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Leases | 12 Months Ended
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May 31, 2023
Leases [Abstract] |
Leases | LEASES The Company determines if an arrangement is a lease at inception of the contract. The Company has operating leases for buildings, primarily for office space, R&D, manufacturing and warehousing. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Many of the lease agreements contain renewal or termination clauses that are factored into the determination of the lease term if it is reasonably certain that these options would be exercised. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company elected the three practical expedients that permit an entity to (a) not reassess whether expired or existing contracts contain leases, (b) not reassess lease classification for existing or expired leases, and (c) not consider whether previously capitalized initial direct costs would be appropriate under the new standard. Further, the Company has elected to not recognize leases with terms of 12 months or less on the balance sheet, and elected to account for lease and non-lease components as a single component for certain classes of assets. The following table presents supplemental balance sheet information related to leases:
(in thousands) | Balance Sheet Location |  | May 31, 2023 |  | May 31, 2022
Assets |  |  |  |  |
Operating lease ROU assets | Other assets |  | $ | 5,113 |  |  | $ | 6,974 |
Liabilities |  |  |  |  |
Current operating lease liabilities | Other current liabilities |  | 1,922 |  |  | 2,560 |
Non-current operating lease liabilities | Other long-term liabilities |  | 3,316 |  |  | 4,703 |
Total lease liabilities |  |  | $ | 5,238 |  |  | $ | 7,263 |
The interest rate implicit in lease agreements is typically not readily determinable, and as such the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rate is defined as the interest the Company would pay to borrow on a collateralized basis, considering factors such as length of lease term. The following table presents the weighted average remaining lease term and discount rate:
| May 31, 2023 |  | May 31, 2022
Weighted average remaining term (in years) | 3.05 |  | 3.25
Weighted average discount rate | 4.1 | % |  | 3.8 | %
The maturities of the lease liabilities for each of the following fiscal years is:
(in thousands) | May 31, 2023
2024 | $ | 2,097 |
2025 | 1,621 |
2026 | 1,329 |
2027 | 375 |
2028 and thereafter | 174 |
Total lease payments | $ | 5,596 |
Less: Imputed Interest | 358 |
Total lease obligations | $ | 5,238 |
Less: Current portion of lease obligations | 1,922 |
Long-term lease obligations | $ | 3,316 |
During the years ended May 31, 2023 and May 31, 2022, the Company recognized operating lease expense, which includes immaterial short-term leases, of $2.7 million and $2.8 million, respectively. The expenses on the Consolidated Statement of Operations were classified as follows:
(in thousands) | May 31, 2023 |  | May 31, 2022
Cost of sales | $ | 881 |  |  | $ | 890 |
Research and development | 193 |  |  | 257 |
Sales and marketing | 162 |  |  | 160 |
General and administrative | 1,458 |  |  | 1,495 |
| $ | 2,694 |  |  | $ | 2,802 |
8 The following table presents supplemental cash flow and other information related to leases:
(in thousands) | May 31, 2023 |  | May 31, 2022
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 2,742 |  |  | $ | 2,723 |
ROU assets obtained in exchange for lease liabilities |  |  |
Operating leases | 840 |  |  | 36 |

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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