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Note 17 - Leases

6 Months Ended

May 31, 2024

17.

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 Company leases office and warehouse space in South Africa that expires in December 2024.

The Company leases warehouse and manufacturing space in Fort Wayne, Indiana. The lease expires on July 31, 2025. Commencing in August 2022, the Company sub-leased the former Fort Wayne facility. The amount received from the sub-lease is immaterial. In March 2024, the Company terminated the lease and sublease on the former Fort Wayne facility.

The Company also leases office space in Las Vegas, Nevada, which expires on January 31, 2027.

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.

For the three and six months ended May 31, 2024, the elements of lease expense were as follows (in thousands):

	*Three Months Ended*		*Six Months Ended*
	*May 31, 2024*		*May 31, 2024*
Lease Cost:
Operating lease cost	$	243	$	397

Other Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	258	$	426
Operating lease liabilities arising from obtaining right-of-use assets	$	—	$	—

Operating Leases:
Weighted-average remaining lease term (in years)				3.2
Weighted-average discount rate				9.6	%

Future lease payments under non-cancelable operating leases as of May 31, 2024 are as follows (in thousands):

Fiscal Year Ending November 30,
2024 (six months)	$	303
2025		523
2026		527
2027		394
2028		53
Total lease payments		1,800
Less: imputed interest		249
Present value of operating lease liabilities	$	1,551
Operating lease liabilities, current	$	552
Operating lease liabilities, non-current	$	999