XML 34 R24.htm IDEA: XBRL DOCUMENT

Note 18 - Leases

9 Months Ended

Aug. 31, 2024

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 Company leases office and warehouse space in South Africa. The Company has exercised its right to extend the lease for an additional year. The lease, which was originally set to expire in December 2024, will now be extended to December 2025.

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.

Commencing in July 2024, the Company entered into a new operating lease for warehouse and retail office space located in Fort Wayne, Indiana. The lease term is for seven years, commencing on July 15, 2024 and expiring on July 14, 2029. As of August 31, 2024, the total right-of-use asset amounting to $0.3 million and the corresponding lease liability of $0.3 million are reflected in the Company's financial statements.

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

Commencing in August 2024, the Company entered into a new operating lease for retail office space located in Salem, New Hampshire. The lease term is for seven years, commencing on August 22, 2024 and expiring on August 21, 2029. As of August 31, 2024, the total right-of-use asset amounting to $0.1 million and the corresponding lease liability of $0.1 million are reflected in the Company's financial statements.

Commencing in August 2024, the Company entered into a new operating lease for retail office space located in Scottsdale, Arizona. The lease term is for ten years, commencing on August 27, 2024 and expiring on July 31, 2032. As of August 31, 2024, the total right-of-use asset amounting to $0.7 million and the corresponding lease liability of $0.7 million are reflected in the Company's financial statements.

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 nine months ended August 31, 2024, the elements of lease expense were as follows (in thousands):

	*Three Months Ended*		*Nine Months Ended*
	*August 31, 2024*		*August 31, 2024*
Lease Cost:
Operating lease cost	$	151	$	459
Total lease cost	$	151	$	459

Other Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	166	$	504
Operating lease liabilities arising from obtaining right-of-use assets	$	1,146	$	1,146

Operating Leases:
Weighted-average remaining lease term (in years)				4.6
Weighted-average discount rate				8.3	%

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

Fiscal Year Ending November 30,
2024 (three months)	$	163
2025		714
2026		747
2027		623
2028		289
Thereafter		555
Total lease payments		3,091
Less: imputed interest		525
Present value of operating lease liabilities	$	2,495
Operating lease liabilities, current	$	596
Operating lease liabilities, non-current	$	1,899