Leases

3 Months Ended

Nov. 30, 2023

Leases

Leases

Note 5.     Leases

The Company leases its facilities and automobiles under operating lease agreements (one facility is leased from the Trust, which is beneficially owned by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder), which expire on various dates through September 2027 and require minimum rental payments ranging from $1,000 to $22,600 per month. Certain of the leases contain options for renewal under varying terms.

On October 20, 2023, the Company closed escrow on the purchase of the Hunter Property from the Trust for a purchase price of $31,000,000. See Note 7 of the Notes to Consolidated Financial Statements of this Report for further explanation.

Minimum future rental payments under operating leases are as follows:

Years Ending :
2024 (remaining nine months)	$	1,876,000
2025		1,579,000
2026		817,000
2027		424,000
2028		33,000
Thereafter		—
Future minimum lease payments	$	4,729,000
Less interest		(374,000)
Present value of minimum lease payments	$	4,355,000

Operating lease cost under these leases was approximately $832,000 and $836,000 for the three months ended November 30, 2023 and 2022, respectively.

Other information related to operating leases is as follows:

	November 30,		August 31,
	2023		2023
Accrued expenses and other current liabilities	2.5 years		4.3 years
Weighted average remaining lease terms	5.33	%	4.73	%

The discount rate used on the operating right-of-use assets represented the Company’s incremental borrowing rate at lease inception.