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Note 18 - Leases

12 Months Ended

Nov. 30, 2021

18.

LEASES

Operating Leases

The Company has operating leases for real estate in the United States and South Africa and does not have any finance leases.

In 2019, the Company had entered into a real estate lease for office space in Wilmington/Andover, Massachusetts. The Company was involved in the construction and design of the space and incurred construction costs, subject to an allowance for tenant improvements of $0.2 million. The base rent is $0.1 million per year, subject to an annual upward adjustment. The lease commencement date, for accounting purposes, was reached in June 2020 when the Company was granted access to the premises and therefore the lease is included in the Company’s operating lease right-of-use asset and operating lease liabilities as of June 2020. In August 2021, the lease was amended to include additional space and extend the term of the existing space by one year. The new lease expiration date is February 29, 2028.

The Company leased office and warehouse space in South Africa under a lease that expired on November 30, 2020. The base rent was approximately $0.004 million per month. In December 2020, the Company entered into a new lease for office and warehouse space. The lease expires in November 2024. The base rent during the year ended November 30, 2021 was approximately $0.005 million per month. In October 2021, the Company entered into an additional lease in South Africa for a storage facility. The lease expires October 31, 2022.

The Company leased real estate in Fort Wayne Indiana. The lease expires on February 28, 2022. In February 2021, the Company entered into a lease termination agreement with the landlord. Upon termination, the Company was required to pay a termination fee of approximately $0.02 million. In addition, the Company leases warehouse and manufacturing space in Fort Wayne, Indiana. The lease expires on July 31, 2025. The base rent is approximately $0.008 million per month.

The Company also leases office space in Las Vegas, Nevada. The lease expires on August 31, 2022. The base rent is approximately $0.004 million per month.

Certain of the Company’s leases contain options to renew and extend lease terms and options to terminate leases early. Reflected in the right-of-use asset and lease liability on the Company’s balance sheets are the periods provided by renewal and extension options that the Company is reasonably certain to exercise, as well as the periods provided by termination options that the Company is reasonably certain to not exercise.

As of November 30, 2021 and 2020, the elements of lease expense were as follows (in thousands):

	November 30,
	2021			2020
Lease Cost:
Operating lease cost	$	350		$	198
Short-term lease cost		5			25
Variable lease cost		—			9
Total lease cost	$	355		$	232

Other Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	316		$	310
Operating lease liabilities arising from obtaining right-of-use assets	$	191		$	1,336

Operating Leases:
Weighted-average remaining lease term (in years)		4.9			4.9
Weighted-average discount rate		9.2	%		8.4	%

Future lease payments under non-cancelable operating leases as of November 30, 2021 are as follows (in thousands):

Fiscal Year Ended November 30,
2022	$	319
2023		272
2024		280
2025		187
2026		128
Thereafter		170
Total lease payments		1,355
Less: imputed interest		260
Total lease liabilities	$	1,095