XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.24.2

LEASES | 12 Months Ended
--- | ---
May 31, 2024
LEASES |
LEASES | 6. LEASES The Company leases its manufacturing and office space under operating leases. The principal administrative and production facility is located in Fremont, California, in a 51,289 square foot building. The Company entered into a non-cancelable operating lease agreement for its United States manufacturing and office facility, which was amended in December 2022 to extend the lease term to September 2030. The total commitments, net of tenant incentives of up to $0.3 million expected to be received by December 2024, under the modified lease are $8.6 million. The modified lease contains an option to further extend the lease for five years. The lease modification resulted in an increase in the Company’s operating lease right-of-use assets and operating lease liabilities of $5.9 million each in December 2022. The Company leases a 492 square foot sales and support office in Utting, Germany. The lease, which began on February 1, 1992 and expires on January 31, 2025, contains an automatic twelve months renewal. The Company leases a facility in the Philippines located in a 6,458 square foot building in Clark Freeport Zone, Pampanga. The lease, amended in 2023, began on November 1, 2023 and expires on June 30, 2029 with an option to renew for another three or five years at the prevailing market rate. Under the lease agreements, the Company is responsible for payments of utilities, taxes and insurance. The Company has only operating leases for real estate including corporate offices, warehouse space and certain equipment. A lease with an initial term of 12 months or less is generally not recorded on the consolidated balance sheets, unless the arrangement includes an option to purchase the underlying asset, or renew the arrangement that the Company is reasonably certain to exercise. The Company recognizes lease expense on a straight-line basis over the lease term for short-term leases that the Company does not record on its consolidated balance sheets. The Company’s operating leases have remaining lease terms of one year to six years. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of the arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. As of May 31, 2024, the weighted average remaining lease term for the Company’s operating leases was 6.2 years and the weighted average discount rate was 7.58%. The Company’s operating lease cost was $1.2 million, $0.9 million, and $0.8 million for the years ended May 31, 2024, 2023, and 2022, respectively. The following table presents supplemental cash flow information related to the Company’s operating leases:
|  | Year Ended May 31, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Operating cash flows paid for operating leases |  | $ | 916 |  |  | $ | 835 |  |  | $ | 813 |
Right-of-use assets obtained in exchange for operating leases liabilities |  | $ | 318 |  |  | $ | 5,855 |  |  | $ | - |
The following table presents the maturities of the Company’s operating lease liabilities as of May 31, 2024:
(In thousands) |  |  |
Fiscal year |  | Operating Leases |
2025 |  | $ | 921 |
2026 |  |  | 1,244 |
2027 |  |  | 1,284 |
2028 |  |  | 1,316 |
2029 |  |  | 1,361 |
Thereafter |  |  | 1,798 |
Total future minimum operating lease payments |  |  | 7,924 |
Less: imputed interest |  |  | (1,727 | )
Present value of operating lease liabilities |  | $ | 6,197 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration