Note 13 - Leases

6 Months Ended

May 31, 2022

Notes to Financial Statements

Leases [Text Block]

13) Leases

	May 31, 2022		November 30, 2021
Operating lease right-of-use assets (in other assets)	$	41,444		47,794
Current portion of operating lease liabilities (in accrued expenses)	$	12,333		12,863
Long-term portion of operating lease liabilities		29,111		34,931
Total operating lease liabilities	$	41,444		47,794

The Company recorded $5,192 and $10,035 of operating lease costs in the three and six months ended May 31, 2022, respectively, which included variable costs tied to usage, compared to $5,909 and $11,989 for the three and six months ended May 31, 2021.The Company’s operating leases carry a weighted average lease term of 46 months and have a weighted average discount rate of 4.88%

Future maturities of operating lease liabilities are as follows:

Years Ending November 30
2022	7,457
2023	12,345
2024	11,162
2025	9,532
2026	4,764
Total lease payments	45,260
Less imputed interest	(3,816	)
Total operating lease liabilities	41,444

The components of finance leases on the Consolidated Balance Sheets on May 31, 2022 and November 30, 2021 were as follows:

	May 31, 2022		November 30, 2021
Finance lease right-of-use assets (net of amortization in other assets)	$	532,822	$	190,667
Current portion of finance lease liabilities	$	116,311	$	48,591
Long-term portion of finance lease liabilities		425,650		142,386
Total finance lease liabilities	$	541,961	$	190,977

Future maturities of finance lease liabilities as of May 31, 2022 are as follows:

Year Ending November 30,
2022	$	66,725
2023	$	136,991
2024	$	148,374
2025	$	94,548
2026	$	92,964
2027 and thereafter	$	54,268
Total lease payments		593,870
Less imputed interest		(51,909	)
Total finance lease liabilities	$	541,961

The weighted average lease term of the Company’s finance leases are 52 months while the weighted average rate of finance leases is 4.24%. The Company incurred $31,002 and $47,144 of amortization expense from ROU assets related to finance leases in three- and six-months ending May 31, 2022, respectively compared to $0 for the same periods in 2021.

On June 29, 2022 the Company signed a finance lease proposal for a forklift that has 60 monthly payments of $2,432 with a  of $14,575. The forklift will be used at the Agricultural Products segment to transport oversized equipment.

On July 5, 2022, the Company entered into a finance lease agreement for a Haas milling machine for its Tools segment to increase production capacity and efficiency. The finance lease consists of 60 payments of $2,805 per month with a buyout of $16,437 at the end of the lease.