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LEASES | 12 Months Ended
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May 31, 2023
Leases [Abstract] |
LEASES | LEASES The Company has entered into leases for hosting equipment, office space, and land. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions. The liabilities are split between current and long-term, respectively. The Company presents lease costs as follows:
(in thousands) |  |  | Fiscal Year Ended
Lease Type | Consolidated Statements of Operations Presentation |  | May 31, 2023 |  | May 31, 2022
Operating lease cost: |  |  |  |  |
Operating lease expense | Selling, General and Administrative |  | $ | 347 |  |  | $ | 328 |
Short-term lease expense | Selling, General and Administrative |  | 187 |  |  | 126 |
Sublease Income | Selling, General and Administrative |  | (103) |  |  | (159) |
Total operating lease cost |  |  | $ | 431 |  |  | $ | 295 |
Finance lease expense: |  |  |  |  |
Amortization of ROU assets related to revenue production | Cost of Sales |  | 554 |  |  | 85 |
Amortization of ROU assets not related to revenue production | Depreciation and Amortization Expense |  | 2,782 |  |  | 26 |
Interest on finance leases | Interest Expense |  | 773 |  |  | 50 |
Variable finance lease expense | Selling, General and Administrative |  | 3 |  |  | — |
Total finance lease cost |  |  | $ | 4,112 |  |  | $ | 161 |
Total Lease Cost |  |  | $ | 4,543 |  |  | $ | 456 |
The following table represents the Company’s future minimum lease payments as of May 31, 2023:
(in thousands) |  |  |
Year | Operating Leases | Finance Leases | Total
FY24 | $ | 445 |  | $ | 6,687 |  | $ | 7,132 |
FY25 | 482 |  | 5,429 |  | 5,911 |
FY26 | 495 |  | 348 |  | 844 |
FY27 | 158 |  | 188 |  | 346 |
FY28 | — |  | 180 |  | 180 |
Beyond | — |  | 87,145 |  | 87,145 |
Total | $ | 1,580 |  | $ | 99,977 |  | $ | 101,557 |
Present value of lease liabilities | $ | (255) |  | $ | (85,921) |  | $ | (86,176) |
Less: Current portion of lease liability | $ | 320 |  | $ | 5,722 |  | $ | 6,042 |
Long-term portion of lease liability | $ | 1,005 |  | $ | 8,334 |  | $ | 9,339 |
Supplemental cash flow and other information related to leases is as follows:
| Fiscal Year Ended
| May 31, 2023 | May 31, 2022
Weighted-average years remaining (in years) |  |
Finance leases | 22 | 57
Operating leases | 3 | 4
Weighted-average discount rate |  |
Finance leases | 8 | % | 8 | %
Operating leases | 11 | % | 13 | %
The Company has entered into operating leases signed but not yet commenced with total minimum payments of approximately $83.1 million to support the Company's AI Cloud service business. The payments are expected to be made over a total of 84 months. The Company has entered into finance leases signed but not yet commenced with total minimum payments of approximately $8.5 million. The payments are expected to be made over a total of 30 months.
LEASES | LEASES The Company has entered into leases for hosting equipment, office space, and land. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions. The liabilities are split between current and long-term, respectively. The Company presents lease costs as follows:
(in thousands) |  |  | Fiscal Year Ended
Lease Type | Consolidated Statements of Operations Presentation |  | May 31, 2023 |  | May 31, 2022
Operating lease cost: |  |  |  |  |
Operating lease expense | Selling, General and Administrative |  | $ | 347 |  |  | $ | 328 |
Short-term lease expense | Selling, General and Administrative |  | 187 |  |  | 126 |
Sublease Income | Selling, General and Administrative |  | (103) |  |  | (159) |
Total operating lease cost |  |  | $ | 431 |  |  | $ | 295 |
Finance lease expense: |  |  |  |  |
Amortization of ROU assets related to revenue production | Cost of Sales |  | 554 |  |  | 85 |
Amortization of ROU assets not related to revenue production | Depreciation and Amortization Expense |  | 2,782 |  |  | 26 |
Interest on finance leases | Interest Expense |  | 773 |  |  | 50 |
Variable finance lease expense | Selling, General and Administrative |  | 3 |  |  | — |
Total finance lease cost |  |  | $ | 4,112 |  |  | $ | 161 |
Total Lease Cost |  |  | $ | 4,543 |  |  | $ | 456 |
The following table represents the Company’s future minimum lease payments as of May 31, 2023:
(in thousands) |  |  |
Year | Operating Leases | Finance Leases | Total
FY24 | $ | 445 |  | $ | 6,687 |  | $ | 7,132 |
FY25 | 482 |  | 5,429 |  | 5,911 |
FY26 | 495 |  | 348 |  | 844 |
FY27 | 158 |  | 188 |  | 346 |
FY28 | — |  | 180 |  | 180 |
Beyond | — |  | 87,145 |  | 87,145 |
Total | $ | 1,580 |  | $ | 99,977 |  | $ | 101,557 |
Present value of lease liabilities | $ | (255) |  | $ | (85,921) |  | $ | (86,176) |
Less: Current portion of lease liability | $ | 320 |  | $ | 5,722 |  | $ | 6,042 |
Long-term portion of lease liability | $ | 1,005 |  | $ | 8,334 |  | $ | 9,339 |
Supplemental cash flow and other information related to leases is as follows:
| Fiscal Year Ended
| May 31, 2023 | May 31, 2022
Weighted-average years remaining (in years) |  |
Finance leases | 22 | 57
Operating leases | 3 | 4
Weighted-average discount rate |  |
Finance leases | 8 | % | 8 | %
Operating leases | 11 | % | 13 | %
The Company has entered into operating leases signed but not yet commenced with total minimum payments of approximately $83.1 million to support the Company's AI Cloud service business. The payments are expected to be made over a total of 84 months. The Company has entered into finance leases signed but not yet commenced with total minimum payments of approximately $8.5 million. The payments are expected to be made over a total of 30 months.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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