a related party, compared to

$1,633

for the same period in fiscal

2018.