Note 12 - Related Party Transactions

6 Months Ended

May 31, 2022

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

12) Related Party Transactions

During the three and six months ended May 31, 2022, and May 31, 2021, the Company did not recognize any revenues from transactions with a related party, and no amounts in accounts receivable balances were due from a related party. From time to time, the Company purchases various supplies from related parties, which are companies in which Marc McConnell, the Chairman of the Company’s Board of Directors, has an ownership interest and also serves as President. J. Ward McConnell Jr.’s estate, the J. Ward McConnell, Jr. Living Trust, is paid a monthly fee to guarantee a portion of the Company’s term debt in accordance with the USDA guarantee obtained on the Company’s term debt. In the three and six months ended May 31, 2022, the Company recognized $6,203 and $15,552 of expense for transactions with related parties, respectively, compared to $7,992 and $12,661 for the three and six months ended May 31, 2021. As of May 31, 2022, accrued expenses contained a balance of $1,423 owed to a related party compared to $1,483 on May 31, 2021.