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Leases | 6 Months Ended
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Nov. 30, 2022
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 following table presents supplemental balance sheet information related to leases:
(in thousands) | Balance Sheet Location |  | Nov 30, 2022 |  | May 31, 2022
Assets |  |  |  |  |
Operating lease ROU asset | Other assets |  | $ | 5,748 |  |  | $ | 6,974 |
Liabilities |  |  |  |  |
Current operating lease liabilities | Other current liabilities |  | 2,491 |  |  | 2,560 |
Non-current operating lease liabilities | Other long-term liabilities |  | 3,490 |  |  | 4,703 |
Total lease liabilities |  |  | $ | 5,981 |  |  | $ | 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:
| Nov 30, 2022
Weighted average remaining term (in years) | 2.88
Weighted average discount rate | 3.8 | %
The maturities of the lease liabilities for each of the following fiscal years is:
(in thousands) | Nov 30, 2022
Remainder of 2023 | $ | 1,392 |
2024 | 2,189 |
2025 | 1,425 |
2026 | 1,129 |
2027 and thereafter | 171 |
Total lease payments | $ | 6,306 |
Less: Imputed Interest | 325 |
Total lease obligations | $ | 5,981 |
Less: Current portion of lease obligations | 2,491 |
Long-term lease obligations | $ | 3,490 |
During the three months ended November 30, 2022 and 2021, the Company recognized $0.7 million and $0.7 million of operating lease expense, respectively, which includes immaterial short-term leases. During the six months ended November 20, 2022 and 2021, the Company recognized $1.4 million and $1.4 million of operating leases expense, respectively, which includes immaterial short-term leases. The expenses on the Consolidated Statement of Operations were classified as follows:
| Three Months Ended |  | Six Months Ended
(in thousands) | Nov 30, 2022 |  | Nov 30, 2021 |  | Nov 30, 2022 |  | Nov 30, 2021
Cost of sales | $ | 221 |  |  | $ | 218 |  |  | $ | 440 |  |  | $ | 437 |
Research and development | 53 |  |  | 52 |  |  | 104 |  |  | 150 |
Sales and marketing | 41 |  |  | 39 |  |  | 81 |  |  | 79 |
General and administrative | 365 |  |  | 434 |  |  | 725 |  |  | 764 |
| $ | 680 |  |  | $ | 743 |  |  | $ | 1,350 |  |  | $ | 1,430 |
The following table presents supplemental cash flow and other information related to leases for the six months ended:
(in thousands) | Nov 30, 2022 |  | Nov 30, 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 1,384 |  |  | $ | 1,359 |
ROU assets obtained in exchange for lease liabilities |  |  |
Operating leases | $ | — |  |  | $ | — |

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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 http://asc.fasb.org/subtopic&trid=77888251 + Details
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