)

Operating Leases

The Company determines if an arrangement is a lease at inception of a contract. The nature of the Company's operating leases at this time is office equipment, mainly copiers, with terms of

months. Operating leases are included in other assets as operating lease right-of-use (“ROU”) assets on the Condensed Consolidated Balance Sheets while current lease liabilities are included accrued expenses. The long-term portion of operating lease liabilities are shown as long-term liabilities on the Condensed Consolidated Balance Sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value payments over the lease term. As most of the Company's leases do

not

provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The lease terms

may

include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has copier lease agreements with lease and non-lease components and has elected the practical expedient

not

to separate lease and non-lease components for this asset class. The Company has also elected

not

to recognize lease liabilities and ROU assets for short-term leases. The Company recognizes variable costs that depend on usage in profit or loss as they are incurred.

The components of operating leases on the Condensed Consolidated Balance Sheets at

February 28, 2021

were as follows:

	February 28, 2021		November 30, 2020
Operating lease right-of-use assets	$	25,545		27,879

Current portion of operating lease liabilities	$	9,671		9,537
Long-term portion of operating lease liabilities		15,874		18,342
Total operating lease liabilities	$	25,545		27,879

The Company included

$25,545

of operating lease right-of-use assets in other assets as of

February 28, 2021

compared to

$27,879

November 30, 2020.

The current portion of operating lease liabilities of

$9,671

was included in accrued expenses and

$15,874

of long-term operating lease liabilities was included in the long-term liability portion of the Condensed Consolidated Balance Sheets as of

February 28, 2021,

compared to

$9,537

and

$18,342,

respectively, as of

November 30, 2020.

The Company recorded

$6,080

of operating lease costs in the

three

months ended

February 28, 2021,

which included variable costs tied to usage, compared to

$8,151

for the

three

months ended

February

29,

2020.

The Company's operating leases carry a weighted average lease term of

months and have a weighted average discount rate of

5.50%

Future maturities of operating lease liabilities are as follows:

Year Ending November 30,
2021	8,135
2022	10,847
2023	6,911
2024	1,630
Total lease payments	27,524
Less imputed interest	(1,979	)
Total operating lease liabilities	25,545