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Note 18 - Leases

6 Months Ended

May 31, 2023

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 entered into a real estate lease for office space in Andover, Massachusetts. 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 base rent is approximately $0.02 million per month.

The Company leases office and warehouse space in South Africa that expires in December 2024. The base rent is approximately $0.07 million per month.

The Company leases warehouse and manufacturing space in Fort Wayne, Indiana. The lease expires on July 31, 2025. The base rent is approximately $0.01 million per month. In November 2021, the Company entered into a lease which commenced in August 2022. The lease expires on July 31, 2027. The base rent is approximately $0.02 million per month. The Company sub-leases the former Fort Wayne facility which commenced in August 2022. The amount received from the sub-lease is immaterial.

The Company also leases office space in Las Vegas, Nevada, which expires on January 31, 2027. The base rent is less than $0.01 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 May 31, 2023 and 2022, the elements of lease expense were as follows (in thousands):

	*Three Months Ended*		*Six Months Ended*
	*May 31, 2023*		*May 31, 2023*
Lease Cost:
Operating lease cost	$	161	$	321
Short-term lease cost		4		8
Total lease cost	$	165	$	329

Other Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	165	$	327
Operating lease liabilities arising from obtaining right-of-use assets	$	—	$	—

Operating Leases:
Weighted-average remaining lease term (in years)				4.0
Weighted-average discount rate				9.6	%

Future lease payments under non-cancelable operating leases as of May 31, 2023 are as follows (in thousands):

Fiscal Year Ending November 30,
2023 (six months)	$	331
2024		688
2025		585
2026		547
2027		414
Thereafter		65
Total lease payments		2,630
Less: imputed interest		432
Total lease liabilities	$	2,198